Grants
Article 13
Grants under the CEF shall be awarded and managed in accordance with Title VIII of the Financial Regulation.
Regulation (EU) 2021/1153 CHAPTER III — GRANTS
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Award criteria
Article 14
1. Transparent award criteria shall be laid down in the work programmes referred to in Article 20 and in the calls for proposals, taking into account, to the extent applicable, only the following elements: (a) economic, social and environmental impact, including climate impact (project life cycle benefits and costs), soundness, comprehensiveness and transparency of the analysis; (b) innovation and digitalisation, safety, interoperability and accessibility aspects, including for persons with reduced mobility; (c) cross-border dimension, network integration and territorial accessibility, including for European islands and outermost regions; (d) Union added value; (e) synergies between the transport, energy and digital sectors; (f) maturity of the action in the light of the development of the project; (g) soundness of the maintenance strategy proposed for the project upon completion; (h) soundness of the implementation plan proposed; (i) catalytic effect of Union financial support on investment; (j) need to overcome financial obstacles such as those caused by insufficient commercial viability, high upfront costs or the lack of market finance; (k) potential for dual use in the context of military mobility; (l) consistency with Union and national energy and climate plans, including the “energy efficiency first” principle. 2. The assessment of proposals against the award criteria shall take into account, where relevant, the resilience to the adverse impacts of climate change through a climate vulnerability and risk assessment, including the relevant adaptation measures. 3. The assessment of proposals against the award criteria shall, where relevant, as specified in the work programmes, ensure that actions supported by the CEF that include PNT technology are technically compatible with the Galileo and EGNOS programmes and with the Copernicus programme. 4. As regards actions relating to the transport sector, the assessment of proposals against the award criteria shall, where applicable, ensure that proposed actions are consistent with the corridor work plans and implementing acts pursuant to Article 47 of Regulation (EU) No 1315/2013 and that they take into account the consultative opinion of the responsible European Coordinator pursuant to Article 45(8) thereof. The assessment shall also consider whether the implementation of actions financed by the CEF risks causing disruption to freight and passenger flows on the section of the line concerned by the project and whether those risks have been mitigated. 5. As regards actions relating to cross-border projects in the field of renewable energy, the award criteria shall take into account the conditions laid down in Article 7(4). 6. As regards actions relating to projects of common interest in the field of digital connectivity, the award criteria set out in the work programmes and the calls for proposals shall take into account the criteria laid down in Article 8(4).
Co-financing rates
Article 15
1. For studies, the amount of Union financial support shall not exceed 50 % of the total eligible cost. For studies financed with the amounts transferred from the Cohesion Fund, the maximum co-financing rates shall be those applicable to the Cohesion Fund as specified in paragraph 2, point (c). 2. For works in the transport sector, the following maximum co-financing rates shall apply: (a) for works relating to the specific objectives referred to in Article 3(2), point (a)(i), the amount of Union financial support shall not exceed 30 % of the total eligible cost; however, the co-financing rates may be increased to a maximum of 50 % for the actions: (i) relating to cross-border links under the conditions specified in point (e) of this paragraph; (ii) supporting telematic applications systems; (iii) supporting inland waterways or railway interoperability; (iv) supporting new technologies and innovation; (v) supporting improvements in infrastructure for safety; and (vi) adapting the transport infrastructure for Union external border checks purposes, in accordance with relevant Union law; (b) for works relating to the specific objectives referred to in Article 3(2), point (a)(ii), the amount of Union financial support shall not exceed 50 % of the total eligible cost; however, the co-financing rates may be increased to a maximum of 85 % if the necessary resources are transferred to the CEF pursuant to Article 4(13); (c) as regards the amounts transferred from the Cohesion Fund, the maximum co-financing rates shall not exceed 85 % of the total eligible costs; (d) as regards the amounts from the European Strategic Investment heading of EUR 1 559 800 000, as referred to in Part II, first paragraph, first indent, of the Annex, for the completion of missing major cross-border railway links between Member States eligible for funding from the Cohesion Fund, the maximum co-financing rates shall not exceed 85 % of the total eligible costs; (e) as regards actions relating to cross-border links, the increased maximum co-financing rates provided for in points (a), (c) and (d) of this paragraph may only apply to actions that demonstrate a high degree of integration in the planning and implementation of the action for the purpose of the award criterion referred to in Article 14(1), point (c), for instance through the establishment of a single project company, a joint governance structure, a bilateral legal framework or by an implementing act pursuant to Article 47 of Regulation (EU) No 1315/2013; in addition, the co-financing rate applicable to projects carried out by integrated management structures, including joint ventures, in accordance with Article 11(2), point (a), may be increased by 5 %. 3. For works in the energy sector, the following maximum co-financing rates shall apply: (a) for works relating to the specific objectives referred to in Article 3(2), point (b), the amount of Union financial support shall not exceed 50 % of the total eligible cost; (b) the co-financing rates may be increased to a maximum of 75 % of the total eligible cost for actions contributing to the development of projects of common interest which, based on the evidence referred to in Article 14(2) of Regulation (EU) No 347/2013, provide a high degree of regional or Union-wide security of supply, strengthen the solidarity of the Union or offer highly innovative solutions. 4. For works in the digital sector, the following maximum co-financing rates shall apply: for works relating to the specific objectives referred to in Article 3(2), point (c), the amount of Union financial support shall not exceed 30 % of the total eligible cost. The co-financing rates may be increased: (a) up to 50 % for actions with a strong cross-border dimension, such as uninterrupted coverage with 5G systems along major transport paths or deployment of backbone networks between Member States and between the Union and third countries; and (b) up to 75 % for actions implementing the Gigabit connectivity of socioeconomic drivers. Actions providing local wireless connectivity in local communities, when implemented via low value grants, may be funded by Union financial support covering up to 100 % of the eligible costs, without prejudice to the principle of co-financing. 5. The maximum co-funding rate applicable to actions referred to in Article 10(1) shall be the highest maximum co-funding rate applicable to the sectors concerned. In addition, the co-financing rate applicable to those actions may be increased by 10 %. 6. In each of the transport, energy and digital sectors, as regards works undertaken in outermost regions, a specific maximum co-funding rate of 70 % shall apply.
Eligible costs
Article 16
The following cost-eligibility criteria shall apply, in addition to the criteria set out in Article 186 of the Financial Regulation: (a) only expenditure incurred in Member States is eligible, except where the project of common interest or cross-border projects in the field of renewable energy involves the territory of one or more third countries as referred to in Article 5 or Article 11(4) of this Regulation or international waters, and where the action is indispensable to the achievement of the objectives of the project concerned; (b) the cost of equipment, facilities and infrastructure which is treated as capital expenditure by the beneficiary is eligible up to its entirety; (c) expenditure related to the purchase of land is not an eligible cost, except for funds transferred from the Cohesion Fund in the transport sector in accordance with Article 64 of Regulation (EU) 2021/1060; (d) eligible costs shall not include value added tax.
Combination of grants with other sources of financing
Article 17
1. Grants may be used in combination with financing from the European Investment Bank or National Promotional Banks or other development and public financial institutions, as well as from private-sector finance institutions and private-sector investors, including through public private partnerships. 2. The use of grants referred to in paragraph 1 may be implemented through dedicated calls for proposals.
Reduction or termination of the grants
Article 18
1. In addition to the grounds specified in Article 131(4) of the Financial Regulation, the amount of the grant may, except in duly justified cases, be reduced on the following grounds: (a) for studies, the action has not started within one year following the starting date indicated in the grant agreement; (b) for works, the action has not started within two years following the starting date indicated in the grant agreement; (c) following a review of the progress of the action, it is established that the implementation of the action has suffered such major delays that the objectives of the action are unlikely to be achieved; 2. The grant agreement may be amended or terminated on the basis of the grounds specified in paragraph 1. 3. Before any decision regarding the reduction or termination of a grant is taken, the case shall be examined comprehensively and the beneficiaries concerned shall be given the possibility to submit their observations within a reasonable time-frame. 4. Available commitment appropriations resulting from the application of paragraph 1 or 2 of this Article shall be distributed to other work programmes proposed under the corresponding financial envelope set out in Article 4(2).
Cumulative and alternative funding
Article 19
1. An action that has received a contribution under the CEF may also receive a contribution from another Union programme, including funds under shared management, provided that the contributions do not cover the same costs. The rules of the relevant Union programme shall apply to the corresponding contribution to the action. The cumulative funding shall not exceed the total eligible costs of the action. The support from the different Union programmes may be calculated on a pro-rata basis in accordance with the documents setting out the conditions for support. 2. The Seal of Excellence label shall be awarded to actions which comply with the following cumulative conditions: (a) they have been assessed in a call for proposals under the CEF; (b) they comply with the minimum quality requirements of that call for proposals; (c) they cannot be financed under that call for proposals due to budgetary constraints. It shall be possible for actions that have been awarded a Seal of Excellence label in accordance with the first subparagraph to receive support from the ERDF in accordance with Article 67(5) of Regulation (EU) 2021/1060 or from the Cohesion Fund, without any further assessment, and provided that such actions are consistent with the objectives and rules of the Fund concerned.
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