Afforestation

✓ Climate mitigation

1. Afforestation plan and subsequent forest management plan or equivalent instrument1.1. The area on which the activity takes place is covered by an afforestation plan of a duration of at least five years, or the minimum period prescribed in national law, developed prior to the start of the activity and continuously updated, until this area matches the definition of forest as set out in national law or where not available, is in line with the FAO definition of forest.The afforestation plan contains all elements required by the national law relating to environmental impact assessment of afforestation. 1.2 Preferably through the afforestation plan, or if information is missing, through any other document, detailed information is provided on the following points:description of the area according to its gazetting in the land registry;site preparation and its impacts on pre-existing carbon stocks, including soils and above-ground biomass, in order to protect land with high carbon stock(3);management goals, including major constraints;general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution;compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;measures deployed to establish and maintain the good condition of forest ecosystems;consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks;assessment of impact on food security;all DNSH criteria relevant to afforestation.1.3. When the area becomes a forest, the afforestation plan is followed by a subsequent forest management plan or an equivalent instrument, as set out in national law or, where national law does not define a forest management plan or equivalent instrument, as referred to in the FAO definition of ‘forest area with long-term forest management plan’(4). The forest management plan or the equivalent instrument covers a period of 10 years or more and is continuously updated. 1.4 Information is provided on the following points that are not already documented in the forest management plan or equivalent system: management goals, including major constraints(5);general strategies and activities planned to reach the management goals, including expected operations over the whole forest cycle;definition of the forest habitat context, including main existing and intended forest tree species, and their extent and distribution;definition of the area according to its gazetting in the land registry;compartments, roads, rights of way and other public access, physical features including waterways, areas under legal and other restrictions;measures deployed to maintain the good condition of forest ecosystems;consideration of societal issues (including preservation of landscape, consultation of stakeholders in accordance with the terms and conditions laid down in national law);assessment of forest related risks, including forest fires, and pests and diseases outbreaks, with the aim of preventing, reducing and controlling the risks and measures deployed to ensure protection and adaptation against residual risks;all DNSH criteria relevant to forest management.1.5. The activity follows the best afforestation practices laid down in national law, or, where no such best afforestation practices have been laid down in national law, the activity complies with one of the following criteria:the activity complies with Commission Delegated Regulation (EU) No 807/2014(6);the activity follows the “Pan-European Guidelines for Afforestation and Reforestation with a special focus on the provisions of the UNFCCC”(7).1.6. The activity does not involve the degradation of land with high carbon stock(8) .1.7. The management system associated with the activity in place complies with the due diligence obligation and legality requirements laid down in Regulation (EU) No 995/2010 of the European Parliament and of the Council(9).1.8. The afforestation plan and the subsequent forest management plan or equivalent instrument provide for monitoring that ensures the correctness of the information contained in the plan, in particular as regards the data relating to the involved area.2. Climate benefit analysis2.1. For areas that comply with the requirements at forest sourcing area level to ensure that carbon stocks and sinks levels in the forest are maintained or strengthened over the long term in accordance with Article 29(7), point (b), of Directive (EU) 2018/2001 the activity complies with the following criteria:the climate benefit analysis demonstrates that the net balance of GHG emissions and removals generated by the activity over a period of 30 years after the beginning of the activity is lower than a baseline, corresponding to the balance of GHG emissions and removals over a period of 30 years starting at the beginning of the activity, associated to the business-as-usual practices that would have occurred on the involved area in the absence of the activity;long-term climate benefits are considered demonstrated by proof of alignment with Article 29(7), point (b), of Directive (EU) 2018/2001.2.2. For areas that do not comply with the requirements at forest sourcing area level to ensure that carbon stocks and sinks levels in the forest are maintained or strengthened over the long term in accordance with Article 29(7), point (b), of Directive (EU) 2018/2001 the activity complies with the following criteria:the climate benefit analysis demonstrates that the net balance of GHG emissions and removals generated by the activity over a period of 30 years after the beginning of the activity is lower than a baseline, corresponding to the balance of GHG emissions and removals over a period of 30 years starting at the beginning of the activity, associated to the business-as-usual practices that would have occurred on the involved area in the absence of the activity.the projected long-term average net GHG balance of the activity is lower than the long-term average GHG balance projected for the baseline, referred to in point 2.2, where long term corresponds to the longer duration between 100 years and the duration of an entire forest cycle.2.3. The calculation of climate benefit complies with all of the following criteria:the analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories(10). The climate benefit analysis is based on transparent, accurate, consistent, complete and comparable information, covers all carbon pools impacted by the activity, including above-ground biomass, below-ground biomass, deadwood, litter and soil, relies on the most conservative assumptions for calculations and includes appropriate considerations about the risks of non-permanence and reversals of carbon sequestration, the risk of saturation and the risk of leakage.the business as-usual practices, including harvesting practices, are ones of the following:the management practices as documented in the latest version of the forest management plan or equivalent instrument before the start of the activity, if any; the most recent business-as-usual practices prior to the start of the activity;the practices corresponding to a management system ensuring that carbon stocks and sinks levels in the forest area are maintained or strengthened over the long term as set out in Article 29(7), point (b), of Directive (EU) 2018/2001.the resolution of the analysis is proportionate to the size of the area concerned and values specific to the area concerned are used.emissions and removals that occur due to natural disturbances, such as pests and diseases infestations, forest fires, wind, storm damages, that impact the area and cause underperformance do not result in non-compliance with Regulation (EU) 2020/852, provided that the climate benefit analysis is consistent with the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories regarding emissions and removals due to natural disturbances.2.4. Forest holdings under 13ha are not required to perform a climate benefit analysis.3. Guarantee of permanence3.1. In accordance with national law, the forest status of the area in which the activity takes place is guaranteed by one of the following measures:the area is classified in the permanent forest estate as defined by the FAO(11);the area is classified as a protected area;the area is the subject of any legal or contractual guarantee ensuring that it will remain a forest.3.2. In accordance with national law, the operator of the activity commits that future updates to the afforestation plan and the subsequent forest management plan or equivalent instrument, beyond the activity that is financed, will continue to seek the climate benefits as determined in point 2. Besides, the operator of the activity commits to compensate any reduction in the climate benefit determined in point 2 with an equivalent climate benefit resulting from the conduct of an activity that corresponds to one of the forestry activities defined in this Regulation.4. AuditWithin two years after the beginning of the activity and every 10 years thereafter, the compliance of the activity with the substantial contribution to climate change mitigation criteria and the DNSH criteria are verified by either of the following:the relevant national competent authorities;an independent third-party certifier, at the request of national authorities or the operator of the activity.In order to reduce costs, audits may be performed together with any forest certification, climate certification or other audit.The independent third-party certifier may not have any conflict of interest with the owner or the funder, and may not be involved in the development or operation of the activity.5. Group assessmentThe compliance with the criteria for substantial contribution to climate change mitigation and with DNSH criteria may be checked:at the level of the forest sourcing area(12) as defined in Article 2, point (30), of Directive (EU) 2018/2001; at the level of a group of holdings sufficiently homogeneous to evaluate the risk of the sustainability of the forest activity, provided that all those holdings have a durable relationship between them and participate in the activity and the group of those holdings remains the same for all subsequent audits.

✓ Climate adaptation

1. The economic activity has implemented physical and non-physical solutions (‘adaptation solutions’) that substantially reduce the most important physical climate risks that are material to that activity.2. The physical climate risks that are material to the activity have been identified from those listed in Appendix A of the applicable Delegated Act by performing a robust climate risk and vulnerability assessment with the following steps: screening of the activity to identify which physical climate risks from the list in Appendix A of the applicable Delegated Act may affect the performance of the economic activity during its expected lifetime;where the activity is assessed to be at risk from one or more of the physical climate risks listed in Appendix A of the applicable Delegated Act, a climate risk and vulnerability assessment to assess the materiality of the physical climate risks on the economic activity;an assessment of adaptation solutions that can reduce the identified physical climate risk.The climate risk and vulnerability assessment is proportionate to the scale of the activity and its expected lifespan, such that: for activities with an expected lifespan of less than 10 years, the assessment is performed, at least by using climate projections at the smallest appropriate scale;for all other activities, the assessment is performed using the highest available resolution, state of-the-art climate projections across the existing range of future scenarios(3) consistent with the expected lifetime of the activity, including, at least, 10 to 30 years climate projections scenarios for major investments.3. The climate projections and assessment of impacts are based on best practice and available guidance and take into account the state-of-the-art science for vulnerability and risk analysis and related methodologies in line with the most recent Intergovernmental Panel on Climate Change reports(4), scientific peer-reviewed publications and open source(5) or paying models.4. The adaptation solutions implemented: do not adversely affect the adaptation efforts or the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities;favour nature-based solutions(6) or rely on blue or green infrastructure(7) to the extent possible; are consistent with local, sectoral, regional or national adaptation plans and strategies;are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;where the solution implemented is physical and consists in an activity for which technical screening criteria have been specified in this Annex, the solution complies with the do no significant harm technical screening criteria for that activity.5. In order for an activity to be considered as an enabling activity as referred to in Article 11(1), point (b), of Regulation (EU) 2020/852, the economic operator demonstrates, through an assessment of current and future climate risks, including uncertainty and based on robust data, that the activity provides a technology, product, service, information, or practice, or promotes their uses with one of the following primary objectives: increasing the level of resilience to physical climate risks of other people, of nature, of cultural heritage, of assets and of other economic activities; contributing to adaptation efforts of other people, of nature, of cultural heritage, of assets and of other economic activities.