Close to market research, development and innovation

✓ Climate mitigation

1. The activity researches, develops or provides innovation for technologies, products or other solutions that are dedicated to one or more economic activities for which the technical screening criteria have been set out in this Annex. 2. The results of the research, development and innovation enable one or more of those economic activities to meet the respective criteria for substantial contribution to climate change mitigation, while respecting the relevant criteria for doing no significant harm to other environmental objectives.3. The economic activity aims at bringing to market a solution that is not yet in the market and is expected to have a better performance in terms of life-cycle GHG emissions than best commercially available technologies based on public or market information. The implementation of the technologies, products or other solutions being researched results in overall net GHG emissions reductions over their life cycle.4. Where the researched, developed or innovated technology, product or other solution already enables an activity or several activities addressed in this Annex to meet the technical screening criteria specified in the applicable Section of the applicable Delegated Act, or where that technology, product or other solution already enables one or more economic activities considered as enabling or transitional to meet the requirements specified in points 5 and 6 respectively, the research, development and innovation activity focuses on the development of equally low- or lower-emission technologies, products or other solutions with new significant advantages, such as lower cost.5. Where a research activity is dedicated to one or more economic activities considered as enabling activities in accordance with Article 10(1), point (i), of Regulation EU 2020/852 for which the technical screening criteria are set out in this Annex, the results of the research deliver innovative technologies, processes or products that allow those enabling activities and the activities that they ultimately enable to substantially reduce their GHG emissions or substantially improve their technological and economic feasibility in order to facilitate their scaling up.6. Where a research activity is dedicated to one or more economic activities considered as transitional activities in accordance with Article 10(2) of Regulation EU 2020/852 for which the technical screening criteria are set out in this Annex, the technologies, products or other solutions researched enable the target activities to be carried out with substantially lower projected emissions compared to the technical screening criteria for substantial contribution to climate change mitigation set out in this Annex.Where a research activity is dedicated to one or more economic activities specified in Sections 3.7, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14 and 3.16 of the applicable Delegated Act, the technologies, products or other solutions either enable the target activities to be carried out with substantially lower GHG emission, which aim at a 30% reduction compared to the relevant EU ETS benchmark or benchmarks(385) or are dedicated to the widely accepted relevant low carbon technologies or processes in these sectors, notably electrification , in particular of heating and cooling, hydrogen as fuel or feedstock, CCS, CCU and biomass as fuel or feedstock, where biomass complies with the relevant requirements set out in Sections 4.8, 4.20, 4.24 in this Annex.7. Where the researched, developed or innovated technology, product or other solution is at TRL 6 or 7, life-cycle GHG emissions are evaluated in simplified form by the entity carrying out the research. The entity demonstrates one of the following, where applicable:a patent not older than 10 years associated with the technology, product or other solution, where information on its GHG emission reduction potential has been provided;a permit obtained from a competent authority for operating the demonstration site associated with the innovative technology, product or other solution for the duration of the demonstration project, where information on its GHG emission reduction potential has been provided.Where the researched, developed or innovated technology, product or other solution is at TRL 8 or higher, life-cycle GHG emissions are calculated using Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018(386) or ISO 14064-1:2018(387) and are verified by an independent third party.

✓ Climate adaptation

1. The economic activity researches, innovates or develops solutions, technologies, products, processes or business models, including nature based and nature inspired solutions(699), dedicated to enable one or more activities for which the technical screening criteria have been specified in this Annex to meet the respective criteria for substantial contribution to climate change adaptation to increase their climate-resilience, while respecting the relevant criteria for doing no significant harm to other environmental objectives. 2. Where the researched, developed or innovated technology, product or other solution already enables an activity or several activities addressed in this Annex to meet their technical screening criteria for substantial contribution, the research, development and innovation activity focuses on the delivery of technologies, products or other solutions with new significant advantages, such as better performance or lower cost.3. The economic activity removes information, financial, technological and capacity barriers to adaptation through new or improved solutions, technologies, products, processes or business models, including nature based solutions. 4. The economic activity has the potential to reduce material impacts due to climate risks identified through a robust climate risk assessment in another economic activity through the development, research, or innovation of solutions, technologies, products, processes or business models, the risk reduction potential of which has at least been demonstrated in an operational environment(700) at pre-commercial scale and are further substantiated through at least one of the following elements:the first use of a patent not older than 10 years associated with the solution, technology, product, process or business model;other forms of intellectual property rights associated with the solution, technology, product, process or business model, such as trade secrets, trademarks or copyrights;a permit obtained from a competent authority for operating the demonstration site associated with the solution, technology, product, process or business model for the duration of the demonstration project. 4. The economic activity uses state-of-art climate projections and assessment of impacts, the best available science for vulnerability and risk analysis and related methodologies in accordance with the most recent Intergovernmental Panel on Climate Change reports and scientific peer-reviewed publications as a benchmark for the solutions, technologies, products, processes or business models it develops.