Production of heat/cool from fossil gaseous fuels in an efficient district heating and cooling system

✓ Climate mitigation

1. The activity meets either of the following criteria:Life-cycle GHG emissions from the generation of heat/cool from gaseous fuels are lower than 100 g CO2e/kWh. Life-cycle GHG emission savings are calculated using Recommendation 2013/179/EU or, alternatively, using ISO 14067:2018 or ISO 14064-1:2018. Quantified life-cycle GHG emissions are verified by an independent third party. Where facilities incorporate any form of abatement, including carbon capture or use of renewable or low-carbon gases, that abatement activity complies with the relevant Sections of the applicable Delegated Act, where applicable. Where the CO2 emitted from the electricity generation is captured, the CO2 shall meet the emissions limit set out in point 1 of this Section and shall be transported and stored underground in a way that meets the technical screening criteria for transport of CO2 and storage of CO2 set out in Sections 5.11 and 5.12, respectively of the applicable Delegated Act.facilities for which the construction permit is granted by 31 December 2030 comply with all of the following:the thermal energy generated by the activity is used in an efficient district heating and cooling system as defined in Directive 2012/27/EU;the direct GHG emissions of the activity are lower than 270 g CO2e/kWh of the output energy;the heat/cool to be replaced cannot be generated from renewable energy sources, based on a comparative assessment with the most cost-effective and technically feasible renewable alternative for the same capacity identified; the result of this comparative assessment is published and is subject to a stakeholder consultation;the activity replaces an existing high emitting heating/cooling activity using solid or liquid fossil fuel;the newly installed production capacity does not exceed the capacity of the replaced facility;the facility is designed and constructed to use renewable and/or low-carbon gaseous fuels and the switch to full use of renewable and/or low-carbon gaseous fuels takes place by 31 December 2035, with a commitment and verifiable plan approved by the management body of the undertaking;the replacement leads to a reduction in emissions of at least 55% GHG per kWh of output energy;the refurbishment of the facility does not increase production capacity of the facility;where the activity takes place on the territory of a Member State in which coal is used for energy generation, that Member State has committed to phase-out the use of energy generation from coal and has reported this in its integrated national energy and climate plan referred to in Article 3 of Regulation (EU) 2018/1999 or in another instrument.Compliance with the criteria referred to in point 1(b) is verified by an independent third party. The independent third-party verifier has the necessary resources and expertise to perform such verification. The independent third party verifier does not have any conflict of interest with the owner or the funder, and is not be involved in the development or operation of the activity. The independent third party verifier carries out diligently the verification of compliance with the technical screening criteria. In particular, every year the independent third party publishes and transmits to the Commission a report:certifying the level of direct GHG emissions referred to in point 1(b)(ii); assessing whether the activity is on a credible trajectory to comply with point 1(b)(vi).On the basis of the reports transmitted to it, the Commission may address an opinion to the operators concerned. The Commission shall take those reports into account when performing the review referred to in Article 19(5) of Regulation (EU) 2020/852. The activity meets either of the following criteria:at construction, measurement equipment for monitoring of physical emissions, such as those from methane leakage, is installed or a leak detection and repair program is introduced;at operation, physical measurement of emissions are reported and any leak is eliminated.

✓ 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:(a) 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;(b) 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;(c) 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:(a) 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;(b) 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(402) consistent with the expected lifetime of the activity, including, at least, 10 to 30 year 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(403), scientific peer-reviewed publications and open source(404) or paying models.4. The adaptation solutions implemented:(a) 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;(b) favour nature-based solutions(405) or rely on blue or green infrastructure(406) to the extent possible;(c) are consistent with local, sectoral, regional or national adaptation plans and strategies;(d) are monitored and measured against pre-defined indicators and remedial action is considered where those indicators are not met;(e) 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.