Retrofitting of sea and coastal freight and passenger water transport

✓ Climate mitigation

1. The activity complies with one or more of the following criteria: the retrofitting activity reduces fuel consumption of the vessel by at least 15 % expressed in grams of fuel per deadweight tons per nautical mile for freight vessels, or per gross tonnage per nautical mile for passenger vessels, as demonstrated by computational fluid dynamics (CFD), tank tests or similar engineering calculations; enables the vessels to attain Energy Efficiency Existing Ships Index (EEXI) value at least 10 % below the EEXI requirements applicable on 1 January 2023 and if the vessels are able to run on zero direct (tailpipe) emission fuels or on fuels from renewable sources(317), and have the ability to plug-in at berth and are equipped with plug-in power technology.2. Vessels are not dedicated to the transport of fossil fuels.

✓ 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(571) 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(572), scientific peer-reviewed publications and open source(573) 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(574) or rely on blue or green infrastructure(575) 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.