On discharge in respect of the implementation of the budget of the Circular Bio-based Europe Joint Undertaking for the financial year 2022
CONT-PR-753488
Committee on Budgetary Control · Rapporteur: Michal Wiezik
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This draft report by the Committee on Budgetary Control proposes a decision on discharge for the Circular Bio-based Europe Joint Undertaking's 2022 budget and on closing its accounts.¶¶¶ It notes the Court of Auditors found the accounts fair and the transactions legal and regular, but flags concerns over low private members' contributions and budget execution.¶¶¶ It agrees with the Court that the Joint Undertaking should set a time-scheduled action plan for finishing projects under previous multiannual frameworks and monitor private members' contributions annually.¶¶
Committee position. The rapporteur proposes that Parliament grant discharge to the Interim Executive Director for the 2022 budget and approve the closure of the 2022 accounts, while setting out observations in the accompanying resolution.¶¶¶
Key points
- The draft proposes granting discharge to the Interim Executive Director for the 2022 budget and approving the closure of the 2022 accounts.¶¶
- It notes the Court found the 2022 annual accounts fair and the underlying transactions legal and regular.¶
- It records the 2022 budget of EUR 264.2 million in commitment appropriations and EUR 80.3 million in payment appropriations, with execution of EUR 125 million (47%) and EUR 52 million (65%).¶
- It notes no grants were signed under CBE JU's mandate, while 142 grants worth EUR 822 million were signed under the predecessor BBI JU.¶
- It notes the JU fully committed the maximum EU operational contribution of EUR 815.8 million for Horizon 2020 grant agreements, with around EUR 94 million still to be paid.¶
- It notes with concern that private members will not meet their indicative contribution target for Horizon 2020 operational activities, and the Court rated the risk to programme implementation as medium.¶¶
- It notes private members had legally committed EUR 258.4 million (54% of the EUR 475.3 million indicative target) and reported EUR 154.7 million (32.5%).¶
- It notes the JU cancelled around EUR 8.2 million of signed projects due to termination and suspension of Horizon 2020 projects.¶
- It notes the private members' overall contribution target of EUR 2 730 million was revised to EUR 2 235.5 million for in-kind contributions to additional activities, with EUR 1 797.9 million (73.8%) reported.¶
- It agrees with the Court that CBE should establish a time-scheduled action plan for finalising projects under previous multiannual frameworks and monitor private members' contributions annually.¶¶
- It notes the JU reported a representative error rate of 1.9% and a residual error rate of 1.2% for Horizon 2020 expenditure, and appreciates its risk-based ex-post audit approach.¶¶
- It notes the JU Programme Office had 26 staff by end-2022, with 50% female representation in management positions.¶¶
Who is affected
- The Circular Bio-based Europe Joint Undertaking and its Interim Executive Director, who would receive discharge.¶
- Private members of the Joint Undertaking, whose contributions fall short of targets.¶¶
- The Bio-based Industries Consortium, which proposed further investment of EUR 416 million for additional activities in 2023.¶
Figures and deadlines
- EUR 264.2 million in commitment appropriations and EUR 80.3 million in payment appropriations for 2022.¶
- EUR 125 million (47% execution) in commitment appropriations and EUR 52 million (65% execution) in payment appropriations.
- 142 grants signed under BBI JU for a total value of EUR 822 million.¶
- Maximum EU operational contribution of EUR 815.8 million for Horizon 2020 grant agreements, with around EUR 94 million (11.5%) still to be paid.¶
- Private members' indicative target of EUR 475.3 million, with EUR 258.4 million (54%) legally committed and EUR 154.7 million (32.5%) reported.¶
- Around EUR 8.2 million of signed projects cancelled.¶
- Overall private members' contribution target of EUR 2 730 million, revised to EUR 2 235.5 million for in-kind contributions to additional activities, with EUR 1 797.9 million (73.8%) reported.¶
- Representative error rate of 1.9% and residual error rate of 1.2% for Horizon 2020 expenditure.¶
Legal basis: Article 319 of the Treaty on the Functioning of the European Union.¶¶