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DRAFT OPINION (COM(2025)0555 – C100165/2025 – 2025/0555(COD))

On the proposal for a regulation of the European Parliament and of the Council establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities

ENVI-PA-784252

Committee on the Environment, Climate and Food Safety · Rapporteur: Stine Bosse

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The Committee on the Environment, Climate and Food Safety proposes amendments to the proposed regulation establishing the European Competitiveness Fund (ECF), including the defence research and innovation programme. It adds environmental, climate and circularity conditions across the ECF's objectives, windows and award rules. The amendments raise the Fund's financial envelope to EUR 261 434 260 000 and increase allocations for general objectives, clean transition and decarbonisation, and biotechnology. They add new definitions of competitiveness and new objectives on phasing out fossil fuel imports and subsidies, circularity, water and resource efficiency, and protection of the environment and biodiversity. They require award conditions to protect Union interests, allow temporary and selective supply and content restrictions, and require large recipients to publish transformation plans for the clean transition. They keep the 'do no significant harm' principle applicable, including under accelerated procedures, and add sustainability and energy-efficiency requirements to defence and security support.

Committee position. The committee proposes amendments to the Commission's proposal, adding environmental, climate and circularity conditions, raising the budget, and strengthening sustainability requirements across the ECF's objectives and windows.

Key points

  1. Grants should be reserved for actions that lack viable revenue, such as essential public services, non-commercial research, social investments, environmental protection and health protection.
  2. The ECF should support decarbonisation with a technology-neutral approach and advance a sustainable, circular, energy-, water- and resource-efficient, renewables-based, climate-neutral economy, including the clean transition of SMEs.
  3. A new recital states the ECF should help reduce external dependencies on critical raw materials and fossil fuels and achieve a phase-out of fossil fuel imports and harmful subsidies.
  4. The Clean Transition and Decarbonisation window should finance projects, including LIFE activities, that protect and restore the environment, reduce pollution and halt biodiversity loss.
  5. Digital investment priorities should include sustainable, resource- and energy-efficient technologies, and the ECF should improve cyber security and digital resilience of critical energy infrastructure.
  6. The ECF should support biotechnology and the bioeconomy, including biobased materials, biomanufacturing, innovative food products and biochemicals, and the clean transition of agriculture, fisheries, aquaculture and forestry.
  7. A new definition of 'competitiveness' covers productivity, strategic autonomy and resilience against security, geopolitical, climate and environmental risks, consistent with the clean transition.
  8. The general objective is to strengthen, increase and safeguard the Union's competitiveness, adding sustainable and positive environmental impact, nature-based solutions and circularity.
  9. New objectives cover the shift to a sustainable, circular, climate-neutral economy, water infrastructure, environmental protection and mainstreaming of Union environmental and climate legislation.
  10. The financial envelope for 2028-2034 is set at EUR 261 434 260 000, with EUR 16 000 000 000 for general objectives, EUR 38 658 700 000 for clean transition and decarbonisation, and EUR 30 078 560 000 for biotechnology.
  11. Award procedures shall apply eligibility conditions to protect Union interests, may impose temporary and selective supply and content restrictions, and shall require large recipients to have publicly available transformation plans.
  12. The 'do no significant harm' principle may be verified later under accelerated procedures but shall not be waived, and defence and security support should promote energy efficiency and sustainability.

Who is affected

  • Companies and SMEs in strategic sectors, which face new eligibility conditions and sustainability requirements for ECF support.
  • Energy-intensive industries, which must publish transformation plans for the clean transition to receive support.
  • The defence and security industry, which is encouraged to adopt low-carbon steel, circularity and energy efficiency.
  • Farmers, fishers, aquaculture and forestry operators, whose sectors are targeted for clean transition support.
  • The Commission, which must adopt work programmes with harmonised award criteria and consult stakeholders.

Figures and deadlines

  • EUR 261 434 260 000: the ECF financial envelope for 1 January 2028 to 31 December 2034.
  • EUR 16 000 000 000: allocation for activities contributing to the general objectives.
  • EUR 38 658 700 000: allocation for clean transition and industrial decarbonisation objectives.
  • EUR 30 078 560 000: allocation for biotechnology objectives.
  • EUR 70 000 000 000: maximum budgetary guarantee under the ECF InvestEU Instrument, expected to mobilise around EUR 1 000 000 000 000.
  • EUR 27 000 000 000: minimum Union support delivered through the ECF InvestEU Instrument.
  • 5 calendar years: period after an action during which transfer restrictions apply to recipients.
  • 25 % recycling target of strategic raw materials by 2030 under the Critical Raw Materials Act.