In its ongoing quest to ensure consistent environmental sustainability, the European Commission has made public its detailed guidance on the 'do no significant harm' (DNSH) principle, focusing on its application to the Recovery and Resilience Plan (RRP). ).
According to the Regulation establishing the Recovery and Resilience Facility (RRF), it is essential that any measure outlined in an RRP does not go against environmental sustainability objectives, as outlined in Article 17 of the Taxonomy Regulation. This emphasizes the importance for companies to remain in line with environmental standards, ensuring that their actions are not harmful to the environment.
The Commission, with Communication C/2023/111 published on 11 October 2023, provided specific guidance on how this DNSH principle should be applied exclusively in the context of the RRF. This guidance aims to remove any ambiguity by allowing Member States to understand how to demonstrate that the measures proposed in their RRP respect the DNSH principle. This demonstrates the EU's commitment to promoting sustainable business practices, ensuring that post-crisis recovery actions are in harmony with the environment.
The published document is divided into three main sections and accompanied by four annexes. Annex IV, in particular, provides practical examples on how Member States should demonstrate adherence to the DNSH principle in their plans.
1. WHAT IS THE 'DO NOT CAUSE SIGNIFICANT HARM' PRINCIPLE?
2. HOW SHOULD THE DNSH PRINCIPLE BE APPLIED IN THE CONTEXT OF RRF?
3. HOW SHOULD MEMBER STATES CONCRETELY DEMONSTRATE IN THEIR PLANS THAT MEASURES COMPLY WITH THE DNSH PRINCIPLE?
ANNEX I DNSH Checklist
ANNEX II Evidence for the DNSH background assessment required by Part 2 of the checklist
ANNEX III Specific conditions applicable to compliance with the climate change mitigation objective of the DNSH principle in the Recovery and Resilience Facility (RRF) regarding measures for the production of electricity and/or heat from natural gas and related transmission/transport and distribution infrastructures
ANNEX IV Example evaluation simulations in light of the DNSH principle.
With this initiative, the European Union reiterates its commitment to ensuring that recovery strategies not only foster economic growth, but do so in a sustainable and environmentally friendly way. Companies are therefore encouraged to seriously consider environmental sustainability in their planning and strategy, in order to meet EU environmental objectives and ensure a greener future.
