Regulation (EU) 2021/1139 of the European Parliament and of the Council of 7 July 2021 establishing the European Maritime, Fisheries and Aquaculture Fund and amending Regulation (EU) 2017/1004

REGULATION (EU) 2021/1139 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 7 July 2021 establishing the European Maritime, Fisheries and Aquaculture Fund and amending Regulation (EU) 2017/1004

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 42, Article 43(2), Article 91(1), Article 100(2), Article 173(3), Article 175, Article 188, Article 192(1), Article 194(2), Article 195(2) and Article 349 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee (1),

Having regard to the opinion of the Committee of the Regions (2),

Acting in accordance with the ordinary legislative procedure (3),

Whereas:

(1) The European Maritime, Fisheries and Aquaculture Fund (the ‘EMFAF’) should be established for the period from 1 January 2021 to 31 December 2027 in order to align its duration with that of the multiannual financial framework (the ‘MFF 2021-2027’) laid down in Council Regulation (EU, Euratom) 2020/2093 (4). This Regulation should lay down the priorities of the EMFAF, its budget and the specific rules for providing Union funding, complementing the general rules applicable to the EMFAF under Regulation (EU) 2021/1060 of the European Parliament and of the Council (5). The EMFAF should aim to channel funding from the Union budget to support the Common Fisheries Policy (CFP), the Union’s maritime policy and the Union’s international commitments in the field of ocean governance. Such funding is a key enabler for sustainable fisheries and the conservation of marine biological resources, for food security through the supply of seafood products, for the growth of a sustainable blue economy and for healthy, safe, secure, clean and sustainably managed seas and oceans.

(2) As a global ocean actor and one of the world’s largest producers of seafood, the Union has a strong responsibility to protect, conserve and sustainably use the oceans and their resources. Indeed, preserving seas and oceans is vital for a rapidly growing world population. It is also of socio-economic interest for the Union as a sustainable blue economy boosts investments, jobs and growth, fosters research and innovation and contributes to energy security through ocean energy. Moreover, efficient border control and the global fight against maritime crime are essential for safe and secure seas and oceans, thereby addressing citizens’ security concerns.

(3) Regulation (EU) 2021/1060 has been adopted in order to improve the coordination and harmonise the implementation of support from Funds under shared management (the ‘Funds’), with the main aim of simplifying policy delivery in a coherent way. That Regulation applies to the part of the EMFAF under shared management. The Funds pursue complementary objectives and share the same management mode. Therefore, Regulation (EU) 2021/1060 sets out a series of common general objectives and general principles such as partnership and multi-level governance. It also contains the common elements of strategic planning and programming, including provisions on the Partnership Agreement to be concluded with each Member State, and sets out a common approach to the performance orientation of the Funds. Accordingly, it sets out enabling conditions, a performance review and arrangements for monitoring, reporting and evaluation. Furthermore, it sets out common provisions with regard to eligibility rules, and special arrangements are established for financial instruments, for the use of InvestEU established by Regulation (EU) 2021/523 of the European Parliament and of the Council (6), for community-led local development (CLLD) and for financial management. Some management and control arrangements are also common to all the Funds. Complementarities between the Funds, including the EMFAF, and other Union programmes should be described in the Partnership Agreement, in accordance with Regulation (EU) 2021/1060.

(4) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (7) (the ‘Financial Regulation’) applies to the EMFAF. The Financial Regulation lays down rules on the implementation of the Union budget, including the rules on grants, prizes, procurement, indirect management, financial instruments, budgetary guarantees, financial assistance and the reimbursement of external experts.

(5) Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union (TFEU) apply to this Regulation. Those rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, prizes, indirect management, financial instruments, budgetary guarantees, financial assistance and the reimbursement of external experts and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also include a general regime of conditionality for the protection of the Union budget.

(6) Under direct management, the EMFAF should develop synergies and complementarities with other relevant Union funds and programmes. It should also allow financing in the form of financial instruments within blending operations implemented under Regulation (EU) 2021/523.

(7) Support under the EMFAF should have a clear European added value, inter alia, by addressing market failures or suboptimal investment situations in a proportionate manner, and should not duplicate or crowd out private financing or distort competition in the internal market.

(8) Articles 107, 108 and 109 TFEU should apply to the aid granted by Member States to undertakings in the fishery and aquaculture sector under this Regulation. Nevertheless, given the specific characteristics of that sector, those Articles should not apply to payments made by Member States pursuant to this Regulation and falling within the scope of Article 42 TFEU.

(9) The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the priorities set for the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation.

(10) The MFF 2021-2027 provides that the Union budget is to continue to support fisheries and maritime policies. The EMFAF budget should amount, in current prices, to EUR 6 108 000 000. EMFAF resources should be split between shared management and direct and indirect management. EUR 5 311 000 000 should be allocated to support under shared management and EUR 797 000 000 to support under direct and indirect management. In order to ensure stability, in particular with regard to the achievement of the objectives of the CFP, the definition of national allocations under shared management for the 2021-2027 programming period should be based on the 2014-2020 shares under Regulation (EU) No 508/2014 of the European Parliament and of the Council on the European Maritime and Fisheries Fund (8) (the ‘EMFF’). Specific amounts should be reserved for the outermost regions, for control and enforcement, and for collection and processing of data for fisheries management and scientific purposes, while amounts for certain investments in fishing vessels and for permanent and temporary cessation of fishing activities should be capped.

(11) Europe’s maritime sector employs over 5 million people, generating almost EUR 750 000 000 000 in turnover and EUR 218 000 000 000 in gross added value per year, with a potential to create many more jobs. The output of the global ocean economy is estimated at EUR 1 300 000 000 000 today and this could more than double by 2030. The need to meet CO2 emission targets, increase resource efficiency and reduce the environmental footprint of the blue economy has been a significant driving force for innovation in other sectors such as marine equipment, shipbuilding, ocean observation, dredging, coastal protection and marine construction. Investment in the maritime economy has been provided through Union structural funds, in particular the European Regional Development Fund (ERDF) and the EMFAF. New investment tools such as InvestEU could be utilised to meet the growth potential of the maritime sector.

(12) The EMFAF should be based on four priorities: fostering sustainable fisheries and the restoration and conservation of aquatic biological resources; fostering sustainable aquaculture activities, and processing and marketing of fishery and aquaculture products, thus contributing to food security in the Union; enabling a sustainable blue economy in coastal, island and inland areas, and fostering the development of fishing and aquaculture communities; strengthening international ocean governance and enabling seas and oceans to be safe, secure, clean and sustainably managed. Those priorities should be pursued through shared, direct and indirect management.

(13) The EMFAF should be based on a simple architecture without predefining measures and detailed eligibility rules at Union level in an overly prescriptive manner. Instead, broad specific objectives should be described under each priority. Member States should therefore prepare their programmes indicating therein the most appropriate means for achieving those objectives. A variety of measures identified by the Member States in those programmes might be supported under the rules set out in this Regulation and Regulation (EU) 2021/1060, provided they are covered by the specific objectives identified in this Regulation. However, it is necessary to set out a list of ineligible operations so as to avoid detrimental impact in terms of fisheries conservation. Moreover, investments and compensation for the fleet should be strictly conditional upon their consistency with the conservation objectives of the CFP.

(14) The United Nations 2030 Agenda for Sustainable Development (the ‘2030 Agenda’) identified conservation and sustainable use of oceans as one of the 17 Sustainable Development Goals (SDGs), namely SDG 14 (‘Conserve and sustainably use the oceans, seas and marine resources for sustainable development’). The Union is fully committed to that goal and its implementation. In that context, it has committed to promote a sustainable blue economy which is consistent with maritime spatial planning, the conservation of biological resources and the achievement of a good environmental status as set out in Directive 2008/56/EC of the European Parliament and of the Council (9), as well as to prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, to eliminate subsidies that contribute to illegal, unreported and unregulated (IUU) fishing and to refrain from introducing new such subsidies. The latter outcome should result from the negotiations within the World Trade Organisation (WTO) on fisheries subsidies. In addition, in the course of the WTO negotiations at the 2002 World Summit of Sustainable Development and at the 2012 United Nations Conference on Sustainable Development (Rio+20), the Union has committed to eliminate subsidies contributing to fisheries overcapacity and overfishing.

(15) Reflecting the importance of tackling climate change in line with the Union’s commitments to implement the Paris Agreement, and the commitment to the United Nations Sustainable Development Goals, the actions under this Regulation should contribute to the achievement of a 30 % target of all expenditure under the MFF 2021-2027 spent on mainstreaming climate objectives and should contribute to the ambition of providing 7,5 % of annual spending under the MFF 2021-2027 to biodiversity objectives in 2024 and 10 % of annual spending under the MFF 2021-2027 to biodiversity objectives in 2026 and 2027, while considering the existing overlaps between climate and biodiversity goals.

(16) The EMFAF should contribute to the achievement of the environmental and climate change mitigation and adaptation objectives of the Union. That contribution should be tracked through the application of Union environmental and climate markers and reported regularly in accordance with Regulation (EU) 2021/1060.

(17) In accordance with Article 42 of Regulation (EU) No 1380/2013 of the European Parliament and of the Council (10), Union financial assistance under the EMFAF should be conditional upon compliance with the rules of the CFP. Applications from operators that have committed serious infringements of the rules of the CFP should not be admissible.

(18) In order to address the specific conditions of the CFP referred to in Regulation (EU) No 1380/2013 and to contribute to compliance with the rules of the CFP, provisions additional to the rules on interruption, suspension and financial corrections as set out in Regulation (EU) 2021/1060 should be laid down. Where a Member State has failed to comply with its obligations under the CFP, or where the Commission has evidence that suggests such lack of compliance, the Commission should, as a precautionary measure, be allowed to interrupt payment deadlines. In addition to the possibility of interruption of the payment deadline, and in order to avoid an evident risk of paying out ineligible expenditure, the Commission should be allowed to suspend payments and impose financial corrections in cases of serious non-compliance with the rules of the CFP by a Member State.

(19) Steps have been taken over the last few years towards bringing fish stocks back to healthy levels, towards increasing the profitability of the Union’s fishing industry and towards conserving marine ecosystems. However, substantial challenges remain to fully achieve the socio-economic and environmental objectives of the CFP, in particular the objectives of restoring and maintaining populations of harvested species above levels which can produce the maximum sustainable yield (MSY), of eliminating unwanted catches and of establishing fish stock recovery areas. Achieving those objectives requires continued support beyond 2020, particularly in sea basins where progress has been slower.

(20) The EMFAF should contribute to achieving the environmental, economic, social and employment objectives of the CFP, as set out in Article 2 of Regulation (EU) No 1380/2013, in particular the objectives of restoring and maintaining populations of harvested species above levels which can produce MSY, of avoiding and reducing, as far as possible, unwanted catches and of minimising the negative impact of fishing activities on the marine ecosystem. Such support should ensure that fishing activities are environmentally sustainable in the long term and are managed in a way that is consistent with the objectives set out in Article 2 of Regulation (EU) No 1380/2013, with a view to achieving economic, social and employment benefits, contributing to the availability of healthy food supplies and contributing to a fair standard of living for those who depend on fishing activities, bearing in mind coastal fisheries and socio-economic aspects. That support should include innovation and investments in low-impact, selective, climate-resilient and low-carbon fishing practices and techniques.

(21) Fisheries are vital to the livelihood and cultural heritage of many coastal communities in the Union, in particular where small-scale coastal fishing plays an important role. With the average age in many fishing communities being over 50, generational renewal and diversification of activities remain a challenge. In particular, the creation and development of new economic activities in the fisheries sector by young fishers is financially challenging and constitutes an element that should be considered in the allocation and targeting of funds under the EMFAF. Such development is essential for the competitiveness of the fisheries sector in the Union. Consequently, support for young fishers starting up fishing activities should be made available in order to facilitate their establishment. In order to ensure the viability of new economic activities supported under the EMFAF, support should be made conditional upon the acquisition of adequate experience or qualifications. Where support for business start-up is granted for the acquisition of a fishing vessel, it should only contribute to the acquisition of the first fishing vessel or of a controlling share thereof.

(22) Avoiding unwanted catches is one of the main challenges of the CFP. In that respect, the legal obligation to land all catches has entailed significant and important changes in fishing practices for the sector, sometimes with an important financial cost. It should therefore be possible for the EMFAF to support innovation and investments that contribute to the full implementation of the landing obligation, as well as the development and implementation of conservation measures contributing to selectivity. It should be possible to grant a higher aid intensity rate to investments in selective fishing gear, in the improvement of port infrastructures and in the marketing of unwanted catches, than the one that applies to other operations. It should also be possible to grant a maximum aid intensity rate of 100 % to the design, development, monitoring, evaluation and management of transparent systems for exchanging fishing opportunities between Member States (‘quota swaps’), in order to mitigate the ‘choke species’ effect caused by the landing obligation.

(23) It should be possible for the EMFAF to support innovation and investments on board Union fishing vessels. That support should include actions which aim to improve health, safety and working conditions, energy efficiency and the quality of catches. It should not include the acquisition of equipment that increases the ability of a fishing vessel to find fish. Such support should also not lead to an increase in fishing capacity of any individual vessel, except if it directly results from an increase in gross tonnage of a fishing vessel that is necessary for improving safety, working conditions or energy efficiency. In those cases, the increase in fishing capacity of the individual vessel should be compensated for by the prior withdrawal of at least the same amount of fishing capacity without public aid from the same fleet segment or from a fleet segment where the fishing capacity is not in balance with the available fishing opportunities, in order not to lead to any increase in fishing capacity at fleet level. Moreover, support should not be granted simply for complying with requirements that are obligatory under Union law, with the exception of requirements imposed by a Member State to give effect to optional provisions under Council Directive (EU) 2017/159 (11) and in relation to the purchase, installation and management of certain equipment for control purposes. Under an architecture without prescriptive measures, it should be up to Member States to lay down the precise eligibility rules for those investments. With regard to health, safety and working conditions on board fishing vessels, a higher aid intensity rate than the one that applies to other operations should be allowed.

(24) It is necessary to establish specific eligibility rules for certain other investments supported by the EMFAF in the fishing fleet, so as to prevent those investments from contributing to overcapacity or overfishing. In particular, support for the first acquisition of a second-hand vessel by a young fisher and for the replacement or the modernisation of the engine of a fishing vessel should also be subject to conditions, including that the vessel belongs to a fleet segment which is in balance with the fishing opportunities available to that segment and that the new or modernised engine does not have more power in kilowatts (kW) than that of the engine being replaced.

(25) Investment in human capital plays an essential role in the competitiveness and economic performance of the fishery, aquaculture and maritime sectors. Therefore, it should be possible for the EMFAF to support advisory services, cooperation between scientists and fishers, professional training, lifelong learning, as well as the promotion of social dialogue and the dissemination of knowledge.

(26) Fisheries control is of the utmost importance for the implementation of the CFP. Therefore, the EMFAF should support, under shared management, the development and implementation of a Union fisheries control system as set out in Council Regulation (EC) No 1224/2009 (12). Certain obligations established in that Regulation justify specific support from the EMFAF, namely compulsory vessel tracking and electronic reporting systems, compulsory remote electronic monitoring systems and the compulsory continuous measurement and recording of propulsive engine power. In addition, investments by Member States in control assets could also be used for the purposes of maritime surveillance and cooperation on coast guard functions.

(27) The success of the CFP is dependent on the availability of scientific advice for the management of fisheries, and hence on the availability of data on fisheries. In the light of the challenges and costs of obtaining reliable and complete data, it is necessary to support Member States’ actions to collect and process data in line with Regulation (EU) 2017/1004 of the European Parliament and of the Council (13) and to contribute to the best available scientific advice. That support should allow synergies with the collection and processing of other types of marine data.

(28) The EMFAF should support an effective knowledge-based implementation and governance of the CFP under direct and indirect management through the provision of scientific advice, regional cooperation on conservation measures, the development and implementation of a Union fisheries control system, the functioning of Advisory Councils and voluntary contributions to international organisations.

(29) In order to strengthen economically, socially and environmentally sustainable fishing activities, it should be possible for the EMFAF to support operations for the management of fisheries and fishing fleets in accordance with Articles 22 and 23 of, and Annex II to, Regulation (EU) No 1380/2013, as well as efforts by Member States to optimise the allocation of their available fishing capacity, taking into account the needs of their fleet, and without increasing their overall fishing capacity.

(30) Given the challenges of achieving the conservation objectives of the CFP, support for fleet adaptation remains sometimes necessary with regard to certain fleet segments and sea basins. Such support should be tightly targeted to better fleet management and to the conservation and sustainable exploitation of marine biological resources, and aimed at achieving a balance between the fishing capacity and the available fishing opportunities. Therefore, it should be possible for the EMFAF to support the permanent cessation of fishing activities in fleet segments where the fishing capacity is not balanced with the available fishing opportunities. Such support should be a tool of the action plans for the adjustment of fleet segments with identified structural overcapacity, as provided for in Article 22(4) of Regulation (EU) No 1380/2013, and should be implemented either through the scrapping of the fishing vessel or through its decommissioning and retrofitting for other activities. Where the retrofitting would lead to an increased pressure of recreational fishing on the marine ecosystem, support should only be granted if it is in line with the CFP and with the objectives of the relevant multiannual plans.

(31) In order to contribute to the conservation objectives of the CFP or to mitigate certain exceptional circumstances, it should be possible for the EMFAF to support compensation for the temporary cessation of fishing activities caused by the implementation of certain conservation measures, by the implementation of emergency measures, by the interruption, due to reasons of force majeure, of the application of a sustainable fisheries partnership agreement (SFPA), by a natural disaster, by an environmental incident or by a health crisis. Support in the event of temporary cessation caused by conservation measures should be granted only where, based on scientific advice, a reduction of fishing effort is needed in order to achieve the objectives set out in Article 2(2) and point (a) of Article 2(5) of Regulation (EU) No 1380/2013.

(32) Given that fishers are exposed to increasing economic and environmental risks, inter alia due to climate change and price volatility, it should be possible for the EMFAF to support actions that strengthen the resilience of the fisheries sector, including through mutual funds, insurance instruments or other collective schemes which enhance the capacity of the sector to manage risks and respond to adverse events.

(33) Small-scale coastal fishing is carried out by marine and inland fishing vessels of an overall length of less than 12 metres and not using towed fishing gear, and by fishers on foot, including shellfish gatherers. That sector represents nearly 75 % of all fishing vessels registered in the Union and nearly half of all employment in the fisheries sector. Operators from small-scale coastal fisheries are particularly dependent on healthy fish stocks for their main source of income. With the aim of encouraging sustainable fishing practice, the EMFAF should therefore give those operators preferential treatment, through a maximum 100 % aid intensity rate, except for operations relating to the first acquisition of a fishing vessel, the replacement or modernisation of an engine and operations that increase the gross tonnage of a fishing vessel for the purposes of improving safety, working conditions or energy efficiency. In addition, Member States should take into account in their programme the specific needs of small-scale coastal fishing and describe the types of actions considered for the development of small-scale coastal fishing.

(34) The maximum EMFAF co-financing rate per specific objective should be 70 % of the eligible public expenditure, with the exception of compensation for additional costs in the outermost regions, for which it should be 100 %.

(35) The maximum aid intensity rate should be 50 % of the total eligible expenditure, with the possibility, in certain cases, to set derogatory rates.

(36) The outermost regions face specific challenges linked to their remoteness, topography and climate as referred to in Article 349 TFEU and also have specific assets on which to develop a sustainable blue economy. Therefore, for each outermost region, an action plan for the development of sustainable blue economy sectors, including sustainable fisheries and aquaculture, should be attached to the programme of the Member States concerned, and a financial allocation should be reserved to support the implementation of those action plans. It should also be possible for the EMFAF to support compensation for the additional costs which the operators from the outermost regions face due to the location or insularity of those regions. That support should be capped as a percentage of that overall financial allocation. In addition, a higher aid intensity rate than the one that applies to other operations should be applied in the outermost regions. It should be possible for Member States to grant additional financing for the implementation of that support. As State aid, such financing should be notified to the Commission, which may approve it under this Regulation as part of that support.

(37) Under shared management, it should be possible for the EMFAF to support the protection and restoration of aquatic biodiversity and ecosystems, including in inland waters. For that purpose, support from the EMFAF should be available to compensate, inter alia, the passive collection by fishers of lost fishing gear and marine litter from the sea, including sargassum seaweed, and for investments in ports to provide adequate reception facilities for lost fishing gear and marine litter. Support should also be available for actions to achieve or maintain a good environmental status in the marine environment as set out in Directive 2008/56/EC, for the implementation of spatial protection measures established pursuant to that Directive, for the management, restoration and monitoring of Natura 2000 areas, in accordance with the prioritised action frameworks established pursuant to Council Directive 92/43/EEC (14), for the protection of species, in particular under Directive 92/43/EEC and Directive 2009/147/EC of the European Parliament and of the Council (15), as well as for the restoration of inland waters in accordance with the programme of measures established pursuant to Directive 2000/60/EC of the European Parliament and of the Council (16). Under direct management, the EMFAF should support the promotion of clean and healthy seas and the implementation of the European strategy for plastics in a circular economy developed in the Communication of the Commission of 16 January 2018, in line with the objective of achieving or maintaining a good environmental status in the marine environment.

(38) Fisheries and aquaculture contribute to food security and nutrition. However, it is estimated that the Union currently imports more than 60 % of its supply of fishery products and is therefore highly dependent on third countries. An important challenge is to encourage the consumption of fish protein produced in the Union with high quality standards and available for consumers at affordable prices.

(39) It should be possible for the EMFAF to support the promotion and the sustainable development of aquaculture, including freshwater aquaculture, for the farming of aquatic animals and plants for the production of food and other raw material. Complex administrative procedures in some Member States remain in place, such as difficult access to space and burdensome licensing procedures, which make it difficult for the sector to improve the image and competitiveness of farmed products. Support from the EMFAF should be consistent with the multiannual national strategic plans for aquaculture developed on the basis of Regulation (EU) No 1380/2013. In particular, support for environmental sustainability, productive investments, innovation, acquisition of professional skills, improvement of working conditions, and compensatory measures providing critical land and nature management services should be eligible. Public health actions, aquaculture stock insurance schemes and animal health and welfare actions should also be eligible.

(40) Food security relies on efficient and well-organised markets, which improve the transparency, stability, quality and diversity of the supply chain, as well as consumer information. For that purpose, it should be possible for the EMFAF to support the marketing of fishery and aquaculture products, in line with the objectives set out in Regulation (EU) No 1379/2013 of the European Parliament and of the Council (17). In particular, support should be available for the creation of producer organisations, the implementation of production and marketing plans, the promotion of new market outlets and the development and dissemination of market intelligence.

(41) The processing industry plays a role in the availability and quality of fishery and aquaculture products. It should be possible for the EMFAF to support targeted investments in that industry, provided that they contribute to the achievement of the objectives of the common organisation of the markets. For enterprises other than small and medium-sized enterprises (SMEs), such support should be provided only through financial instruments or through InvestEU and not through grants.

(42) It should be possible for the EMFAF to support compensation to operators of the fishery and aquaculture sector in the case of exceptional events causing a significant disruption of markets.

(43) Job creation in coastal regions relies on the locally driven development of a sustainable blue economy that revives the social fabric of those regions. Ocean industries and services are likely to outperform the growth of the global economy and make an important contribution to employment and growth by 2030. To be sustainable, blue growth depends on innovation and investment in new maritime businesses and in the bio-economy, including sustainable tourism models, ocean-based renewable energy, innovative high-end shipbuilding and new port services, which can create jobs and at the same time enhance local development. While public investment in the sustainable blue economy should be mainstreamed throughout the Union budget, the support from the EMFAF should specifically be focused on enabling conditions for the development of the sustainable blue economy and on removing bottlenecks to facilitate investment and the development of new markets, technologies or services. Support for the development of the sustainable blue economy should be delivered through shared, direct and indirect management.

(44) The development of a sustainable blue economy strongly relies on partnerships between local stakeholders that contribute to the vitality of coastal and inland communities and economies. The EMFAF should provide tools to foster such partnerships. For that purpose, support through CLLD should be available under shared management. That approach should boost economic diversification in a local context through the development of coastal and inland fisheries, aquaculture and a sustainable blue economy. CLLD strategies should ensure that local communities in fishing and aquaculture areas better exploit and benefit from the opportunities offered by the sustainable blue economy, capitalising on and strengthening environmental, cultural, social and human resources. Every local partnership should therefore reflect the main focus of its strategy by ensuring a balanced involvement and representation of all relevant stakeholders from the local sustainable blue economy.

(45) Under shared management, it should be possible for the EMFAF to support the strengthening of sustainable sea and ocean management through the collection, management and use of data to improve the knowledge on the state of the marine environment. That support should aim to fulfil requirements under Directives 92/43/EEC and 2009/147/EC, to support maritime spatial planning and to increase data quality and sharing through the European marine observation and data network.

(46) Under direct and indirect management, support from the EMFAF should focus on the enabling conditions for a sustainable blue economy through the promotion of an integrated governance and management of the maritime policy, the enhancement of the transfer and uptake of research, innovation and technology in the sustainable blue economy, the improvement of maritime skills, ocean literacy and sharing of socio-economic data on the sustainable blue economy, the promotion of a low-carbon and climate-resilient sustainable blue economy, and the development of project pipelines and innovative financing instruments. Due consideration to the outermost regions’ specific situation should be given in relation to the above-mentioned fields.

(47) 60 % of the oceans are beyond the borders of national jurisdiction. This implies a shared international responsibility. Most problems facing the oceans, such as overexploitation, climate change, acidification, pollution and declining biodiversity, are transboundary in nature and therefore require a shared response. Under the United Nations Convention on the Law of the Sea, to which the Union is a Party under Council Decision 98/392/EC (18), many jurisdictional rights, institutions and specific frameworks have been set up to regulate and manage human activity in the oceans. In recent years, a global consensus has emerged that the marine environment and maritime human activities should be managed more effectively to address the increasing pressures on the oceans.

(48) As a global actor, the Union is strongly committed to promoting international ocean governance, in accordance with the Joint Communication of the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 10 November 2016 entitled ‘International ocean governance: an agenda for the future of our oceans’. The Union’s ocean governance policy covers the oceans in an integrated manner. International ocean governance is not only core to the achievement of the ‘2030 Agenda’, and in particular SDG 14, but also to guarantee safe, secure, clean and sustainably managed seas and oceans for future generations. The Union needs to deliver on those international commitments and be a driving force for better international ocean governance at bilateral, regional and multilateral levels, including to prevent, deter and eliminate IUU fishing, to improve the international ocean governance framework, to reduce pressures on oceans and seas, to create the conditions for a sustainable blue economy and to strengthen international ocean research and data.

(49) Actions promoting international ocean governance under the EMFAF are aimed to improve the overarching framework of international and regional processes, agreements, rules and institutions to regulate and manage human activity in the oceans. The EMFAF should support international arrangements that the Union has concluded in areas not covered by the SFPAs established with various third countries, as well as the Union’s mandatory membership contribution to regional fisheries management organisations (RFMOs). SFPAs and RFMOs will continue to be funded under different strands of the Union budget.

(50) With regard to security and defence, improved border protection and maritime security are essential. Under the European Union Maritime Security Strategy adopted by the Council of the European Union on 24 June 2014 and its Action Plan adopted on 16 December 2014, information sharing and the European border and coast guard cooperation between the European Fisheries Control Agency, the European Maritime Safety Agency and the European Border and Coast Guard Agency are key to deliver on those objectives. The EMFAF should therefore support maritime surveillance and coast guard cooperation under both shared and direct management, including by purchasing items for multipurpose maritime operations. It should also allow the relevant agencies to implement support in the field of maritime surveillance and security through indirect management.

(51) Under shared management, each Member State should prepare a single programme that should be approved by the Commission. The Commission should assess the draft programmes by taking into account the maximisation of their contribution to the priorities of the EMFAF and to the objectives of resilience, green transition and digital transition. When assessing the draft programmes, the Commission should also take into account their contribution to the development of sustainable small-scale coastal fishing, to environmental, economic and social sustainability, to meeting the environmental and socio-economic challenges of the CFP, to the socio-economic performance of the sustainable blue economy, to the conservation and restoration of marine ecosystems, to the reduction of marine litter and to the mitigation of, and adaptation to, climate change.

(52) In the context of regionalisation and with a view to encouraging Member States to have a strategic approach during the preparation of programmes, the Commission should assess the draft programmes by taking into account, where applicable, the regional sea basin analysis developed by the Commission indicating the common strengths and weaknesses with regard to the achievement of the objectives of the CFP. That analysis should guide both the Member States and the Commission in negotiating each programme, taking into account regional challenges and needs.

(53) The performance of the EMFAF in Member States should be assessed on the basis of indicators. Member States should report on progress towards established milestones and targets in accordance with Regulation (EU) 2021/1060. A monitoring and evaluation framework should be established for that purpose.

(54) For the purposes of providing information on the support from the EMFAF for environmental and climate objectives in accordance with Regulation (EU) 2021/1060, a methodology based on types of intervention should be established. That methodology should consist of assigning a specific weighting to the support provided at a level which reflects the extent to which such support makes a contribution to environmental objectives and to climate objectives.

(55) Pursuant to paragraphs 22 and 23 of the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (19), the EMFAF should be evaluated on the basis of information collected in accordance with specific monitoring requirements, while avoiding an administrative burden, in particular on Member States, and overregulation. Those requirements, where appropriate, should include measurable indicators, as a basis for evaluating the effects of the EMFAF on the ground.

(56) The Commission should implement information and communication actions relating to the EMFAF, and its actions and results. Financial resources allocated to the EMFAF should also contribute to the corporate communication of the political priorities of the Union, insofar as they are related to the priorities of the EMFAF.

(57) In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (20), Council Regulation (Euratom, EC) No 2988/95 (21), Council Regulation (Euratom, EC) No 2185/96 (22) and Council Regulation (EU) 2017/1939 (23), the financial interests of the Union are to be protected by means of proportionate measures, including measures relating to the prevention, detection, correction and investigation of irregularities, including fraud, to the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, to the imposition of administrative penalties. In particular, in accordance with Regulations (Euratom, EC) No 2185/96 and (EU, Euratom) No 883/2013, the European Anti-Fraud Office (OLAF) has the power to carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. The European Public Prosecutor’s Office (EPPO) is empowered, in accordance with Regulation (EU) 2017/1939, to investigate and prosecute criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council (24). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the financial interests of the Union, grant the necessary rights and access to the Commission, OLAF, the Court of Auditors and, in respect of those Member States participating in enhanced cooperation pursuant to Regulation (EU) 2017/1939, the EPPO, and ensure that any third parties involved in the implementation of Union funds grant equivalent rights. Member States should prevent, detect and deal effectively with any irregularities, including fraud, committed by beneficiaries. Member States should report to the Commission any irregularities detected, including fraud, and any follow-up action they have taken with regard to such irregularities and with regard to any OLAF investigations.

(58) In order to enhance transparency regarding the use of Union funds and their sound financial management, in particular reinforcing public control of the money used, certain information on the operations funded under the EMFAF should be published on a website of a Member State, in accordance with Regulation (EU) 2021/1060. When a Member State publishes information on operations funded under EMFAF, the rules on the protection of personal data set out in Regulation (EU) 2016/679 of the European Parliament and of the Council (25) are to be complied with.

(59) In order to supplement certain non-essential elements of this Regulation, the power to adopt delegated acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of the identification of the threshold triggering, and the period of time of, inadmissibility with regard to the admissibility criteria of applications, in respect of the arrangements for recovering the aid granted in the event of serious infringements, in respect of the relevant starting or ending dates of the inadmissibility period and the conditions for a reduced period of inadmissibility and in respect of the definition of criteria for the calculation of the additional costs resulting from the specific handicaps of the outermost regions. In order to amend certain non-essential elements of this Regulation, the power to adopt delegated acts in accordance with Article 290 TFEU should also be delegated to the Commission in order to allow for the introduction of additional core performance indicators. In order to facilitate a smooth transition from the scheme established by Regulation (EU) No 508/2014 to the scheme established by this Regulation, the power to adopt delegated acts in accordance with Article 290 TFEU should also be delegated to the Commission in order to supplement this Regulation by establishing transitional provisions. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(60) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission in respect of the work programmes, the identification of energy-efficient technologies and the establishment of the methodological elements to measure CO2 emission reductions of fishing vessel engines, the occurrence of an exceptional event, the definition of the cases of non-compliance by Member States which can trigger an interruption of the payment deadline, the suspension of payments due to serious non-compliance by a Member State, financial corrections and the identification of relevant operation-level implementation data and their presentation. Except as regards the work programmes, including technical assistance, and the occurrence of an exceptional event, those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (26).

(61) In accordance with Article 193(2) of the Financial Regulation, it should be possible for a grant to be awarded for an action which has already begun, provided that the applicant can demonstrate the need for starting the action prior to signature of the grant agreement. However, the costs incurred prior to the date of submission of the grant application are not eligible, except in duly justified exceptional cases. In order to avoid any disruption in Union support which could be prejudicial to Union’s interests, it should be possible to provide in the financing decision, during a limited period of time at the beginning of the MFF 2021-2027, and only in duly justified cases, for eligibility of activities and costs from the beginning of the 2021 financial year, even if they were implemented and incurred before the grant application was submitted. For the same reasons and under the same conditions, it is necessary to derogate from Article 193(4) of the Financial Regulation as regards operating grants.

(62) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States but can rather, by reason of their scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

(63) In order to ensure continuity in providing support in the relevant policy area and to allow implementation as of the beginning of the MFF 2021-2027, it is necessary to provide for the application of this Regulation, with retroactive effect, as regards the support under direct and indirect management from 1 January 2021. Consequently, this Regulation should enter into force as a matter of urgency on the day following that of its publication in the Official Journal of the European Union,

HAVE ADOPTED THIS REGULATION:

TITLE I

GENERAL FRAMEWORK

CHAPTER I

General provisions

Article 1

Subject matter

This Regulation establishes the European Maritime, Fisheries and Aquaculture Fund (the ‘EMFAF’) for the period from 1 January 2021 to 31 December 2027. The duration of the EMFAF is aligned with the duration of the MFF 2021-2027. It lays down the priorities of the EMFAF, its budget and the specific rules for providing Union funding, complementing the general rules applying to the EMFAF under Regulation (EU) 2021/1060.

Article 2

Definitions

(1) ‘Common Information Sharing Environment’ or ‘CISE’ means an environment of systems developed to support the exchange of information between authorities involved in maritime surveillance, across sectors and borders, in order to improve their awareness of activities at sea;

(2) ‘coast guard’ means national authorities performing coast guard functions, which encompass maritime safety, maritime security, maritime customs, prevention and suppression of trafficking and smuggling, connected maritime law enforcement, maritime border control, maritime surveillance, protection of the marine environment, search and rescue, accident and disaster response, fisheries control, inspection and other activities related to those functions;

(3) ‘European marine observation and data network’ or ‘EMODnet’ means a partnership assembling marine data and metadata in order to make those fragmented resources more available and usable by public and private users by offering quality-assured, interoperable and harmonised marine data;

(4) ‘exploratory fishing’ means any fishing operation carried out for commercial purposes in a given area, with a view to assessing the profitability and biological sustainability of regular, long-term exploitation of the fishery resources in that area for stocks that have not been subject to commercial fishing;

(5) ‘fisher’ means any natural person engaging in commercial fishing activities, as recognised by the Member State concerned;

(6) ‘inland fishing’ means fishing activities carried out for commercial purposes in inland waters by vessels or other devices, including those used for ice fishing;

(7) ‘international ocean governance’ means a Union initiative to improve the overarching framework encompassing international and regional processes, agreements, arrangements, rules and institutions through a coherent cross-sectoral and rules-based approach, in order to ensure that oceans and seas are healthy, safe, secure, clean and sustainably managed;

(8) ‘landing site’ means a location other than a maritime port as defined in point (16) of Article 2 of Regulation (EU) 2017/352 of the European Parliament and of the Council (27), which is officially recognised by a Member State, the use of which is not restricted to its owner and which is primarily used for landings of small-scale coastal fishing vessels;

(9) ‘maritime policy’ means the Union policy that aims to foster integrated and coherent decision making to maximise the sustainable development, economic growth and social cohesion of the Union, particularly of the coastal and insular areas and of the outermost regions, and of the sustainable blue economy sectors, through coherent maritime-related policies and relevant international cooperation;

(10) ‘maritime security and surveillance’ means activities carried out in order to understand, prevent wherever applicable and manage in a comprehensive way all the events and actions related to the maritime domain which would impact the areas of maritime safety and security, law enforcement, defence, border control, protection of the marine environment, fisheries control, trade and economic interest of the Union;

(11) ‘maritime spatial planning’ means a process by which the relevant Member State’s authorities analyse and organise human activities in marine areas to achieve ecological, economic and social objectives;

(12) ‘public body’ means the State, regional or local authorities, bodies governed by public law or associations formed by one or more such authorities or by one or more of such bodies, governed by public law;

(13) ‘sea basin strategy’ means an integrated framework to address common marine and maritime challenges faced by Member States and, where appropriate, third countries, in a specific sea basin or in one or more sub-sea basins, and promote cooperation and coordination in order to achieve economic, social and territorial cohesion. It is developed by the Commission in cooperation with the Member States and third countries concerned, their regions and other stakeholders as appropriate;

(15) ‘sustainable blue economy’ means all sectoral and cross-sectoral economic activities throughout the internal market relating to oceans, seas, coasts and inland waters, covering the Union’s insular and outermost regions and landlocked countries, including emerging sectors and non-market goods and services, aimed at ensuring environmental, social and economic sustainability in the long term and which are consistent with the SDGs, and in particular SDG 14, and with Union environmental legislation.

Article 3

Priorities

The EMFAF shall contribute to the implementation of the CFP and of the Union’s maritime policy. It shall pursue the following priorities:

(1) fostering sustainable fisheries and the restoration and conservation of aquatic biological resources;

(2) fostering sustainable aquaculture activities, and processing and marketing of fishery and aquaculture products, thus contributing to food security in the Union;

(3) enabling a sustainable blue economy in coastal, island and inland areas, and fostering the development of fishing and aquaculture communities;

(4) strengthening international ocean governance and enabling seas and oceans to be safe, secure, clean and sustainably managed.

Support under the EMFAF shall contribute to the achievement of the environmental and climate change mitigation and adaptation objectives of the Union. That contribution shall be tracked in accordance with the methodology set out in Annex IV.

CHAPTER II

Financial framework

Article 4

Budget

Article 5

Budgetary resources under shared management

(a) EUR 102 000 000 for the Azores and Madeira;

(b) EUR 82 000 000 for the Canary Islands;

(c) EUR 131 000 000 for Guadeloupe, French Guiana, Martinique, Mayotte, Réunion and Saint-Martin.

(a) EUR 6 000 000; or

(b) 15 % of the Union financial support allocated per Member State.

Article 6

Financial distribution for shared management

The resources available for commitments by Member States referred to in Article 5(1) for the period from 2021 to 2027 are set out in Annex V.

Article 7

Budgetary resources under direct and indirect management

In particular, the EMFAF may support, at the initiative of the Commission and subject to the ceiling of 1,5 % of the financial envelope referred to in Article 4(1):

(a) technical assistance for the implementation of this Regulation as referred to in Article 35 of Regulation (EU) 2021/1060;

(b) the preparation, monitoring and evaluation of SFPAs and the Union participation in RFMOs;

(c) the setting-up of a European-wide network of local action groups.

CHAPTER III

Programming

Article 8

Programming for support under shared management

In the preparation of the programme, the Member States shall endeavour to take into account regional and/or local challenges, as appropriate, and may identify intermediate bodies in accordance with Article 71(3) of Regulation (EU) 2021/1060.

(a) an analysis of the situation in terms of strengths, weaknesses, opportunities and threats and the identification of the needs that require to be addressed in the relevant geographical area, including, where appropriate, sea basins relevant for the programme;

(b) where applicable, the action plans for the outermost regions referred to in Article 35.

For the specific objectives that contribute to the development of sustainable small-scale coastal fishing, Member States shall describe the types of actions considered for that purpose, as set out in point (i) of point (d) of Article 22(3) of, and Annex V to, Regulation (EU) 2021/1060.

The managing authority shall endeavour to take into account the specificities of small-scale coastal fishing operators for possible simplification measures, such as simplified application forms.

(a) the maximisation of the contribution of the programme to the priorities set out in Article 3 and to the objectives of resilience, green transition and digital transition, including through a wide range of innovative solutions;

(b) the contribution of the programme to the development of sustainable small-scale coastal fishing;

(c) the contribution of the programme to environmental, economic and social sustainability;

(d) the balance between the fishing capacity of the fleets and the available fishing opportunities, as reported annually by Member States in accordance with Article 22(2) of Regulation (EU) No 1380/2013;

(e) where applicable, the multiannual management plans adopted under Articles 9 and 10 of Regulation (EU) No 1380/2013, the management plans adopted under Article 19 of Regulation (EC) No 1967/2006 and the recommendations adopted by RFMOs that bind the Union;

(f) the implementation of the landing obligation referred to in Article 15 of Regulation (EU) No 1380/2013;

(g) the most recent evidence on the socio-economic performance of the sustainable blue economy, in particular in the fishery and aquaculture sector;

(h) where applicable, the regional sea basin analyses developed by the Commission indicating the common strengths and weaknesses of each sea basin with regard to the achievement of the objectives of the CFP as set out in Article 2 of Regulation (EU) No 1380/2013;

(i) the contribution of the programme to the conservation and restoration of marine ecosystems, while the support related to Natura 2000 areas shall be in accordance with the prioritised action frameworks established pursuant to Article 8(4) of Directive 92/43/EEC;

(j) the contribution of the programme to the reduction of marine litter, in accordance with Directive (EU) 2019/904 of the European Parliament and of the Council (29);

(k) the contribution of the programme to climate change mitigation and adaptation.

Article 9

Programming for support under direct and indirect management

In order to implement Title III, the Commission shall adopt implementing acts laying down work programmes. Work programmes shall set out, where applicable, the overall amount reserved for the blending operations referred to in Article 56. Except as regards technical assistance, those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 63(2).

TITLE II

SUPPORT UNDER SHARED MANAGEMENT

CHAPTER I

General principles of support

Article 10

State aid

Article 11

Admissibility of applications

(a) has committed serious infringements under Article 42 of Council Regulation (EC) No 1005/2008 (30) or Article 90 of Regulation (EC) No 1224/2009 or under other legislation adopted by the European Parliament and the Council within the framework of the CFP;

(b) has been involved in the operation, management or ownership of a fishing vessel included in the Union IUU vessel list as set out in Article 40(3) of Regulation (EC) No 1005/2008, or of a vessel flying the flag of countries identified as non-cooperating third countries as set out in Article 33 of that Regulation; or

(c) has committed any of the environmental offences set out in Articles 3 and 4 of Directive 2008/99/EC of the European Parliament and of the Council (31), where the application for support is submitted under Article 27 of this Regulation.

(a) the identification of the threshold triggering, and the period of time of, the inadmissibility referred to in paragraphs 1 and 3 of this Article, which shall be proportionate to the nature, gravity, duration and repetition of the serious infringements, offences or fraud committed, and shall be of at least one year’s duration;

(b) in accordance with Article 44 of this Regulation and Article 103 of Regulation (EU) 2021/1060, the arrangements for recovering the support granted pursuant to paragraph 2 of this Article, which shall be proportionate to the nature, gravity, duration and repetition of the serious infringements or offences committed;

(c) the relevant starting or ending dates of the periods of time referred to in paragraphs 1 and 3 and the conditions for a reduced period of inadmissibility.

For the purposes of the verification referred to in the first subparagraph of this paragraph, a Member State shall provide, on request from another Member State, the information contained in its national register of infringements referred to in Article 93 of Regulation (EC) No 1224/2009.

Article 12

Eligibility for support from the EMFAF under shared management

(a) fall under the scope of the priorities and specific objectives set out in Article 8(2);

(b) are not ineligible pursuant to Article 13; and

(c) are in accordance with applicable Union law.

Article 13

Ineligible operations or expenditure

The following operations or expenditure shall not be eligible for support from the EMFAF:

(a) operations that increase the fishing capacity of a fishing vessel, unless otherwise provided for in Article 19;

(b) the acquisition of equipment that increases the ability of a fishing vessel to find fish;

(c) the construction, acquisition or importation of fishing vessels, unless otherwise provided for in Article 17;

(d) the transfer or reflagging of fishing vessels to third countries, including through the creation of joint ventures with partners of third countries;

(e) the temporary or permanent cessation of fishing activities, unless otherwise provided for in Articles 20 and 21;

(f) exploratory fishing;

(g) the transfer of ownership of a business;

(h) direct restocking, except explicitly provided for as a reintroduction measure or other conservation measures in a Union legal act or in the case of experimental restocking;

(i) the construction of new ports or new auction halls, with the exception of new landing sites;

(j) market intervention mechanisms aiming to temporarily or permanently withdraw fishery or aquaculture products from the market with a view to reducing supply in order to prevent price decline or to drive prices up, unless otherwise provided for in Article 26(2);

(k) investments on board fishing vessels necessary to comply with the requirements under Union law in force at the time of submission of the application for support, including requirements under the Union’s obligations in the context of RFMOs, unless otherwise provided for in Article 22;

(l) investments on board fishing vessels that have carried out fishing activities for less than 60 days in the two calendar years preceding the year of submission of the application for support;

(m) the replacement or modernisation of a main or ancillary engine of a fishing vessel, unless otherwise provided for in Article 18.

CHAPTER II

Priority 1: Fostering sustainable fisheries and the restoration and conservation of aquatic biological resources

Section 1

Scope of support

Article 14

Specific objectives

(a) strengthening economically, socially and environmentally sustainable fishing activities;

(b) increasing energy efficiency and reducing CO2 emissions through the replacement or modernisation of engines of fishing vessels;

(c) promoting the adjustment of fishing capacity to fishing opportunities in cases of permanent cessation of fishing activities and contributing to a fair standard of living in cases of temporary cessation of fishing activities;

(d) fostering efficient fisheries control and enforcement, including fighting against IUU fishing, as well as reliable data for knowledge-based decision making;

(e) promoting a level-playing field for fishery and aquaculture products from the outermost regions; and

(f) contributing to the protection and restoration of aquatic biodiversity and ecosystems.

Section 2

Specific conditions

Article 15

Transferring or reflagging of fishing vessels

Where support under this Chapter is granted in respect of a Union fishing vessel, that vessel shall not be transferred or reflagged outside the Union during at least five years from the final payment for the supported operation.

Article 16

Inland fishing

Article 17

First acquisition of a fishing vessel

The support referred to in the first subparagraph shall contribute to the specific objective referred to in point (a) of Article 14(1).

(a) is no more than 40 years of age at the date of submission of the application for support; and

(b) has worked at least five years as fisher or has acquired adequate qualification.

(a) belongs to a fleet segment for which the latest report on fishing capacity, referred to in Article 22(2) of Regulation (EU) No 1380/2013, has shown a balance with the fishing opportunities available to that segment;

(b) is equipped for fishing activities;

(c) is not longer than 24 metres in overall length;

(d) has been registered in the Union fleet register for at least three calendar years preceding the year of submission of the application for support in the case of a small-scale coastal fishing vessel, and for at least five calendar years in the case of another type of vessel; and

(e) has been registered in the Union fleet register for a maximum of 30 calendar years preceding the year of submission of the application for support.

Article 18

Replacement or modernisation of a main or ancillary engine

The support referred to in the first subparagraph shall contribute to the specific objective referred to in point (b) of Article 14(1).

(a) the vessel belongs to a fleet segment for which the latest report on fishing capacity, referred to in Article 22(2) of Regulation (EU) No 1380/2013, has shown a balance with the fishing opportunities available to that segment;

(b) the vessel has been registered in the Union fleet register for at least five calendar years preceding the year of submission of the application for support;

(c) for small-scale coastal fishing vessels, the new or modernised engine does not have more power in kW than that of the current engine; and

(d) for other vessels up to 24 metres in overall length, the new or modernised engine does not have more power in kW than that of the current engine and emits at least 20 % less CO2 compared to the current engine.

(a) where relevant information certified by the manufacturer of the engine concerned as part of a type approval or product certificate indicates that the new engine emits 20 % less CO2 than the engine being replaced; or

(b) where relevant information certified by the manufacturer of the engine concerned as part of a type approval or product certificate indicates that the new engine uses 20 % less fuel than the engine being replaced.

Where the relevant information certified by the manufacturer of the engine concerned as part of a type approval or product certificate for one or both of the engines does not permit a comparison of the CO2 emission or fuel consumption, the reduction of CO2 emission required under point (d) of paragraph 2 shall be considered to be met in any of the following cases:

(a) the new engine uses an energy-efficient technology and the age difference between the new engine and the engine being replaced is at least seven years;

(b) the new engine uses a type of fuel or a propulsion system which is considered to emit less CO2 than the engine being replaced;

(c) the Member State measures that the new engine emits 20 % less CO2 or uses 20 % less fuel than the engine being replaced under the normal fishing effort of the vessel concerned.

The Commission shall adopt implementing acts to identify the energy-efficient technologies referred to in point (a) of the second subparagraph of this paragraph and to further specify the methodology elements for the implementation of point (c) of that subparagraph. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 63(2).

Article 19

Increase in the gross tonnage of a fishing vessel to improve safety, working conditions or energy efficiency

The support referred to in the first subparagraph shall contribute to the specific objective referred to in point (a) of Article 14(1).

(a) the fishing vessel belongs to a fleet segment for which the latest report on fishing capacity, referred to in Article 22(2) of Regulation (EU) No 1380/2013, has shown a balance of the fishing capacity of the segment with the fishing opportunities available to that segment;

(b) the fishing vessel is not longer than 24 metres in overall length;

(c) the fishing vessel has been registered in the Union fleet register for at least the 10 calendar years preceding the year of submission of the application for support; and

(d) the entry into the fishing fleet of new fishing capacity generated by the operation is compensated for by the prior withdrawal of at least the same amount of fishing capacity without public aid from the same fleet segment or from a fleet segment for which the latest report on fishing capacity, referred to in Article 22(2) of Regulation (EU) No 1380/2013, has shown that the fishing capacity is not in balance with the fishing opportunities available to that segment.

(a) the increase in gross tonnage necessary for the subsequent installation or renovation of accommodation facilities dedicated to the exclusive use of the crew, including sanitary facilities, common areas, kitchen facilities and shelter deck structures;

(b) the increase in gross tonnage necessary for the subsequent improvement or installation of on-board fire prevention systems, safety and alarm systems or noise-reduction systems;

(c) the increase in gross tonnage necessary for the subsequent installation of integrated bridge systems to improve navigation or engine control;

(d) the increase in gross tonnage necessary for the subsequent installation or renovation of an engine or a propulsion system that demonstrates a better energy efficiency or lower CO2 emissions compared to the previous situation, which does not have a power exceeding the fishing vessel’s previously certified engine power pursuant to Article 40(1) of Regulation (EC) No 1224/2009, and whose maximum power output is certified by the manufacturer for that engine or propulsion system model;

(e) the replacement or renovation of the bulbous bow provided that it improves the overall energy efficiency of the fishing vessel.

Article 20

Permanent cessation of fishing activities

The support referred to in the first subparagraph of this paragraph shall contribute to the specific objective referred to in point (c) of Article 14(1).

(a) the cessation is foreseen as a tool of an action plan referred to in Article 22(4) of Regulation (EU) No 1380/2013;

(b) the cessation is achieved through the scrapping of the fishing vessel or through its decommissioning and retrofitting for activities other than commercial fishing, keeping in line with the objectives of the CFP and of the multiannual plans referred to in Regulation (EU) No 1380/2013;

(c) the fishing vessel is registered as active and has carried out fishing activities at sea for at least 90 days per year during the last two calendar years preceding the date of submission of the application for support;

(d) the equivalent fishing capacity is permanently removed from the Union fishing fleet register and the fishing licences and the fishing authorisations are permanently withdrawn, in accordance with Article 22(5) and (6) of Regulation (EU) No 1380/2013; and

(e) the beneficiary shall not register any fishing vessel within five years following the receipt of support.

(a) owners of Union fishing vessels concerned by the permanent cessation; and

(b) fishers who have worked at sea on board a Union fishing vessel concerned by the permanent cessation for at least 90 days per year during the last two calendar years preceding the year of submission of the application for support.

The fishers referred to in point (b) of the first subparagraph shall cease all fishing activities for five years following the receipt of support. If a fisher returns to fishing activities within that period of time, sums unduly paid in respect of the operation shall be recovered by the Member State concerned, in an amount proportionate to the period during which the condition set out in the first sentence of this subparagraph has not been fulfilled.

Article 21

Temporary cessation of fishing activities

The support referred to in the first subparagraph shall contribute to the specific objective referred to in point (c) of Article 14(1).