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Commission Regulation (EU) 2022/2473 of 14 December 2022 declaring certain categories of aid to undertakings active in the production, processing and marketing of fishery and aquaculture products compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union

Type Regulation

Publication 2022-12-21

Last updated 2023-12-13

State In force

Department European Commission, COMP

Source EUR-Lex

articles 60

Reform history JSON API

CHAPTER I Common provisions

Article 1

Scope

This Regulation shall apply to aid granted to

(a) micro, small and medium-sized enterprises (SMEs) active in the production, processing or marketing of fishery and aquaculture products;

(b) municipalities under Article 54 and 55; and

This Regulation shall also apply to aid granted to any undertaking active in the production, processing or marketing of fishery and aquaculture products for any of the following purposes and independently of the size of the undertaking benefitting from the aid:

(a) to make good the damage caused by natural disasters;

(b) to make good the damage caused by adverse climatic event which can be assimilated to a natural disaster;

(d) for innovation in fisheries and aquaculture.

This Regulation shall not apply to:

(a) aid the amount of which is fixed on the basis of price or quantity of products put on the market;

(b) aid to export-related activities towards third countries or Member States, namely aid directly linked to the quantities exported, to the establishment and operation of a distribution network or to other current costs linked to the export activity;

(d) ad hoc aid in favour of an undertaking as referred to in paragraph 5 of this Article;

(e) aid granted to operations or expenditure:
(i) that increase the fishing capacity of a fishing vessel;
(ii) for the acquisition of equipment that increases the ability of a fishing vessel to find fish;
(iii) for the construction, acquisition or importation of fishing vessels, unless otherwise provided for in Article 20;
(iv) for the transfer or reflagging of fishing vessels to third countries, including through the creation of joint ventures with partners of third countries;
(v) for the temporary or permanent cessation of fishing activities;
(vi) for exploratory fishing;
(vii) the transfer of ownership of a business unless otherwise provided for in Article 20;
(viii) for the direct restocking, except if experimental;
(ix) for the construction of new ports or new auction halls;
(x) for 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;
(xi) for 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 aid, including requirements under the Union’s obligations in the context of regional fisheries management organisations (RFMOs);
(xii) for 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 aid;
(xiii) for the replacement or modernisation of a main or ancillary engine of a fishing vessel;

(f) aid granted to an undertaking that
(i) has committed a serious infringement under Article 42 of Council Regulation (EC) No 1005/2008 ([^E0001]) or Article 90 of Regulation (EC) No 1224/2009 ([^E0002]);
(ii) has been involved in the operation, management or ownership of a fishing vessel included in the Union Illegal, unreported and unregulated fishing vessel list as set out in Article 40, point (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
(iii) 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 ([^E0003]), where the application for support is submitted under Article 32 to 39 of this Regulation.

This Regulation shall not apply to aid to undertakings in difficulty, with the exception of aid granted:

(a) to undertakings participating in or benefitting from CLLD projects;

(b) to compensate for the costs of prevention, control and eradication of animal diseases;

(d) in the following cases, provided that the undertaking became an undertaking in difficulty due to losses or damages caused by the event in question:
(i) to make good the damage caused by adverse climatic events which can be assimilated to a natural disaster; or
(ii) to make good the damage caused by protected animals.

This Regulation shall not apply to aid schemes which do not explicitly exclude the payment of individual aid in favour of an undertaking which is subject to an outstanding recovery order following a previous Commission Decision declaring an aid illegal and incompatible with the internal market, with the exception of one of the following:

(a) aid schemes to make good the damage caused by natural disasters or by adverse climatic events which can be assimilated to a natural disaster; or

(b) aid schemes for costs incurred by SMEs participating in CLLD projects and aid to undertakings participating in, or benefitting from, CLLD in accordance with Articles 54 and 55.

This Regulation shall not apply to State aid measures, which entail, by themselves, by the conditions attached to them or by their financing method a non-severable violation of Union law, in particular:

(a) aid where the grant of aid is subject to the obligation for the beneficiary undertaking to have its headquarters in the relevant Member State or to be predominantly established in that Member State. However, the requirement to have an establishment or branch in the aid granting Member State at the moment of payment of the aid is allowed;

(b) aid where the grant of aid is subject to the obligation for the beneficiary undertaking to use nationally produced goods or national services; or

(c) aid restricting the possibility for the beneficiary undertaking to exploit the research, development and innovation results in other Member States;

(d) the Habitats Directive, Birds Directive, Ship Source Pollution Directive and provisions concerning waste management.

This Regulation shall not apply to:

(a) aid schemes referred to in Articles 20, 21, 24, 26 to 30, 33, 43, 46, 48, 50 and 52, where they fulfil the conditions of Article 12, after 6 months from their entry into force. However, the Commission may decide that this Regulation shall continue to apply to an aid scheme for longer than 6 months after its entry into force, after having assessed the relevant evaluation plan notified by the Member States to the Commission. When submitting the evaluation plans, Member States shall also submit all the information necessary for the Commission to carry out an assessment of the evaluation plans and take a decision;

(b) any alterations of schemes referred to in point (a) other than modifications which cannot affect the compatibility of the aid scheme under this Regulation or cannot significantly affect the content of the approved evaluation plan.

Article 2

Definitions

For the purpose of this Regulation the following definitions shall apply:

(1) ‘ad hoc aid’ means aid not granted on the basis of an aid scheme;

(2) ‘adverse climatic event which can be assimilated to a natural disaster’ means unfavourable weather conditions such as frost, storms and hail, ice, heavy or persistent rainfall or severe droughts, which reduce by more than 30 % the average of the production calculated on the basis of one of the following methods:
(a) the preceding three-year period;
(b) a three year average based on the preceding five-year period, excluding the highest and the lowest entry;

(3) ‘aid’ means any measure fulfilling all the criteria laid down in Article 107(1) TFEU;

(4) ‘aid intensity’ means the gross aid amount expressed as a percentage of the eligible costs, before any deduction of tax or other charge;

(5) ‘aid scheme’ means any act on the basis of which, without further implementing measures being required, individual aid awards may be made to undertakings defined within the act in a general and abstract manner and any act on the basis of which aid which is not linked to a specific project may be granted to one or several undertakings for an indefinite period of time and/or for an indefinite amount;

(6) ‘biosecurity’ means management and physical measures designed to reduce the risk of introduction, development and spread of diseases to, from and within: (a) an animal population, or (b) an establishment, zone, compartment, means of transport or any other facilities, premises or location;

(7) ‘control and eradication measures’ means measures regarding animal diseases for which a competent authority has formally recognised an outbreak, or regarding plant pests or invasive alien species for which a competent authority has formally acknowledged their presence;

(8) ‘date of granting the aid’ means the date when the legal right to receive the aid is conferred on the beneficiary undertaking under the applicable national legal regime;

(9) ‘depredation’ means preying on fish caught in nets or kept in ponds by protected animals such as seals, sea otters and sea birds;

(10) ‘evaluation plan’ means a document covering one or more aid schemes and containing at least the following minimum aspects: the objectives to be evaluated, the evaluation questions, the result indicators, the envisaged method to conduct the evaluation, the data collection requirements, the proposed timing of the evaluation including the date of submission of the interim and the final evaluation reports, the description of the independent body that will carry out the evaluation or the criteria that will be used for its selection and the modalities for making the evaluation publicly available;

(11) ‘fiscal successor scheme’ means a scheme in the form of tax advantages which constitutes an amended version of a previously existing scheme in the form of tax advantages and which replaces it;

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

(13) ‘fishery and aquaculture products’ means the products listed in Annex I to Regulation (EU) No 1379/2013 of the European Parliament and of the Council ([^E0004]);

(14) ‘fishery and aquaculture sector’ means the sector of the economy which comprises all activities of production, processing, and marketing of fishery or aquaculture products;

(15) ‘fishing capacity’ means a vessel’s tonnage in GT (Gross Tonnage) and its power in kW (Kilowatt) as defined in Articles 4 and 5 of Regulation (EU) 2017/1130 of the European Parliament and of the Council ([^E0005]);

(16) ‘fishing port’ means a maritime or inland area of land and water which is officially recognised by a Member State and made up of such infrastructure and equipment so as to permit, mainly, the reception of fishing vessels, loading and unloading their catches, the storage, receipt and delivery of those catches and the embarkation and disembarkation of fishers;

(17) ‘gross grant equivalent’ means the amount of the aid if it had been provided in the form of a grant to the beneficiary undertaking, before any deduction of tax or other charges;

(18) ‘individual aid’ means ad hoc aid and awards of aid to individual beneficiaries on the basis of an aid scheme;

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

(20) ‘invasive alien species’ means invasive alien species of Union concern and invasive alien species of Member State concern as defined in Article 3(3) and 3(4) of Regulation (EU) No 1143/2014 ([^E0006]) of the European Parliament and of the Council (‘Regulation (EU) No 1143/2014’);

(21) ‘natural disasters’ means earthquakes, avalanches, landslides, floods, tornadoes, hurricanes, volcanic eruptions and wild fires of natural origin;

(22) ‘outermost regions’ means the regions referred to in Article 349 TFEU;

(23) ‘protected animal’ means any animal other than fish protected either by Union or by national legislation;

(24) ‘repayable advance’ means a loan for a project which is paid in one or more instalments and the conditions for the reimbursement of which depend on the outcome of the project;

(25) ‘SME’ or ‘micro, small and medium-sized enterprises’ means undertakings fulfilling the criteria laid down in Annex I;

(26) ‘small-scale coastal fishing’ means fishing activities carried out by: (a) marine and inland fishing vessels of an overall length of less than 12 metres and not using towed gear as defined in point (1) of Article 2 of Council Regulation (EC) No 1967/2006 ([^E0007]); or (b) fishers on foot, including shellfish gatherers;

(27) ‘start of works’ means the earlier of either the start of construction works relating to the investment, or the first legally binding commitment to order equipment or any other commitment that makes the investment irreversible. Buying land and preparatory works such as obtaining permits and conducting feasibility studies are not considered start of works. For take-overs, ‘start of works’ means the moment of acquiring assets directly linked to the acquired establishment;

(28) ‘subsidised services’ means a form of aid, where the aid is granted to the final beneficiary undertaking indirectly, in kind, and is paid to the provider of the service or activity in question;

(29) ‘undertaking in difficulty’ means an undertaking fulfilling the criteria laid down in Article 2, point (18), of Commission Regulation (EU) No 651/2014 ([^E0008]).

In addition to the definitions listed in paragraph 1, the definitions provided for in Article 4 of Regulation (EU) No 1380/2013, Article 2 of Regulation (EU) 2021/1139 and Article 5 of Regulation (EU) No 1379/2013 shall apply.

Article 3

Notification threshold

This Regulation shall not apply to individual aid for any project with eligible costs in excess of EUR 2,5 million, or where the gross grant equivalent of the aid exceeds EUR 1,25 million per undertaking per year.

The thresholds set out in paragraph 1 shall not be circumvented by artificially splitting up the aid schemes or aid projects.

Article 4

Conditions for exemption

Aid schemes, individual aid granted under aid schemes and ad hoc aid shall be compatible with the internal market within the meaning of Article 107(2) or (3) TFEU and shall be exempted from the notification requirement of Article 108(3) TFEU provided that such aids fulfil the conditions laid down in Chapter I of this Regulation, as well as the specific conditions for the relevant category of aid laid down in Chapter III of this Regulation.

Aid measures shall only be exempted under this Regulation as far as they explicitly provide that, during the grant period, the beneficiaries of the aid shall comply with the rules of the Common Fisheries Policy and that, if during that period it is found that the beneficiary does not comply with rules of the Common Fisheries Policy, the aid shall be reimbursed in proportion to the gravity of the infringement.

Article 5

Transparency of aid

This Regulation shall apply only to aid in respect of which it is possible to calculate precisely the gross grant equivalent of the aid ex ante without any need to undertake a risk assessment (‘transparent aid’).

The following categories of aid shall be considered to be transparent:

(a) aid comprised in grants, interest rate subsidies and subsidised services;

(b) aid comprised in loans where the gross grant equivalent has been calculated on the basis of the reference rate prevailing at the time of the grant;

(c) aid comprised in guarantees:
(i) where the gross grant equivalent has been calculated on the basis of safe-harbour premiums laid down in a Commission notice; or
(ii) where before the implementation of the measure, the methodology to calculate the gross grant equivalent of the guarantee has been accepted on the basis of the Commission Notice on the application of Articles 87 and 88 of the EC Treaty to State aid in the form of guarantees, or any successor notice, following notification of that methodology to the Commission under any regulation adopted by the Commission in the State aid area applicable at the time, and the approved methodology explicitly addresses the type of guarantee and the type of underlying transaction at stake in the context of the application of this Regulation;

(d) aid in the form of tax advantages, where the measure provides for a cap ensuring that the applicable threshold is not exceeded;

(e) aid in the form of repayable advances, if the total nominal amount of the repayable advance does not exceed the thresholds applicable under this Regulation or if, before implementation of the measure, the methodology to calculate the gross grant equivalent of the repayable advance has been accepted following its notification to the Commission.

For the purposes of this Regulation, the following categories of aid shall not be considered to be transparent aid:

(a) aid comprised in capital injections;

(b) aid comprised in risk finance measures.

Article 6

Incentive effect

This Regulation shall apply only to aid which has an incentive effect.

Aid shall be considered to have an incentive effect, if the beneficiary undertaking has submitted a written application for the aid to the Member State concerned before work on the project or activity starts. The application for the aid shall contain at least the following information:

(a) undertaking’s name and size;

(b) description of the project or activity, including its start and end dates;

(d) list of eligible costs; and

(e) type of aid (grant, loan, guarantee, repayable advance or other) and amount of public funding needed for the project or activity.

Ad hoc aid granted to large enterprises shall be considered to have an incentive effect if, in addition to ensuring that the condition laid down in paragraph 2 is fulfilled, the Member State has verified, before granting the ad hoc aid concerned, that documentation prepared by the beneficiary undertaking establishes that the aid will result in one or more of the following:

(a) a material increase in the scope of the project or activity due to the aid;

(b) a material increase in the total amount spent by the beneficiary undertaking on the project or activity due to the aid;

(d) in the case of investment ad hoc aid, that the project or activity would not have been carried out as such in the area concerned or would not have been sufficiently profitable for the beneficiary undertaking in the area concerned in the absence of the aid.

Measures in the form of tax advantages shall be deemed to have an incentive effect, if the following conditions are fulfilled:

(a) the measure establishes a right to aid in accordance with objective criteria and without further exercise of discretion by the Member State; and

(b) the measure has been adopted and is in force before work on the aided project or activity has started. This requirement shall not apply in the case of fiscal successor schemes, provided the activity was already covered by the previous schemes in the form of tax advantages.

By way of derogation from paragraphs 1 and 2 of this Article, the following categories of aid are not required to have or shall be deemed to have an incentive effect

(a) aid to compensate for the costs of the prevention, control and eradication of animal diseases, if the conditions laid down in Article 42 are fulfilled;

(b) aid to make good the damage caused by natural disasters, if the conditions laid down in Article 49 are fulfilled;

(c) aid to make good the damage caused by adverse climatic events which can be assimilated to a natural disaster, if the conditions laid down in Article 51 are fulfilled;

(d) aid to make good the damage caused by protected animals, if the conditions laid down in Article 53 are fulfilled;

(e) aid in the form of tax exemptions or reductions adopted by the Member States pursuant to Article 15(1) point (f), and Article 15(3) of Directive 2003/96/EC, if the conditions laid down in Article 56 of this Regulation are fulfilled;

(f) aid for SMEs participating in or benefitting from CLLD projects, if the relevant conditions in Articles 54 and 55 are fulfilled;

(g) aid for marketing measures referred to in Article 45(1)(b)(vii) if the relevant conditions in Articles 45 are fulfilled;

(h) aid for partnership between scientists and fishers if the relevant conditions in Articles 17 are fulfilled;

(i) aid to promote human capital, job creation and social dialogue if the relevant conditions in Articles 18 are fulfilled.

Article 7

Aid intensity and eligible costs

For the purpose of calculating aid intensity and eligible costs, all figures used shall be taken before any deduction of tax or other charge. The eligible costs shall be supported by documentary evidence which shall be clear, specific and contemporary. Value added tax (VAT) shall not be eligible for aid, except where it is non-recoverable under national legislation.

Where aid is granted in a form other than a grant, the aid amount shall be the gross grant equivalent of the aid.

Aid payable in several instalments shall be discounted to its value on the date of granting the aid. The eligible costs shall be discounted to their value on the date of granting the aid. The interest rate to be used for discounting purposes shall be the discount rate applicable on the date of granting the aid.

Where aid is granted by means of tax advantages discounting of aid tranches shall take place on the basis of the discount rates applicable on the various dates when the tax advantage takes effect.

Where aid is granted to make good the damage or income foregone it shall be reduced by any costs not directly incurred due to the event.

Where aid is granted in the form of repayable advances which, in the absence of an accepted methodology to calculate their gross grant equivalent, are expressed as a percentage of the eligible costs and the measure provides that in case of a successful outcome of the project, as defined on the basis of a reasonable and prudent hypothesis, the advances will be repaid with an interest rate at least equal to the discount rate applicable on the date of granting the aid, the maximum aid intensities laid down in Chapter III may be increased by 10 percentage points without exceeding a maximum aid intensity rate of 100 % of the eligible costs.

The eligible costs shall comply with the requirements of Articles 53 to 57 of Regulation (EU) 2021/1060 of the European Parliament and of the Council ([^E0009]).

Article 8

Cumulation

In determining whether the notification thresholds laid down in Article 3 and the maximum aid intensities laid down in Chapter III are respected, the total amount of aid for the activity or project or undertaking shall be taken into account, regardless of whether that aid is financed from local, regional, national or Union sources.

Aid exempted by this Regulation may be cumulated with one of the following:

(a) any other aid, as long as those measures concern different identifiable eligible costs;

(b) any other aid, in relation to the same eligible costs, partly or fully overlapping, only if such cumulation does not result in exceeding the highest aid intensity or aid amount applicable to this aid under this Regulation.

Aid exempted under this Regulation shall not be cumulated with any de minimis aid in respect of the same eligible costs, if such cumulation would result in an aid intensity exceeding those referred to in Chapter III.

Article 9

Publication and information

The Member State concerned shall ensure the publication on the Commission’s transparency award module or a comprehensive State aid website, at national or regional level of:

(a) the summary information referred to in Article 11 in the standardised format laid down in Annex II or a link providing access to it;

(b) the full text of each aid measure as referred to in Article 11 or a link providing access to the full text;

The information referred to in points (a), (b) and (c) shall be published in accordance with Annex III.

For schemes in the form of tax advantages, the conditions set out in paragraph 1, point (c), shall be considered fulfilled, if Member States publish the required information on individual aid amounts in the following ranges (in EUR million):

(a) 0,01–0,2;

(b) 0,2–0,4;

(d) 0,6–0,8;

(e) 0,8–1.

The information referred to in paragraph 1, point (c), shall be organised and accessible in a standardised manner, as set out in Annex III, and shall allow for effective search and download functions. The information referred to in paragraph 1 shall be published within six months from the date the aid was granted, or for aid in the form of tax advantage, within one year from the date the tax declaration is due, and shall be available for at least 10 years from the date on which the aid was granted.

Each aid scheme and individual aid shall contain an explicit reference to this Regulation, by citing its title and publication reference in the Official Journal of the European Union, and to the specific provisions of Chapter III relating to that that aid, or where applicable, to the national law which ensures that the relevant provisions of this Regulation are complied with. It shall be accompanied by its implementing provisions and its amendments.

The publication obligations laid down in paragraph 1 of this Article shall not apply to aid granted to CLLD projects under Articles 54 and 55.

The Commission shall publish on its website:

(a) the links to the State aid websites, referred to in paragraph 1 of this Article;

(b) the summary information referred to in Article 11(2).

CHAPTER II Procedural requirements

Article 10

Withdrawal of the benefit of the block exemption

Where a Member State grants aid allegedly exempted from the notification requirement under this Regulation without fulfilling the conditions set out in Chapters I, II and III thereof, the Commission may, after having provided the Member State concerned with the possibility to make its views known, adopt a decision stating that all or some of the future aid measures adopted by the Member State concerned which would otherwise fulfil the requirements of this Regulation, are to be notified to the Commission in accordance with Article 108(3) TFEU. The measures to be notified may be limited to measures granting certain types of aid, in favour of certain beneficiaries or adopted by certain authorities of the Member State concerned.

Article 11

Reporting

Member States shall transmit to the Commission in electronic form an annual report, referred to in Chapter III of Commission Regulation (EC) No 794/2004 ([^E0010]), on the application of this Regulation in respect of each whole year or each part of the year during which this Regulation applies.

Member States shall also transmit to the Commission, via the Commission’s electronic notification system, the summary information about each aid measure exempted under this Regulation in the standardised format laid down in Annex II, together with a link providing access to the full text of the aid measure, including its amendments, within 20 working days following its entry into force.

Paragraphs 1 and 2 of this Article shall not apply to aid granted to CLLD projects referred to in Article 55.

Article 12

Evaluation

Aid schemes referred to in Article 1(7) shall be subject to an ex post evaluation if they have a State aid budget or accounted expenditures over EUR 150 million in any given year or EUR 750 million over their total duration, i.e. the combined duration of the aid scheme and any predecessor aid scheme covering a similar objective and geographical area, starting from 1 January 2023. Ex post evaluations shall only be required for aid schemes the total duration of which exceeds 3 years, starting from 1 January 2023.

The ex post evaluation requirement may be waived for aid schemes that are an immediate successor of a scheme covering a similar objective and geographical area that has been subject to an evaluation, delivered a final evaluation report in compliance with the evaluation plan approved by the Commission and has not generated any negative findings. Where the final evaluation report of an aid scheme is not in compliance with the approved evaluation plan, that scheme shall be suspended with immediate effect. Any successor of such suspended aid scheme shall not be block exempted.

The aim of the evaluation shall be to verify whether the assumptions and conditions underlying the compatibility of the aid scheme have been achieved, in particular the necessity and the effectiveness of the aid measure in the light of its general and specific objectives. It shall also assess the impact of the scheme on competition and trade.

For aid schemes subject to the evaluation requirement pursuant to paragraph 1, Member States shall notify to the Commission a draft evaluation plan as follows:

(a) within 20 working days from the aid scheme's entry into force, if the budget of the aid scheme exceeds EUR 150 million in any given year or EUR 750 million over its total duration;

(b) within 30 working days following a significant change that increases the budget of the aid scheme to over EUR 150 million in any given year or EUR 750 million over the total duration of the aid scheme;

(c) within 30 working days following the recording in official accounts of expenditure under the aid scheme in excess of EUR 150 million in any year.

The draft evaluation plan shall be in line with the common methodological principles provided by the Commission ([^E0011]). Member States shall publish the evaluation plan approved by the Commission.

The ex post evaluation shall be carried out by an expert independent from the aid granting authority on the basis of the evaluation plan. Each evaluation shall include at least one interim and one final evaluation report. Member States shall publish both reports.

The final evaluation report shall be submitted to the Commission at the latest 9 months before the expiry of the exempted aid scheme. That period may be reduced for aid schemes triggering the evaluation requirement in the last 2 years of implementation of the aid scheme. The precise scope and arrangements for each evaluation shall be set out in the Commission Decision approving the evaluation plan. The notification of any subsequent aid measure with a similar objective shall describe how the results of the evaluation have been taken into account.

Article 13

Monitoring

Member States shall maintain detailed records with the information and supporting documentation necessary to establish that all the conditions laid down in this Regulation are fulfilled. Such records shall be kept for 10 years from the date on which the ad hoc aid was granted or the last aid was granted under the scheme. The Member State concerned shall provide the Commission within a period of 20 working days or such longer period as may be fixed in the request, with all the information and supporting documentation which the Commission considers necessary to monitor the application of this Regulation.

CHAPTER III Specific provisions for different categories of aid

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

Article 14

General conditions

The aid under this Section shall fulfil all the following general conditions:

(a) where aid is granted in respect of a Union fishing vessel, that vessel shall not be transferred or reflagged outside the Union during at least the five years from the final payment for the supported operation. If a vessel is transferred or reflagged within that time-frame, sums unduly paid in respect of the operation shall be recovered by the Member State, in an amount proportionate to the period during which the condition set out in the first sentence of this point has not been fulfilled;

(b) operating costs shall not be eligible unless expressly otherwise provided for in this Section.

Article 15

Aid for innovation in fisheries

Aid for innovation in fisheries fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that the aid aims to develop or introduce new or substantially improved products and equipment, new or improved processes and techniques, and new or improved management and organisation systems, including at the level of processing and marketing.

Subsidised services financed by the aid shall be carried out by, or in collaboration with, a scientific or technical body, recognised by the Member State or the Union. That scientific or technical body shall validate the results of such operations. The aid shall be paid directly to the research and/or knowledge-dissemination organisation.

The results of operations receiving support shall be adequately publicised by the Member State.

The eligible costs may be the following:

(a) direct personnel costs related to researchers, technicians and other supporting staff to the extent employed on the project;

(b) costs of instruments and equipment to the extent and for the period used for the operations; where such instruments and equipment are not used for their full life for the operations, only the depreciation costs corresponding to the life of the operations, as calculated on the basis of generally accepted accounting principles are considered as eligible;

(c) costs of buildings and land, to the extent and for the duration period used for the operations and under the following conditions:
(i) with regard to buildings, only the depreciation costs corresponding to the life of the operation, as calculated on the basis of generally accepted accounting principles, are considered as eligible;
(ii) with regard to land, costs of commercial transfer or actually incurred capital costs are eligible;

(d) costs of contractual research, knowledge and patents bought or licensed from outside sources at arm’s length conditions, as well as costs of consultancy and equivalent services used exclusively for the operations; or

(e) additional overheads and other operating expenses, including costs of materials, supplies and similar products, incurred directly as a result of the operations.

The amount of the aid under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the eligible costs. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 16

Aid for advisory services

Aid for advisory services fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

(a) the aid improves the overall performance and competitiveness of undertakings and promotes sustainable fisheries;

(b) the aid shall be accessible to all eligible undertakings in the area concerned, based on objectively defined conditions; and

(c) the advisory service takes on one of the following forms:
(i) feasibility studies and advisory services that assess the viability of measures potentially eligible for support under of Title II, Chapter II of Regulation (EU) 2021/1139;
(ii) the provision of professional advice on environmental sustainability, with a focus on limiting and, where possible, eliminating the negative impact of fishing activities on marine, coastal, terrestrial and freshwater ecosystems;
(iii) the provision of professional advice on business and marketing strategies.

The feasibility studies, advisory services and advice referred to in paragraph 1, point (b), shall be provided by scientific, academic, professional or technical bodies, or entities providing economic advice that have the competence required under national law.

The aid shall take the form of a subsidised service or direct grant.

The amount of the aid granted under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the eligible costs. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 17

Aid for partnership between scientists and fishers

Aid for partnership between scientists and fishers fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

(a) the aid aims to foster the transfer of knowledge between scientists and fishers;

(b) the aid supports the following:
(i) the creation of networks, partnership agreements or associations between one or more independent scientific bodies and fishers, or one or more organisations of fishers, in which technical bodies may participate;
(ii) the activities carried out in the framework of the networks, partnership agreements, or associations referred to in point (i). These activities may cover data collection and management activities, studies, pilot projects, dissemination of knowledge and research results, seminars and best practices.

The aid shall take the form of a subsidised service or direct grant.

The aid may only cover the following eligible costs incurred directly as a result of the supported project:

(a) direct salary costs

(b) participation fees;

(d) costs of publications;

(e) purchased data collection services, studies, pilot projects;

(f) the rent of exhibition premises and stands and the costs of their installation and dismantling;

(g) costs for the dissemination of scientific knowledge and factual information.

Article 18

Aid to promote human capital and social dialogue fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that the aid concerned supports the following:

(a) professional training, lifelong learning, joint projects, the dissemination of knowledge of an economic, technical, regulatory or scientific nature and of innovative practices, and the acquisition of new professional skills, in particular linked to the sustainable management of marine ecosystems, hygiene, health, safety, activities in the maritime sector, innovation and entrepreneurship;

(b) networking and exchange of experiences and best practices between stakeholders, including among organisations promoting equal opportunities between men and women, promoting the role of women in fishing communities and promoting under-represented groups involved in small-scale coastal fishing or in on-foot fishing; or

(c) social dialogue at Union, national, regional or local level involving fishers, social partners and other relevant stakeholders.

The aid to support activities listed in paragraph 1 may also be granted to spouses of self-employed fishers or, where and in so far as recognised by national law, the life partners of self-employed fishers, not being employees or business partners, where they habitually, under the conditions laid down by national law, participate in the activities of the self-employed fisher and perform the same or ancillary tasks.

The amount of aid granted under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 50 % of the eligible costs, except in the case of professional navigation training and safety training where the maximum aid intensity rate of 100 % applies. Specific maximum aid intensity rates shall be as set out in Annex IV. Where one operation falls under several of the rows 1 to 11 of Annex IV, the highest maximum aid intensity rate shall apply.

Article 19

Aid to facilitate diversification and new forms of income

Aid to facilitate diversification and new forms of income fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

(a) the aid aims to support investments contributing to the diversification of the income of fishers through the development of complementary activities, including investments on board, angling tourism, restaurants, environmental services related to fishing and educational activities concerning fishing;

(b) the aid supports fishers who:
(i) submit a business plan for the development of their new activities; and
(ii) possess adequate professional skills or acquire it through operations which may be financed under Article 18(1), point (a).

The aid referred to in paragraph 1, point (a), shall only be granted if the complementary activities relate to the fisher’s core fishing business.

The amount of the aid granted under this Article shall not exceed 50 % of the budget foreseen in the business plan for each operation, and shall not exceed a maximum amount of EUR 75 000 for each beneficiary undertaking.

Article 20

Aid to first acquisition of a fishing vessel

Aid to the first acquisition of a fishing vessel or the first acquisition of partial ownership fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

(a) the aid contributes to strengthening economically, socially and environmentally sustainable fishing activities and the beneficiary undertaking has provided verifiable information and a business plan that attests to this; and

(b) the aid supports first acquisition of a fishing vessel by a natural person who is no more than 40 years of age at the date of submission of the application for aid and has worked at least five years as a fisher or has acquired adequate qualifications.

Aid under paragraph 1 may also be granted to legal entities wholly owned by one or more natural persons who each fulfil the conditions set out in paragraph 1.

Aid under this Article may be granted for the joint first acquisition of a fishing vessel by several natural persons who each fulfil the conditions set out in paragraph 1.

Support under this Article may also be granted for the first acquisition of partial ownership of a fishing vessel by a natural person who fulfils the conditions set out in paragraph 1 and who shall be deemed to have controlling rights on that vessel through ownership of at least of 33 % of the fishing vessel or of the shares in the fishing vessel or by a legal entity which fulfils the conditions set out in paragraph 2 and which shall be deemed to have controlling rights on that vessel through ownership of at least of 33 % of the fishing vessel or of the shares in the fishing vessel.

Aid shall be granted only in respect of a fishing vessel which complies with all the following requirements:

(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;

(d) has been registered in the Union fleet register for at least three calendar years preceding the year of submission of the application for aid 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 aid.

The amount of the aid granted under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 40 % of the eligible costs and shall in any event not be higher than EUR 75 000 per fisher and fishing vessel.

Article 21

Aid to improve health, safety and working conditions for fishers

Aid to improve health, safety and working conditions for fishers fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

(a) the aid is granted only in respect of investments on board or in individual equipment and those go beyond the requirements under Union or national law; and

(b) the aid does not support operations that increase the gross tonnage of a fishing vessel.

For operations that are aimed at improving safety for fishers, the purchase and, if applicable, the installation of the following items are eligible for support:

(a) life rafts;

(b) hydrostatic release units for life-rafts;

(c) personal locator beacons such as Emergency Position Indicating Radio Beacon (‘EPIRB’) devices, which may be integrated into lifejackets and working clothes of fishers;

(d) Personal Flotation Devices (‘PFD’), in particular immersion or survival suits, life buoys and jackets;

(e) distress flares;

(f) line-throwing appliances;

(g) man-overboard (‘MOB’) recovery systems;

(h) fire-fighting apparatus, such as fire extinguishers, fire blankets, fire and smoke detectors, breathing apparatus;

(i) fire protection doors;

(j) fuel tank shut-off valves;

(k) gas detectors and gas alarm systems;

(l) bilge pumps and alarms;

(m) equipment for radio and satellite communications;

(n) watertight hatches and doors;

(o) guards on machinery, such as winches or net drums;

(p) gangways and access ladders;

(q) search, deck or emergency lighting;

(r) safety release mechanism for cases where fishing gear catches an underwater obstruction;

(s) safety cameras and monitors;

(t) equipment and elements necessary to improve deck safety.

For operations or the provision of equipment that are aimed at the improvement of the health conditions for fishers, the following actions are eligible for support:

(a) the purchase and installation of first aid kits;

(b) the purchase of medicines and devices for urgent treatment;

(c) the provision of telemedicine including e-technologies, equipment and medical imagery applied to distance consultation from the vessels;

(d) the provision of guides and manuals to improve health;

(e) information campaigns to improve health.

For operations or the provision of equipment that are aimed at the improvement of hygiene conditions for fishers, the purchase and, if applicable, the installation of the following items are eligible for support:

(a) sanitary facilities, such as toilet and washing facilities;

(b) kitchen facilities and equipment for food supplies storage;

(d) ventilation, cleaning or disinfection equipment or systems to maintain on board adequate sanitary conditions;

(e) guides and manuals on the improvement of hygiene on board, including software tools.

For operations or the provision of equipment that are aimed at the improvement of working conditions on board fishing vessels, the purchase and, if applicable, the installation of the following items are eligible for support:

(a) deck railings;

(b) shelter deck structures and the modernisation of cabins with a view to providing protection from adverse climatic events which can be assimilated to a natural disaster;

(d) equipment to reduce heavy manual lifting, excluding machines directly related to the fishing operations such as winches;

(e) anti-slipping paint and rubber mats;

(f) insulation equipment against noise, heat or cold, and equipment to improve ventilation;

(g) working clothes and safety equipment such as waterproof safety boots, eyes and breathing protection, protective gloves and helmets, or protective equipment against falls;

(h) emergency and safety warning signs;

(i) risk analysis and assessments to identify the risks for fishers both in port or in navigation in order to take measures to prevent or reduce risks;

(j) guides and manuals on the improvement of working conditions on board;

(k) collective vehicles for transport from shellfish zones to first sale places;

(l) on-shore facilities for fishermen on foot that improve working conditions, such as changing rooms, bathrooms, and other sanitary facilities, in particular those that encourage and promote women’s entry into the labour market.

The aid shall be granted to fishers, including when applicable fisher on foot, or owners of fishing vessels.

Where the operation consists of an investment on board, the aid shall not be granted more than once during the period between 1 January 2023 and 31 December 2029 for the same type of investment and for the same fishing vessel. Where the operation consists of an investment in individual equipment, the aid shall not be granted more than once during the period between 1 January 2023 and 31 December 2029 for the same type of equipment and for the same beneficiary undertaking.

Article 22

Aid for the payment of insurance premiums and for financial contributions to mutual funds

Aid for the payment of insurance premiums and for financial contributions to mutual funds fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

(a) the aid aims to contribute to premiums for insurances or mutual funds or which pay financial compensation to fishers for economic losses caused by behaviour of the protected animals, public health crises, adverse climatic events which can be assimilated to a natural disaster or by environmental incidents or for the rescue costs for fishers or fishing vessels in the case of accidents at sea during their fishing activities;

(b) the combination of financial compensation paid by mutual funds under this Article with other Union or national instruments or insurance schemes does not lead to overcompensation exceeding the economic loss incurred;

(c) the insurance does not require or specify the type or quantity of future production and the aid is not limited to insurance provided by a specific insurance company or group of companies; and

(d) the mutual fund is accredited by the competent authority of a Member State in accordance with national laws.

For the purposes of this Article:

(a) public health crises, adverse climatic events which can be assimilated to a natural disaster, environmental incidents or accidents at sea referred to in paragraph 1, point (a), shall be those that are formally recognised by the competent authority of the Member State as having occurred;

(b) the term ‘mutual fund’ means a scheme accredited by the Member State, in accordance with its national law, which enables affiliated fishers to insure themselves, whereby compensation payments are made to affiliated fishers for economic losses caused by the events listed in paragraph 1, point (a). The mutual fund shall have a transparent policy towards payments into and withdrawals from the fund and have clear rules attributing responsibilities for any debts incurred.

The maximum aid intensity shall be limited to:

(a) 50 % of the amounts paid by the mutual fund as financial compensation to fishers;

(b) 100 % of the administrative costs of setting up the mutual fund;

(d) 50 % of the initial capitalisation of the fund.

The contributions referred to in paragraph 1, point (a), shall only be granted to cover losses caused by public health crises, adverse climatic events which can be assimilated to a natural disaster, environmental incidents or accidents at sea.

Article 23

Aid to support systems of allocation of fishing opportunities

Aid to support systems of allocation of fishing opportunities fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

(a) the aid aims to support the design, development, monitoring, evaluation and management of the systems for allocating the fishing opportunities between Member States, in accordance with Article 16(8) of Regulation (EU) No 1380/2013, in order to adapt the fishing activities to the fishing opportunities; and

(b) the aid shall be granted to legal or natural persons or organisations of fishers recognised by the Member State, including recognised producer organisations involved in the collective management of the systems allocating the fishing opportunities.

The aid shall take the form of a subsidised service or direct grant.

The aid may only cover the following eligible costs:

(a) direct salary costs

(b) purchase or lease of tangible or intangible assets up to the market value of the asset

(d) purchase of design and development services or studies.

The amount of the aid granted under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 100 % of the eligible costs.

Article 24

Aid to limit the impact of fishing on the environment and adapt fishing to the protection of species

Aid to limit the impact of fishing on the environment and adapt fishing to the protection of species fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that: the aid aims to reduce the impact of fishing on the marine environment, at fostering the gradual elimination of discards and at facilitating the transition to a sustainable exploitation of living marine biological resources in accordance with Article 2(2) of Regulation (EU) No 1380/2013.

The aid shall support the following:

(a) investments in equipment improving size selectivity or species selectivity of fishing gear;

(b) investments on board or in equipment that eliminates discards by avoiding and reducing unwanted catches of commercial stocks, or that deals with unwanted catches to be landed in accordance with Article 15 of Regulation (EU) No 1380/2013;

(c) investments in equipment that limits and, where possible, eliminates the physical and biological impacts of fishing on the ecosystem or the sea bed; or

(d) investments in equipment that protects fishing gear and catches from mammals and birds protected by Council Directive 92/43/EEC ([^E0012]) or Directive 2009/147/EC of the European Parliament and of the Council ([^E0013]), provided that it does not undermine the selectivity of the fishing gear and that all appropriate measures are introduced to avoid physical damage to the predators.

The aid shall not be granted more than once during the period between 1 January 2023 and 31 December 2029 for the same type of equipment on the same Union fishing vessel.

The aid shall only be granted where the fishing gear or other equipment referred to in paragraph 2 of this Article has a demonstrably better size-selection or a demonstrably lower impact on the ecosystem and on non-target species than the standard gear or other equipment permitted under Union law, or under relevant national law adopted in the context of regionalisation as provided for in Regulation (EU) No 1380/2013.

The aid shall be granted to:

(a) owners of Union fishing vessels which are registered as active vessels and which have carried out fishing activities at sea of at least 60 days during the two calendar years preceding the date of submission of the application for aid;

(b) fishers who own the gear to be replaced and who have worked on board of a Union fishing vessel for at least 60 days during the two calendar years preceding the date of submission of the application for aid;

The amount of the aid granted under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 100 % of the eligible costs.

Article 25

Aid for innovation linked to the conservation of marine biological resources

Aid for innovation linked to the conservation of marine biological resources fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof provided that:

(a) the aid aims to contribute to the gradual elimination of discards and by-catches and to facilitate the transition to exploitation of living marine biological resources in accordance with Article 2(2) of Regulation (EU) No 1380/2013 and to reduce the impact of fishing on the marine environment and protected animals;

(b) the aid supports operations aimed at developing or introducing new technical or organisational knowledge that reduces the impact of fishing activities on the environment, including improved fishing techniques and gear selectivity, or aimed at achieving a more sustainable use of marine biological resources and coexistence with protected animals;

(c) the supported operations shall be carried out by, or in collaboration with, a scientific or technical body, recognised by the Member State, which shall validate the results of such operations; and

(d) the results of supported operations are adequately publicised by the Member State.

The aid shall take the form of a subsidised services.

Fishing vessels involved in projects financed under this Article shall not exceed 5 % of the number of fishing vessels of the national fleet or 5 % of the national fleet tonnage in gross tonnage, calculated at the time of adoption of the support instrument.

The eligible costs may only be the following:

(a) direct personnel costs related to researchers, technicians and other supporting staff to the extent employed on the project;

(b) costs of instruments and equipment to the extent and for the period used for the project; where such instruments and equipment are not used for their full life for the project, only the depreciation costs corresponding to the life of the project, as calculated on the basis of generally accepted accounting principles are considered as eligible;

(c) costs of buildings and land, to the extent and for the duration period used for the project and under the following conditions:
(i) with regard to buildings, only the depreciation costs corresponding to the life of the project, as calculated on the basis of generally accepted accounting principles, are considered as eligible;
(ii) with regard to land, only costs of commercial transfer or actually incurred capital costs are eligible;

(d) costs of contractual research, knowledge and patents bought or licensed from outside sources at arm’s length conditions, as well as costs of consultancy and equivalent services used exclusively for the project; or

(e) additional overheads and other operating expenses, including costs of materials, supplies and similar products, incurred directly as a result of the project.

Article 26

Aid for the protection and restoration of marine biodiversity and ecosystems and regimes in the framework of sustainable fishing activities

Aid for the protection and restoration of marine biodiversity and ecosystems and regimes in the framework of sustainable fishing activities fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof.

The aid under this Article shall support the following operations:

(a) the collection of waste by the fisher from the sea such as the passive collection of lost fishing gear and marine litter; only the following actions are eligible for support:
(i) the removal of lost fishing gear from the sea, in particular in order to combat ghost fishing;
(ii) the purchase and, if applicable, the installation of equipment on board for the collection and storage of litter;
(iii) the creation of schemes of waste collection for participating fishers, including financial incentives;
(iv) the purchase and, if applicable, the installation of equipment based in fishing port facilities for the storage and recycling of litter;
(v) communication, information, awareness raising campaigns, to encourage fishers and other stakeholders to participate in projects to remove lost fishing gear; or
(vi) training for fishers and port agents;

(b) the construction, installation or modernisation of static or movable facilities intended to protect and enhance marine fauna and flora, including their scientific preparation and evaluation; only the following actions are eligible for support:
(i) the purchase and, if applicable, the installation of facilities to protect marine areas from trawling;
(ii) the purchase and, if applicable, the installation of facilities to restore degraded marine ecosystems; or
(iii) costs relating to preliminary work such as prospecting, scientific studies or evaluations. Acquisition of a vessel to be submerged and used as an artificial reef shall not be eligible;

(c) contributions to a better management or conservation of marine biological resources by installing the following items or taking the following actions and projects:
(i) circular hooks;
(ii) acoustic deterrent devices;
(iii) turtle excluder devices (‘TEDs’);
(iv) streamer lines;
(v) other tools or devices proven efficient in preventing accidental catches of protected animals;
(vi) training for fishers on better management or conservation of marine biological resources;
(vii) projects focussing on coastal habitats of importance for fish, birds and other organisms;
(viii) projects focusing on areas of importance for fish reproduction, such as coastal wetlands; or
(ix) replacement of existing fishing gear with low impact fishing gear, costs related to fish pots and traps, jigging and hand-lining;

(d) the participation in other actions aimed at maintaining and enhancing biodiversity and ecosystem services, such as the restoration of specific marine and coastal habitats in support of sustainable fish stocks, including their scientific preparation and evaluation; costs related to the following actions are eligible for support:
(i) schemes to test novel monitoring techniques, and in particular:
— remote electronic monitoring systems, such as closed-circuit television (‘CCTV’) or video-control systems, for the monitoring and recording of incidental catches of protected animals,
— the recording of oceanographic data such as temperature, salinity, plankton, algae blooms or turbidity,
— the mapping of invasive alien species (‘IAS’),
— actions, including studies, to prevent and control the expansion of IAS;
(ii) financial incentives for the installation on board of automatic recording devices for monitoring and recording oceanographic data such as temperature, salinity, plankton, algae blooms or turbidity;
(iii) measures reducing physical and chemical pollution;
(iv) measures reducing other physical pressures, including anthropogenic underwater noise that negatively affect biodiversity;
(v) positive conservation measures to protect and conserve flora and fauna, including the reintroduction of or stocking with native species, and applying Green Infrastructure principles referred to in the Commission Communication on Green Infrastructure ([^E0014]); or
(vi) measures to prevent, control or eliminate IAS.

Support under paragraph 2, point (d), shall be subject to the formal recognition of such schemes or measures by the competent authorities of the Member States. Member States shall also ensure that no overcompensation occurs as a result of the combination of Union, national and private schemes.

The amount of the aid granted under this Article shall not exceed, in gross grant equivalent, a maximum aid intensity rate of 100 % of the eligible costs.

Article 27

Aid to improve energy efficiency and to mitigate the effects of climate change

Aid to improve energy efficiency and to mitigate the effects of climate change, with the exception of aid to replace or modernise engines, fulfilling the conditions laid down in Chapter I of this Regulation shall be compatible with the internal market within the meaning of Article 107(3), point (c), TFEU and shall be exempted from the notification requirement of Article 108(3) thereof.

The aid granted under this Article may only cover the following measures:

(a) investments in equipment or on board aimed at reducing the emission of pollutants or greenhouse gases and increasing the energy efficiency of fishing vessels. Investments in fishing gear are also eligible provided that they do not undermine the selectivity of that fishing gear;

(b) energy efficiency audits and schemes; or

(c) studies to assess the contribution of alternative propulsion systems and hull designs to the energy efficiency of fishing vessels.

Aid under paragraph 2 shall only be granted to owners of fishing vessels and shall not be granted more than once for the same type of investment during the period between 1 January 2023 and 31 December 2029 for the same fishing vessel.

The eligible costs are the direct additional costs incurred as a result of operations concerned. For the purposes of point (a) in paragraph 2, eligible costs related to:

(i) measures that are aimed at improving the hydrodynamics of the hull of the vessel may only cover:
— investments on stability mechanisms such as bilge keels and bulbous bows that contribute to improving sea-keeping and stability,
— costs related to the use of non-toxic antifouling such as copper coating in order to reduce friction,
— costs relative to the steering gear, such as steering gear control systems and multiple rudders to reduce rudder activity depending on weather and sea-state conditions, or
— tank testing in order to provide a basis for improving hydrodynamics;

(ii) measures that are aimed at improving the propulsion system of the vessel may only cover costs related to the purchase and, if necessary, the installation of the following items:
— energy efficient propellers including drive shafts,
— catalysers,
— energy efficient generators such as those using hydrogen, or natural gas,
— renewable energy propulsion elements such as sails, kites, windmills, turbines, or solar panels,
— bow thrusters,
— econometers, fuel management systems and monitoring systems, or
— investments in nozzles that improve the propulsion system;

(iii) investments in fishing gear and fishing equipment may only cover costs relating to the following measures:
— change from towed gear to alternative gear,
— towed gear modifications, or
— investments in towed gear monitoring equipment;

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