The Commission publishes Technical Guidance on Applying the DNSH Principle
The technical guidance on applying the do no significant harm principle (DNSH) under the Social Climate Fund Regulation (SCF) has been published in the Official Journal of the European Union (OJ).
This document sets out the conditions under which the Commission considers that the measures and investments financing activities and assets eligible for support under the SCF comply with the DNSH principle. The SCF is a financial instrument aimed at supporting a socially fair transition to climate neutrality that will run from 2026 to 2032 with a budget of up to EUR 65 billion.
SCF-funded measures must comply with the DNSH principle. The Technical Guidance sets out common foundations to define the DNSH principle and provides tools and approaches to apply the common foundations in practice but does not pre-empt the Commission’s assessment of the compatibility of State aid measures and is without prejudice to the State aid rules. For measures and investments constituting State aid, Member States must ensure compliance with the compatibility conditions of the applicable State aid instrument. Not all State aid instruments contain a reference to the DNSH principle. Thus, the communication recognises the possibility that certain state aid measures will not comply with the DNSH principle but still be compatible with the internal market.
The Technical Guidance also takes account of the SCF’s aim to provide financial support to Member States for measures and investments to support vulnerable households, micro-enterprises and transport users particularly affected by the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC of the European Parliament and of the Council (the ETS Directive).
For more information, see the Official Publication.