VALIDATION OF SELF-ASSESSMENT OF COMPLIANCE WITH THE DNSH PRINCIPLE
In response to the economic and social damage caused by the pandemic, the European Union has developed a recovery instrument known as “Next Generation EU”. For its development, the European Union has defined several recovery and financing elements, among which the European Recovery and Resilience Mechanism (ERM) stands out.
Spain, in response to the requirements established by the MRR, submitted its Recovery, Transformation and Resilience Plan to the European Commission in April 2021.
Total estimate for Spain (MRR + REACT-EU):
69,528 million in non-reimbursable transfers + a maximum of 80,000 million in loans
REACT-EU Fund: 12,000 M€ non-reimbursable transfer
Over the next few months, and until the end of 2023, the State will issue new aid, and will adapt the existing aid that will be granted to investment or reform projects that fall within one (or several) of the 30 components contemplated in the Recovery, Transformation and Resilience Plan
The European Recovery and Resilience Mechanism (ERM) allows funding only for projects that respect the “Do no significant harm” (DNSH) principle.
What is DNSH principle?
The DNSH (Do No Significant Harm) Principle is a condition defined by the Commission that requires a self-assessment to ensure that the investment or reform does not adversely affect one or more of the six environmental objectives defined in Regulation 852/2020:
- Climate Change Mitigation.
- Adaptation to Climate Change.
- Sustainable use and protection of water and marine resources.
- Circular Economy, including waste prevention and recycling.
- Prevention and control of air, water and soil pollution.
- Protection and restoration of biodiversity and ecosystems.
The organization shall perform this self-assessment considering the life cycle of the project.
Likewise, investment or renovation projects whose actions are eligible for financing from these European funds must have a self-assessment explaining that they comply with the principle of not causing significant harm to the environment (DNSH).
Validation of the self-assessment of the DNSH Principle
The organization’s self-assessment of compliance with the DNSH principle for each project may require a third-party Validation Report to support the conclusions of the self-assessment and ensure that they are technically based and reasonable.
ICDQ offers this self-assessment validation process, after which it will issue a Validation Report on the project’s compliance with the DNSH principle, which it will deliver to the organization.
This Validation Report can contribute to the necessary confidence of any stakeholder.
What documentation is required for Validation?
- A descriptive report of the project and the investment, according to the structure and content of the call for proposals.
- Self-assessment of comliance with the DNSH principle of the project and its actions, for each of the sic environmental objetives.
- Any other document required by the call for proposals.
ICDQ will evaluate the information provided, carrying out a validation process that ends with the issuance of an Opinion on compliance with the DNSH principle (Validation Report of the project for which Next GEN funding has been requested).
Assignment process assurance, control and audit systems
In order to ensure the correct assignment and compliance with the requirements, the Administration has established the Intervención General de la Administración del Estado (IGAE) as the Control Authority and has defined a series of control and audit systems:
- Internal control of the executing agency.
- Control by an independent body.
Calls requiring validation of self-assessment of compliance with the DNSH Principle.
As of today, this requirement is found in at least the following calls:
- ICT Order 713, June 2021. IDI projects in the field of Industry 4.0.
- RD 1071/2021, of 7/12. RDI aids in the naval research sector.
- Order ICT/789/2021, aids to the manufacturing industry.
- Order ICT/1466/2021, aid for integral actions in the industrial chain of electric and connected vehicles.
Contact us for more information about DNSH Self-Assessment Validation.