The pandemic brought with it enormous economic and social challenges, and in response, the European Union launched the Next Generation EU recovery program. This aid package includes the European Recovery and Resilience Mechanism (ERM), one of the most significant pillars to support the transformation and modernization of Member States. In April 2021, Spain presented its Recovery, Transformation and Resilience Plan, which sets the guidelines for the country to access aid from this fund, with an initial allocation of €69,528 million in non-refundable transfers and up to €80 billion in additional loans, in addition to the €12 billion from the REACT-EU fund.

The aim is for the Spanish government to allocate this aid to investment and reform projects within the 30 key components of the plan, thereby boosting the economy and promoting more sustainable and equitable growth. However, not all projects are eligible for this funding: one of the essential requirements is that each project must comply with the DNSH (Do No Significant Harm) Principle, or Principle of Not Causing Significant Harm to the environment.

What is the DNSH Principle?

The DNSH Principle is a standard defined by the European Commission that requires each funded project to contribute to or not adversely affect any of the six environmental objectives set out in Regulation (EU) 852/2020.

These objectives are:

  • Climate change mitigation.
  • Adaptation to climate change.
  • Sustainable use and protection of water and marine resources.
  • Circular economy (including waste prevention and recycling).
  • Pollution prevention and control (air, water or soil).
  • Protection and restoration of biodiversity and ecosystems.

DNSH

For each project for which it applies for funding, the organization must conduct a self-assessment to ensure compliance with the DNSH principle throughout the life cycle of the initiative. This assessment becomes a prerequisite for obtaining financial support from Next Generation EU.

DNSH Principle Validation Process

In certain calls, at the request of the funding body, it is necessary to provide greater credibility to the self-assessments and this is why sometimes the administration requires a Self-Assessment Validation of compliance with the DNHS principle carried out by an independent and most of the time accredited third party. This validation report confirms that the conclusions of the self-assessment are reasonable and supported by a sound technical basis.

ICDQ, as an accredited validation body, provides the validation process of the DNSH Principle self-assessment. At the end of this assessment, ICDQ issues a Validation Report, providing the organization with additional assurance of compliance with the environmental criteria, thus building confidence in all stakeholders.

Documentation required for Validation

In order to validate compliance with the DNSH Principle, the following must be submitted:

  • A descriptive report of the project and the investment.
  • The self-assessment report of compliance with the DNSH principle in relation to each of the six environmental objectives.
  • Other documents required by the call for proposals for which the project is applying.

During the validation process, the applicant organization must additionally provide all documentation and/or evidence that may support the claims of compliance with the DNSH principle made in the self-assessment report.

All documentation allows ICDQ to validate the adequacy of the project to the European guidelines and ensure that the initiative meets the required sustainability standard.

Control and Audit System

To ensure transparency and compliance with the requirements of the Next Generation EU funds, the Intervención General de la Administración del Estado (IGAE) acts as the control authority in Spain. There are also several control and audit systems:

  • Internal control by the executing body.
  • Control by an independent body to ensure compliance with the requirements.

These mechanisms guarantee the correct allocation of funds and ensure that each project complies with the established principles, especially the DNSH.

Calls for Proposals Requiring DNSH Self-Assessment Validation

The requirement for accredited validation of the DNSH principle has been appearing more and more frequently as funding lines linked to the actions included in the Recovery, Transformation and Resilience Plan have been added.

This is because it has been proven that accredited validation is a useful tool for the administration to ensure the alignment of the actions financed with the environmental objectives of the EU.

In a non-exhaustive way, these are some of the programs that have been incorporating this requirement for the granting of aid:

PERTE AVANT-GARDE HEALTH, PERTE ELECTRIC VEHICLE, MANUFACTURING INDUSTRY, NAVAL RESEARCH, PERTE AGRO, VARIOUS CDTI PROGRAMS….

How can ICDQ help your project?

ICDQ offers DNSH self-assessment validation services tailored to each organization’s needs. We understand that each project is unique, so we provide customized and scalable solutions for your organization to meet environmental requirements and access remediation funds. Whether local or global, we are here to help you through the certification process, facilitating a path to sustainability and excellence.

Want more information about DNSH Self-Assessment Validation? At ICDQ we offer you the guidance and support you need to meet European funding requirements and ensure your project contributes to a more sustainable future. Let’s talk today!