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Recital 48

Recital 48

(48)The technical screening criteria for determining whether an economic activity contributes substantially to climate change adaptation should ensure that the economic activity is made climate resilient or provides solutions to other activities to become climate resilient. Where an economic activity is made climate resilient, the implementation of physical and non-physical solutions that substantially reduce the most important physical climate risks that are material to that activity represents the substantial contribution of that activity towards climate change adaptation. It is therefore appropriate that only capital expenditures incurred for all steps necessary for making the activity climate resilient should be considered as the proportion of capital and operating expenditure related to assets or processes associated with economic activities that qualify as environmentally sustainable and that turnover from that economic activity that has been made resilient should not be counted as derived from products or services associated with economic activities that qualify as environmentally sustainable. However, when the core business of economic activities enabling adaptation in accordance with Article 11(1), point (b), of Regulation (EU) 2020/852 is to provide technologies, products, services, information, or practices with the objectives of increasing the level of resilience to physical climate risks of other people, nature, cultural heritage, assets or of other economic activities, in addition to capital expenditure, the turnover derived from products or services associated with those economic activities should be considered as proportion of turnover derived from products or services associated with economic activities that qualify as environmentally sustainable.

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