Report on the EU Multiannual Financial Framework Proposal (2028-2034) and its Alignment with Sustainable Development Goals for Ocean-Related Sectors

1.0 Executive Summary

The European Commission’s proposal for the Multiannual Financial Framework (MFF) for 2028-2034 introduces a redesigned EU budget structure. This report outlines the proposal’s implications for fisheries, aquaculture, and maritime sectors, with a significant emphasis on its alignment with the United Nations’ Sustainable Development Goals (SDGs). The new framework aims to be more integrated, flexible, and performance-oriented, directly supporting the achievement of SDG 14 (Life Below Water), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 13 (Climate Action), and SDG 17 (Partnerships for the Goals).

2.0 Core Objectives and Strategic Alignment with SDGs

The primary goal of the MFF proposal is to reduce funding fragmentation and enhance responsiveness to crises while empowering Member States. This strategy is fundamentally linked to achieving key SDG targets.

• Integration and Cohesion: By consolidating funding streams, the budget supports integrated coastal zone management, a crucial component for SDG 14, and fosters economic and social cohesion in coastal communities, aligning with SDG 8 and SDG 11 (Sustainable Cities and Communities).
• Flexibility and Prioritisation: Granting Member States more flexibility allows for targeted investments that address specific national and regional needs, ensuring that resources are effectively channelled towards local sustainability challenges, from protecting marine ecosystems (SDG 14) to promoting sustainable tourism (SDG 8).
• Performance-Orientation: A new single performance and monitoring system with streamlined indicators will track progress towards policy objectives, ensuring accountability and effective implementation of actions contributing to the SDGs.

3.0 Funding Architecture for a Sustainable Blue Economy

The budget proposal allocates significant resources across three main headings, creating a comprehensive financial ecosystem to advance the SDGs within the blue economy.

3.1 National and Regional Partnership Fund (NRP Fund)

With a total budget of €865 billion, this fund is central to implementing sustainable policies at the national and local levels.

1. Economic, Territorial, and Social Cohesion (€453 billion): This allocation supports coastal communities by enabling investments in sustainable infrastructure, community-led local development, and economic diversification, directly contributing to SDG 8 and SDG 11.
2. Common Fisheries Policy (CFP) Core Implementation (€2 billion minimum): A reserved allocation guarantees funding for core CFP objectives, which are essential for achieving SDG 14 targets, including sustainable fisheries management (SDG 14.4), marine conservation (SDG 14.5), and supporting sustainable aquaculture (SDG 14.7). Member States can allocate additional funds beyond this minimum.
3. EU Facility (€72 billion): This facility provides further support for CFP implementation, particularly for investments in scientific advice, data collection, and control measures necessary for the conservation of marine biological resources (SDG 14).

3.2 European Competitiveness Fund

This fund is designed to foster innovation, resilience, and sustainability, directly targeting SDG 9 and SDG 13.

• Green and Digital Transition: It will support the decarbonisation of maritime sectors through investments in green shipbuilding, port electrification, and offshore renewable energy, advancing SDG 13 (Climate Action).
• Innovation and Research: Through instruments like Horizon Europe, the fund will continue to support ocean observation, research, and the development of blue technologies, fostering the innovation required for SDG 9 and providing the scientific basis for protecting marine life under SDG 14.

3.3 Global Europe Instrument

This instrument strengthens the EU’s external actions, focusing on international cooperation and governance in line with SDG 17.

• International Ocean Governance: It supports EU ocean diplomacy and partnerships with non-EU countries to promote sustainable fisheries globally.
• Combating Illegal Fishing: A key focus is the fight against illegal, unreported, and unregulated (IUU) fishing, a critical target under SDG 14.4.

4.0 Practical Opportunities and Sectoral Impacts

4.1 Empowering Coastal Communities and Small-Scale Fisheries

The new framework creates integrated opportunities for local stakeholders.

• Integrated Investments: Coastal communities can combine funding for economic diversification (eco-tourism, seafood processing) with support for fisheries infrastructure, promoting resilient local economies (SDG 8).
• Support for Small-Scale Fisheries: Member States can provide targeted support, including up to 100% aid intensity rates, for small-scale and artisanal fisheries, directly addressing SDG 14.b (Provide access for small-scale artisanal fishers to marine resources and markets).
• Generational Renewal: Support for new entrants into the fisheries and aquaculture sectors helps ensure the long-term viability of coastal communities and food systems, contributing to SDG 2 (Zero Hunger) and SDG 8.

4.2 Advancing the Green Transition of Fleets and Ports

The budget provides clear pathways for decarbonisation in the maritime sector.

• Targeted Funding: The Competitiveness Fund and NRPPs can be used to modernise vessels, electrify ports, and develop green technologies.
• Environmental Safeguards: All support must comply with WTO rules and CFP objectives. The mandatory application of the ‘do-no-significant-harm’ (DNSH) principle across the entire EU budget ensures that investments do not undermine environmental objectives, reinforcing commitments to SDG 13 and SDG 14.

5.0 Governance, Transparency, and Accountability

5.1 Ensuring Policy Coherence and Performance

Mechanisms are in place to safeguard policy objectives and ensure funds are used effectively.

1. Single Performance Monitoring System: A streamlined system with approximately 900 indicators will replace over 5,000, reducing administrative burden while providing a clear overview of how EU funds contribute to green priorities and other policy goals.
2. Commission Oversight: The Commission will oversee the approval and implementation of national plans to ensure they align with CFP objectives and contribute to the overarching goals of SDG 14.
3. Climate and Environment Tracking: Robust tracking coefficients will quantify the budget’s contribution to climate change mitigation, adaptation, and environmental protection, enhancing transparency and accountability for SDG-related spending.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 14: Life Below Water

  This is the most central SDG addressed. The article is entirely focused on the EU’s budget proposal for fisheries, aquaculture, and ocean-related activities. It explicitly mentions supporting “sustainable fisheries and aquaculture, marine conservation and restoration,” fighting “illegal, unreported, and unregulated (IUU) fishing,” and promoting “international ocean governance.” These are core components of SDG 14.

• SDG 8: Decent Work and Economic Growth

  The article highlights that “fishery and aquaculture producers are the lifeblood of Europe’s coastal communities and economies.” It discusses funding for “economic, territorial and social cohesion,” “community-led local development (CLLD),” and “economic diversification (tourism, processing, eco-tourism),” all of which aim to create sustainable economic growth and jobs in coastal areas.

• SDG 9: Industry, Innovation, and Infrastructure

  The budget aims to foster “competitiveness, sustainability and resilience of the fishery and aquaculture sector.” It supports innovation through funds like “Horizon Europe” for “ocean observation, research and innovation” and the “Competitiveness Fund” for “blue tech,” “modernising vessels,” and “green shipbuilding.” This aligns with building resilient infrastructure and fostering innovation.

• SDG 11: Sustainable Cities and Communities

  The proposal emphasizes “Local support for coastal communities” through a €453 billion fund for cohesion. It mentions investments in “rural and coastal areas” and enabling towns to invest in “tourism infrastructure supporting eco-tourism” or “value-added seafood processing facilities,” which contributes to making communities inclusive, safe, resilient, and sustainable.

• SDG 13: Climate Action

  The article details support for the “energy, green transition of the fleet and ports.” The “Competitiveness Fund” is designed to back “decarbonisation and innovation,” including “port electrification” and “green shipbuilding.” Furthermore, the application of the “do-no-significant-harm” principle and tracking coefficients for climate change mitigation ensures that climate action is integrated into the budget’s policies.

• SDG 17: Partnerships for the Goals

  The “Global Europe instrument” is specifically designed to support “EU ocean diplomacy and international ocean governance.” It aims to “strengthen partnerships with non-EU countries to support sustainable fisheries,” which directly reflects the goal of strengthening global partnerships for sustainable development.

• SDG 2: Zero Hunger

  While not a primary focus, the article touches upon this goal by mentioning that Member States can include dedicated measures for outermost regions to address “structural constraints, such as food security.” Supporting sustainable fisheries and aquaculture also contributes to a stable food supply.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 14: Life Below Water

   • Target 14.2: By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration in order to achieve healthy and productive oceans.
     
     The article directly supports this through the €2 billion minimum allocation for “marine conservation and restoration.”
   • Target 14.4: By 2020, effectively regulate harvesting and end overfishing, illegal, unreported and unregulated fishing and destructive fishing practices and implement science-based management plans.
     
     This is addressed through support for the “common fisheries policy (CFP),” “sustainable fisheries,” and the “fight against illegal, unreported, and unregulated (IUU) fishing.”
   • Target 14.a: Increase scientific knowledge, develop research capacity and transfer marine technology…
     
     The article mentions that “Horizon Europe will continue to support ocean observation, research and innovation” and the EU Facility will support “investments in scientific advice, data collection and control.”

2. SDG 8: Decent Work and Economic Growth

   • Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.
     
     The article suggests coastal towns might invest in “tourism infrastructure supporting eco-tourism linked to marine conservation,” directly aligning with this target.

3. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries… encouraging innovation.
     
     This is supported by the “Competitiveness Fund” which backs “innovation,” “blue tech,” and “green shipbuilding,” and “Horizon Europe” which funds “research and innovation.”

4. SDG 11: Sustainable Cities and Communities

   • Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning.
     
     The budget’s focus on “National and Regional Partnership Plans (NRPPs)” and “community-led local development (CLLD)” in coastal and rural areas directly supports this target.

5. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies and planning.
     
     The article states that the “do-no-significant-harm” principle will apply to the entire EU budget and that NRPPs can allocate resources to “energy transition measures,” effectively integrating climate action into financial planning.

6. SDG 17: Partnerships for the Goals

   • Target 17.14: Enhance policy coherence for sustainable development.
     
     The proposal’s aim to reduce fragmentation and create a more “integrated” and “performance-oriented” budget with a “single performance and monitoring system” enhances policy coherence.
   • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships…
     
     The “Global Europe” instrument, which will “strengthen partnerships with non-EU countries,” is a clear example of implementing this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions both a new framework for indicators and specific types of indicators:

• Streamlined Output and Result Indicators: The article explicitly states that the new framework “replaces over 5,000 indicators with a streamlined set of around 900 output and result indicators.” This new set will be used to measure what the EU funds “deliver.”
• Performance Benchmarks: It is mentioned that for the common fisheries policy (CFP), “there will be performance benchmarks and payments will be subject to outputs or agreed conditions.” This implies a system of measurable targets that must be met to receive funding.
• Single Performance and Monitoring System: The creation of a “single performance and monitoring system” and a “Single Gateway” will provide a “comprehensive overview of where EU funds are allocated and what they deliver,” serving as a central tool for tracking progress across all programs.
• Tracking Coefficients: The article specifies a direct measurement tool: “Tracking coefficients for climate change mitigation, climate change adaptation and resilience, and environment will enable a more robust quantification of the EU budget contribution to these policies.” These coefficients are quantitative indicators of green spending.
• Do-No-Significant-Harm (DNSH) Principle: This principle acts as a qualitative indicator or a mandatory checkpoint. It ensures that all funded activities are assessed against environmental objectives, and progress is measured by compliance with this principle.

4. Table of SDGs, Targets, and Indicators

Source: oceans-and-fisheries.ec.europa.eu