ANNEX I

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ANNEX I

METHODOLOGY FOR THE CALCULATION OF THE MAXIMUM FINANCIAL ALLOCATION FOR EACH MEMBER STATE UNDER THE FUND PURSUANT TO ARTICLE 14

This Annex sets out the methodology for calculating the maximum financial allocation available for each Member State in accordance with Articles 10 and 14.

The methodology takes into account the following variables with regard to each Member State:

The maximum financial allocation of a Member State under the Fund (MFAi) is established as follows:

Where:

The maximum amount (MA) for the implementation of the Fund is as referred to in Article 10(1) and α i is the share of Member State i in the maximum amount, determined on the basis of the following steps:

With

fi = 1 if

; fi = 2,5 if

Where for each Member State i:

rural pop i is the population at risk of poverty living in rural areas of the Member State i;

rural pop EU is the sum of population at risk of poverty living in rural areas of the Member States of the EU-27;

pop i is the population of the Member State i;

pop EU is the sum of the population of the Member States of the EU-27;

HCO2 i is the carbon dioxide emissions from fuel combustion by households of the Member State i;

HCO2 EU is the sum of carbon dioxide emissions from fuel combustion by households of the Member States of the EU-27;

arrears i is the percentage of households at risk of poverty with arrears on utility bills of the Member State i;

arrears EU is the percentage of households at risk of poverty with arrears on utility bills of the EU-27;

is the GNI per capita of the Member State i;

is the GNI per capita of the EU-27.The βi of those Member States with a GNI per capita below the EU-27 value and for which the

is the minimum component are proportionally adjusted to ensure that the sum of βi for all Member States equals 100 %. All λi are proportionally adjusted to ensure that their sum equals 100 %.

For all Member States, α i cannot be lower than 0,07 % of the maximum amount as referred to in Article 10(1). The α i of all Member States with α i higher than 0,07 % are proportionally adjusted to ensure that the sum of all α i equals 100 %.

For the Member States with a GNI per capita below 90 % of the EU-27 value, α i cannot be lower than the share of reference emissions under Article 4(2) of Regulation (EU) 2018/842 for the emission sources 1A3b, 1A4a and 1A4b, as established in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories for the average of the period 2016-2018, as comprehensively reviewed pursuant to Article 4(3) of that Regulation. The α i of the Member States with a GNI per capita above the EU-27 value are proportionally adjusted to ensure that the sum of all α i equals 100 %.