Taking into account the restrictions in eligibility set by the EIF, undertakings should not engage in a material way in the following activities/sectors ("Prohibited Sectors"):

• Illegal economic activity Any production, trade or other activity that is illegal under the laws or regulations of the jurisdiction of the applicable national law for such production, trade or activity ("Illegal Economic Activity"). Human cloning for reproductive purposes is considered an illegal economic activity.
• Tobacco and distilled alcoholic beverages Production and marketing of tobacco, distilled alcoholic beverages and related products.
• Production of and trade in weapons and ammunition of all kinds Financing of production of and trade in weapons and ammunition of all kinds. This restriction does not apply insofar as the said activities are part of or ancillary to explicit policies of the European Union.
• Casinos and equivalent enterprises
• Restrictions applying to the IT sector Research, development or technical applications for programs related to electronic data or solutions, which
  A) aim in particular at:
  i. supporting any activity included in the Prohibited Sectors listed above, 
  ii. online gambling and casinos,  
  iii. pornography, 
  or which:
  B) are intended to permit unlawful:
  i. access to electronic data networks, or
  ii. obtaining of electronic data.
• Restrictions applying to the Life Sciences Sector When providing support for the financing of research, development or technical applications relating to (a) human cloning for research or therapeutic purposes and (b) genetically modified organisms (GMO's), the EIF will require the Bank to provide appropriate specific assurance regarding the scrutiny of legal, regulatory and ethical issues related to such matters.
• Energy production from fossil fuels and related activities:
  i. Extraction, processing, transport and storage of coal
  ii. Oil exploration and production, refining, transport, distribution and storage
  iii. Gas exploration and production, liquefaction, regasification, transport, distribution and storage
  iv. Electricity generation exceeding the CO2 emission performance standard (i.e. 250 grams of CO2-equivalent per kWh), applicable to power plants and fossil fuel cogeneration, geothermal and hydroelectric installations with large tanks
• Energy intensive industries and sectors and/or industries and sectors with high CO2 emissions:
  i. Manufacture of other organic basic chemicals (business line code -KAD 20.14.XX.XX)
  ii. Manufacture of other inorganic basic chemicals (KAD 20.13.XX.XX)
  iii. Manufacture of fertilizers and nitrogen compounds (KAD 20.15.XX.XX)
  iv. Manufacture of plastics in primary forms (KAD 20.16.XX.XX)
  v. Manufacture of cement (KAD 23.51.XX.XX)
  vi. Manufacture of basic iron and steel and of ferro-alloys (KAD 24.10.XX.XX)
  vii. Manufacture of steel tubes, pipes, hollow profiles and related fittings (KAD 24.20.XX.XX)
  viii. Cold drawing of bars (KAD 24.31.XX.XX)
  ix. Cold rolling of narrow strip (KAD 24.32.XX.XX)
  x. Cold forming or folding of steel moulds (KAD 24.33.XX.XX)
  xi. Cold drawing of wire (KAD 24.34.XX.XX)
  xii. Aluminium production (KAD 24.42.XX.XX)
  xiii. Manufacture of conventional fuel aircraft and related machinery (sub-categories included in the activity of KAD 30.30.XX.XX "Manufacture of aircraft and spacecraft and related machinery")
  xiv. Passenger air transport with conventional fuels (sub-categories of KAD 51.10.XX.XX)
  xv. Freight air transport using conventional fuels (sub-categories of KAD 51.21.XX.XX)
  xvi. Service activities incidental to conventional fuel air transport. (sub-categories of KAD 52.23.XX.XX)

In accordance with the restrictions set by the Program, the following activities (“Excluded InvestEU Activities”) shall not be funded:
i. Activities limiting human rights and freedom, or violating human rights.
ii. Activities falling under the defence sector involving the use, development or production of products and technology prohibited by the applicable international law.
iii. Products and activities related to tobacco (production, distribution, processing and marketing).
iv. Activities excluded from financing pursuant to the provisions of the Horizon Europe Regulation (Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 /04/2021 establishing the Framework Programme for Research and Innovation “Horizon Europe” detailing its rules for participation and dissemination): research on human cloning for reproductive purposes - activities aimed at modifying the genetic heritage of human beings, which could make such modifications heritable; and activities to create human embryos solely for research purposes or for the purpose of stem cell procurement, including by means of somatic cell nuclear transfer.
v. Gambling (activities involving production, construction, distribution, processing, marketing or software).
vi. Sex trafficking and related infrastructure, services and media.
vii. Activities including the use of living animals for experiments and scientific purposes, where compliance with the European Convention for the protection of vertebrate animals used for experimental and other scientific purposes cannot be ensured.
viii. Real estate development activity, such as activity for the sole purpose of renovating and renting or reselling existing buildings, or new buildings. However, real estate activities related to the specific objectives of the InvestEU Program as set out in Article 3(2) of the InvestEU Regulation and to sectors eligible for financing and investment operations under Annex II to the InvestEU Regulation, such as investments in energy efficiency projects or social housing, shall be eligible.
ix. Financial activities such as the purchase or trading of financial instruments are excluded, in particular interventions targeting redemption intended to liquidate assets or replacement capital intended to liquidate assets.
x. Activities prohibited by the applicable national legislation.
xi. Decommissioning, operation, adjustment or construction of nuclear power plants.
xii. Investments related to the extraction or mining, processing, distribution, storage or combustion of solid fossil fuels and oil, as well as investments related to the extraction of natural gas. This exclusion shall not apply to: (a) projects for which no viable alternative technology exists; (b) projects related to pollution prevention and control; (c) projects equipped with facilities for carbon capture and storage or carbon capture and use, industrial or research projects leading to significant greenhouse gas emission reductions compared to the applicable European Union Emissions Trading Scheme reference indexes.
xiii. Investments in landfill waste disposal facilities. This exclusion shall not apply to investments in: (a) on-site landfill facilities ancillary to an industrial or extractive investment project and where it has been demonstrated that landfilling is the only viable option for the treatment of industrial or extractive waste generated by the activity concerned; (b) existing landfill facilities to ensure the use of landfill gases and promoting landfill mining and the reprocessing of extractive waste.
xiv. Investments in mechanical biological treatment plants, except that this does not apply to investments in retrofitting existing mechanical biological treatment plants for waste-to-energy purposes or for separated waste recycling operations such as composting and anaerobic digestion.
xv. Investments in incinerators for waste treatment. This exclusion shall not apply to investments in: (a) units processing exclusively non-recyclable dangerous waste, (b) operating units, when such investment aims at the enhancement of power efficiency, sequestration of gases for storage purposes or use, or the recovery of materials from incineration, provided that such actions do not lead to the increase of the units’ waste processing ability or extension of such units’ life expectation.
Investments not eligible for financing include projects:
(a) the purpose of which covers anaerobic digestion of bio-waste, capture and use of landfill gas; final recipients must have a monitoring plan in place for methane leakage from these activities. 
(b) the purpose of which covers the transport of CO2 and underground permanent geological storage of CO2; final recipients must have a detailed monitoring plan in accordance with the provisions of Directive 2009/31/EC of the European Parliament and of the Council of 23/04/2009 on the geological storage of carbon dioxide and Directive 2018/410 of the European Parliament and of the Council of 14/03/2018 on the EU Emissions Trading Scheme (ETS). 
(c) for which an environmental impact assessment is required in accordance with applicable national legislation; final recipients shall undertake that the relevant assessments, permits and authorisations required under the applicable legislation in relation to the project have been obtained.

Further restrictions:

• For an investment project concerning the construction of new buildings and the significant restoration of existing buildings (i.e. restoration of more than 25% of the surface area or 25% of the value of the building excluding land), such construction of new buildings and major rehabilitation of existing buildings will comply with national energy performance standards as defined in the Energy Performance of Buildings Directive (EPBD, 2018/844/EU). 
• The financing of investment projects related to heating and/or cooling (including the Combined Heat and Power (CHHP, CHP) system for buildings, should exclusively concern any of the following:
  I. Investments related to the production of heat using renewable fuels or 'eligible cogeneration', where 'eligible cogeneration' is defined as one that: 
  A. is based on 100% Renewable Energy (RE), waste of heat or a combination thereof or 
  B. if based on <100% RES and the remaining part runs on gas (no other fossil fuel is eligible): the total performance exceeds 85% where performance is calculated as: (heat generation + electricity) / fuel consumption of gas
  II. Investments related to small and medium-sized natural gas boilers with a capacity of up to 20 MWth that meet the minimum energy performance criteria, defined as category A boilers in the EU (valid for <400 kWth) or boilers with a performance of >90 %
  III. Investments related to the restoration or expansion of existing district heating networks, if CO2 emissions do not increase as a result of burning coal, peat, oil, gas or inorganic waste on an annual basis and/or
  IV. Investments related to new district heating networks or significant extensions of existing district heating networks, which are eligible if the network uses renewable energy sources at least by 50% or waste heat by 50% or heat cogeneration by 75% or CHP by 50%.
• For investment projects related to electricity and/or heat production, using biomass, the following biomass sustainability conditions must be met: 
  I. the raw material should come from unpolluted biomass or biogenic waste of European origin, or it should be certified sustainable if its origin is outside the EU, and should not consist of food and feed
  II. forest raw materials should be certified in line with international standards of sustainable forest certification;
  III. palm oil products or raw materials from tropical forests and/or protected areas are not used
• the projects do not concern desalination projects

The purchase/acquisition of transport vehicles of the following categories shall not be financed::

Passenger cars for commercial use

whose CO2 emission limits exceed 115g CO2/km in accordance with the WLTP (Worldwide Harmonised Light Duty Vehicle Test Procedure) per vehicle.

Vans/light commercial vehicles

whose CO2 emission limits exceed 182g CO2/km in accordance with the WLTP (Worldwide Harmonised Light Duty Vehicle Test Procedure) per vehicle.

Trucks/ Heavy Duty Vehicles (HDVs)

• Category of vehicles based on axle and laden mass (GVW)

Compact trucks with an axle configuration of 4x2 and laden mass (GVW)>16tonnes

• Vehicle subcategory:  4-UD          Reference value > gCO2/t-km:  307,23
• Vehicle subcategory:  4-RD          Reference value > gCO2/t-km:  197,16
• Vehicle subcategory:  4-LH           Reference value > gCO2/t-km:  105,96

Tractors with an axle configuration of 4x2 and laden mass (GVW) >16 tonnes

• Vehicle subcategory:  5-RD           Reference value > gCO2/t-km:  84
• Vehicle subcategory:  5-LH            Reference value > gCO2/t-km:  56,6

Compact trucks with an axle configuration of 6x2

• Vehicle subcategory:  9-RD          Reference value > gCO2/t-km:  110,98
• Vehicle subcategory:  9-LH           Reference value > gCO2/t-km:  65,16

Tractors with an axle configuration of 6x2

• Vehicle subcategory:  10-RD        Reference value > gCO2/t-km:  83,26
• Vehicle subcategory:  10-LH         Reference value > gCO2/t-km:  58,26

   GVW: Gross Vehicle Weight
   UD: Urban Delivery
   RD: Regional Delivery
   LH: Long Haul

Trucks (including trucks belonging to a subcategory of heavy-duty vehicles), other than those meeting at least:
i) the EURO VI pollutant standard and not covered by the 4-axle body categories in the table above, or
ii) in the case of waste collection vehicles, the EURO V standard; 

• Vehicles intended to transport fossil fuels or fossil fuels blended with alternative fuels.

L-category vehicles (motorized two-, three- and four-wheel vehicles)

Any such vehicle except zero-direct emission vehicles

Public transport: Tram, metro and city and intercity buses

For which direct emissions exceed 50g CO2 equivalent per passenger-km (gCO2e/pkm)

Trains 

Passenger trains for which direct emissions exceed 50 gCO2 equivalent per passenger-km (gCO2e/pkm). 
Freight trains for which direct emissions exceed 28.3 gCO2 equivalent per tonne-km (gCO2e/tkm) 
Vehicles intended to transport fossil fuels or fossil fuels blended with alternative fuels

Inland waterway vessels    

Passenger ships for which direct emissions exceed 50 gCO2 equivalent per passenger-km (gCO2e/pkm) 
Merchant ships for which direct emissions exceed 28.3 gCO2 equivalent per tonne-km (gCO2e/tkm) 
Vessels intended to transport fossil fuels or fossil fuels blended with alternative fuels

Seagoing vessels

Seagoing vessels intended to carry fossil fuels or fossil fuels blended with alternative fuels