Recovery and Resilience Facility (RRF)

Regulation (EU) 2021/241 establishes the Recovery and Resilience Facility (RRF), the central financial instrument of NextGenerationEU, designed to support Member States in addressing the economic and social impacts of the COVID‑19 crisis and to accelerate the EU’s green and digital transitions. The Regulation sets out the objectives, financing rules, milestones, targets, and monitoring architecture for reforms and investments undertaken by Member States.

The Facility provides grants and loans to fund national Recovery and Resilience Plans (RRPs), which must align with EU priorities and the European Semester recommendations. Member States’ plans must contribute to sustainability, resilience, climate neutrality, digitalisation, and long‑term competitiveness. The RRF requires compliance with the “do no significant harm” principle and supports reforms that address structural challenges. Funding is conditional on the fulfilment of milestones and targets, which the Commission evaluates before authorising payments.

By early 2026, the Facility had mobilised substantial resources, with €577 billion in grants and loans allocated to support national reforms and investments across all Member States. Overall, the Regulation provides the EU’s largest-ever investment tool for economic modernization and resilience-building.

Relevance to bio-waste and/or circular bioeconomy:

The RRF indirectly supports the circular bioeconomy by financing Member State reforms and investments that contribute to green transition goals, such as sustainable resource management, waste reduction, circularity, and bio-based innovation. Projects eligible under RRPs may include measures for sustainable agriculture, biomass valorisation, bio-waste recycling technologies, and climate-resilient ecosystems, provided they comply with the “do no significant harm” principle and contribute to long-term environmental sustainability.

EU

Full title: Consolidated text: Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility

Publication date: 2021 (consolidated 2024)

Instrument type: Regulation

Binding for EU MS: Yes

Keywords: recovery and resilience facility, nextgenerationeu, reforms and investments, green transition, digital transition, do no significant harm, circular economy, resilience, eu funding, sustainability