(EFRR)

The European Regional Development Fund (ERDF) aims to strengthen economic, social and territorial cohesion in the European Union by correcting imbalances between its regions.

The ERDF finances programmes in shared responsibility between the European Commission and national and regional authorities in Member States. The Member States' administrations choose which projects to finance and take responsibility for day-to-day management.

Based on their prosperity, all regions and Member States will concentrate the support on a more competitive and smarter Europe (policy objective – PO 1), as well as greener, low-carbon transitioning towards a net zero carbon economy and resilient Europe (PO2), through the mechanism known as 'thematic concentration'.
All regions and Member States (MSs) will concentrate at least 30% of their allocation to PO 2 and:

• More developed regions or MSs will dedicate at least 85% of their allocation to PO1 and PO2;
• Transition regions or MSs at least 40% to PO1;
• Less developed regions or MSs at least 25% to PO1.

All regions and Member States will also concentrate at least 8% of their allocation to urban development that will be delivered through local development partnerships with different tools.
Operations under the ERDF are also expected to contribute 30 % of the overall financial envelope to climate objectives.