# EUR-Lex - 52011PC0874 - EN

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# 52011PC0874

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the establishment of a Programme for the Environment and Climate Action (LIFE) /* COM/2011/0874 final - 2011/0428 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The Commission Communication for the
Multiannual Financial Framework (MFF) for 2014-2020 (hereinafter the MFF
Communication)[1]
sets out the budgetary framework and main orientations for delivering the Europe
2020 Strategy.[2] In its proposal, the Commission decided to address environment and
climate action as an integral part of all the main instruments and
interventions. This so-called 'mainstreaming' approach implies that
environmental and climate objectives "need to be reflected in all main
instruments to ensure that they contribute to building a low-carbon, resource
efficient and climate resilient economy that will enhance Europe's
competitiveness, create more and greener jobs, strengthen energy security, and
bring health benefits."

However, the main Union funding instruments
do not address all environmental and climate specific needs. Implementation of
environmental and climate legislation remains uneven and inadequate across the
Union, which leads to the consolidation of environmental and climate problems.
This situation requires new and more efficient ways of implementing
legislation, as well as development and dissemination of best practices across
the Union to ensure Member States and stakeholders learn from each other.

For this reason, in addition to
mainstreaming, the Commission proposes to continue the LIFE Programme currently
regulated by the LIFE+ Regulation.[3]
Combining the mainstreaming approach with a specific instrument will increase
the coherence and the added-value of the Union intervention. A dedicated
instrument allows the Commission to better shape priorities, directly monitor
implementation, and ensure that resources available are effectively used for
environmental and climate protection. This approach gives the Commission the
opportunity to select the best projects across the Union, thereby addressing
coordination failures.

Furthermore, environmental assets have a
public good nature and are unevenly distributed across the Union. The obligation
to preserve and enhance these assets calls for a consistent application of the
principles of solidarity and responsibility sharing. In this context, Article 8
of the Habitats Directive[4]
explicitly links the delivery of conservation measures to the provision of
Union co-financing. LIFE plays an essential role for better distribution of
solidarity and responsibility sharing in preserving the Union environmental and
climate common good.

A specific funding programme for the
environment and climate action:

·
ensures a more effective intervention than
Member State individual action by an increased pooling of resources and
expertise, and by attracting partnerships that otherwise would be difficult to
set up;

·
provides the platform for development and
exchange of best practices and knowledge sharing, improving, catalysing, and
accelerating changes in the implementation of the environmental and climate acquis,
and allowing Member States and stakeholders to learn from each other and
address these challenges more efficiently;

·
creates synergies across Union Funds and
national funds by coordinating their action jointly towards environmental and
climate objectives while leveraging additional public and private sector funds.
This increases the coherence and effectiveness of the Union intervention and
promotes a more homogenous implementation of the acquis;

·
increases the visibility of environmental and
climate action by bringing the Union closer to its citizens and showing the
Union's commitment to environmental and climate objectives, thereby making
those objectives more relevant.

Several evaluations[5] confirm that the
LIFE Programme is a successful instrument for the implementation of Union
environmental policy and legislation, with a significant added value. However, these evaluations have also highlighted that the LIFE Programme's policy
impact is limited by its lack of strategic focus. This was partly due to its
pure 'bottom-up' approach for project selection, which did not allow the
Commission to steer demand based on Union environmental and climate policy
needs. A clearer focus on activities and sectors where LIFE could make a
difference is therefore needed.

The
new challenges ahead and the achievement of Europe 2020 objectives and targets
call for modifications to the Programme. Fighting climate change and making the
Union more resilient to the associated risks are some of the greatest
challenges facing the Union and there is a need for urgent action as reflected
in the Europe 2020 Strategy. The Commission recognises that challenge and in
its MFF Communication states that it intends to increase the proportion of the
Union budget related to climate action to at least 20% with contribution from
different policies. The Programme for the Environment and Climate Action (LIFE)
should therefore contribute to that goal.

2.           RESULTS OF CONSULTATIONS WITH THE
INTERESTED PARTIES AND IMPACT ASSESSMENTS

This Regulation draws on an extensive
analysis of options addressed in the Impact Assessment[6] and broad consultation with
stakeholders. In particular, the following studies and consultations have been
carried out:

–
the ex-post evaluation of the LIFE Programme
(1996-2006)[7]
and the Mid-term evaluation of the LIFE+ Programme (2007-2009);[8]

–
studies commissionned from external consultants,
namely: "Combined impact assessment and ex-ante evaluation of the review
of the LIFE+ Regulation"[9]
and "Climate Change in the future multiannual financial framework";[10]

–
an open online consultation on 'Your Voice in
Europe';[11]

–
a consultation conducted by the Committee of the
Regions;[12]

–
a consultation of the LIFE+ Committee members
and Member States' environmental attachés, and an ad-hoc stakeholder meeting.[13]

The outcome of the consultations is that
the LIFE programme is seen as generally performing well in both environmental
and value-added terms. Stakeholders support the continuation of LIFE, as well
as the different interventions and proposals made by the Commission, including
for a new type of projects, Integrated Projects.

Although stakeholders support LIFE to
increase its focus on implementation and integration of environmental and
climate objectives into other policies, they do not support a limitation in the
thematic areas covered. Similarly, although stakeholders generally support the
move from a pure bottom-up to a more top-down approach, they are opposed to the
establishment of annual and exhaustive priorities. The main reason is that the
priority areas should be relatively stable to allow potential applicants to
plan, prepare and submit proposals.

The Impact Assessment therefore focused on
the recommendations from the evaluations and the Court of Auditors[14] aiming to increase the
effectiveness and added value of LIFE, while incorporating stakeholders' main
concerns and suggestions.

The options to establish priorities
analysed in the Impact Assessment try to strike a balance between the need for
stability for potential applicants and the need to better focus on Union policy
needs. Three scenarios were analysed. The first one is the status quo, with a
pure bottom-up approach partially corrected by the concentration of earmarked
resources on climate action. The second one is a flexible top-down approach for
all types of projects whereby the Commission develops multiannual work
programmes where it specifies thematic priorities linked to the achievement of
specific targets, and drives demand to address the thematic priorities within
the different components. Integrated Projects, given their characteristics,
would only focus on certain sectors until targets are achieved. The third
scenario combines the top-down approach for Integrated Projects and the
bottom-up approach for all other types of projects. Under this option, the
Commission would limit ex-ante the thematic focus of Integrated Projects on
four sectors in the sub-programme for Environment until targets are achieved,
while applicants can submit proposals for other types of projects in all
environmental sectors. The preferred option is the flexible top-down approach.

The Impact Assessment analysed options for
areas on which Integrated Projects should focus concluding that Natura 2000,
water, waste and air were the sectors with the highest potential for success
and where more environmental benefits could be obtained. Stakeholders,
especially regional authorities, also signalled these sectors. As the
sub-programme for Climate Action is newly established, Integrated Projects
relevant for climate change mitigation and adaptation may be introduced
gradually 2-3 years into the programming period. The Impact Assessment also
analysed whether the 50% project resources traditionally earmarked for nature
and biodiversity was still valid and concluded it was. In fact, biodiversity
was considered by all stakeholders as the most important priority for LIFE. The
Impact Assessment also assessed options for geographical distribution of
projects, including the possibility for national allocations (similar to the
LIFE+ Regulation). Three options were envisaged: a system of merit only with no
geographical criteria attached to selection; a system of geographical balance
ensured by the Commission in line with the principles of solidarity and
responsibility sharing; and a system of national allocations for Integrated
Projects. The preferred option is ensuring geographical balance for Integrated
Projects.

Finally, a strong emphasis was put on
simplification to build on the changes undertaken by LIFE+, such as the use of
e-proposals. The areas identified for additional simplification were: a
two-step approach to select Integrated Projects, an increasing use of lump-sums
and flat rates, and the ineligibility of certain costs. To ensure that
beneficiaries are not disadvantaged by this simplification, the Impact
Assessment explored the option to increase the co-financing rates. As part of the
simplification measures, options for externalisation of most of the management
tasks to an existing Executive Agency were also analysed, including full
externalisation and a hybrid option.

3.           LEGAL ELEMENTS OF THE PROPOSAL

The Union’s environmental objectives are
enshrined in Title XX of the Treaty on the Functioning of the European Union
(TFEU). The most common legal basis for environmental and climate legislation
is Article 192 of the TFEU which empowers the European Parliament and the
Council to decide what action should be taken by the Union in order to achieve
the environmental objectives which are set out in Article 191 of TFEU. The
Lisbon Treaty in particular strengthened the emphasis on climate action by
making combating climate change an explicit part of the environmental
objectives.

Article 11 of TFEU lays down the obligation
to integrate environmental protection requirements into the definition and
implementation of the Union policies and activities, in particular with a view
to promoting sustainable development.

Furthermore, Article 8 of the Habitats
Directive explicitly links the delivery of conservation measures to the
provision of Union co-financing.

This proposal for a new LIFE Regulation is
designed as a LIFE Programme with two sub-programmes: one for
Environment and one for Climate Action. The creation of a sub-programme for Climate Action upgrades
the former thematic strand "climate change" under the LIFE+
Environment Policy and Governance component.

There is a great potential for synergies
between environmental and climate objectives as projects can benefit multiple
purposes. For instance, projects related to forest protection may bring
co-benefits for biodiversity and climate change mitigation by enhancing the
reforestation and thereby also improving carbon absorption capacity. Floodplain
restoration projects may facilitate adaptation to climate change and the
transition towards a more climate resilient society.

The objective of the LIFE Programme
is to be a catalyst for promoting implementation and integration of environmental
and climate objectives in other policies and Member State practice. Special
emphasis is placed on better governance, as it is inextricably linked to
improving implementation.

An important change to improve the efficiency
of the LIFE Programme and to create closer links to Union policy priorities is
the shift from a pure bottom-up approach to a flexible top-down approach.
Work programmes valid for at least two years will be drawn up by the Commission
in consultation with the Member States. These will cover e.g., priorities,
allocation of resources between types of funding, and targets for the period.
The priorities included therein will not be exhaustive in order to allow
applicants to submit proposals in other areas as well and to incorporate new
ideas and react to new challenges. The Commission will thus be assisted by the
Committee for the LIFE Programme for the Environment and Climate Action, which
will have a dual nature with, in particular, different chairs and different
composition depending on whether the issues dealt with are related to the
sub-programme for Environment or the sub-programme for Climate Action. Other particular
aspects of the LIFE Programme, such as further specifying eligibility criteria
for project selection, criteria for the application of geographical balance to
Integrated Projects, and performance indicators applicable to specific thematic
priorities, will be adopted by the Commission through delegated acts.

Another major change is the creation of
a new type of projects: “Integrated Projects”. These aim to improve the
implementation of environmental and climate policy and their integration into
other policies, especially by ensuring a coordinated mobilisation of other
Union, national and private funds towards environmental or climate objectives.

Integrated Projects will operate on a large
territorial scale (in particular regional, multi-regional, or national, and in
a cross-sector manner) and will be oriented towards the implementation of environmental
and climate action plans or strategies required by environmental or climate
legislation, pursuant to other Union acts or developed by the Member States
authorities. Integrated Projects for the sub-programme for Environment will
primarily focus on the implementation of plans and programmes related to the
Birds[15]
and Habitats Directives, the Water Framework Directive[16], and Waste and Air quality
legislation. These Integrated Projects should also allow achieving results in
other policy areas, in particular the Marine Strategy Framework Directive.[17] For the sub-programme for
Climate Action, Integrated Projects may focus on the implementation of
mitigation and adaptation strategies and action plans. Integrated Projects will
also aim, when possible, at mobilising other Union funding sources by
exploiting synergies and ensure consistency between different Union funding
programmes. They will provide examples to the responsible authorities of how
coordination of different funding instruments is possible to achieve better
implementation of Union environmental and climate legislation. At Union level,
this coordination between the LIFE Programme and other Union funding programmes
could be established within the Common Strategic Framework.

This Regulation also provides a clearer
definition of the activities funded for each priority area. The
sub-programme for Environment consists of three priority areas, the focus of
which will be shifted towards implementation and integration. The priority area
Biodiversity extends its support to developing best practices for wider
biodiversity challenges while keeping its focus on Natura2000. The priority
area of Environment and Resource Efficiency shifts its focus towards
implementation of Union environmental policy and legislation and excludes
market replication-oriented innovation, since it will be better covered by
Horizon 2020.[18]
As part of the increased focus on promoting better governance, the priority
area Governance and Information replaces the former LIFE+ Information and
Communication component and will more actively promote the dissemination of
knowledge for decision-making and the development of best practices for better
and more effective compliance, in addition to awareness raising campaigns.

The Roadmap 2050[19] acknowledged that testing new
approaches to climate change mitigation will remain essential for moving to a
low-carbon economy. Adaptation to climate change as a cross-sector Union
priority will also need to be ensured. Moreover, governance promotion and awareness-raising
are essential in order to deliver constructive results and to ensure the
involvement of stakeholders. Therefore, the sub-programme for Climate Action
should support efforts contributing to three specific priority areas: Climate
Change Mitigation, Climate Change Adaptation and Climate Governance and
Information.

A main objective of the LIFE Programme is
to catalyse changes in policy development and implementation by providing and
disseminating solutions and best practices to achieve environmental and climate
goals. It therefore offers co-funding opportunities for projects with clear
environmental or climate benefits and expands on the existing knowledge base.
The Commission will ensure synergies between the LIFE Programme and other Union
instruments, e.g. it may exploit research and innovation results produced by
Horizon2020 and by previous Framework Programmes in the fields of research and
innovation.

The LIFE Programme should cover all types
of funding required to address its objectives and priorities. In
particular, action grants to finance projects represent the main financial
intervention. Operating grants for NGOs and other entities of Union interest
which are primarily active in the area of environment or climate are also
possible. The LIFE Programme allows the use of financial instruments.[20] The Commission should also
encourage the use of green public procurement when implementing action grants.

The LIFE Programme enlarges its
territorial scope with a more flexible approach regarding funding for
environment and climate outside the Union: firstly, by formally allowing
activities outside the Union in exceptional cases and under specific conditions
as well as in countries participating in the programme from outside the Union;
and secondly, by providing a legal base for cooperation with international
organisations of interest to environmental and climate policy that do not
necessarily fall within the scope of Union external action (e.g., international
studies).

As part of the simplification process,
the LIFE Programme adopts lighter procedures. It is important that Member
States are involved in setting priorities for the LIFE Programme in particular
to ensure that these priorities adequately reflect the differences among Member
States and effectively help in improving and accelerating implementation of
environmental and climate policy.

In addition, the LIFE Programme will
continue improving IT systems to accelerate and facilitate the electronic
submission of applications. In order to further facilitate the participation of
small stakeholders, such as SMEs or NGOs, special attention will be paid to
clear, easily readable and unified application forms, deadlines to allow enough
time for submission of applications, assistance with the preparation of applications,
and publicly available deadlines to reject or award the project proposal
accompanied with clear reasons for rejection. The socio-economic impacts of a
project will be analysed when assessing the application.

It will also increase the use of flat rates
and lump-sums to ease the application and reporting processes, and will lighten
reporting requirements for Integrated Projects. In particular, a two-step
approach for the selection of Integrated Projects could be introduced.
Reporting and re-programming could be based on a two years' cycle and the
payment schedule adapted to ensure a more gradual cash flow to the project.

Similarly, certain costs which have proved
burdensome in terms of monitoring and reporting will no longer be considered
eligible (e.g., VAT), and the eligibility of other costs, such as personnel
costs related to permanent staff not specifically recruited for the project,
might be limited or excluded, while maintaining a mechanism to enable their
continued contribution to project activity. In order to ensure beneficiaries
are not disadvantaged and to maintain similar levels of support for projects
financed by way of action grants as in the LIFE+ Regulation, the co-financing
rates should be increased from presently 50% to 70% and in specific cases to
80%, while still ensuring the same leverage effect as today. The higher
rate of 80% would apply to Integrated Projects to compensate the fact that,
while those projects would require significant inputs from permanent staff,
permanent staff costs may not be considered an eligible cost. It would also
apply to specific projects in support of particular needs for the development and
implementation of Union policy or legislation, in consideration of the
strategic value of those projects and to ensure an attractive co-financing
rate.

Finally, the LIFE Programme should
remain centrally managed to maximise policy links, quality of
interventions, sound financial management and stable resources, and to ensure
that findings of LIFE projects are taken up in Union policy shaping. This is
considered as an essential asset by the European Parliament, the Member States
and stakeholders. However, current management could be improved by delegating many
of the tasks to an existing Executive Agency. Given the characteristics of the
LIFE Programme and to increase synergies with other Union funding programmes,
the Commission will explore the possibility of delegating to a large extent the
selection and monitoring tasks to the European Agency for Competitiveness and
Innovation, while keeping the governance of the LIFE Programme within the
Commission.

Since the objectives of the proposed actions,
as set out in Article 3, by their very nature, cannot be sufficiently achieved
by the Member States and can therefore by reason of scale and effects of the
action be better achieved at Union level, the Union may adopt measures, in
accordance with the principle of subsidiarity as set out in Article 5 of the
Treaty on European Union. In accordance with the principle of proportionality,
as also set out in that Article, this Regulation does not go beyond what is
necessary in order to achieve those objectives.

4.           BUDGETARY IMPLICATION

The total financial envelope for the LIFE
Programme in the MFF Communication for the period 2014-2020 expressed in
current prices is €3,618 million.[21]
Of this amount €2,713.5 million is allocated to the sub-programme for
Environment, of which half of the resources dedicated to projects financed by
way of action grants shall be allocated to support the conservation of nature
and biodiversity. €904.5 million is allocated to the sub-programme for Climate
Action.

2011/0428 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

on the establishment of a Programme for
the Environment and Climate Action (LIFE)

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 192 thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the
European Economic and Social Committee[22],

Having regard to the opinion of the
Committee of the Regions[23],

Acting in accordance with the ordinary legislative
procedure,

Whereas:

(1)
Union environmental and climate policy and
legislation have delivered substantial improvements to the state of the
environment. However, major environmental and climate challenges remain, which
if left unaddressed, will have significant consequences for Europe.

(2)
These environmental and climate challenges, due
to their scale and complexity, should be funded primarily through the Union's
major funding programmes. In its Communication
to the European Parliament, the Council, the European Economic and Social
Committee and the Committee of the Regions "A Budget for Europe 2020"[24] (the "MFF
Communication"), recognising the climate change challenge, the Commission
stated that it intends to increase the climate related proportion of the Union
budget to at least 20% with contribution from different policies. This
Regulation should contribute to that goal.

(3)
Those Union funding programmes cannot address
all environmental and climate action specific needs. For environment and
climate action, specific approaches are required to deal with uneven
integration of their objectives into Member States practice, uneven and
inadequate implementation of the legislation in the Member States, and
insufficient dissemination and promotion of policy goals. It is appropriate to
continue the LIFE Programme regulated by Regulation (EC) No 614/2007 of the
European Parliament and of the Council of 23 May 2007 concerning the Financial
Instrument for the Environment (LIFE+)[25]
and adopt a new Regulation. Therefore, this Regulation should establish a
dedicated funding Programme for the Environment and Climate Action (the
"LIFE Programme").

(4)
Environmental assets are unevenly distributed
across the Union, but their benefits concern and are felt by the Union as a
whole. The Union's obligation to preserve those assets calls for a consistent
application of the principles of solidarity and responsibility sharing, which
imply that some Union environmental and climate problems are better addressed
at regional or local level. The LIFE Programme plays an essential role for
better distribution of solidarity and responsibility sharing in preserving the
Union environmental and climate common good.

(5)
Given its characteristics and size, the LIFE
Programme cannot solve all environmental and climate problems. Rather, its
objective should be to catalyse changes in policy development and
implementation by providing and disseminating solutions and best practices to
achieve environmental and climate goals.

(6)
This Regulation lays down, for the entire
duration of the LIFE Programme, a financial envelope of €3,618 million[26] constituting the prime
reference, within the meaning of point 17 of the Commission Proposal for an
Interinstitutional Agreement of 29 June 2011 between the European Parliament,
the Council and the Commission on cooperation in budgetary matters and on sound
financial management[27],
for the budgetary authority during the annual budgetary procedure.

(7)
In line with the conclusions of the Luxembourg
European Council of December 1997 and of the Thessaloniki European Council of
June 2003, candidate countries and the Western Balkan countries in the
Stabilisation and Association Process as well as countries to which the
European Neighbourhood Policy applies should be eligible to participate in Union
programmes, in accordance with the conditions established in the relevant
bilateral agreements concluded with those countries.

(8)
For environmental and climate action-related
investments within the Union to be effective, some activities need to be
implemented outside its borders. Those investments may not always be financed
under the Union's external action instruments. Interventions in countries not
directly participating in the LIFE Programme, and participation of legal
persons based on those countries in activities financed under the LIFE
Programme should exceptionally be possible provided specific conditions are
met.

(9)
This Regulation should also provide a framework
for cooperation with and support to relevant international organisations in
view of ensuring environmental and climate policy needs that do not fall within
the scope of external action instruments, such as certain studies.

(10)
Environmental and climate requirements should be
integrated into Union's policies and activities. The LIFE Programme should
therefore be complementary to other Union funding programmes, including the
European Regional Development Fund,[28]
the European Social Fund,[29]
the Cohesion Fund,[30]
the European Agriculture Guarantee Fund,[31]the
European Agricultural Fund for Rural Development,[32] the European Maritime and
Fisheries Fund,[33]
and Horizon 2020.[34]
The Commission and Member States should ensure such complementarity at all
levels. At Union level, complementarity should be ensured by establishing a
structured cooperation between the LIFE Programme and the shared-management
Union funding programmes in the Common Strategic Framework,[35] in particular to promote
funding of activities that complement Integrated Projects or support the use of
solutions, methods and approaches developed under the LIFE Programme. The LIFE
Programme should also encourage the uptake of environmental and climate-related
research and innovation results of Horizon 2020. Within this context it should
offer co-funding opportunities for projects with clear environmental and climate
benefits in order to ensure synergies. Coordination is required to prevent
double funding.

(11)
Halting and reversing the loss of biodiversity
and improving resource efficiency, together with addressing environment and
health related concerns, remain key challenges for the Union. These challenges
require increased efforts at Union level to provide solutions and best
practices that help achieving the targets of the Communication from the
Commission "Europe 2020: a strategy for smart, sustainable and inclusive
growth" (hereinafter the "Europe 2020 Strategy")[36]. In addition, improved
governance, in particular through awareness raising and stakeholders'
involvement, is essential to deliver environmental objectives. Therefore the
sub-programme for Environment should have three priority areas for action:
Environment and Resource Efficiency, Biodiversity, and Environmental Governance
and Information. It should be possible for projects financed by the LIFE
Programme to contribute to the achievement of the specific objectives of more
than one of those priority areas and to involve the participation of more than
one Member State.

(12)
The Communication from the Commission to the
European Parliament, the Council, the European Economic and Social Committee
and the Committee of the Regions "Roadmap to a Resource Efficient
Europe"[37]
(hereinafter the "Roadmap to a Resource Efficient Europe") has set
forth the milestones and actions that are needed to put the Union on a path to
a resource-efficient and sustainable growth. Therefore, the priority area
Environment and Resource Efficiency should support effective implementation of
Union environmental policy by the public and private sectors, in particular in the
environmental sectors covered by the Roadmap to a Resource Efficient Europe, by
facilitating the development and sharing of new solutions and best practices.
However, it should exclude those eco-innovation activities that overlap with
Horizon 2020.

(13)
The Communication from the Commission to the
European Parliament, the Council, the European Economic and Social Committee
and the Committee of the Regions "Our life insurance, our natural capital:
an EU biodiversity strategy to 2020" [38]
(hereinafter the "Union Biodiversity Strategy to 2020") has set up
targets to halt and reverse biodiversity loss. These targets include, among
others, the full implementation of Council Directive 92/43/EEC of 21 May 1992
on the conservation of natural habitats and of wild fauna and flora[39] and Directive 2009/147/EC of
the European Parliament and of the Council of 30 November 2009 on the
conservation of wild birds[40],
as well as maintaining and restoring ecosystems and their services. The LIFE
Programme should contribute to achieving those targets. Therefore, the priority
area Biodiversity should focus on the implementation and management of the
Natura2000 network set up by Council Directive 92/43/EEC, in particular in
relation to the Prioritised Action Frameworks foreseen in Article 8 of the same
Directive, on the development and dissemination of best practices in relation
to biodiversity and Directives 2009/147/EC and 92/43/EEC, as well as on the
wider biodiversity challenges identified by the Union Biodiversity Strategy to
2020;

(14)
Forests play a significant role for environment
and climate as regards, for instance, biodiversity, water, soil, and climate change
mitigation and adaptation. Forests and soils help to
regulate the climate by taking up carbon dioxide (CO2) from the
atmosphere and store immense amounts of carbon. To
optimise that role, the provision of relevant, compatible data and information
is necessary. This Regulation should therefore represent also a framework for
supporting environmental and climate synergistic actions associated with
forests and soils. Other areas for increased synergies are water scarcity and
droughts, as well as management of flood risks.

(15)
The Communication from the Commission to the
European Parliament, the Council, the European Economic and Social Committee
and the Committee of the Regions "A Roadmap for
moving to a competitive low carbon economy in 2050"[41]
(hereinafter the "Roadmap 2050") acknowledged
that testing new approaches to climate change mitigation will remain essential
for moving to a low-carbon economy. Adaptation to climate change, as a
cross-cutting Union priority, will also need to be ensured. Moreover,
governance promotion and awareness-raising is essential to deliver constructive
results and to ensure stakeholders' involvement. Therefore, the sub-programme
for Climate Action should support efforts contributing to three specific
priority areas: Climate Change Mitigation, Climate Change Adaptation and
Climate Governance and Information. It should be possible for projects financed
by the LIFE Programme to contribute to the achievement of the specific
objectives of more than one of those priority areas and to involve the
participation of more than one Member State.

(16)
The priority area Climate Change Mitigation
should contribute to the development and implementation of Union
climate-related policy and legislation, in particular with regard to greenhouse
gas monitoring and reporting, policies related to land use, land use change and
forestry, emissions trading system, Member States' effort to reduce greenhouse
gas emissions, carbon capture and storage, renewable energy, energy efficiency,
transport and fuels, ozone layer protection and fluorinated gases.

(17)
The first consequences of climate change can
already be seen in Europe and worldwide, such as extreme weather conditions
leading to floods and droughts, and rising temperatures and sea levels. The
priority area Climate Change Adaptation should therefore contribute to adapt to
such impacts across populations, economic sectors and regions to ensure a more
resilient Union through specific adaptation measures and strategies. Actions in
this field should be complementary to actions eligible for funding under the
civil protection financial instrument.

(18)
Full implementation of environmental and climate
legislation and policy is inextricably linked to achieving better governance, improving
stakeholder involvement and disseminating information. Therefore, the priority
areas Governance and Information should in both sub-programmes support the
development of platforms and sharing of best practices for better compliance
and enforcement, and to generate support from the public and stakeholders for
Union's policy making efforts in the areas of environment and climate. In
particular, they should support improvements in the dissemination of
knowledge-base, raising awareness, public participation, access to information
and access to justice on environmental matters.

(19)
In the framework of this Regulation, support
should be provided in accordance with Council Regulation (EC, Euratom) No
1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general
budget of the European Communities.[42]
Projects financed pursuant to the LIFE Programme should meet eligibility
criteria to secure the best possible use of Union Funds and to ensure European
added value. Those with cross-sectoral impacts should be encouraged. The Commission should also promote and encourage
the use of green public procurement especially when implementing projects.

(20)
In order to maintain a level
playing field for all undertakings active in the internal market and to avoid
undue distortions of competition, funding provided under the LIFE Programme
should be addressed, where appropriate, to market failures. Moreover, in case
it constitutes state aid within the meaning of Article
107(1) of the Treaty on the Functioning of the European Union, it should be designed in compliance with state aid rules
so as to prevent market distortions, such as crowding-out of private funding,
creating ineffective market structures or preserving inefficient firms, and may not be put into effect until it is approved by the Commission in
accordance with Article 108(3) of the Treaty, unless it complies with a
regulation adopted pursuant to Council Regulation (EC) No 994/98 of 7 May 1998
on the application of Articles 92 and 93 of the Treaty establishing the
European Community to certain categories of horizontal State aid[43].

(21)
In order to improve the implementation of
environmental and climate policy and enhance the integration of environmental and
climate objectives in other policies, the LIFE Programme should promote
projects that support integrated approaches to the implementation of
environmental and climate legislation and policy. For the sub-programme for
Environment, those projects should focus primarily on the implementation of the
Union Biodiversity Strategy to 2020, with particular regard to the effective
management and consolidation of the Natura2000 network set up by Council
Directive 92/43/EEC through the implementation of Prioritised Action Frameworks
foreseen in Article 8 of the same Directive, of Directive 2000/60/EC of the
European Parliament and of the Council of 23 October 2000 establishing a
framework for the Community action in the field of water policy,[44] and of the Waste and Air
legislation. Those projects, while focusing on the themes identified, will be
multi-purpose delivery mechanism (e.g. aiming at environmental benefits and
capacity building) allowing to reach results in other policy areas, in
particular Directive 2008/56/EC of the European Parliament and of the Council
of 17 June 2008 establishing a framework for Community action in the field of
marine environmental policy (Marine Strategy Framework Directive).[45] Those types of projects could
be envisaged in other environmental areas. For the sub-programme for Climate
Action, those projects should in particular concern climate change mitigation
and adaptation strategies and action plans. Those types of projects should
support only a series of specific activities and measures, while other
activities that complement those included in the project should be sourced from
other Union funding programmes, as well as from national, regional and private
sector funds. Funding through the LIFE Programme should exploit synergies and
ensure consistency between different Union funding sources by providing a
strategic environmental and climate focus.

(22)
The Union is a party to the United Nations
Economic Commission for Europe (UNECE) Convention on Access to Information,
Public Participation and Access to Justice in Environmental matters (hereinafter
the “Aarhus Convention”). The work of non-governmental organisations (NGOs)
should therefore be supported, since they are effective in supporting the aims
of the Aarhus Convention by advocating the concerns and views of Union citizens
as part of the policy development process as well as in supporting its
implementation, and in raising awareness on environmental and climate related
problems and policy responses. It is appropriate for the LIFE Programme to
support a broad range of NGOs of Union interest, primarily active in the field
of environment and/or climate action, through the competitive and transparent
awarding of operating grants, in order to help them making effective
contributions to Union policy, as well as building up and strengthening their
capacity to become more efficient partners.

(23)
In order to carry out its role in the initiation
of environmental and climate policy development and implementation, the
Commission should use resources from the LIFE Programme to support the
initiation, implementation and mainstreaming of Union environmental and climate
policy and legislation, including the purchase of services and goods. Financial
resources allocated to communication activities under
this Regulation shall also cover corporate communication on the political
priorities of the Union. [46]

(24)
The current gap in the
market between the demand for and supply of loans, equity and risk capital is
likely to persist in the context of a financial crisis and, it is appropriate,
therefore, to allow the use of financial instruments to support projects with
revenue generating capacity in the areas of environment or climate. Financial
instruments supported by the LIFE Programme should be used to address specific
market needs in a cost effective way, in line with the objectives of the Programme,
and should not crowd out private financing. Financial instruments may be
combined with grants funded from the Union budget, including under this
Regulation.

(25)
The experience of past instruments has
highlighted the need to program on a multi-annual basis and to focus efforts on
concrete environmental and climate policy priorities and areas for action. Such
multiannual work programmes should be flexible to achieve the LIFE Programme
targets and objectives, while providing the necessary stability of priority
areas for potential applicants to plan, prepare and submit proposals. In this
view, those multiannual work programmes should be valid for at least two years
with non-exhaustive priorities.

(26)
With a view to simplifying
the LIFE Programme and reducing administrative burden for applicants and
beneficiaries, more use should be made of flat rates
and lump-sums, and funding should focus on more specific categories of costs.
By way of compensation for ineligible costs and in order to maintain the effective
level of support provided by the LIFE Programme, the co-funding rates should be
70% as a general rule and 80% in specific cases.

(27)
The LIFE Programme and the sub-programmes should
be regularly monitored and evaluated based on corresponding indicators to allow
for readjustments. In order to provide evidence of the co-benefits that both
sub-programmes can bring to climate action and biodiversity, and to provide
information on the level of spending, the monitoring of the LIFE Programme
should track climate-related expenditure and biodiversity-related expenditure,
as defined in the MFF Communication. Such tracking should be performed based on
a simple methodology by placing the expenditure in one of three categories:
climate/biodiversity related only (to be counted as 100%), significantly
climate/biodiversity related (to be counted as 40%), and not
climate/biodiversity related (to be counted as 0%). That methodology should not
exclude the use of more precise methodologies, where appropriate.

(28)
The financial interests of the Union should be
protected through proportionate measures throughout the expenditure cycle,
including the prevention, detection and investigation of irregularities, the
recovery of funds lost, wrongly paid or incorrectly used and, where appropriate,
penalties.

(29)
In order to ensure uniform conditions for the
implementation
of this Regulation related to the adoption of the
multiannual work programmes, implementing powers should be conferred on the
Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011of the European Parliament and of the Council of 16 February 2011 laying
down the rules and general principles concerning mechanisms for control by
Member States of the Commission’s exercise of implementing powers.[47]

(30)
In order to secure the best possible use of
Union funds and to ensure European added value, the power to adopt acts in
accordance with Article 290 of the Treaty on the Functioning of the European
Union should be delegated to the Commission in respect of eligibility criteria
for project selection, criteria for the application of geographical balance to
“Integrated Projects”, and performance indicators applicable to specific thematic
priorities. It is of particular importance that the Commission carry out appropriate
consultations during its preparatory work, including at expert level. The
Commission, when preparing and drawing up delegated acts, should ensure a
simultaneous, timely and appropriate transmission of relevant documents to the
European Parliament and to the Council.

(31)
Regulation (EC) No 614/2007 should therefore be
repealed.

(32)
To ensure efficient transition between the LIFE
Programme and the measures adopted under Regulation (EC) No 614/2007, it is
necessary to continue to monitor, audit and qualitatively assess the activities
financed under that Regulation following its expiry.

(33)
The added value of the LIFE Programme derives
from the specificity of its approach and focus which make its interventions
especially adapted to the environmental and climate needs. The LIFE Programme
can contribute to a more effective implementation of environmental policies
than Member State single action through increased pooling of resources and
expertise. It also provides the platform for developing and exchanging best
practices and knowledge, improving, catalysing, and accelerating changes in the
implementation of the acquis, and building capacity, supporting private
actors in testing small-scale technologies and solutions, especially by SMEs,
and allowing Member States and stakeholders to learn from each other. Moreover,
the LIFE Programme creates synergies across Union and national funds while
leveraging additional private sector funds, thereby increasing the coherence of
Union intervention and promoting a more homogenous implementation of the acquis.

(34)
Since the objectives of the proposed actions,
namely contributing to the implementation and development of Union
environmental and climate policy and legislation, including the integration of
the environment and climate objectives into other policies, and promoting
better governance, cannot be sufficiently achieved by the Member States and can
therefore by reason of scale and effects of the action be better achieved at
Union level, the Union may adopt measures, in accordance with the principle of
subsidiarity as set out in Article 5 of the Treaty on European Union. In
accordance with the principle of proportionality, as set out in that Article,
this Regulation does not go beyond what is necessary in order to achieve those
objectives,

HAVE ADOPTED THIS REGULATION:

TITLE I

The
Programme for the Environment and Climate Action (LIFE)

Article 1

Establishment

A Programme for the Environment and Climate
Action covering the period from 1 January 2014 to 31 December 2020 (hereinafter
the “LIFE Programme”), is hereby established.

Article 2

Definitions

For the purposes of this Regulation, the
following definitions apply:

(a)
"pilot projects" mean projects that
apply a technique or method that has not been applied or tested before, or
elsewhere, and that offer potential environmental or climate advantages
compared to current best practice;

(b)
“demonstration projects” mean projects that put
into practice, test, evaluate and disseminate actions, methodologies or
approaches that are new or unknown in the project's specific context, such as
geographical, ecological, socio-economic, and that could be applied elsewhere
in similar circumstances;

(c)
“best practice projects” mean projects that
apply appropriate, cost-effective, state-of-the-art techniques, methods and
approaches taking into account the specific context of the project;

(d)
“integrated projects” mean projects implementing
in a sustainable manner, on a large territorial scale, in particular, regional,
multi-regional or national scale, environmental or climate strategies or action
plans required by specific environmental or climate Union legislation, pursuant
to other Union acts or developed by Member States' authorities;

(e)
“technical assistance projects” mean projects
aimed at supporting the preparation of integrated projects referred to in point
(d);

(f)
“preparatory projects” mean projects in support
of specific needs for the implementation and development of Union environmental
or climate policy and legislation.

Article 3

Objectives
and indicators

1.
The LIFE Programme shall in particular have the
following general objectives:

(a)
to contribute to the shift towards a resource-efficient,
low-carbon and climate- resilient economy, to the protection and improvement of
the quality of the environment and to halting and reversing biodiversity loss;

(b)
to improve the development, implementation and
enforcement of Union environmental and climate policy and legislation, and to
catalyse and promote integration and mainstreaming of environmental and climate
objectives into other Union policies and public and private sector practice,
including by increasing their capacity;

(c)
to support better environmental and climate
governance at all levels.

In doing so, the LIFE Programme shall
contribute to sustainable development and the achievement of the Europe 2020 Strategy's
objectives and targets.

2.
The performance of the LIFE Programme shall
be assessed, in particular, against the following indicators:

(a)
attributable environmental and climate
improvements, as regards the objective referred to in
point (a) of paragraph 1. In relation to the objective to
contribute to halting and reversing biodiversity loss, attributable
environmental improvements shall be measured through the percentage of the
Natura2000 network restored or brought to adequate management, surface of
ecosystem services restored, and number and type of habitats and species
targeted improving conservation status;

(b)
the number of
interventions developed or undertaken that implement plans, programmes or
strategies pursuant to Union environmental or climate policy and legislation,
and the number of interventions suitable for being replicated or transferred,
as regards the objectives linked to development and implementation referred to
in point (b) of paragraph 1;

(c)
the number of interventions achieving synergies
with or mainstreamed into other Union funding programmes, or integrated into
public or private sector practice, as regards the objectives linked to
integration and mainstreaming referred to in point (b) of paragraph 1;

(d)
the number of interventions to ensure better
governance, dissemination of information and awareness on environmental and
climate aspects as regards the objective referred to in point (c) of paragraph
1;

The Commission shall be empowered to adopt
delegated acts in accordance with Article 30 concerning the performance
indicators in view of their application to the thematic priorities as defined
in the multiannual work programmes referred to in Article 24.

3.
The objectives referred to in paragraph 1 shall
be pursued through the following sub-programmes (hereinafter the
“sub-programmes”):

(a)
the sub-programme for Environment;

(b)
the sub-programme for Climate Action.

Article 4

Budget

1.
The financial envelope for implementing
the LIFE Programme shall be EUR 3 618 000 000.[48]

2.
The budgetary breakdown for the sub-programmes
shall be as follows:

(a)
EUR 2 713 500 000 of the overall financial
envelope referred to in paragraph 1 shall be allocated to the sub-programme for
Environment;

(b)
EUR 904 500 000 of the overall financial
envelope referred to in paragraph 1 shall be allocated to the sub-programme for
Climate Action.

Article 5

Participation
of third countries in the LIFE Programme

The LIFE Programme shall be open to the
participation of the following countries:

(a)
European Free Trade Association (EFTA) countries
which are parties to the Agreement on the European Economic Area (EEA);

(b)
candidate countries, potential candidates and
acceding countries to the Union;

(c)
countries to which the European Neighbourhood
Policy applies;

(d)
countries which have become members of the
European Environmental Agency in accordance with Council Regulation (EC) No
993/1999 of 29 April 1999 amending Regulation (EEC) No 1210/90 on the
establishment of the European Environmental Agency and the European environment
information and observation network[49].

Such participation shall be done in
accordance with the conditions laid down in the respective bilateral or
multilateral agreements establishing the general principles for their
participation in Union programmes.

Article 6

Activities
outside the Union

1.
Without prejudice to Article 5, the LIFE
Programme may finance activities outside the Union, provided those activities
are indispensable to achieve Union environmental and climate objectives or to
ensure the effectiveness of interventions carried out in the Member States.

2.
A legal person established outside the Union may
be able to participate in the projects referred to in Article 18, provided the
beneficiary coordinating the project is based in the Union and the activity to
be carried out outside the Union meets the requirements set out in paragraph 1.

Article 7

International
cooperation

In the course of implementing the LIFE
Programme, cooperation with relevant international organisations, their
institutions and bodies, shall be possible where needed for the purpose of
achieving the objectives referred to in Article 3.

Article 8

Complementarity

1.
The Commission and the Member States shall
ensure that support from the LIFE Programme is consistent with the policies and
priorities of the Union and complementary to other instruments of the Union.

2.
Operations financed under the LIFE Programme
shall comply with Union and national law, including Union State aid rules. In
particular, funding under the LIFE Programme which constitutes state aid within
the meaning of Article 107(1) of the Treaty on the Functioning of the European
Union shall be notified by Member States to the Commission and may not be put
into effect until it is approved by the Commission in accordance with Article
108(3) of the Treaty, unless it complies with a regulation adopted pursuant to
Council Regulation (EC) No 994/98.

3.
In accordance with their respective
responsibilities, the Commission and the Member States shall ensure
coordination between the LIFE Programme and the European Regional Development
Fund, the European Social Fund, the Cohesion Fund, the European Agricultural
Fund for Rural Development, and the European Maritime and Fisheries Fund, in
order to create synergies, particularly in the context of Integrated Projects referred
to in Article 18 point (d), and to support the use of solutions, methods and
approaches developed under the LIFE Programme. At Union level, coordination
shall take place within the Common Strategic Framework referred to in Article
10 of Regulation (EU) No.... (CSF Regulation).

4.
The Commission shall also ensure consistency and
synergies, and avoid overlap between the LIFE Programme and other Union
policies and instruments, in particular Horizon 2020 and those in the framework
of Union's external action.

TITLE II

THE
SUB-PROGRAMMES

CHAPTER 1

The sub-programme for Environment

Article 9

Specific
priority areas of the sub-programme for Environment

1.
The sub-programme for Environment shall have
three priority areas:

–
Environment and Resource Efficiency;

–
Biodiversity;

–
Environmental Governance and Information.

2.
At least 50% of the budgetary resources
allocated to projects supported by way of action grants under the sub-programme
for Environment shall be dedicated to projects supporting the conservation of
nature and biodiversity.

Article 10

Specific
objectives for the priority area Environment and Resource Efficiency

The specific objectives of the
sub-programme for Environment for the priority area Environment and Resource
Efficiency shall in particular be:

(a)
to develop, test and demonstrate policy or
management approaches, best practices, and solutions to environmental challenges,
suitable for being replicated, transferred or mainstreamed, including with respect
to the link between environment and health, and in support of resource
efficiency-related policy and legislation, including the Roadmap to a Resource
Efficient Europe;

(b)
to support the application, development, testing
and demonstration of integrated approaches for the implementation of plans and
programmes pursuant to Union environmental policy and legislation, primarily in
the areas of water, waste and air;

(c)
to improve the knowledge base for the
development, assessment, monitoring and evaluation of Union environmental
policy and legislation, and for the assessment and monitoring of the factors,
pressures and responses that impact on the environment within and outside the
Union.

Article 11

Specific
objectives for the priority area Biodiversity

The specific objectives of the sub-programme
for Environment for the priority area Biodiversity shall in particular be:

(a)
to contribute to the implementation of Union
policy and legislation in the area of biodiversity, including the Union
Biodiversity Strategy to 2020, Directive 2009/147/EC and Directive 92/43/EEC,
in particular by applying, developing, testing and demonstrating approaches, best
practices and solutions;

(b)
to support the further development,
implementation and management of the Natura 2000 network set up in Article 3 of
Directive 92/43/EEC, in particular the application, development, testing and
demonstration of integrated approaches for the implementation of the
Prioritised Action Frameworks referred to in Article 8 of Directive 92/43/EEC;

(c)
to improve the knowledge base for the
development, assessment, monitoring and evaluation of Union biodiversity policy
and legislation, and for the assessment and monitoring of the factors,
pressures and responses that impact on the biodiversity within and outside the
Union.

Article 12

Specific objectives for the priority area Environmental Governance
and Information

The specific objectives of the
sub-programme for Environment for the priority area Environmental Governance
and Information shall in particular be:

(a)
to promote awareness raising on environmental
matters, including generating public and stakeholders support to Union
policy-making in the field of environment, and to promote education for
sustainable development;

(b)
 to support communication, management, and
dissemination of information in the field of environment, and to facilitate
knowledge sharing on successful environmental solutions and practice, including
by developing cooperation platforms between stakeholders and training;

(c)
to promote and contribute to a more effective
compliance with and enforcement of Union environmental legislation, in
particular by promoting the development and dissemination of best practices and
policy approaches;

(d)
to promote better environmental governance by
broadening stakeholder involvement, including NGOs, in policy consultation and
implementation.

CHAPTER 2

The sub-programme for Climate Action

Article 13

Specific priority areas of the sub-programme for Climate Action

The sub-programme for Climate Action shall
have three priority areas:

–
Climate Change Mitigation;

–
Climate Change Adaptation;

–
Climate Governance and Information.

Article 14

Specific
objectives for the priority area Climate Change Mitigation

In view of contributing to the reduction of
greenhouse gas emissions, the priority area Climate Change Mitigation shall in
particular have the following specific objectives:

(a)
to contribute to the implementation and
development of Union policy and legislation on mitigation, including
mainstreaming across policy areas, in particular by developing, testing and
demonstrating policy or management approaches, best practices and solutions for
climate change mitigation;

(b)
to improve the knowledge base for the
development, assessment, monitoring, evaluation and implementation of effective
mitigation actions and measures and to enhance the capacity to apply that
knowledge in practice;

(c)
to facilitate the development and implementation
of integrated approaches, such as for mitigation strategies and action plans,
at local, regional or national level;

(d)
to contribute to the development and
demonstration of innovative mitigation technologies, systems, methods and
instruments that are suitable for being replicated, transferred or
mainstreamed.

Article 15

Specific
objectives for the priority area Climate Change Adaptation

In view of contributing to supporting
efforts leading to increased resilience to climate change, the priority area
Climate Change Adaptation shall in particular have the following specific
objectives:

(a)
to contribute to the development and
implementation of Union policy and legislation on adaptation, including
mainstreaming across policy areas, in particular by developing, testing and
demonstrating policy or management approaches, best practices, and solutions,
for climate change adaptation;

(b)
to improve the knowledge base for the
development, assessment, monitoring, evaluation and implementation of effective
adaptation actions and measures and to enhance the capacity to apply that
knowledge in practice;

(c)
to facilitate the development and implementation
of integrated approaches, such as for adaptation strategies and action plans, at
local, regional or national level;

(d)
to contribute to the development and
demonstration of innovative adaptation technologies, systems, methods and
instruments that are suitable for being replicated, transferred or
mainstreamed.

Article 16

Specific objectives for the priority area Climate Governance and
Information

The specific objectives of the priority
area Climate Governance and Information shall in particular be:

(a)
to promote awareness raising on climate matters,
including generating public and stakeholders support to Union policy-making in
the field of climate, and to promote education for sustainable development;

(b)
 to support communication, management, and
dissemination of information in the field of climate and to facilitate knowledge
sharing on successful climate solutions and practice, including by developing
cooperation platforms between stakeholders and training;

(c)
to promote and contribute to a more effective
compliance with and enforcement of Union climate legislation, in particular by
promoting the development and dissemination of best practices and policy
approaches;

(d)
to promote better climate governance by
broadening stakeholder involvement, including NGOs, in policy consultation and
implementation.

TITLE III

COMMON
IMPLEMENTING PROVISIONS

CHAPTER 1

Funding

Article 17

Types
of funding

1.
Union funding may take the following legal
forms:

(a)
grants;

(b)
public procurement contracts;

(c)
contributions to financial instruments in
accordance with the general provisions for financial instruments set out in
Regulation (EC, Euratom) No 1605/2002 and with more operational requirements
set out in specific Union acts;

(d)
any other interventions needed for the purpose
of achieving the objectives referred to in Article 3.

2.
The Commission shall implement this Regulation
in accordance with Regulation (EC, Euratom) No 1605/2002.

3.
Funding under this Regulation which constitutes
State aid within the meaning of Article 107(1) of the Treaty on the Functioning
of the European Union shall be implemented in compliance with the relevant Union
State aid rules.

Article 18

Projects

Action grants may finance the following
projects:

(a)
pilot projects;

(b)
demonstration projects;

(c)
best practice projects;

(d)
integrated projects primarily in the areas of
nature, water, waste, air, and climate change mitigation and adaptation;

(e)
technical assistance projects;

(f)
preparatory projects;

(g)
information, awareness and dissemination
projects;

(h)
any other projects needed for the purpose of
achieving the objectives referred to in Article 3.

Article 19

Eligibility
criteria for projects

1.
Projects referred to in Article 18 shall satisfy
the following eligibility criteria:

(a)
being of Union interest by making a significant
contribution to the achievement of one of the objectives of the LIFE Programme
set out in Article 3;

(b)
ensuring a cost-effective approach and being
technically and financially coherent;

(c)
being sound in the proposed implementation.

The Commission shall be empowered to adopt
delegated acts in accordance with Article 30 concerning the conditions for the
application of the criterion referred to paragraph 1(a) in order to adapt that
criterion to the specific priority areas defined in Articles 9 and 13.

2.
Where possible, projects financed by the LIFE
Programme shall promote synergies between different objectives and promote the
use of green public procurement.

3.
Integrated Projects referred to in Article 18 point
(d) shall involve, where appropriate, stakeholders and promote, when possible,
the coordination with and mobilisation of other Union funding sources.

The Commission shall ensure geographical
balance in line with the principles of solidarity and effort sharing in the
award process for Integrated Projects. The Commission shall be empowered to
adopt delegated acts in accordance with Article 30 concerning criteria for the
application of geographical balance in each thematic area referred to in
Article 18 point (d).

4.
The Commission shall have special regard to
transnational projects where transnational cooperation is essential to
guarantee environmental protection and climate objectives, and shall endeavour
to ensure that at least 15% of the budgetary resources dedicated to projects
are allocated to transnational projects.

Article 20

Co-financing
rates and eligibility of costs for projects

1.
The maximum co-financing rate for the projects
referred to in Article 18 shall be 70% of eligible costs. By way of exception,
the maximum co-financing rate for projects referred to in Article 18 points (d)
and (f) shall be 80% of eligible costs.

2.
VAT shall not be considered an eligible cost for
projects referred to in Article 18.

Costs relating to the
purchase of land shall be considered eligible for Union financing for projects referred to in Article 18 provided
that:

–
the purchase will contribute to improving,
maintaining and restoring the integrity of the Natura2000 network set up in
Article 3 of Directive 92/43/EEC;

–
land purchase is the only or most cost-effective
way of achieving the desired conservation outcome;

–
the land purchase is reserved in the long term
for uses consistent with the objectives set out in Articles 11, 14 or 15; and

–
the Member State concerned shall, by way of
transfer or otherwise, ensure the long-term assignment of such land to nature
conservation purposes.

Article 21

Operating
grants

1.
Operating grants shall support certain
operational and administrative costs of non-profit making entities which pursue
an aim of general European interest, are primarily active in the field of
environment and/or climate action and are involved in the development,
implementation and enforcement of Union policy and legislation.

2.
The maximum rate of Union co-financing for
operating grants referred to in paragraph 1 shall be 70% of eligible costs.

Article 22

Other
types of activities

The LIFE Programme may finance actions implemented
by the Commission in support of the initiation, implementation and
mainstreaming of Union environmental and climate policies and legislation for
the purpose of achieving the objectives referred to in Article 3. Such actions
may include:

(a)
information and communication, including
awareness raising campaigns. Financial resources allocated to communication
activities pursuant to this Regulation shall also cover corporate communication
of the political priorities of the Union;

(b)
studies, surveys, modelling and scenario
building;

(c)
preparation, implementation, monitoring,
checking and evaluation of projects, policies, programmes and legislation;

(d)
workshops, conferences and meetings;

(e)
networking and best-practice platforms;

(f)
any other activities needed for the purpose of
achieving the objectives referred to in Article 3.

Article 23

Beneficiaries

The LIFE Programme may fund public and private
bodies.

CHAPTER 2

Implementing measures

Article 24

Multiannual
work programmes

1.
The Commission shall adopt multiannual work programmes
for the LIFE Programme. Those implementing acts shall be adopted in accordance
with the examination procedure referred to in Article 29(2).

2.
Each multiannual work programme shall have a
duration of at least two years and shall set out, in line with the objectives
laid down in Article 3, the following:

(a)
the duration of the multiannual work programme;

(b)
 the allocation of funds between each priority
area and between different types of funding within each sub-programme;

(c)
 the thematic priorities for projects to be
financed for the period covered by the multiannual work programme;

(d)
qualitative and quantitative outcomes,
indicators and targets for each priority area and type of projects for the
period covered by the multiannual work programme;

(e)
selection and award criteria for grants;

(f)
indicative timetables for the calls for
proposals for the period covered by the multiannual work programme.

3.
The Commission shall revise, where appropriate,
the multiannual work programmes. Those implementing acts shall be adopted in
accordance with the examination procedure referred to in Article 29(2).

Article 25

Methods
of implementation

The Commission shall implement the actions
in pursuit of the objectives referred to in Article 3 according
to the management methods set out in Article 53 of Regulation (EC, Euratom) No
1605/2002, in particular direct or indirect management by
the Commission on a centralised basis, or joint management with international
organisations.

Article 26

Administrative
and technical assistance

The financial allocation of the LIFE
Programme may also cover necessary expenditure relating to preparatory,
monitoring, control, audit, communication and evaluation activities required
directly for the management of the LIFE Programme and the achievement of its objectives.

Article 27

Monitoring
and evaluation

1.
The Commission shall regularly monitor and
report on the implementation of the LIFE Programme and its sub-programmes,
including the amount of climate-related expenditure and biodiversity-related
expenditure. It shall also examine synergies between the LIFE Programme and
other complementary Union programmes, and in particular between its
sub-programmes.

2.
The Commission shall submit to the European
Parliament, the Council, the European Economic and Social Committee and the
Committee of the Regions:

(a)
no later than 30 September 2017, an external
mid-term evaluation report of the LIFE Programme (and its sub-programmes),
including qualitative and quantitative aspects of its implementation, the
amount of climate-related expenditure and biodiversity-related expenditure, and
its complementarity with other relevant Union programmes, the achievement of
the objectives of all the measures (at the level of results and impacts, when
possible), the efficiency of the use of resources and its European added value,
in view of a decision on the renewal, modification or suspension of the
measures. The evaluation shall additionally address the scope for
simplification, its internal and external coherence, the continued relevance of
all objectives, as well as the contribution of the measures to the Union
priorities of smart, sustainable and inclusive growth. It shall take into
account evaluation results on the long-term impact of its predecessor. The
report shall be accompanied by remarks by the Commission including the manner
in which the findings of the mid-term evaluation shall be taken into account
when implementing the LIFE Programme, and, in particular, when drawing up the
multiannual work programmes;

(b)
no later than 31 December 2023, an external and
independent ex-post evaluation report covering the implementation and results
of the LIFE Programme and its sub-programmes, including the amount of climate
related expenditure and biodiversity related expenditure, the extent to which the
LIFE Programme as a whole, and each of its sub-programmes, has achieved its
objectives, and the contribution of the LIFE Programme to achieving the Europe
2020 Strategy objectives and targets.

3.
The Commission shall make the results of the
evaluations undertaken pursuant to this Article publicly available.

Article 28

Protection
of the financial interests of the Union

1.
The Commission shall take appropriate measures
to ensure that, when actions financed under this Regulation are implemented,
the financial interests of the Union are protected by the application of
preventive measures against fraud, corruption and any other illegal activities,
by effective checks and, if irregularities are detected, by the recovery of the
amounts wrongly paid and, where appropriate, by effective, proportionate and
deterrent penalties.

2.
The Commission or its representatives and the
Court of Auditors shall have the power of audit, on the basis of documents and
on-the-spot checks, over all beneficiaries, contractors and subcontractors who
have received Union funds under the Programme.

The European Anti-fraud Office (OLAF) may carry
out on-the-spot checks and inspections on economic operators concerned directly
or indirectly by such funding in accordance with the procedures laid down in
Regulation (Euratom, EC) No 2185/96 with a view to establishing whether there
has been fraud, corruption or any other illegal activity affecting the
financial interests of the European Union in connection with a grant agreement
or grant decision or a contract concerning Union funding.

Without prejudice to the first and second
subparagraphs, cooperation with third countries and international organisations
and grant agreements, grant decisions and contracts resulting from the
implementation of this Regulation shall expressly empower the Commission, the
Court of Auditors and OLAF to conduct such audits, on-the-spot checks and
inspections.

3.
The beneficiary of financial assistance shall
keep available to the Commission, for a period of five years following the last
payment in respect of any project, all supporting documents regarding the
expenditure on that project.

TITLE IV

FINAL
PROVISIONS

Article 29

Committee
procedure

1.
The Commission shall be assisted by the
Committee for the LIFE Programme for the Environment and Climate Action.

That committee shall be a committee within the
meaning of Regulation (EU) No 182/2011.

2.
Where reference is made to this paragraph,
Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 30

Exercise
of the delegation

1.
The power to adopt delegated acts is conferred
on the Commission subject to the conditions laid down in this Article.

2.
The power to adopt delegated acts referred to in
Articles 3(2), 19(1) and 19(3) shall be conferred on the Commission for
an indeterminate period of time from the [date of entry into force of this
Regulation].

3.
The delegation of power referred to in Articles
3(2), 19(1) and 19(3) may be revoked at any time by the European Parliament or
by the Council. A decision to revoke shall put an end to the delegation of the
power specified in that decision. It shall take effect the day following the
publication of the decision in the Official Journal of the European
Union or at a later date specified therein. It shall not affect the
validity of any delegated acts already in force.

4.
As soon as it adopts a delegated act, the
Commission shall notify it simultaneously to the European Parliament and to the
Council.

5.
A delegated act adopted pursuant to Articles
3(2), 19(1) or 19(3) shall enter into force only if no objection has been
expressed either by the European Parliament or the Council within a period of
two months of notification of that act to the European Parliament and the
Council or if, before
the expiry of that period, the European Parliament and the Council have both informed
the Commission that they will not object. That
period shall be extended by two months at the initiative of the European
Parliament or of the Council.

Article 31

Repeal

Regulation (EC) No 614/2007 is hereby
repealed.

References to the repealed Regulation shall
be construed as references to this Regulation.

Article 32

Transitional
measures

1.
Measures started before 31 December 2013
pursuant to Regulation (EC) No 614/2007 shall, until their completion, continue
to be governed by that Regulation and shall comply with the technical
provisions defined therein. The Committee referred to in Article 29(1) shall
replace the committee provided for in Regulation (EC) No 614/2007 from date of
entry into force of this Regulation.

2.
The financial allocation for the LIFE Programme
may also cover technical and administrative assistance expenses, including any
obligatory monitoring, communication and evaluation required pursuant to
Regulation (EC) No 614/2007 following its expiry, to ensure the transition between
the LIFE Programme and the measures adopted pursuant to Regulation (EC) No
614/2007.

3.
The amounts needed within the financial envelope
to provide for monitoring, communication and auditing measures in the period
following 31 December 2020 shall be deemed to be confirmed only if they are
consistent with the financial framework applicable from 1 January 2021.

4.
The appropriations corresponding to assigned
revenue arising from the repayment of amounts wrongly paid pursuant to
Regulation (EC) No 614/2007 shall be used, in accordance with Article 18 of
Regulation (EC, Euratom) No 1605/2002, to finance the LIFE Programme.

Article 33

Entry
into force

This Regulation shall enter into force on
the twentieth day following that of its publication in the Official Journal
of the European Union.

This Regulation shall be binding
in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

LEGISLATIVE FINANCIAL STATEMENT
FOR PROPOSALS

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
method(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of estimated impact on expenditure

3.2.2. Estimated
impact on operational appropriations

3.2.3. Estimated
impact on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
participation in financing

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.        Title of the
proposal/initiative

"Proposal for a
Regulation of the European Parliament and of the Council on the establishment
of a Programme for the Environment and Climate Action (LIFE)"

1.2.        Policy area(s) concerned
in the ABM/ABB structure[50]

ENVIRONMENT AND CLIMATE ACTION

1.3.        Nature of the
proposal/initiative

 ̈ The
proposal/initiative relates to a new action

 ̈ The
proposal/initiative relates to a new action following a pilot project/preparatory
action[51]

X The proposal/initiative relates to the
extension of an existing action

 ̈ The
proposal/initiative relates to an action redirected towards a new action

1.4.        Objectives

1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative

2014-2020 Multiannual Financial Framework

1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned

Specific objective No.

1. Environment and Resource Efficiency

2. Biodiversity

3. Environmental Governance and Information

4. Climate Change Mitigation

5. Climate Change Adaptation

6. Climate Governance and Information

ABM/ABB activity(ies) concerned : (based on 2011 nomenclature)

07 03 – Development and Implementation of Union Environmental Policy
and Legislation

07 12 – Implementation of Union policy and legislation on Climate Action

1.4.3.& 1.4.4   Expected result
and impacts and indicators

Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.

Objective || Expected Result || Result Indicator || Expected Impact || Impact indicator

Specific objectives common to both sub-programmes

To improve the development, implementation and enforcement of Union environmental and climate policy and legislation, (Article 3(1)(b)) · by developing, testing and demonstrating approaches, best practices and solutions suitable for being replicated or transferred; and Articles 10(a), 11(a), 12(c), 14(a), 14(d), 15(a), 15(d), and 16(c) · by improving the knowledge base to inform decision makers. Articles 10(c), 11(c), 12(b), 14(b), 15(b), 16(b) || Take up of new or updated approaches or best practices by the private and public sectors: 25% of projects/measures/approaches replicated or transferred. || · Percentage of updated or new approaches, methods or solutions funded by LIFE replicated or transferred; · No. of MS/regions that replicate Integrated Projects approaches. || Effective integration of environment and climate concerns into the practice of the private and public sectors. || · Percentage of updated or new approaches developed through LIFE that have been systematically used or improved by the private and public sectors; · No. of MS/regions systematically applying integrated approaches and new MS/regions applying integrated approaches, as a consequence of LIFE examples.

Improved knowledge base to inform decision makers. || · No. of tools, approaches, studies developed or undertaken through LIFE; · No. of policy/legislation proposals based on studies undertaken; · No. of policy/legislation proposals based on projects results. || Attributable consolidated practices of policy makers: using indicators or tools developed and tested through LIFE. || · No. of attributable consolidated practices by using indicators or tools developed and tested following LIFE examples; · Reduced number of infringement cases of EU legislation attributable to LIFE interventions.

To promote integration and mainstreaming of environmental and climate objectives into other Union policies and public and private practice, including by increasing their capacity, in particular by applying, developing, testing and demonstrating integrated approaches, best practices and solution suitable for being mainstreamed. Articles 3(1)(b), Articles 10(a)-(b), 11(a)-(b), 12(c), 14(a), 14(c), 14(d), 15(a), 15(c) 15(d), 16(c) || Increased mainstream funding for environment and climate solutions: · 25% approaches incorporated into national/regional programmes; · Increased mobilisation of other Union Funds for the environment or climate by 25% compared to 2011 levels. || · Percentage of approaches/ projects financed through LIFE that are incorporated into national/regional programmes; · No. of measures complementary to Integrated Projects financed by other Union Funds. || Effective integration of the environment and climate concerns into other Union policies. || · No. of multi-sectoral cooperation/coordination frameworks for funding environment and climate developed by or following LIFE examples; · No. of approaches or projects funded through LIFE that are up-scaled, rolled out or diffused by other Union Funds.

To support better environmental and climate governance at all levels. Article 3(1)(c) and Articles 12 and 16 || Increased participation of stakeholders and citizens in awareness-raising activities. || No. of participants in awareness-raising activities. || Increased awareness of environmental and climate problems and solutions. || Awareness regarding environmental and climate problems and solutions, as measured by Eurobarometer surveys.

Improved participation of citizens and NGOs in the decision-making process. || · No. of citizens participating in on-line consultations; · No. of proposals for amendments to legislative acts emanating from NGOs funded by LIFE. || Attributable consolidated channels for public participation and continued increasing trend in the quality and intensity of citizens and NGOs participation in the decision making process. || Uptake of proposals emanating from various stakeholders related to environmental or climate policy and legislative acts.

Specific objectives for the priority area Environment and Resource Efficiency (Articles 3(1)(a) and Article 10)

To develop, test and demonstrate policy or management approaches, best practices, and solutions to environmental challenges, suitable for being replicated, transferred or mainstreamed including with respect to the link between environment and health and in support of resource efficiency-related policy and legislation, including the Roadmap to a Resource Efficient Europe. Article 10(a) || Increased resource efficiency of the Union economy. || No. of projects developing, testing or demonstrating more resource efficient approaches, best practices or solutions. || A consolidated shift towards a more resource-efficient economy. || No. of consolidated resource efficient approaches that apply technologies or approaches demonstrated through LIFE and resource efficiency level achieved.

Support the application, development, testing and demonstration of integrated approaches for the implementation of plans and programmes pursuant to Union environmental policy and legislation, primarily in the areas of water, waste and air. Article 10(b) || 10% of River Basins Districts (RBD) brought to adequate management by the end of the programming period. || · No. of Integrated Projects to implement Water Framework Directive and km2 covered; · No. of RBD brought to adequate management; · No. of water bodies improving ecological status. || Consolidated and expanded adequate management of the sectors targeted. || · No. of RBD that continue being adequately managed and new RBD adequately managed as a consequence of LIFE examples; · No. of water bodies targeted achieving good ecological status.

12% of Regions adequately managing waste by the end of the programming period. || No. of Integrated Projects to implement waste plans and programmes and ha/population covered. || No. of regions that continue managing waste adequately and No. of new regions with improved management as a consequence of LIFE examples.

10% of the Union population benefiting from improved air quality by the end of the programming period. || No. of Integrated Projects to implement the Air Quality Directive and population covered. || No. of cities with continuous improved air quality standards and No. of new cities with improved air quality standards as a consequence of LIFE examples.

Specific objectives for the priority area Biodiversity (Article 3(1)(b) and Article 11)

To contribute to the implementation of the Union policy and legislation in the area of biodiversity, including Implementation of the Biodiversity Strategy to 2020, Directive 2009/147/EC and Directive 92/43/EEC, in particular by applying developing, testing and demonstrating best practices and solutions. Article 11(a) || 25% of habitats targeted by projects improve conservation status by the end of the Programming period. || No. and type of habitats targeted and improving conservation status as a consequence of LIFE interventions. || Species and habitats targeted by LIFE projects achieving favourable conservation status. || No. of habitats and species targeted achieving favourable conservation status following LIFE examples or after LIFE interventions.

25% of species targeted by projects improve conservation status by the end of the programming period; || No. and type of species targeted and improving conservation status as a consequence of LIFE interventions;

3% ecosystem services restored by the end of the programming period. || Ha. and type of ecosystem service restored through LIFE. || Consolidated restoration of ecosystem services and further restoration. || No. of ha of ecosystem services restored following LIFE examples.

To support the further development, implementation and management of the N2000 network, in particular the application, development, testing and demonstration of integrated approaches for the implementation of Prioritised Action Frameworks (PAFs). Article 11(b) || 15% of the Natura 2000 network adequately managed by the end of the programming period. || · No. of Integrated Projects implementing PAFs and ha of Natura 2000 covered; · No of Natura 2000 sites brought to adequate management. || Consolidated and expanded adequate management of the Natura 2000 network. || No. of Natura 2000 sites which continue being adequately managed and new Natura 2000 sites with improved management, as a consequence of LIFE examples.

Specific objectives for the priority area Climate Change Mitigation (Article 3(1)(a) and Article 14)

To facilitate the development and implementation of integrated approaches such as for mitigation strategies and action plans, at local, regional or national level. Article 14(c) || Increased development and implementation of climate change mitigation strategies or action plans. || No. and coverage of climate change mitigation strategies or action plans developed or implemented through LIFE. || Effective integration of climate change mitigation concerns into public and private sector performance, and sustainable and continuously improved capacity and performance of the private and public sector || Geographical volume and/or economic value of climate change mitigation strategies or action plans developed and implemented.

To contribute to the development and demonstration of innovative mitigation technologies, systems, methods and instruments that are suitable for being replicated, transferred or mainstreamed. Article 14(d) || Increased innovative technologies, systems and instruments and/or other best practice solutions for the reduction of greenhouse gas emissions. || No. of innovative policy approaches, technologies, systems and instruments and/or other best practice solutions for the reduction of greenhouse gas emissions demonstrated through LIFE. || A consolidated shift towards more a low-carbon economy. || Tons of greenhouse gases reduced by new technologies, systems, instruments and/or other best practice approaches developed and taken up following LIFE examples.

Specific objectives for the priority area Climate Change Adaptation (Article 3(1)(a) and Article 15)

To facilitate the development and implementation of integrated approaches such as for adaptation strategies and action plans, at local, regional or national level. Article 15(c) || Increased development and implementation of climate change adaptation strategies or action plans. || No. and coverage of climate change adaptation strategies or action plans developed or implemented. || Effective integration of climate resilience concerns into private and public sector performance, and sustainable and continuously improved capacity and performance of the public and private sector. || Geographical volume and/or economic value of climate change adaptation strategies or action plans developed and implemented following LIFE examples.

To contribute to the development and demonstration of innovative adaptation, technologies, systems, methods and instruments that are suitable for being replicated, transferred or mainstreamed. Article 15(d) || Increased innovative policy approaches, technologies, systems and instruments and/or other best practice solutions for more climate resilience. || No. of demonstrated innovative policy approaches, technologies, systems and instruments and/or other best practice solutions for more climate resilience. || A consolidated shift towards a more climate-resilient economy. || Attributable climate resilience, broken down by sector, due to the demonstrated new technologies, systems, instruments and/or other best practice approaches developed and taken up following LIFE examples.

1.5.        Grounds for the
proposal/initiative

1.5.1.     Requirement(s) to be met in
the short or long term

Contribute to the implementation, updating and development of EU
environmental and climate policy and legislation, including the integration of
the environment and climate into other policies, thereby contributing to
sustainable development and the achievement of EU2020 objectives and targets.

1.5.2.     Added value of EU
involvement

The EU added value of the LIFE Programme derives from the
specificity of its approach and focus, which makes its interventions especially
adapted to the environmental and climate needs as the only instrument with
funds dedicated to Environmental protection and Climate Action.

·
By being the EU platform for exchange of
practice and knowledge-sharing for implementing EU legislation and policy,
LIFE allows actors across the EU to learn from each other's experience in
addressing specific environmental problems more effectively and efficiently.
LIFE attracts partnerships that would otherwise be difficult to set-up ensuring
a more effective intervention than Member States' individual action by an increased
pooling of resources and expertise.

·
By assisting Member States that host the most
valuable EU natural capital or are confronted with transboundary or
transnational environmental and climate problems, LIFE allows for a better
distribution of responsibility and solidarity in preserving the EU
environmental common good.

·
LIFE acts as a catalyst to start-up
action, providing one-off investment needed in a specific area, eliminating
initial barriers to the implementation of EU environmental and climate
policy and testing new approaches for future scaling-up.

·
LIFE addresses gaps and externalities, raises
awareness and demonstrates the benefits of environmental protection and climate
action ensuring the sustainability and expansion of project results.

·
LIFE helps Member States and stakeholders to
accelerate and improve the implementation of EU legislation by creating
synergies across EU Funds and national funds while levering additional public
and private sector resources.

·
Increased coherence of the EU intervention: A dedicated Environmental and Climate Action instrument allows the
Commission to better shape priorities and ensure that resources are effectively
used for environmental protection and climate action, by selecting the best
projects across the EU. More homogenous implementation of EU legislation is
achieved thanks to the dissemination of best practices (e.g., methodologies
that have been developed and now are widely applied, management plans, etc.).

·
Gap filler and more effective central
intervention: A specific instrument is more
flexible and finances projects that could not be otherwise financed by
other funds (e.g., projects managed by beneficiaries that are not eligible
under other funds).

·
A specific instrument would provide high
visibility to EU environmental and climate action bringing the EU closer to
its citizens, showing the EU's commitment to environmental and climate
objectives and thus making those objectives more relevant.

·
Bringing solutions to upcoming environmental
challenges of EU interest: Stakeholders are often
confronted with environmental problems for which no solutions have been found
yet, and which, if not addressed at an early stage, will lead to higher costs.

1.5.3.     Lessons learned from
similar experiences in the past

LIFE evaluations confirm that the LIFE
Programme is a successful EU instrument crucial for the implementation of EU
environmental policy, has a significant EU added value, an adequate level of
performance, and has made a significant contribution to the implementation of
EU environmental policy and legislation.

Action grants (representing 78% of appropriations, i.e. an amount of
€300 million in 2013) have played a major role in the implementation of the
Habitats and Birds Directives and in testing new approaches and technologies,
and demonstrated a capacity to act as a catalyst for the implementation of some
of the most demanding Directives, preparing the ground for continued management
through other funds. LIFE+ has also increased awareness of environmental and
climate concerns and citizens' access to relevant information, and created
collaborative platforms and partnerships to exchange best practices. Operating
grants for NGOs have facilitated their involvement in developing and
implementing EU environmental and climate policy and legislation, as required
by the Aarhus Convention.

The mid-term evaluation of LIFE+ also concluded that the changes
introduced in the LIFE+ Regulation (consolidation of three types of
interventions into one legal base, enlargement of the nature component to
include wider biodiversity issues, enlargement of the environment component to
align with the priorities of the 6th Environmental Action Plan and a new
component called Information and Communication) have increased the capacity of
the Programme to provide EU added value and the link to EU policy objectives.

The evaluations also found areas where LIFE+ should be improved to
deploy all its EU added value potential:

·
Better focus and prioritisation: the bottom up
approach and the broad scope of eligible areas of action provide little
opportunity for the Commission to stimulate demand in high priority areas,
especially in the LIFE Environment and Governance component (this strand also
covers climate action);

·
Better utilisation of projects' results and
transfer of know-how: while communication and networking activities are mandatory
in LIFE projects, sharing of best practices and capacity building for the
implementation of EU acquis should be reinforced;

·
Stronger synergies with other EU Funds: while
many agri-environmental measures were tested in LIFE+ and afterwards
incorporated into the Member States' rural development programmes, there is a
room for improvement;

·
Lifting constraints regarding funding activities
outside the EU: they have reduced the effectiveness of the Programme to achieve
some EU environmental objectives.

The European Court of Auditors, in a Special report published in
2009, concluded that LIFE is a well managed programme, with constant
improvements made over the years.

1.5.4.     Coherence and possible
synergy with other relevant instruments

The ex-post evaluation, the mid-term evaluation and the ex-ante
evaluation concluded that only a very small proportion of projects could have
been financed by other Union Funds (mainly by the CIP and the FP7) in
the absence of LIFE+. For some LIFE+ strands, such as LIFE Information and
Communication, alternative sources of funding are almost non-existent.

However, market-driven private sector innovation seems to
some extent equally well served by other initiatives such as the future Horizon
2020. However, the pursuit of eco-innovation is not just about developing
new consumer products and technologies that are intrinsically cleaner and
greener. It is also about engendering better practices and approaches across
the economy. While market failures are sufficiently addressed by other Union
Funds, institutional weaknesses are more insufficiently dealt with. This is
particularly relevant for activities related to developing policy driven and
public sector oriented solutions to environmental and climate-related
challenges with limited or no market replication potential and that simply
promote new and more cost-effective ways of implementation.

For this reason, the LIFE Programme will focus more on public sector
oriented innovation and on finding solutions that are most often best implemented
through public–private partnerships. Similarly, low carbon technology
development is hampered by uncertainty and insufficient knowledge
spill-over. Newly developed technologies need to be tested
at small scale. While market-replication and large scale
solutions may be increasingly covered by Horizon 2020, there is still
much room to promote the development of local and public sector-oriented
solutions as well as small-scale technologies focused on SMEs to help them
improve their environmental and climate performance. LIFE has traditionally
dealt with these challenges by providing highly replicable smaller-scale
solutions also across borders.

Cooperation will be established with the future Horizon 2020 and the
Competitiveness and SMEs instrument to ensure synergies in particular in these
fields. For example, it could be envisaged that ideas developed under Horizon
2020 could be tested and demonstrated in the context of implementing specific
Union legislation through a LIFE project. Similarly, the LIFE Programme could
build capacity and raise awareness to promote the implementation of research
findings.

The LIFE Programme is also linked to other Union Funds, such as
Cohesion policy Funds (ESF, ERDF, CF), Rural Development Fund (EAFRD)
or European Maritime and Fisheries Fund (EMFF). LIFE Programme
complements these Funds, since it finances specific types of activities and
measures that have as their main objective to achieve environmental and climate
benefits or are required to implement environmental and climate legislation. Thus,
the LIFE Programme works as a gap filler. In this sense, it may become
one of the main EU instruments to finance nature conservation (in areas where
CAP cannot play a substantial role) and environmental protection in "more developed regions"
given that these regions will have limited choice of priorities under the new
Cohesion policy instruments.

In addition, the LIFE Programme will strengthen its catalytic
and leveraging role by becoming a driver for mobilising other Union Funds
e.g., through Integrated Projects. For this, a more coherent approach with
other Funds will be required. The MFF Communication established a structured
relation by making a reference to "Integrated Projects" in the Common
Strategic Framework (CSF). This structured relation for Integrated Projects
will be developed in detail when drafting the CSF and may include creating a
steering committee and structured information channels.

The Commission has proposed in the MFF Communication that it intends
to increase the proportion of climate related expenditure across the EU budget
to at least 20%, with contribution from different policies, subject to impact
assessment. The Programme for the Environment and Climate Action (LIFE
Programme) will contribute to this goal. A sub-programme for Climate Action has
been included in the LIFE Programme with dedicated resources and specific
objectives related to climate, accompanied by result indicators.

1.6.        Duration and financial
impact

ý Proposal/initiative of limited
duration

–
ý  Proposal/initiative in effect from 01/01/2014 to 31/12/2020

–
ý  Financial impact from 2014 to 2023

 ̈ Proposal/initiative of unlimited
duration

–
Implementation with a start-up period from YYYY
to YYYY,

–
followed by full-scale operation.

1.7.        Management mode(s)
envisaged[52]

ý Centralised direct management by the Commission

ý Centralised indirect management with the delegation of implementation tasks to:

–
ý  executive agencies

–
 ̈  bodies set up by the Communities[53]

–
 ̈  national public-sector bodies/bodies with public-service mission

–
 ̈  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

 ̈ Shared management with the Member States

 ̈ Decentralised management with third countries

ý Joint management with international organisations: further tasks may be entrusted to
the EIB, the EIF, or other financial institutions, international organisations,
bodies with public-service mission, or bodies referred to in Article 185 of
Regulation (EC, Euratom) No 1605/2002.

If more than one
management mode is indicated, please provide details in the
"Comments" section.

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting rules

Specify frequency
and conditions.

The mid-term evaluation considered current monitoring and evaluation
largely effective and efficient. However, more focus on results was desirable.
In view of this, the monitoring framework builds on the framework proposed for
the current instrument.[54]
The framework is organised around two levels:

1. Monitoring of outputs, results and impacts, at project and
programme level

The monitoring of the Programme performance will be carried out at
project and programme level.

At project level, as is the case
now, it will include a requirement for projects to accompany their proposals
with tables of expected outputs. These tables will serve as basis for
monitoring project progress. The output indicators will be adapted according to
the indicators included in section 1.4.4 to reflect the new features of the Programme.
It will be compulsory to update output tables and re-submit them with the
mid-term and final reports.

The monitoring framework includes visits to all projects at least
once a year and visits of the Commission staff at least once in the lifetime of
the projects. A monitoring file will be created at the start of each project in
the form of a short report including the project description, and summarising
actions and expected outputs and results. The yearly visits by the monitoring
team facilitate gaining an overview of the project implementation in situ
allowing for an early identification of problems. Feedback will be provided to
the beneficiary in order to improve performance. In addition, projects will
have to submit reports for more detailed assessment of progress to justify
payments.

As it is the case now, the project will be required to submit
together with the Final Report an after-LIFE plan including inter alia a
list of expected impacts that will serve as a basis to assess the
sustainability of the project results. Current practice of ex-post monitoring
visits for selected projects will continue.

At programme level, the multiannual
work programmes will set out specific thematic priorities for their duration
and specific targets for each priority within each area, including expected
outputs (i.e., expected number of Integrated Projects, coverage of Natura 2000
by LIFE projects, coverage of River Basin District by LIFE projects, and so
on). At the end of each year's call for proposals, the Commission will analyse
whether sufficient number of projects for a given area of action have been
funded and will make adjustments as required to achieve the work programme and
mid-term targets. Thematic reports summarising the main achievements for
particular priorities will be developed after the end of the multiannual work
programme. This will also serve as a basis for disseminating results and feed
them into policy development and implementation. The practice of organising a
yearly conference for each sub-programme will continue.

A mid-term evaluation and an ex-post evaluation of the Programme
will also be carried out.

2. Tracking of expenditure at project and programme level

In order to provide evidence of the co-benefits that both
sub-programmes can bring to specific priorities such as climate action and
biodiversity, and better illustrate the level of spending available throughout
the programme for these priorities, the monitoring framework will also include
the methodology for tracking of climate and biodiversity-related expenditures
as defined in the MFF Communication and derived from the OECD "Rio
markers".

In relation to climate action, the MFF Communication stated that mainstreaming of climate action must be visible, robust
and accompanied by a clear cross-cutting obligation to
identify where the Budget promotes climate action or energy efficiency so that
the EU is able to set out clearly how much of its spending relates to climate
action, by using a common tracking procedure for climate-related expenditure.

Tracking of climate-related expenditure will be performed according
to three categories, based on an established OECD methodology ("Rio
markers"): expenditure where climate is the principal (primary) objective
(counted as 100% - climate related only); expenditure where climate is
significant, but not predominant objective (counted as 40% - significantly
climate- related); and expenditure not targeted to climate objectives (counted
as 0% - not climate related).

As regards biodiversity, the 'Rio markers' established by the OECD
and already used by the Commission for external instruments will be integrated
in the existing methodology for measuring performance used for EU programmes.
They will also help to demonstrate the co-benefits of climate and biodiversity
expenditures, and to highlight the biodiversity co-benefits of climate spending
on REDD+ (Reducing Emissions from Deforestation and Forest Degradation) actions.

At project level, tracking of
climate-related expenditure and biodiversity-related expenditure will be done
by expanding the current practice of including in the proposals an option to
indicate whether the project could be considered climate-related to also cover biodiversity-related
in order to be counted according to the "Rio markers". This would
allow identifying each year the expenditure related to these two priorities.

At programme level, estimates of
climate-related expenditure and biodiversity-related expenditure performed
according to the "Rio markers" methodology will be calculated on the
basis of the multiannual work programmes that will set out thematic priorities
for their duration. This could allow identifying each year the indicative level
of expenditure related to these two priorities across the LIFE Programme.

2.2.        Management and control
system

The management mode for the LIFE Programme
is central direct management by the Commission which will be partially
delegated to an existing Executive Agency. The Commission will be assisted by
the Committee for the LIFE Programme for the Environment and Climate Action,
which will have a dual nature with, in particular, different chairs and
different composition depending on whether the issues dealt with are related to
the sub-programme for Environment or the sub-programme for Climate Action.

The main elements of the internal control
system are:

–
the financial circuits and, in
particular, the ex-ante control of transactions;

–
the financial controls carried out during
the award process;

–
the financial, accounting and other
types of management reporting; and

–
the ex-post audits performed on the
spot to the beneficiaries of grants. The grants to be audited
are selected either on a risk basis (to detect and correct the
errors) or on the basis of a representative sampling (to provide the
Authorising Officer with a reasonable assurance of the legality and regularity
of transactions).

The control strategy takes account of the
recommendations from the evaluations of the programme, the reports issued by
the internal auditor and the Special Report of the Court of Auditors aiming to
increase the effectiveness and European added value of the programme.

2.2.1.     Risk(s) identified

The risks identified in the implementation
of the Programme fall mainly into the following categories:

·
Coordination failures (with the Executive
Agency, with other donors or financial institutions);

·
Inefficient use of administrative resources
(limited proportionality of requirements);

·
Risk of the absence of a clear definition of the
limits of the responsibilities in the management and the control of tasks
delegated to the agency;

·
Risk of insufficiently/ ineffectively targeted
use of funds as well as the risk of too much division of funds due to larger
territorial or thematic scope;

·
Errors and inefficiencies derived from
complexity of rules (e.g., eligibility of costs), unstable thematic area
framework, priorities and rules;

·
Weaknesses in management and control systems at
the level of the DG and the Executive Agency;

·
A risk analysis by nature of transactions would
result in the following ranking from perceived high risks to low risk:
Integrated Projects (new concept, complex management), action grants for
smaller traditional projects, operating grants, and procurement;

·
A new type of project (Integrated Project)
entails new challenges: in coordination and collaboration, pooling of resources
and sharing best practices and expertise.

2.2.2.     Control method(s) envisaged

Governance structure: simplification and
streamlining

It is envisaged to delegate part of the managing tasks of the
programme to an existing Executive Agency. This agency will adjust its own
financial control framework to the new programme including the setting up of an
ex–post audit cell, supervised by the Authorising Officer. This cell will be
under the scrutiny of the internal audit of the Executive Agency.

In order to ensure homogenous management and control systems, the
DGs and Executive Agency should exchange best practices and knowledge. Guidance
and training meetings will be held in this respect.

The DGs will supervise the Executive Agency and have the authority
to delegate the responsibilities as well as to control implementation. The monitoring
and supervision framework will consist of three levels: political and
strategic, administrative, and management and operational. An audit could be
envisaged on the level of the Agency or on the level of the beneficiaries.

Intensity and nature of controls proportional to the risk

Procurement: ex ante control and
monitoring of all files.

Projects:

- Project selection/evaluation/negotiation: preventive controls of
all files if appropriate with assistance of external experts;

- Project implementation by way of grants: preventive and detective
monitoring, on-the-spot visits for each project at least once in their life
time;

- Before final payment: detective and corrective controls, desk
review of all files including widespread use of external audit certificates.

Every year, ex-post controls of grants will be conducted on the
spot. In addition, a new type of audits, "desk audits", will be
introduced to perform management checks without going on the spot.

Review of strategy:

This strategy will be revised by
improving the representativeness of the sampled population subject to
audits and controls.

Costs and benefits of controls

Historical data: The estimated costs of controls related to grants
managed under LIFE+ in 2010 amounted to EUR 7.6 million corresponding to:

- selection: €0.6 million;

- project management: €4.5 million;

- on the spot ex-ante control: €1.8 million;

- external audit certificates: €0.1 million;

- ex-post audits:
€0.6 million.

This amount corresponds to 3.5% of the total amount paid on grants
in 2010.

The risk of non compliance indicated in the 2010 Annual Activity
Report was estimated at 2.5% of the total amount paid on grants and less than
2% of the total budget for the activity.

The amount of costs of control is estimated to slightly decrease to
€7.5 million for the whole period with the following breakdown in 2020:

- selection: €0.5 million;

- project management: €4 million;

- on the spot ex-ante control: €1.5 million;

- external audit certificates: €0.5 million;

- ex-post
audits: €1 million.

The expected level of risk of non compliance should decrease due to
two main elements:

- the shift towards an extensive use of external audit certificates
that is expected to reduce by 10% the error rate;

- the limitation of eligibility of staff costs to the staff specifically
recruited for the project.

Staff costs represent 30% of the costs and nearly 50% of the errors.
If this measure cuts in two the staff costs to be co-financed, the likely
errors should also be halved. It should be noticed that it is easier to identify
the time spent by additional staff on a project than by permanent staff who is
working, generally, on several actions at the same time. A decrease of at least
5% of the rate of non compliance could be expected then.

While nominal costs of controls will be decreasing from 7.6 to 7.5
million, the error rate is expected to diminish by 40% which means a reduction
from 2.6% to 1.6% of the total amount paid for grants.

The internal control objective for the LIFE Programme would be to
limit the residual error rate (after corrections) to a range between the
expected 1.6% and the 2% "materiality" threshold set by the Court of
Auditors.

2.3.        Measures to prevent fraud
and irregularities

Specify existing or
envisaged prevention and protection measures.

The beneficiaries of the grants are: local, regional and national
authorities to a main extent, NGOs, large enterprises, SMEs, universities,
research institutions, etc.

Proposals are selected according to the beneficiaries professional
credentials and financial stability and other criteria imposed by the legal
basis.

During the selection process the early warning system is used to
identify possible risks related to potential beneficiaries of centrally
managed grants.

In order to avoid double funding an inter-service consultation is
launched on the list of projects and the risk of double funding is part of the
criteria to select the projects to be ex-post audited on the spot.

Training sessions, on the different phases of the project management
cycle, are organised on the premises, for the project managers, to address
specific management and financials needs. Direct contact will be possible with
project and financial officers at the Commission to resolve particular queries.

The grant agreement main requirements will be duly explained to the
beneficiaries in on- the-spot visits and coordination meetings.

Information sessions will be organised for the ex-post auditors on
the characteristics of fraud that could be detected during an audit on-the-spot
of financial statements.

Ex-post auditors identify and assess the risks of fraud financial
statements and responds adequately to fraud or suspected fraud identified
during the audit by communicating cases to OLAF. They use in particular all
relevant IT tools. The results of ex-post controls are taken in account when
assessing and designing the control system.

Rules governing the eligibility of costs will be simplified in
particular for those categories particularly problematic, such as staff costs
and VAT.

Audit certificates will be required for interim and final payments.

Cooperation (training or information) between the management and
OLAF is foreseen.

The audit module in ABAC will be kept up-to-date and fully exploited
to prevent/detect/correct double funding.

Monitoring teams might be foreseen for supervising, on the spot, the
different stages of the implementation of the project.

The legal base indicates specifically the right of OLAF to have
access to all relevant information.

In addition to the application of all regulatory control mechanisms,
DG Environment and DG Climate Action will devise an anti-fraud strategy in line
with the Commission's new anti-fraud strategy (CAFS) adopted on 24 June 2011 in
order to ensure inter alia that its internal anti-fraud related controls are fully
aligned with the CAFS and that their fraud risk management approach is geared
to identify fraud risk areas and adequate responses. Where necessary,
networking groups and adequate IT tools dedicated to analysing fraud cases
related to the LIFE programme will be set up. The risk of fraud will be
integrated in the risk-management process.

The DGs have nominated an anti-fraud correspondent to the Fraud Prevention
and Detection Network who will participate in relevant networks/working groups
by group of DGs. The DGs will raise awareness of potential fraud among staff
and disseminate information on responsible authorities and procedures for
reporting fraud.

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected

· Existing expenditure budget lines

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Description........................................] || Diff./non-diff ([55]) || from EFTA[56] countries || from candidate countries[57] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

Heading 2: sustainable growth & natural resources || Environment and Climate Action || Differentiated. || YES || YES || NO || NO

· New budget lines requested

In order of multiannual financial framework
headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number Heading 2 || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

2 || 07 03 80 01 – Environment new LIFE Programme (operational expenditures) || Differentiated. || YES || YES || YES || NO

2 || 07 03 80 02 – Climate Action new LIFE Programme (operational expenditures) (or new nomenclature to be created under specific budget Title) || Differentiated. || YES || YES || YES || NO

2 || 07 01 04 02 - Environment new LIFE Programme (Expenditures on administrative management) || Non differentiated. || YES || YES || YES || NO

2 || 07 01 04 06 – Climate Action new LIFE Programme (Expenditures on administrative management) (or new nomenclature to be created under specific budget Title) || Non differentiated. || YES || YES || YES || NO

3.2.        Estimated impact on
expenditure

3.2.1.     Summary of estimated impact
on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || 2 || Sustainable Growth: Natural Resources

DG: CLIMA + ENV || || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || 2021&subs. || TOTAL ||

Ÿ Operational appropriations || || || || || || || || || ||

07 03 80 01 (new budget item to be created) ENV part || Commitments || (1) || 291.500 || 314.250 || 341.250 || 371.000 || 404.250 || 437.750 || 420.500 || || 2,580.500 ||

Payments || (2) || 22.238 || 155.963 || 151.764 || 249.364 || 265.615 || 296.415 || 361.226 || 1.077.916 || 2,580.500 ||

XX 03 80 02 (new budget item to be created) (or new nomenclature to be created under specific budget Title) CLIMA part || Commitments || (1a) || 98.700 || 106.800 || 115.400 || 124.500 || 133.200 || 142.800 || 136.700 || || 858.100 ||

Payments || (2a) || 13.845 || 60.140 || 59.596 || 94.411 || 101.872 || 105.185 || 138.201 || 284.850 || 858.100 ||

Appropriations of an administrative nature financed from the envelope for sub-programmes[58] || || || || || || || || || ||

07 01 04 02 (new budget item to be created) ENV part- || || (3) || 19.000 || 22.500 || 23.250 || 22.000 || 18.000 || 14.500 || 13.750 || || 133.000

XX 01 04 06 (new budget item to be created) (or new nomenclature to be created under specific budget Title) CLIMA part || || || 4.800 || 5.450 || 6.100 || 6.500 || 7.550 || 7.950 || 8.050 || || 46.400

TOTAL appropriations for DG ENV || Commitments || || 310.500 || 336.750 || 364.500 || 393.000 || 422.250 || 452.250 || 434.250 || || 2,713.500

Payments || || 41.238 || 178.463 || 175.014 || 271.364 || 283.615 || 310.915 || 374.976 || 1,077.916 || 2,713.500

TOTAL appropriations for DG CLIMA || Commitments || || 103.500 || 112.250 || 121.500 || 131.000 || 140.750 || 150.750 || 144.750 || || 904.500

Payments || || 18.645 || 65.590 || 65.696 || 100.911 || 109.422 || 113.135 || 146.251 || 284.850 || 904.500

Ÿ TOTAL operational appropriations || Commitments || (4) || 390.200 || 421.050 || 456.650 || 495.500 || 537.450 || 580.550 || 557.200 || || 3,438.600 ||

Payments || (5) || 36.083 || 216.103 || 211.360 || 343.775 || 367.487 || 401.600 || 499.427 || 1,362.766 || 3,438.600 ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for sub-programmes || (6) || 23.800 || 27.950 || 29.350 || 28.500 || 25.550 || 22.450 || 21.800 || || 179.400

TOTAL appropriations under HEADING 2 of the multiannual financial framework || Commitments || =4+ 6 || 414.000 || 449.000 || 486.000 || 524.000 || 563.000 || 603.000 || 579.000 || || 3,618.000 ||

Payments || =5+ 6 || 59.883 || 244.053 || 240.710 || 372.275 || 393.037 || 424.050 || 521.227 || 1,362.766 || 3,618.000 ||

If more than one heading is affected by the proposal /
initiative:

Ÿ TOTAL operational appropriations || Commitments || (4) || || || || || || || || ||

Payments || (5) || || || || || || || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for sub-programmes || (6) || || || || || || || || || ||

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || || || || || || || || ||

Payments || =5+ 6 || || || || || || || || ||

Heading of multiannual financial framework: || 5[59] || "Heading 5" Administration

EUR million (to 3 decimal places)

DG ENV & CLIM || || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || || TOTAL

Ÿ ENV human resources ( Million €) || 9.184 || 9.320 || 9.528 || 9.871 || 10.082 || 10.285 || 10.564 || || 68.834

Ÿ CLIMA human resources ( Million €) || 3.175 || 3.222 || 3.575 || 3.792 || 4.020 || 4.100 || 4.180 || || 26.064

TOTAL Human resources ( Million €) || 12.359 || 12.542 || 13.103 || 13.663 || 14.102 || 14.385 || 14.744 || || 94.898

Ÿ ENV other administrative expenditure || 0.392 || 0.400 || 0.409 || 0.417 || 0.425 || 0.434 || 0.442 || || 2.919

Ÿ CLIMA other administrative expenditure || 0.173 || 0.177 || 0.194 || 0.199 || 0.202 || 0.220 || 0.224 || || 1.389

TOTAL Other administrative expenditure ( Million €) || 0.565 || 0.577 || 0.603 || 0.616 || 0.627 || 0.654 || 0.666 || || 4.308

TOTAL DG ENV & CLIM || Appropriations || 12.924 || 13.119 || 13.706 || 14.279 || 14.729 || 15.039 || 15.410 || || 99.206

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 12.924 || 13.119 || 13.706 || 14.279 || 14.729 || 15.039 || 15.410 || 99.206

EUR million (to 3 decimal places)

|| || Year 2014[60] || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year 2021 & subs || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 426.924 || 462.119 || 499.706 || 538.279 || 577.729 || 618.039 || 594.410 || - || 3,717.206

Payments || 72.807 || 257.172 || 254.416 || 386.554 || 407.766 || 439.089 || 536.637 || 1,362.766 || 3,717.206

3.2.2.     Estimated impact on
operational appropriations

–
 ̈  The proposal/initiative does not require the use of operational
appropriations

–
ý  The proposal/initiative requires the use of operational
appropriations, as explained below:

Commitment appropriations in EUR million (to 3 decimal
places)

Indicate objectives and outputs ò || || || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

OUTPUTS

Type of output[61] || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

SPECIFIC OBJECTIVE No 1- Environment and Resource Efficiency || || || || || || || || || || || || || || || ||

- Output || IP[62] || €9.481 || 5 || €42.5 || 7 || €62.5 || 10 || €92.5 || 12 || €112.5 || 13 || €127.5 || 15 || €150 || 15 || €142.5 || 77 || €730

- Output || Trad[63] || €1.5 || 44 || €66.25 || 39 || €58.75 || 28 || €41.75 || 34 || €35.25 || 24 || €36.50 || 22 || €33.25 || 21 || €30.75 || 202 || €302.50

- Output || Proc.[64] || €0.282 || 68 || €19.25 || 72 || €20.35 || 74 || €20.90 || 78 || €22 || 82 || €23.10 || 84 || €23.65 || 88 || €24.75 || 546 || €154

Sub-total for specific objective N°1 || 117 || 128 || 118 || 141.60 || 112 || 155.15 || 114 || 169.75 || 119 || 187.10 || 121 || 206.90 || 123 || 198.00 || 825 || 1,186.50

SPECIFIC OBJECTIVE No 2[65]- Biodiversity || || || || || || || || || || || || || || || ||

- Output || IP || €10 || 3 || €30 || 4 || €40 || 6 || €60 || 8 || €80 || 10 || €100 || 10 || €100 || 10 || €100 || 51 || €510

- Output || Trad || €1.5 || 60 || €89.50 || 58 || €87.00 || 52 || €78.00 || 46 || €69.50 || 43 || €65.00 || 51 || €76.25 || 44 || €66.50 || 355 || €531.75

-Output || Proc. || €0.282 || 15 || €4.20 || 16 || €4.44 || 18 || €4.56 || 17 || €4.80 || 18 || €5.04 || 18 || €5.16 || 19 || €5.40 || 119 || €33.60

Sub-total for specific objective N°2 || 78 || 123.70 || 78 || 131.44 || 74 || 142.56 || 71 || 154.30 || 71 || 170.04 || 79 || 181.41 || 73 || 171.90 || 525 || 1,075.35

SPECIFIC OBJECTIVE No 3- Environmental Governance || || || || || || || || || || || || || || || ||

- Output || Nat || €1.25 || 3 || €3.25 || 5 || €6 || 6 || €8 || 8 || €10 || 8 || €10 || 12 || €15 || 12 || €15 || 54 || €67.25

-Output || Env || €1.28 || 11 || €14 || 9 || €11.754 || 9 || €11.75 || 9 || €11.75 || 9 || €11 || 6 || €7.75 || 6 || €7.5 || 59 || €75.50

- Output || NGOs || €0.300 || 36 || €11 || 37 || €11.25 || 38 || €11.25 || 40 || €12 || 41 || €12.25 || 42 || €12.5 || 44 || €13.25 || 278 || €83.5

- Output || Proc. || €0.282 || 41 || €11.55 || 43 || €12.21 || 44 || €12.54 || 47 || €13.20 || 49 || €13.86 || 50 || €14.19 || 53 || €14.85 || 328 || €92.40

Sub-total for specific objective N°3 || 91 || 39.80 || 94 || 41.21 || 98 || 43.54 || 104 || 46.95 || 107 || 47.11 || 111 || 49.44 || 115 || 50.60 || 720 || €318.65

SPECIFIC OBJECTIVE No 4- Clima Mitigation || || || || || || || || || || || || || || || ||

- Output || Projects || €2.271 || 13 || €28.50 || 14 || €31.800 || 11 || €24.00 || 12 || €26.50 || 13 || €29.50 || 14 || €32.00 || 13 || €29.50 || 90 || €201.800

- Output || IP || €5.746 || 0 || €0 || 0 || €0 || 2 || €11.00 || 2 || €11.30 || 2 || €11.50 || 2 || €11.80 || 2 || €12.00 || 10 || €57.60

- Output || Proc || €0.282 || 57 || €16.00 || 57 || €16.20 || 60 || €17.00 || 64 || €18.20 || 67 || €19.00 || 73 || €20.50 || 71 || €20.00 || 449 || €126.90

Sub-total for specific objective N°4 || 70 || €44.50 || 71 || €48.00 || 73 || €52.00 || 78 || €56.00 || 82 || €60.00 || 89 || €64.30 || 86 || €61.50 || 549 || €386.30

SPECIFIC OBJECTIVE No 5- Clima Adaptation || || || || || || || || || || || || || || || ||

- Output || Projects || €2.254 || 16 || €36.500 || 18 || €40.000 || 14 || €32.500 || 16 || €35.600 || 17 || €39.200 || 19 || €43.200 || 17 || €39.000 || 117 || €266.000

- Output || IP || €5.746 || 0 || €0 || 0 || €0 || 2 || €11.000 || 2 || €11.300 || 2 || €11.500 || 2 || €11.800 || 2 || €12.000 || 10 || €57.600

- Output || Proc. || €0.282 || 28 || €8.000 || 28 || €8.000 || 30 || €8.500 || 32 || €9.100 || 33 || €9.300 || 33 || €9.300 || 37 || €10.500 || 221 || €62.700

Sub-total for specific objective N°5 || 44 || €44.500 || 46 || €48.000 || 46 || €52.000 || 50 || €56.000 || 52 || €60.000 || 54 || €64.300 || 56 || €61.500 || 348 || €386.300

SPECIFIC OBJECTIVE No 6- Climate Governance || || || || || || || || || || || || || || || ||

- Output || Projects || €1.132 || 4 || €4.000 || 4 || €4.700 || 5 || €5.300 || 5 || €5.500 || 5 || €6.000 || 6 || €6.500 || 6 || €6.500 || 35 || €38.500

- Output || Proc. || €0.282 || 9 || €2.500 || 10 || €2.800 || 10 || €2.800 || 11 || €3.000 || 11 || €3.200 || 12 || €3.400 || 10 || €2.900 || 73 || €20.600

- Output || NGOs || €0.565 || 6 || €3.200 || 6 || €3.300 || 6 || €3.300 || 7 || €4.000 || 7 || €4.000 || 8 || €4.300 || 8 || €4.300 || 48 || €26.400

Sub-total for specific objective N°6 || 19 || €9.700 || 20 || €10.800 || 21 || €11.400 || 23 || €12.500 || 23 || €13.200 || 26 || €14.200 || 24 || €13.700 || 156 || €85.500

|| || || || || || || || || || || || || || || || || ||

TOTAL COST || 419 || 390.20 || 428 || 421.05 || 424 || 456.65 || 440 || 495.50 || 454 || 537.45 || 480 || 580.55 || 477 || 557.20 || 3.122 || €3,438.6

3.2.3.     Estimated impact on
appropriations of an administrative nature

3.2.3.1.  Summary

–
 ̈  The proposal/initiative does not require the use of administrative
appropriations

–
ý  The proposal/initiative requires the use of administrative
appropriations, as explained below:

EUR million (to 3
decimal places)

HEADING 5 of the multiannual financial framework || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

ENV human resources || 9.184 || 9.320 || 9.528 || 9.871 || 10.082 || 10.285 || 10.564 || 68.834

CLIMA human resources || 3.175 || 3.222 || 3.575 || 3.792 || 4.020 || 4.100 || 4.180 || 26.064

ENV other administrative expenditure || 0.392 || 0.400 || 0.409 || 0.417 || 0.425 || 0.434 || 0.442 || 2.919

CLIMA other administrative expenditure || 0.173 || 0.177 || 0.194 || 0.199 || 0.202 || 0.220 || 0.224 || 1.389

Subtotal HEADING 5 of the multiannual financial framework || 12.924 || 13.119 || 13.706 || 14.279 || 14.729 || 15.039 || 15.410 || 99.206

Outside HEADING 5[66] of the multiannual financial framework || || || || || || || ||

ENV other expenditure of an administrative nature || 19.000 || 22.500 || 23.250 || 22.000 || 18.000 || 14.500 || 13.750 || 133.000

CLIMA other expenditure of an administrative nature || 4.800 || 5.450 || 6.100 || 6.500 || 7.550 || 7.950 || 8.050 || 46.400

Subtotal outside HEADING 5 of the multiannual financial framework || 23.800 || 27.950 || 29.350 || 28.500 || 25.550 || 22.450 || 21.800 || 179.400

TOTAL || 36.724 || 41.069 || 43.056 || 42.779 || 40.279 || 37.489 || 37.210 || 278.606

3.2.3.2.  Estimated requirements of
human resources

–
 ̈  The proposal/initiative does not require the use of human
resources

–
ý  The proposal/initiative requires the use of human resources, as
explained below:

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020

Ÿ Establishment plan posts (officials and temporary agents) ||

|| 07 01 01 01 01 ENV (Headquarters and Commission’s Representation Offices) || 64.0 || 64.0 || 64.0 || 65.0 || 65.0 || 65.0 || 65.0

|| XX 01 01 01 02 CLIMA (Headquarters and Commission’s Representation Offices) (or new nomenclature to be created under specific budget Title) || 21.0 || 21.0 || 23.0 || 24.0 || 25.0 || 25.0 || 25.0

|| XX 01 01 02 (Delegations) || || || || || || ||

|| XX 01 05 01 (Indirect research) || || || || || || ||

|| 10 01 05 01 (Direct research) || || || || || || ||

|| Ÿ External personnel (in Full Time Equivalent unit: FTE)[67] ||

|| 07 01 02 01 ENV (CA, INT, SNE from the "global envelope") || 8.0 || 8.0 || 8.0 || 8.0 || 8.0 || 8.0 || 9.0

|| XX 01 02 02 CLIMA (CA, INT, SNE from the "global envelope") (or new nomenclature to be created under specific budget Title) || 5.0 || 5.0 || 5.0 || 5.0 || 5.0 || 5.0 || 5.0

|| XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || || || || || || ||

|| XX 01 04 yy [68] || - at Headquarters[69] || || || || || || ||

|| || - in delegations || || || || || || ||

|| XX 01 05 02 (CA, INT, SNE - Indirect research) || || || || || || ||

|| 10 01 05 02 (CA, INT, SNE - Direct research) || || || || || || ||

|| Other budget lines (specify) || || || || || || ||

|| TOTAL || 98.0 || 98.0 || 100.0 || 102.0 || 103.0 || 103.0 || 104.0

XX is the
policy area or budget title concerned.

The human
resources required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints. Amounts and imputations will be adjusted depending on the results
of the envisaged externalisation process.

Description of
tasks to be carried out:

Officials and temporary agents ||

External personnel ||

3.2.4.     Compatibility with the
current multiannual financial framework

–
ý  Proposal/initiative is compatible the current multiannual
financial framework.

–
 ̈  Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.

Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.

n/a.

–
 ̈  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[70].

Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

n/a.

3.2.5.     Third-party contributions

–
The proposal/initiative does not provide for
co-financing by third parties

–
The proposal/initiative provides for the
co-financing estimated below:

Appropriations in EUR million (to 3 decimal places)

|| Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || Total

Specify the co-financing body || || || || || || || ||

TOTAL appropriations cofinanced || || || || || || || ||

3.3.        Estimated impact on
revenue

–
ý  Proposal/initiative has no financial impact on revenue.

–
 ̈  Proposal/initiative has the following financial impact:

–
 ̈         on own resources

–
 ̈         on miscellaneous revenue

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[71]

Year N || Year N+1 || Year N+2 || Year N+3 || ... insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6)

Article ............. || || || || || || || ||

For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.

n/a

Specify the method for
calculating the impact on revenue.

n/a

[1]               Communication
from the Commission to the European Parliament, the Council, the European
Economic and Social Committee and the Committee of the Regions A budget for
Europe 2020, COM(2011)500 final, 29.6.2011.

[2]               Europe 2020: A strategy for smart, sustainable and
inclusive growth COM(2010) 2020 final, Brussels, 3.3.2010, adopted by the
European Council on 17 June 2010.

[3]               Regulation
(EC) No 614/2007, OJ L 149, 9.6.2007, p. 1.

[4]               Directive
92/43/EEC, OJ L 206, 22.7.1992, p. 7.

[5]               LIFE
Ex-post evaluation carried out by COWI in 2009; LIFE+ Mid-term evaluation
carried out by GHK in 2010; Combined impact assessment and ex-ante evaluation
of the review of the LIFE+ Regulation" carried out by a consortium led by
GHK in 2011 and "Climate Change in the future multiannual financial
framework" carried out by the Institute for European Environmental Policy
in 2011.

[6]               [reference
to be added when published]

[7]               http://ec.europa.eu/environment/life/publications/lifepublications/evaluation/index.htm#expost.

[8]               http://ec.europa.eu/environment/life/publications/lifepublications/evaluation/index.htm#mte2010.

[9]               [reference
to be added when published]

[10]             [reference
to be added when published]

[11]             http://ec.europa.eu/environment/life/about/beyond2013.htm.

[12]             http://ec.europa.eu/environment/life/about/beyond2013.htm.

[13]             http://ec.europa.eu/environment/life/about/beyond2013.htm.

[14]             [reference
to be added]

[15]             Directive
2009/147/EC, OJ L 20, 26.1.2010, p. 7.

[16]             Directive
2000/60/EC, OJ L 327, 22.12.2000, p. 1.

[17]             Directive
2008/56/EC, OJ L 164, 25.6.2008, p. 19.

[18]             Commission
proposal for a Decision of the European Parliament and of the Council on
Horizon 2020 – The Framework Programme for Research and Innovation.

[19]             COM(2011)
112 final.

[20]             Communication
from the Commission to the European Parliament and the Council, A framework for the next generation of innovative financial
instruments - the EU equity and debt platforms,
COM(2011)662 final, 19.10.2011.

[21]             This
corresponds to €3.2 billion in constant prices.

[22]             OJ
C , , p. .

[23]             OJ
C , , p. .

[24]             COM(2011)500
final, 29.6.2011.

[25]             OJ
L 149, 9.6.2007, p.1.

[26]             All
figures in current prices.

[27]             COM(2011)
403 final, 29.6.2011.

[28]             OJ
L ...p. [ref. ERDF]

[29]             OJ
L...p. [ref. ESF]

[30]             OJ
L...p [ref. CF]

[31]             OJ
L...p. [ref. EAGF]

[32]             OJ
L...p [ref. EAFRD]

[33]             OJ
L...p [ref. EMFF]

[34]             OJ
L...p [ref. Horizon 2020]

[35]             [Ref.
to be added once adopted]

[36]             COM(2010)
2020 final, 3.3.2010.

[37]             COM(2011)
571 final, 20.9.2011.

[38]             COM(2011)
244 final, 3.5.2011.

[39]             OJ
L 206, 22.7.1992, p.7.

[40]             OJ
L 20, 26.1.2010, p.7.

[41]             COM(2011)
112 final, 8.3.2011.

[42]             OJ
L 248, 16.9.2002, p.1.

[43]             OJ
L 142, 14.05.1998, p.1.

[44]             OJ
L 327, 22.12.2000, p. 1.

[45]             OJ
L 164, 25.6.2008, p. 19.

[46]             COM(2011)
500 final, 29.06.2011, Part II (Policy fiches), p. 7.

[47]             OJ
L 55, 28.2.2011, p.13

[48]             All
figures in current prices.

[49]             OJ
L 117, 5.5.1999, p. 1.

[50]             ABM:
Activity-Based Management – ABB: Activity-Based Budgeting.

[51]             As
referred to in Article 49(6)(a) or (b) of the Financial Regulation.

[52]             Details
of management modes and references to the Financial Regulation may be found on
the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[53]             As
referred to in Article 185 of the Financial Regulation.

[54]             Proposed
monitoring and evaluation framework for the LIFE+ Regulation, DG Environment,
2007

[55]             Diff.
= Differentiated appropriations / Non-Diff. = Non-differentiated appropriations

[56]             EFTA:
European Free Trade Association.

[57]             Candidate
countries and, where applicable, potential candidate countries from the Western
Balkans.

[58]             Technical
and/or administrative assistance and expenditure in support of the
implementation of EU programmes and/or actions (former "BA" lines),
indirect research, direct research.

[59]             Montants et
imputation seront ajustés le cas échéant en fonction des résultats du processus
d'externalisation envisagé vers l'agence exécutive

[60]             Year
N is the year in which implementation of the proposal/initiative starts.

[61]             Outputs
are products and services to be supplied (e.g.: number of student exchanges
financed, number of km of roads built, etc.).

[62]             Integrated
Projects.

[63]             Traditional
projects.

[64]             Public
Procurement.

[65]             As
described in Section 1.4.2. "Specific objective(s)..."

[66]             Technical
and/or administrative assistance and expenditure in support of the
implementation of EU programmes and/or actions (former "BA" lines),
indirect research, direct research.

[67]             CA=
Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune
Expert en Délégation" (Young Experts in Delegations); LA= Local Agent;
SNE= Seconded National Expert;

[68]             Under
the ceiling for external personnel from operational appropriations (former "BA"
lines)

[69]             Essentially
for Structural Funds, European Agricultural Fund for Rural Development (EAFRD) and
European Fisheries Fund (EFF).

[70]             See
points 19 and 24 of the Interinstitutional Agreement.

[71]             As
regards traditional own resources (customs duties, sugar levies), the amounts
indicated must be net amounts, i.e. gross amounts after deduction of 25% for collection
costs.