COOPERATION AGREEMENT between the European Economic Community and the Republic of Iceland on research and development in the field of the environment: Science and Technology for Environmental Protection (STEP) and European Programme on Climatology and Natural Hazards (Epoch)

THE EUROPEAN ECONOMIC COMMUNITY,

hereinafter called 'the Community`, and

THE REPUBLIC OF ICELAND,

hereinafter called 'Iceland`,

both hereinafter called the 'Contracting Parties`,

Whereas the Community and Iceland concluded a framework agreement for scientific and technical cooperation which entered into force on 6 June 1990;

Whereas, by Decision 89/625/EEC, the Council of the European Communities, hereinafter called 'the Council`, adopted two multiannual R& TD programmes in the field of the environment (1989 to 1993): Science and Technology for Environmental Protection (STEP) and the European Programme on Climatology and Natural Hazards (Epoch), hereinafter called 'the Community programmes`;

Whereas the association of Iceland with the Community programmes can help to improve the efficacy of the research carried out by the Contracting Parties in the field of the protection of the environment and can avoid the useless duplication of efforts;

Whereas the ongoing talks relating to a European Economic Area between the Community and the EFTA countries are likely to lead to a result in the area of R& D in the environmental sector which take this development into consideration;

Whereas the Community and Iceland expect to obtain mutual benefit from Iceland's association with the Community programmes,

HAVE AGREED AS FOLLOWS:

Article 1

Iceland is hereby associated as from 20 November 1989 with the implementation of the Community programmes as set out in Annex A. The implementation of the programme and the Community's rate of financial participation are set out in Annex B.

Article 2

The financial contribution of Iceland, deriving from its association with the implementation of the Community programmes, shall be established in proportion to the amount available each year in the general budget of the European Communities for appropriations covering commitments to meet financial obligations of the Commission of the European Communities, hereinafter referred to as 'the Commission`, resulting from work to be carried out in the framework of shared-cost research contracts necessary for the implementation of the Community programmes and from management and administrative operating expenditure for the said programmes.

The proportionality factor governing Iceland's contribution shall be obtained by establishing the ratio between the gross domestic product (GDP) of Iceland, at market prices, and the sum of gross domestic products, at market prices, of the Member States of the Community and of Iceland. This ratio shall be calculated on the basis of the latest available statistical data of the Organization for Economic Cooperation and Development (OECD).

The funds estimated as necessary to carry out the Community programmes, the amount of Iceland's contribution and the timetable of the commitment estimates are set out in Annex C.

The rules governing Iceland's financial contribution are set out in Annex D.

Article 3

1. For the purposes of this Agreement, a cooperation committee to assist the Commission in the implementation of the specific research and development programmes in the field of the environment (STEP and Epoch), adopted by Council Decision 89/625/EEC, hereinafter referred to as 'the Committee`, is hereby established.

2. The Committee shall consist of representatives of the Community and Iceland.

3. The Committee shall be consulted on all the matters concerning the implementation of this Agreement. For this purpose, it shall make recommendations.

4. The representative of the Community shall take the appropriate steps to ensure coordination between the implementation of this Agreement and the decisions taken by the Community in respect of the implementation of the Community programmes.

5. For the purpose of the proper implementation of this Agreement, the Contracting Parties shall exchange information and, at the request of either Party, shall hold consultations within the Committee.

6. The Committee shall adopt its own rules of procedure and it shall meet, at the request of either Contracting Party, in accordance with the conditions to be laid down in its rules of procedure.

Article 4

For Icelandic research and development bodies and persons, the terms and conditions for the submission and evaluation of proposals and the terms and conditions for the granting and conclusion of contracts under the Community programmes shall be limited to those arising from contracts under the same programme. In particular, the general provisions applicable to research contracts within the Community shall apply subject to this Article, mutatis mutandis, to research contracts with Icelandic research and development bodies and persons as far as questions relating to taxation and customs duties and the utilization of research results are concerned.

Article 5

The Commission shall send to Iceland a copy of the reports established in accordance with Article 4 of Council Decision 89/625/EEC.

Article 6

Each Contracting Party undertakes, in accordance with their own rules and regulations, to facilitate the movement and residence of research workers participating in Iceland and in the Community in the activities covered by this Agreement.

Article 7

The Commission and the Ministry of Culture and Education of Iceland shall ensure the implementation of this Agreement.

Article 8

Annexes A, B, C and D to this Agreement shall be an integral part thereof.

Article 9

1. This Agreement shall be concluded for the duration of the Community programmes.

Should the Community revise the Community programmes, this Agreement may be denounced under mutually agreed conditions. Iceland shall be notified of the exact content of the revised programme within one week of its adoption by the Community. The Contracting Parties shall notify each other within three months after the Community decision has been adopted if a termination of this Agreement is envisaged.

2. Where the Community adopts a new R& D programme in the field of the environment, this Agreement may be renegotiated or renewed under mutually agreed conditions.

3. Subject to paragraph 1, either Contracting Party may at any time terminate this Agreement with six months' notice. The projects and work in progress at the time of termination and/or expiry of this Agreement shall be continued until they are completed under the conditions laid down in this Agreement.

Article 10

This Agreement shall be approved by the Contracting Parties in accordance with their existing procedures.

It shall enter into force on the date on which the Contracting Parties notify each other of the completion of the procedures necessary for this purpose.

Article 11

This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the Republic of Iceland.

Article 12

This Agreement shall be drawn up in duplicate in the Danish, Dutch, English, French, German, Greek, Italian, Portuguese, Spanish and Icelandic languages, each of these texts being equally authentic.

ANNEX A

COMMUNITY PROGRAMME IN THE FIELD OF SCIENCE AND TECHNOLOGY FOR ENVIRONMENTAL PROTECTION (STEP) (1989 to 1993)

The Community programme shall cover the following research areas.

Reference to the subtopics contained under the following nine research topics is of an indicative nature.

Indicative

allocation

RESEARCH AREA 1

Environment and human health

5 %

1.1. Development of biological markers of exposure and preclinical effects

1.2.

Development of environmental epidemiology in the European Community

1.3.

Indoor air quality and its impact on man

RESEARCH AREA 2

Assessment of risks associated with chemicals

10 %

2.1.

Development and validation of protocols for the assessment of health risks

2.2.

Alternatives to the use of animals in chemical testing

2.3.

Assessment procedures for the abiotic degradation of chemicals

2.4.

Research on the assessment of ecological effects of chemicals

2.5.

Refinement and application of quantitative structure/activity relationships (QSARs)

RESEARCH AREA 3

Atmospheric processes and air quality

20 %

3.1.

Tropospheric chemistry, including analysis, sources, transport and deposition of pollutants and other airborne substances

3.2.

Stratospheric chemistry, ozone depletion and related issues

3.3.

Air pollution effects on terrestrial and aquatic ecosystems

RESEARCH AREA 4

Water quality

5 %

4.1.

Analysis and conversions of pollutants

4.2.

Effects of pollutants

Indicative

allocation

RESEARCH AREA 5

Soil and groundwater protection

8 %

5.1.

Protection against inorganic pollutants

5.2.

Protection against organic pollutants

5.3.

Effects of agricultural and forestry practice

RESEARCH AREA 6

Ecosystem research

12 %

6.1.

Terrestrial ecosystems

6.2.

Aquatic and coastal ecosystems (including wetlands)

RESEARCH AREA 7

Protection and conservation of the European cultural heritage

8 %

7.1.

Assessment of the mechanisms of the deterioration

7.2.

Critical environmental factors

7.3.

Damage assessment

7.4.

Material characterization

7.5.

Conservation techniques

RESEARCH AREA 8

Technologies for environmental protection

12 %

8.1.

Waste research

8.2.

Emission abatement

8.3.

Clean technologies

RESEARCH AREA 9

Major technological hazards and fire safety

20 %

9.1.

Physical and chemical phenomena

9.2.

Technologies of accident prevention

9.3.

Evaluation and management of risk

Total

100 %

COMMUNITY PROGRAMME IN THE FIELD OF CLIMATOLOGY AND NATURAL HAZARDS (EPOCH) (1989 to 1993)

The Community programme shall cover the following research areas.

Reference to the subtopics contained under the following four research topics is of an indicative nature:

Indicative

allocation

RESEARCH AREA 1

Past climates and climate change

15 %

1.1. Modelling of extremes (such as ice ages)

1.2.

Transient behaviour of the European climate: data and modelling (long-term variations in relation to atmospheric CO2 content)

RESEARCH AREA 2

Climate processes and models

30 %

2.1.

Climate changes detection, modelling and prediction, especially as regards greenhouse gas effects

2.2.

The global carbon cycle (study of CO2 sources and sinks)

2.3.

Land surface processes (exchange of energy, mass and momentum between soils, vegetation and atmosphere)

2.4.

Climatic aspects of changes in ozone concentration and troposphere-stratosphere interactions

2.5.

Role of clouds in the climate system

2.6.

Ocean circulation and air-sea flux studies for climate modelling

2.7.

Cryospheric processes (formation and stability of land and sea-ice sheets)

RESEARCH AREA 3

Climatic impacts and climate-related hazards

40 %

3.1.

Sea level change (factors, rate and consequences)

3.2.

Climatic impacts on land and water resources (European crops, forests and water supplies and reserves in a changing climate)

3.3.

European land degradation and desertification in a changing climate

3.4.

Instability and erosion of natural slopes (in particular landslide factors, mechanism and impacts)

3.5.

Storms and floods in the context of climate changes (understanding, prevention and mitigation; methods of forecasting and control)

3.6.

Wildfires (understanding the favouring or preventing conditions; forecasting severity and frequency)

Indicative

allocation

RESEARCH AREA 4

Seismic hazard

15 %

4.1.

Strong-motion measurements (ground acceleration and velocity during strong earthquakes)

4.2.

European data centres and information services (network for seismological data collection and dissemination)

4.3.

Multidisciplinary earthquake prediction studies (identification and evaluation of earthquake precursors)

4.4.

Risk assessment, including methods of evaluating seismic vulnerability of housing stock, lifelines, historical buildings and monuments

4.5.

Establishment of a task force for scientific field missions after a destructive earthquake

Total

100 %

ANNEX B

IMPLEMENTATION OF THE PROGRAMMES AND THE COMMUNITY'S RATE OF FINANCIAL PARTICIPATION

The programmes shall be implemented by means of:

ii(i) shared-cost research contracts;

i(ii)

concerted actions;

(iii)

coordination activities;

(iv)

education and training activities; and

i(v)

studies and assessments.

The programmes are open to universities, research organizations and industrial companies, including small and medium-sized enterprises, individuals, or any combination thereof established in the Community and in Iceland. As a rule, projects must be transnational and at least one partner in a project must be established in the Community.

For shared-cost contracts, the Community participation will generally be 50 % of the total expenditure, but this percentage may be varied according to the nature and the stage of development of the research. In respect of universities and research institutes carrying out projects under these programmes, the Community may bear up to 100 % of the additional expenditure involved.

ANNEX C

FINANCIAL PROVISIONS

1. According to the Council Decision adopting the STEP and Epoch programmes, the amount estimated as necessary to carry out these Community programmes shall be ECU 75 000 000 for STEP and ECU 40 000 000 for Epoch.

2.

Iceland's financial contributions for its association to the Community programmes are estimated to be ECU 74 182 for STEP and ECU 38 165 for Epoch and shall be added, along with other possible contribution from third countries, to the abovementioned amounts, as foreseen in Article 2 of this Agreement.

3.

The indicative timetable for the committment appropriations of the STEP and Epoch programmes and Iceland's contribution are as follows:

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ANNEX D

FINANCING RULES

1. This Annex lays down the detailed rules governing Iceland's financial contribution referred to in Article 2 of this Agreement.

2. At the beginning of each year, or whenever the Community programme is revised so as to involve an increase in the amount estimated as necessary for its implementation, the Commission shall send to Iceland a call for funds corresponding to its contribution to the costs under this Agreement.

This contribution shall be expressed both in ecus and in Austrian currency, the composition of the ecu being defined in Council Regulation (EEC) N° 3180/78 (¹), as amended by Regulation (EEC) N° 1971/89 (²). The value in Icelandic currency of the contribution in ecus shall be determined on the date of the call for funds.

Iceland shall pay its contribution to the annual cost under this Agreement at the beginning of each year and at the latest three months after the call for funds is sent. Any delay in the payment of the contribution shall give rise to the payment of interest by Austria at a rate equal to the highest discount rate obtained in the Member States of the Community on the due date. The rate shall be increased by 0,25 of a percentage point for each month of delay.

The increased rate shall be applied to the entire period of delay. However, this interest shall be payable only if the contribution is paid more than three months after a call for funds has been made by the Commission.

Travel costs of Icelandic representatives and experts arising from their participation in the work of the Committee referred to in Article 3 of this Agreement shall be reimbursed by the Commission in accordance with the procedures currently in force for the representatives and experts of the Member States of the Community and, in particular, in accordance with Council Decision N° 84/338/Euratom, ECSC, EEC (³).

3. The funds paid by Iceland shall be credited to the Community programmes as budget receipts allocated to its appropriate heading in the statement of revenue of the general budget of the European Communities.

4. The Financial Regulation in force applicable to the general budget of the European Communities shall apply to the management of the appropriations.

5. At the end of each year, a statement of appropriations for the Community programmes shall be prepared and transmitted to Iceland for information.

(¹) OJ N° L 379, 30. 12. 1978, p. 1.

(²) OJ N° L 189, 4. 7. 1989, p. 1.

(³) OJ N° L 177, 4. 7. 1984, p. 25.