Opinion on the proposal for a Council Regulation (EC) on environmental measures in developing countries in the context of sustainable development

(96/C 82/05)

On 8 August 1995, the Council decided to consult the Economic and Social Committee, under Article 130s of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for External Relations, Trade and Development Policy, which was responsible for preparing the Committee's work on the subject, adopted its Opinion on 11 December 1995. The Rapporteur was Mr Boisserée.

At its 331st Plenary Session (meeting of 20 December 1995), the Economic and Social Committee adopted the following Opinion by a unanimous vote.

1. Gist and objective of the Commission proposal

The Commission has submitted a proposal for a Regulation on environmental measures in developing countries within the framework of Community development aid. This action tallies with the position adopted by the European Union at the UN Conference on Environment and Development in Rio de Janeiro in June 1992, where the Community approved agreements on biodiversity, climate change, the fight against desertification and the 'Agenda 21' action programme without, however, giving specific undertakings to the developing countries. The draft Regulation is designed to help these countries create the necessary conditions for progress on 'sustainable environmentally-sound development' (see 5th Community Environmental Action Programme) by providing project assistance.

The draft Regulation provides for aid totalling ECU 13,2 million in 1995 and ECU 15 million in 1996; thereafter the action will be extended initially for an unspecified period with the possibility of it becoming definitive once there has been some practical feedback. The funding is to be relatively limited compared with the enormity of the problem, but the Commission says this is so because of other international organizations' complementary activities in different parts of the world (e.g. ASEAN, ALA, Lomé measures). In addition, the programme is concerned with start-up aid for recipients; its ultimate scope will be defined in the light of the first two years' experience.

The activities are aimed at giving the development process in developing countries an environmental dimension. They concern:

- the preservation of biological diversity;

- the improvement of the environment, especially the urban environment, through management plans for waste, waste water, air pollution, etc.;

- the protection of coastal areas;

- the application of environmentally-friendly technologies in the energy sector;

- the improvement of soil conservation and management processes.

2. General comments

2.1. The ESC welcomes this proposal. The assistance to be provided is in line with the proposals contained in the 5th Environmental Action Programme. In point 5.1. of its Opinion on the interim evaluation of that programme (Opinion of 25 October 1995 - CES 1177/95), the Committee called for the inclusion of an environmental dimension in Community development policy as a means of promoting 'sustainable and environmentally-sound development' in large areas of the world with the aid of European resources and experience. The Committee is of the view that aid measures of this nature must be supplemented by a catalogue of environmental standards which is to be incorporated into European development policy; this applies particularly to European investment in developing countries.

2.2. The Committee also endorses the two-fold legal basis (environment and development) of the proposal.

2.3. The Committee has considered whether the proposed funding is adequate for the implementation of such a wide-ranging programme. Given the available resources, a concentration of the programme would seem advisable in principle. The Committee agrees with the Commission that such a concentration should not be considered until after lessons have been learnt from the start-up phase and that priorities should be fixed annually. The Committee regrets that the draft Regulation was submitted so late that it is no longer possible to implement the proposed measures in 1995.

There is also the question of whether a beneficiary's contribution should be required for each project. In principle, such a contribution would seem to ensure that the only projects submitted are truly useful projects which tally with the aid recipient's genuine interests and can therefore be continued when aid ceases. To this extent, the Committee accepts the need for flexibility in the start-up phase, especially as there is no legal right to project assistance.

2.4. The ESC is particularly interested in the experience gained during the early years of the programme, since this could determine the future structure of environmentally-sound support for 'sustainable development' in developing countries. To this end, it would like to receive the relevant progress reports and corresponding evaluations and to be given the chance to comment thereon in the light of:

- its own views on environmental policy, particularly in the context of its work on the Action Programme, and

- the impact of the action on those economic and social interest groups in the developing countries with which the Committee maintains close contacts.

3. Individual provisions of the draft

3.1. Article 1

The Committee takes the reference to 'technical expertise' to mean that experts will be involved in evaluating new and completed schemes with a view to establishing cooperation between Europe and the developing countries in the environmental field.

3.2. Article 2

The first indent of paragraph 1 should be amended as follows in line with the Rio Agreements:

'preserving biological diversity through

a) the conservation of ecosystems and habitats as well as species and genetic resources,

b) the sustainable use of biological resources,

c) the identification and assessment of biodiversity resources.'

The following should be inserted in the second indent:

'and plans for improving drinking water supplies.'

In the ESC's view, the development of systems of environmental law is also covered by the instruments referred to in the second indent of paragraph 2. The Committee would also point out that 'sustainable development' and 'environmental integration' are inseparable and not complementary demands.

3.3. The second indent of Article 2(3) should also mention the evaluation of projects receiving assistance.

3.4. Article 3

Private operators must not be allowed to secure competitive advantages as a result of participation in the proposed measures. The wording of Article 3 should also be brought into line with Article 251a(2) of the agreement on the amendment of the Lomé IV Convention (4. 11. 1995).

3.5. Article 4(3)

A financial contribution from the aid recipient would be entirely appropriate (see point 2.3 above); only pilot projects should be generally exempt from this provision.

3.6. Article 6(3)

Both parties to the grant must be subject to the checks in question. The Committee regards budgetary control over the implementation of the programme as particularly important in the start-up phase.

3.7. Article 7

The ESC is keen to report to the Commission and the advisory committee on the lessons it has learnt from its cooperation with its economic and social partners in the developing countries. It will do what it can to ensure that the programme is publicized by these partners.

3.8. Article 8

The progress reports should also be sent to the Committee. It would also like to have the opportunity to issue its comments (see point 2.4).

Done at Brussels, 20 December 1995.

The President

of the Economic and Social Committee

Carlos FERRER