COMMON POSITION (EC) No 5/95

adopted by the Council on 23 January 1995

with a view to adopting Council Regulation (EC) No . . ./95 of . . . on operations to promote tropical forests

(95/C 160/01)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles 130s and 130w thereof,

Having regard to the proposal from the Commission (1),

Acting in accordance with the procedure of Article 189c of the Treaty (2),

Having regard to the opinion of the Economic and Social Committee (3),

Whereas the Commission communication to the Council of 16 October 1989 on 'The conservation of tropical forests: the role of the Community' (4), set out broad guidelines for Community action in this sphere;

Whereas the resolution of the Council of Ministers for Development Cooperation of 29 May 1990 on 'Tropical forests: development aspects' established a basis for the use of development instruments in tropical forest conservation;

Whereas the European Parliament has expressed, in many parliamentary resolutions, concern over the destruction of tropical forests and the consequences for forest peoples;

Whereas the European Council of June 1990 in Dublin called for a programme of action to be drawn up to counteract the threat to tropical forests;

Whereas the Community and its Member States adopted the Rio Forest Principles, the Agenda 21 action programme and the Convention on Biological Diversity and Climate Change;

Whereas the Community operations to promote tropical forests form part of its objectives on the conservation of forests;

Whereas the Community intends to expand its actions to promote the conservation of tropical forests in all appropriate ways, within the context of its environment policy and of its new development cooperation policy, laid down in Articles 130u to 130y to the Treaty;

Whereas, by virtue of their special knowledge, the forest peoples play a key role in managing the environment, in particular with regard to the conservation of tropical forests;

Whereas the ecological and socio-economic conditions of tropical forests vary within regions and countries;

Whereas a Community action, complementing Member States' actions, will facilitate a better realization of the objectives pursued;

Whereas existing financial instruments available to the Community for supporting the conservation and sustainable development of forests could usefully be complemented;

Whereas provision should be made for funding the actions referred to in this Regulation;

Whereas an amount of ECU 150 million is deemed necessary for the implementation of the actions covered by this Regulation for an initial three-year period (1995 to 1997);

Whereas the Council will consider, before the end of 1997, the mechanisms for funding, from 1998 onwards, of operations to promote tropical forests, taking account of the outcome of the mid-term review of the Fourth ACP-EEC Convention and the projected review of the framework regulation concerning cooperation with developing countries in Asia and Latin America;

Whereas rules for implementation, and in particular the form of action, the recipients of the aid and the decision procedures should be laid down,

HAS ADOPTED THIS REGULATION:

Article 1

The Community shall support actions to promote the conservation and the sustainable management of tropical forests and the associated biological diversity in accordance with the criteria and procedures provided for in this Regulation.

Article 2

For the purposes of this Regulation:

1. 'Tropical forests' shall be defined as those natural and semi-natural tropical or subtropical forest ecosystems in both dry and humid areas. The areas concerned are those found within the tropics and subtropics delimited by the 30th northern and southern parallels.

2. 'Conservation' shall be considered to include all actions to preserve and rehabilitate tropical forests, and specifically those actions which are designed to protect or restore the biological diversity, including ecological functions, of the forest ecosystem in question and at the same time secure as far as possible its current and future utility value for mankind and in particular for forest peoples.

3. 'Sustainable forest management' is understood as the stewardship and use of forests and forest lands in a way, and at a rate, that maintains their biodiversity, productivity, regeneration capacity, vitality and their potential to fulfil, now and in the future, relevant ecological, economic and social functions, at local, national, and global levels without causing any damage to other ecosystems.

4. 'Sustainable development' shall be considered as the improvement of the quality of life and welfare of the relevant populations within the limits of the capacity of the ecosystems by maintaining natural assets and its biological diversity for the benefit of present and future generations.

5. 'Forest peoples' shall be defined as indigenous population groups who inhabit the forest or claim it as their home and any people who live in or near the forest and have traditionally been directly and to a large extent dependent on the forest.

Article 3

1. Pursuant to this Regulation, the Community shall provide financial support or technical expertise for actions which support and encourage the efforts of developing countries and their regional organizations to conserve and sustainably manage their tropical forests, in the context of the sustainable development of those countries and regions.

2. The recipients of aid and partners in cooperation may include not only States, regions and overseas countries and territories but decentralized authorities, regional organizations, public agencies, local or traditional communities, private industries and operators, including cooperatives and non-governmental organizations and representative associations of forest peoples, which include the conservation of tropical forests among their stated objectives or regular activities.

3. Special consideration shall be given to actions in support of the conservation of forests which are considered to be of importance for local effects such as the protection of watersheds, the prevention of soil erosion and the restoration of degraded areas, and for global effects, such as climate change and loss of biological diversity.

Article 4

1. The priority given to specific actions will be determined according to the needs of each country as reflected in regional and national development and environment policies relating to forests and according to Community cooperation priorities. Particular consideration, however, shall be given to actions that promote the following:

(a) conservation of primary tropical forests and their biodiversity and regeneration of tropical forests which have been damaged, supported by analysis of the underlying causes of deforestation and taking into account differences between countries and regions and measures to address them;

(b) sustainable management of forests designated for the production of timber and other products, but excluding commercial logging operations in primary tropical forests, except those which are Community based, small scale, sustainable, environmentally sound and implementing an appropriate forest management;

(c) the definition of certification systems for timber produced from tropical forests according to sustainable forest management principles as part of envisaged internationally harmonized certification systems for all kinds of timber and timber products;

(d) participation by, and support from, forest peoples in the identification, planning and implementation of actions;

(e) capacity-building to address the needs for training schemes for local populations, forest managers and researchers, for legislation, for increased political and social support and institutional strengthening and for organizations and associations active in forest conservation;

(f) a strategic and adaptive research policy aimed at supplying the knowledge required for the conservation and sustainable management of forests and also for the implementation of research monitoring activities in the framework of projects and programmes;

(g) development of buffer zones to assist the conservation or regeneration of tropical forests, as part of a broader land utilization plan;

(h) development and implementation of forest management plans aimed at conserving tropical forests and promoting sustainable exploitation of timber and other forest products.

2. The Community shall require actions carried out pursuant to this Regulation to be preceded by reports on their ecological, social, economic and cultural impact, with specific qualitative or quantitative objectives. Where applicable, these actions shall be evaluated with the participation of local people.

3. The Community shall, in respect of the various Community policy areas which have a potential direct impact on the conservation of tropical forests, develop and apply the instruments required to prevent the policy pursued or planned from having a negative impact and, where possible, to contribute to the conservation of tropical forests.

4. Actions carried out pursuant to this Regulation shall be coordinated with, and may provide support for, national and international programmes and actions concerned with conservation and sustainable management of tropical forests, such as the Tropical Forest Action Plan and the International Tropical Timber Organization, provided these programmes and actions are in accordance with the principles and objectives laid down in this Regulation.

5. Wherever possible, operations shall be carried out within the framework of regional organizations and international programmes of cooperation in the context of a global policy on the conservation of forests.

Article 5

Co-financing with Member States, or with multilateral, regional or other organizations shall be sought through greater coordination. As far as possible, the Community nature of the aid shall be maintained.

Article 6

Community funding shall be in the form of non-reimbursable grants.

Article 7

1. Community funding of the actions referred to in Article 3 shall cover an initial thee-year period (1995 to 1997). The total amount of Community funding deemed necessary for the implementation of these actions during this period shall be ECU 150 million.

2. The budget authority shall determine the appropriations available for each financial year, account being taken of the principles of sound financial management referred to in Article 2 of the Financial Regulation applicable to the general budget of the European Communities.

Article 8

1. Financial and technical assistance may cover all foreign currency costs and local costs for carrying out projects and programmes, including, whenever necessary, integrated programmes and sectoral projects.

2. Maintenance and operating expenses for economic cooperation operations, training and research programmes and development projects and programmes may, in particular, be covered. However, except for training and research programmes, such expenses may be covered as a general rule only at the launching stage and in gradually decreasing amounts.

3. Systematic efforts shall be made to seek contributions, particularly in financial form, from partners (countries, local communities, undertakings, individual recipients) as far as their means permit and according to the nature of each operation.

4. The payment of taxes, duties and charges shall be excluded from Community financing.

5. Study costs and the short- and long-term use of experts to assist the recipients and the Commission in devising general policies, identifying and preparing operations and monitoring and evaluating them shall normally be covered by Community funds, either as part of the financing for individual operations or separately.

Article 9

1. Participation in invitations to tender and purchasing and other contracts shall be open on equal terms to all natural or legal persons of the Member States.

2. With regard to financial and technical assistance, the participation referred to in paragraph 1 shall usually be extended to the recipient State, and may also be extended, case-by-case, to other developing countries.

3. In exceptional cases which are duly justified, other countries of origin may be allowed for specific components.

Article 10

Projects and programmes for which Community funding exceeds ECU 2 million in the case of an ACP State and ECU 1 million in the case of an Asian or Latin American country, as well as any substantial modifications which exceed 20 % of the amount initially agreed, shall be adopted according to the procedure laid down in Article 11 (2).

Article 11

1. The Commission shall administer tropical forest cooperation activities.

2. The Commission shall be assisted, as appropriate, by the Committee set up pursuant to Article 15 of Council Regulation (EEC) No 443/92 of 25 February 1992 on financial and technical assistance to, and economic cooperation with, the developing countries in Asia and Latin America (1) or by the Committee set up pursuant to Article 21 of the Internal Agreement on the financing and administration of Community aid under the Fourth ACP-EEC Convention (2).

3. The representative of the Commission shall submit to the Committee a draft of the measures to be taken. The Committee shall deliver its opinion on the draft, within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148 (2) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the Committee shall be weighted in the manner set out in that Article. The chairman shall not vote.

The Commission shall adopt the measures envisaged if they are in accordance with the opinion of the Committee.

If the measures envisaged are not in accordance with the opinion of the Committee, or if no opinion is delivered, the Commission shall, without delay, submit to the Council a proposal relating to the measures to be taken. The Council shall act by a qualified majority.

If, on the expiry of a period of one month, the Council has not acted, the proposed measures shall be adopted by the Commission.

Article 12

The Commission shall submit to the European Parliament and the Council an annual report with an assessment of the implementation of this Regulation. The report shall set out the results of implementation of the budget as regards commitments and payments and presenting the projects and programmes financed during the year. The report shall contain, as far as possible, information on the funds committed at national level during the same financial year. It shall also contain specific, detailed information (undertakings, nationality, etc.) on the contracts awarded for the implementation of the projects and programmes.

Regular evaluation reports will be submitted to the committees mentioned in Article 11.

Article 13

This Regulation shall be implemented under an approach coherent with the general principles laid down in Regulation (EEC) No 443/92 and in the Fourth ACP-EEC Convention and under common criteria at all stages of the project cycle from identification to evaluation.

Article 14

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

It will be applicable until 31 December 1997.

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

Done at . . .

For the Council

The President

(1) OJ No C 78, 19. 3. 1993, p. 8 and OJ No C 201, 13. 7. 1994, p. 15.

(2) Opinion of the European Parliament of 29 October 1993 (OJ No C 315, 22. 11. 1993, p. 644). Council common position of . . . (not yet published in the Official Journal) and decision of the European Parliament of . . . (not yet published in the Official Journal).

(3) OJ No C . . ..

(4) OJ No C 264, 16. 10. 1989, p. 1.

(1) OJ No L 52, 27. 7. 1992, p. 1.

(2) OJ No L 229, 17. 8. 1991, p. 288.

STATEMENT OF THE COUNCIL'S REASONS

I. Introduction

1. The Commission forwarded to the Council a proposal for a Regulation on operations to promote tropical forests on 26 February 1993 (1).

2. The European Parliament delivered its opinion on 29 October 1993 (2).

3. On 10 June 1994 the Commission forwarded an amended proposal to the Council (3) in order to take account of certain amendments proposed by the European Parliament and the entry into force of the Treaty on European Union on 1 November 1993.

II. Common position

1. Adoption of the common position

The Council adopted its common position on the basis of Articles 130s and 130w of the Treaty establishing the European Community on 23 January 1995.

2. Purpose of the Commission proposal

The Regulation lays down the arrangements and rules for administering aid funded from the Community budget for the conservation and sustainable management of tropical forests.

3. The Council's amendments to the Commission proposal

With some technical adjustments, the common position basically follows the Commission proposal as far as the definitions and nature of the operations to be funded are concerned.

On the following points, however, the Council was unable to follow the Commission.

(a) Duration of the Regulation

The Council set a three-year period for the Regulation (1995 to 1997), on the understanding that a decision could be taken to extend it in the light of a comprehensive evaluation to be carried out before the end of 1997.

(b) Type of committee called on to give an opinion on the proposed operations

In the interests of efficiency and to maximize the consistency of these operations with others being implemented in the same region, the Council decided that this task should be entrusted, as appropriate, to the PVDALA Committee or the EDF Committee. The committee procedure used would be type III (a) of the Council Decision of 13 July 1987 (4)

It should also be noted that the Council decided, as in other similar cases, to specify the amount deemed necessary for these operations. The amount is ECU 50 million per year and corresponds to the figures actually entered in the budget by the budget authority in recent years.

4. European Parliament's amendments

Subject to the above comments, the Council's common position includes virtually all Parliament's amendments as incorporated by the Commission in its amended proposal. The Council refers here to amendments 1 to 5, 7, 9 to 23, 25 to 27, 29 and 32, all of which were wholly or partially accepted.

In the light of the Commission's opinion, the Council did not adopt amendments 3, 6 and 30 relating to the timber trade. Neither did the Council adopt amendments 8, 24, 28 and 31, which were not incorporated in the amended Commission proposal.

(1) OJ No C 78, 19. 3. 1993, p. 8.

(2) OJ No C 315, 22. 11. 1993, p. 644.

(3) OJ No C 201, 23. 7. 1994, p. 15.

(4) OJ No L 197, 18. 7. 1987, p. 33.