Proposal for a COUNCIL REGULATION establishing a Community programme on the conservation, characterisation, collection and utilisation of genetic resources in agriculture

(presented by the Commission)

EXPLANATORY MEMORANDUM

Council Regulation (EC) No 1467/94 of 20 June 1994 [1] on the conservation, characterisation, collection and utilisation of genetic resources in agriculture launched a five-year Community programme, which terminated on 31 December 1999. Three Calls for proposals were published during that period (1994, 1996, 1998). Almost half of the 21 projects which were selected under this programme are still ongoing.

[1] OJ L 159, 28.6.1994, p. 1.

1. Implementation

The following main actions were carried out on the basis of that programme:

* co-ordination of Member States' extensive and essential activities undertaken with the FAO;

* adoption of 21 projects involving a total of EUR10 million, or approximately 2/3 of the amount considered necessary under the Regulation for implementing these projects (Annex II of the Regulation), including:

- one forestry project (elms),

- 6 projects for crop genetic resources (for example, barley, oats (Avena), cabbages (Brassica), rice, potatoes, beets (Beta), maize, onions (Allium), carrots, olives, vines). Most of these projects concerned the characterisation (evaluation) of ex situ genetic resources and the conservation and utilisation thereof. Participants included in particular gene banks, scientific institutes, users and sometimes NGOs,

- 4 projects for animal genetic resources (pigs, cattle, rabbits), involving primarily the co-ordination, characterisation and, to a certain extent, collection and conservation of those genetic resources.

2. Evaluation of the five-year Community programme (1994-1999)

In February 2000, independent experts drew up an evaluation report on the implementation of the programme, as provided for in Regulation (EC) No 1467/94.

That report was forwarded to the Council and to the Parliament (COM(2001) 617 final, Volume II of 31.10.2001).

The recommendations of the evaluation by independent experts can be summarised as follows:

* maintain and strengthen the action, while taking care to ensure a better balance between projects on "plants" and "animals",

* include the concept of on-farm conservation and respond to local requirements (bio-geographic regions) while promoting more active participation by NGOs,

* increase co-ordination between the Member States and the Commission with regard to negotiations and actions at FAO level,

* target measures more towards a broader coverage of the participation of Member States in a certain category of projects.

The evaluation by independent experts pursuant to Regulation (EC) No 1467/94 concluded by recommending a new Community programme.

A series of consultations of stakeholders took place in 2000 and a meeting of the Committee on Genetic Resources (set up by Council Regulation (EC) No 1467/94) also attended by representatives of the European Parliament, numerous NGOs, scientists (project coordinators) and representatives of users of genetic resources was held in June 2000. The following recommendations emerged in the course of the various consultations:

* the new Community programme should promote increased participation by NGOs and other operators, in particular in the field of in situ/on farm conservation and give these operators access to Regulation (EC) No 1257/1999 of 17 May 1999 [2],

[2] OJ L 160, 26.6.1999, p. 80.

* it should co-ordinate international activities in the field of genetic resource protection; Community legislation on the intellectual property rights was also felt to be necessary,

* it should provide for more information and publicity-related activities, in particular with a view to increasing the use of local or rare varieties or breeds,

* it should promote better use and transfer of the results towards the market (users),

* it should establish a decentralised and permanent European inventory of the genetic resources available, as well as of their origins and their characteristics.

3. New Community programme

In its strategy for the integration of environment and sustainable development in the Common Agricultural Policy (document No 13078/99 of 15.11.1999) the Council called for a new Community programme to be elaborated on genetic resources in agriculture.

In its Communication "Biodiversity Action Plan for Agriculture" (COM(2001) 162, Volume III of 27 March 2001), the Commission proposed to launch a new Community programme on the conservation, characterisation, collection and utilisation of genetic resources in agriculture.

In its Communication "Life Sciences and Biotechnology - A Strategy for Europe" (COM(2002) 27), the Commission announced that it will launch a new Community programme on genetic resources in agriculture.

In view of the success of the original programme, the results of the independent evaluation, the Council's recommendations and the Commission's commitment in this field, it is proposed to launch a second pluri-annual Community programme.

The aim of the new programme is to:

- finance measures to promote the conservation, characterisation, collection and utilisation of genetic resources in agriculture, allowing for a wider coverage of plant and animal diversity and, at the same time, helping implement the Biodiversity Action Plan for Agriculture, with particular emphasis on complementing the scope (as regards beneficiaries and/or eligible actions for funding) of the "Rural Development" Council Regulation (EC) No 1257/1999,

- promote the exchange of information and close co-ordination between the Member States and between the Member States and the Commission, with regard to the conservation and sustainable use of genetic resources in agriculture, in line with the requirements and needs of the Common Agricultural Policy,

- facilitate co-ordination in the field of international undertakings on genetic resources in agriculture, in particular within the Convention on Biological Diversity, the International Treaty on Plant Genetic Resources for Food and Agriculture and the FAO's Global Plan of Action for the Conservation and Sustainable Utilisation of Plant Genetic Resources for Food and Agriculture. Since the conservation and sustainable use of genetic resources in agriculture are essential to the sustainable development of agricultural production and of rural areas, the legal basis of the action is Article 37 of the Treaty.

The new programme will cover the following elements:

- the framework of the programme, including the objectives, the scope and the type of the actions to be promoted, as well as the essential provisions to be followed in the implementation of the future Community programme;

- programme implementation through actions that aim to support, complement or co-ordinate at Community level work undertaken at local, regional, or Member State level. Smaller-scale measures may cover in situ / on-farm conservation (reproduction of genetic resources by farmers, on their own farm);

- in situ / on-farm genetic resources conservation activities which should be a means to promote the conservation of genetic material, varieties and races as well as the characterisation and utilisation of those varieties and races in agriculture in line with the aims of the CAP towards a sustainable agriculture. They shall be transnational, taking into account, if appropriate, bio-geographic regional aspects;

- the role of the Commission regarding programme co-ordination and international representation in relation to the undertakings on genetic resources in agriculture implemented at international level;

- the setting up of a Committee on genetic resources to assist the Commission and act as a management committee when consulted on the adoption of calls for proposals and proposed actions, and as a consultative committee for other questions related to genetic resources.

No support may be granted under the proposed Regulation for commitments eligible under Title II, Chapter VI of Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF), as specified under Article 14 of Commission Regulation (EC) No 445/2002 of 26 February 2002 [3].

[3] OJ L 74, 15.3.2002, p. 2.

In addition, no support may be granted under this new Regulation for activities eligible under the Framework Programmes of the European Community for research, technological development and demonstration activities (theoretical studies, studies to test hypotheses, studies to improve tools or techniques, work involving untested techniques or modelling systems, and all other research activities).

4. Current situation

A proposal (COM(2001) 617 final, Volume I of 31.10.2001) for a Council Regulation on the conservation, characterisation, collection and utilisation of genetic resources in agriculture and amending Regulation (EC) No 1258/1999 was discussed in June 2002 by the Member States in the Council Special Committee on Agriculture and in the European Parliament Committee on Agriculture and Rural Development.

The position expressed by the Member States and the opinion of the European Parliament confirmed a strong opposition to the proposed origin of funding (EAGGF - Guarantee Section / Heading 1A) and the indirect financial and operational role of the Commission, and pointed out the need for the Commission to strengthen its role regarding the co-ordination and implementation of the new programme.

In the light of these circumstances, it has been decided to withdraw the above-mentioned Commission's proposal (COM(2001) 617, Volume I) and to submit a new one based on the main features of the previous Council Regulation (EC) No 1467/94, adapted in the light of the various factors mentioned above for the launch of a new Community programme.

The proposed Community programme will be financed through "Heading 3" of the financial perspectives for the period 2004-2006.

The Commission will be assisted in the implementation of the programme by a Committee on the conservation, characterisation, collection and utilisation of genetic resources in agriculture, composed of representatives of the Member States and chaired by a representative of the Commission. The management procedure provided for in Article 4 of Decision 1999/468/EC shall apply, in compliance with Article 7 thereof.

A draft of the new proposal was submitted and discussed in February 2003 with Member States, NGO's and stakeholders in the Committee on the conservation, characterisation, collection and utilisation of genetic resources in agriculture. At that occasion, they were invited to submit written comments on the draft proposal. These comments have been incorporated into the current proposal.

2003/0321 (CNS)

Proposal for a COUNCIL REGULATION establishing a Community programme on the conservation, characterisation, collection and utilisation of genetic resources in agriculture

(Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 37 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

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

Whereas:

(1) Biological and genetic diversity in agriculture is essential to the sustainable development of agricultural production and of rural areas. The necessary measures should therefore be taken to conserve, characterise, collect and utilise the potential of that diversity in a sustainable way to promote the aims of the Common Agricultural Policy.

(2) The conservation and sustainable use of genetic resources in agriculture also contributes to the aims of the Convention on Biological Diversity approved by the Community by Council Decision 93/626/EEC [4] and the related European Community Biodiversity Strategy which includes an Action Plan for biodiversity conservation and the protection of genetic resources in agriculture. It is also a major objective of the FAO's Global Plan of Action for the Conservation and Sustainable Utilisation of Plant Genetic Resources for Food and Agriculture and of the International Treaty on Plant Genetic Resources for Food and Agriculture, which the Commission and the Member States signed on 6 June 2002.

[4] OJ L 309, 13.12.1993, p. 1.

(3) The wide range of activities carried out in the Member States (by a public-sector body or natural or legal persons) and by various international organisations and programmes such as the United Nations Food and Agriculture Organisation (FAO), the European Co-operative Programme for Crop Genetic Resources Networks (ECP/GR), the Consultative Group on International Agricultural Research (CGIAR), the Global Forum on Agricultural Research (GFAR), the Agricultural Research for Development (ARD) regional and sub-regional organisations supported by the Community, the European Regional Focal Point (ERFP) of National Co-ordinators for the Management of Farm Animal Genetic Resources, the European Forest Genetic Resources Programme (EUFORGEN) and the related commitments of the ongoing Ministerial Conference on the protection of forests in Europe (MCPFE) to which the European Community is signatory call for an effective information exchange and close co-ordination between the Community main actors and with the relevant organisations throughout the world with regard to the conservation, characterisation, collection and utilisation of agricultural genetic resources so as to enhance their positive impact on agriculture.

(4) The work undertaken on the conservation, characterisation, collection and utilisation of genetic resources in agriculture can help maintain biological diversity, improve the quality of agricultural products, contribute to increase diversification in rural areas and reduce inputs and agricultural production costs by promoting a sustainable agricultural production and contributing to the sustainable development of rural areas.

(5) The ex situ and in situ conservation of genetic resources in agriculture (including in situ / on farm conservation and development) should be promoted. This should cover all plant, microbial and animal genetic resources that are or could prove useful for agriculture and rural development, including forest genetic resources, in line with the needs of the Common Agricultural Policy, with a view to conserving genetic resources and increasing the use of under-utilised breeds and varieties in agricultural production.

(6) Knowledge of the genetic resources available in the Community, their origins and their characteristics still needs to be improved. Relevant information on existing facilities and activities implemented at national or regional level regarding the conservation, characterisation, collection and utilisation of genetic resources in agriculture in each Member State should be gathered and made available to the other Member States and at Community level, as well as at international level, particularly the developing countries, in accordance with the international Treaties and Agreements.

(7) Development of decentralised, permanent and widely accessible web-based inventories collecting such knowledge and ensuring its availability at Community level and international level should be promoted, with particular reference to the ongoing efforts to develop an inventory of ex situ collections held in European gene banks (the EPGRIS - European Plant Genetic Resources Information Infra-Structure "EURISCO", funded by the Fifth Framework Programme).

(8) The Community should complement and promote the efforts made in the Member States for the conservation and sustainable use of biological diversity in agriculture. Added value at Community level should be promoted by concerting existing actions and supporting the development of new trans-border initiatives involving the conservation, characterisation, collection and utilisation of genetic resources in agriculture.

(9) Provision should therefore be made for measures that complement or go beyond the scope (as regards beneficiaries and/or eligible actions for funding) of Council Regulation (EC) No 1257/1999 [5] of 17 May 1999 on support for rural development from the European Agricultural Guidance and Guarantee Fund (EAGGF) and amending and repealing certain Regulations.

[5] OJ L 160, 26.6.1999, p. 80.

(10) In order to contribute to the achievement of those aims, a Community programme was established under Council Regulation (EC) No 1467/94 of 20 June 1994 [6] on the conservation, characterisation, collection and utilisation of genetic resources in agriculture, as amended by Regulation (EC) No 806/2003 [7], for a period of five years. That programme terminated on 31 December 1999 and should be replaced by a new Community programme. Regulation (EC) No 1467/94 should therefore be repealed.

[6] OJ L 159, 28.6.1994, p. 1.

[7] OJ L 122, 16.5.2003, p. 1.

(11) Selection and implementation of measures under the new Community programme should take into account research, technological development and demonstration activities supported either at national level or under the Framework Programmes of the European Community for research, technological development and demonstration activities. The marketing of seed and plant propagating material to be utilised under the new programme should be without prejudice to the Council Directives on the marketing of seed and propagating material and to the Council Directive on the common catalogue of varieties of agricultural plant species [8].

[8] Council Directive 66/401/EEC on the marketing of fodder plant seed, 66/402/EEC on the marketing of cereal seed (OJ P 125, 11.7.1966, p. 2298 and 2309 respectively),

(12) The Agreement on the European Economic Area (EEA Agreement) provides that the countries of the European Free Trade Association participating in the European Economic Area (EFTA/EEA countries) should, inter alia, strengthen and broaden co-operation within the framework of the Community's activities in the field of conservation, characterisation, collection and utilisation of genetic resources in agriculture.

(13) For the better implementation of the Community programme, a work programme for the period 2004-2006 should be set out detailing the relevant financial provisions to be applied.

(14) For the purposes of implementing and monitoring the Community programme for the conservation, characterisation, collection and utilisation of genetic resources in agriculture, the Commission should be able to use the assistance of scientific and technical advisors.

(15) The Community contribution should all be financed through Heading 3 (Internal Policies) of the Financial Perspective.

(16) The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [9].

[9] OJ L 184, 17.7.1999, p. 23.

HAS ADOPTED THIS REGULATION:

Article 1 Objective

With a view to achieving the aims of the Common Agricultural Policy, and to implementing the commitments taken at international level, a Community programme is hereby established for the period 2004-2006 to complement and promote at Community level the work undertaken in the Member States for the conservation, characterisation, collection and utilisation of genetic resources in agriculture.

Article 2 Scope

1. This Regulation shall apply to plant, microbial and animal genetic resources which are or could be of use in agriculture.

2. No support may be granted under this Regulation:

(a) for commitments eligible under Title II, Chapter VI, of Regulation (EC) No 1257/1999, as specified under Article 14 of Commission Regulation (EC) No 445/2002 [10].

[10] OJ L 74, 15.3.2002, p. 2.

(b) for activities eligible under the Framework Programme of the European Community for research, technological development and demonstration activities.

Article 3 Definitions

For the purpose of this Regulation, the following definitions shall apply:

(a) "plant genetic resources" means those of agricultural crops, horticultural crops, medicinal plants and aromatics, fruit crops, forest trees and wild flora which are or could be of use in the field of agriculture;

(b) "animal genetic resources" means those of farm animals (vertebrates and invertebrates) and wild fauna which are or could be of use in the field of agriculture;

(c) "genetic material" means any material of plant, microbial or animal origin, including reproductive and vegetative propagating material, containing functional units of heredity;

(d) "genetic resources for agriculture" means any genetic material of plant, microbial or animal origin of actual or potential value for agriculture;

(e) "in situ conservation" means the conservation of genetic material in ecosystems and natural habitats and the maintenance and recovery of viable populations of species or feral breeds in their natural surroundings and, in the case of domesticated animal breeds or cultivated plant species, in the farmed environment where they have developed their distinctive properties;

(f) "in situ / on farm conservation" means " in situ conservation and development" at the level of the farm;

(g) "ex situ conservation" means the conservation of genetic material for agriculture outside their natural habitat;

(h) "ex situ collection" means a collection of genetic material for agriculture maintained outside their natural habitat;

(i) "bio-geographic region" means a geographic region with typical characteristics regarding the composition and structure of the fauna and flora.

Article 4 Eligible actions

1. The Community programme referred to in Article 1 shall comprise targeted actions, concerted actions and accompanying actions, as specified in Articles 5, 6 and 7.

2. All actions carried out under the programme shall be in conformity with Community legislation on the marketing of seed and propagating material and on the common catalogue and shall take into account:

(a) other activities undertaken at Community level;

(b) relevant international processes, developments and agreements, in particular as regards:

- the Convention on Biological Diversity,

- the International Treaty on Plant Genetic Resources for Food and Agriculture,

- the FAO's Global Plan of Action for the Conservation and Sustainable Utilisation of Plant Genetic Resources for Food and Agriculture and other actions undertaken within the framework of the United Nations Food and Agriculture Organisation (FAO),

- the European Plant Conservation Strategy and the relevant resolutions of the Ministerial Conferences on the Protection of Forests in Europe,

- the Global Strategy for the Management of Farm Animal Genetic Resources, and

- programmes implemented under international frameworks such as the ECP/GR (European Co-operative Programme for Crop Genetic Resources Networks), the European Regional Focal Point (ERFP) of National Co-ordinators for the Management of Farm Animal Genetic Resources, EUFORGEN (European Forest Genetic Resources Programme) and the Consultative Group on International Agricultural Research (CGIAR).

Article 5 Targeted actions

The targeted actions shall include:

(a) Actions promoting the ex situ and in situ conservation, characterisation, collection and utilisation of genetic resources in agriculture.

(b) The establishment of a European decentralised, permanent and widely accessible web-based inventory of genetic resources currently conserved in situ including in situ / on farm genetic resources conservation activities.

(c) The establishment of a European decentralised, permanent and widely accessible web-based inventory of the ex situ collections (gene banks) and in situ facilities (resources) and databases currently available or being developed on the basis of national inventories.

(d) The promotion of regular exchanges of technical and scientific information, in particular on the origins and individual characteristics of available genetic resources, among competent organisations in the Member States.

The actions referred to in point (a) shall be trans-national, taking into account, if appropriate, bio-geographic regional aspects and promote or complement, at Community level, work implemented at regional or national level. They may not involve aid to maintain nature protection areas.

Article 6 Concerted actions

The concerted actions shall promote the exchange of information on thematic issues for the purpose of improving the co-ordination of actions and programmes for the conservation, characterisation, collection and utilisation of genetic resources in Community agriculture. They shall be trans-national.

Article 7 Accompanying actions

The accompanying actions shall include information, dissemination and advisory actions involving the organisation of seminars, technical conferences, meetings with non-governmental organisations (NGOs) and other relevant stakeholders, training courses and the preparation of technical reports.

Article 8 Work programme

1. The Commission shall ensure the implementation of the Community programme on the basis of a work programme covering the period 2004-2006 established in accordance with the procedure referred to in Article 15(2) and subject to the availability of budgetary allocations.

2. The actions co-financed under the Community programme shall have a maximum duration of 4 years.

Article 9 Selection of eligible actions

1. The Commission shall, within the work programme referred to in Article 8 and on the basis of calls for proposals for actions published in the C series of the Official Journal of the European Union, select the actions to be financed under the Community programme.

2. The calls for proposals shall cover the actions and areas referred to in Articles 5, 6 and 7 and in Annex I. The content of the calls for proposals shall be established in accordance with the procedure referred to in Article 15(2) and in compliance with the relevant Articles under Title VI of Council Regulation (EC, Euratom) No 1605/2002 [11].

[11] OJ L 248, 10.9.2002, p. 1.

3. Proposals for actions referred to in Articles 5, 6 and 7 may be submitted by a public-sector body or any natural or legal person who is a national of a Member State and established in the Community, including gene banks, non governmental organisations, breeders, technical institutes, experimental farms, gardeners and forest owners. Bodies or persons established in third countries may also submit proposals where this is provided for in Article 10.

4. The following criteria shall be taken into account for the assessment of the proposals:

(a) Relevance to the objectives of the programme, as defined in this Regulation;

(b) Technical quality of the proposed work;

(c) Ability to carry out the action successfully and to ensure its efficient management, assessed in terms of resources and competences and including the organisational arrangements laid down by the participants;

(d) European added value and potential contribution to Community policies.

5. Proposals for actions to be financed under the Community programme shall be selected on the basis of independent expert assessment. The independent experts shall be invited by the Commission in compliance with Article 57(2) of Regulation (EC, Euratom) No 1605/2002 and with Article 178 of Commission Regulation (EC, Euratom) No 2342/2002 [12].

[12] OJ L 357, 31.12.2002, p. 1.

6. If necessary, detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 15(2).

Article 10 Participation of third countries

The Community programme shall be open to the participation of:

(a) EFTA/EEA countries in accordance with the conditions established in the EEA Agreement;

(b) Associated countries, in accordance with the conditions laid down in the respective bilateral agreements establishing the general principles for their participation in Community programmes.

Article 11 Grant agreement

1. After adoption of the selected actions, the Commission shall conclude grant agreements with the participants in these actions in compliance with the relevant Articles under Title VI of Regulation (EC, Euratom) No 1605/2002. The grant agreements shall set out detailed criteria for the reporting, dissemination, protection and exploitation of the results of the actions.

2. The Commission shall take the necessary steps, in particular by means of technical, administrative and accounting checks at the premises of the beneficiaries, to verify that the information and supporting documents supplied are accurate, and that all the obligations laid down in the grant agreement have been fulfilled.

Article 12 Technical assistance

1. In compliance with Article 57(2) of Regulation (EC, Euratom) No 1605/2002, the Commission may call on the assistance of scientific and technical experts for the implementation of the Community programme, including technical advice with regards to the preparation of calls for proposals, evaluation of technical and financial reports, monitoring, reporting and information purposes.

2. A service contract shall be signed as a result of a call for tender procedure in the field of public procurement in compliance with the relevant Articles under Title V of Regulation (EC, Euratom) No 1605/2002.

Article 13 Community financial support

1. The Community contribution to the actions referred to in Article 5 shall not exceed 50% of the total cost of the actions.

2. The Community contribution to the actions referred to in Articles 6 and 7 shall not exceed 80% of the total cost of the action.

3. A Community contribution of up to 100% of the total cost of the assistance referred to in Article 9, paragraph 5 (evaluation of proposals), Article 12 (technical assistance) and Article 14 (evaluation of the Community programme) shall be allocated.

4. The EU Financial Perspective Heading 3 "Internal Policies" shall contribute to the funding of actions and assistance undertaken under the Community programme in application of this Regulation.

5. An indicative breakdown of the funds allocated to this Community programme is given in Annex II.

Article 14 Evaluation of the Community programme

At the end of the programme, the Commission shall appoint a group of independent experts to report on the implementation of this Regulation, to assess the results and to make appropriate recommendations. The group's report, together with the Commission's comments, shall be submitted to the European Parliament, the Council and the Economic and Social Committee.

Article 15 Committee

1. The Commission shall be assisted by a Committee on the conservation, characterisation, collection and utilisation of genetic resources in agriculture (hereinafter referred to as "the Committee").

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply.

The period laid down in Article 4(3) of Decision 1999/468/EC shall be one month.

3. The Committee shall adopt its rules of procedure.

4. The Committee shall be informed on a regular basis on the state of implementation of the Community programme.

Article 16 Repeal

Regulation (EC) No 1467/94 is repealed, without prejudice to the contractual obligations of parties which have entered into contracts arising out of the Regulation.

Article 17 Entry into force

This Regulation shall enter into force on the seventh 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 Council

The President

ANNEX I Community programme: eligible actions and areas

1. Eligible actions and areas

The Community programme concerns the conservation, characterisation, evaluation, collection, documentation, development and utilisation of genetic resources that currently occur within the territory of the Community. Eligible organisms are plants (seed-bearing plants), animals (vertebrates and certain invertebrates) and micro-organisms.

The programme covers material that is actively growing and material that is dormant (seeds, embryos, semen and pollen). Ex-situ, in-situ and on farm collections are covered. All types of material are eligible including cultivars and domestic breeds, local breeds, breeders' material, genetic type collections, and wild species.

Priority will be given to species which are, or which may reasonably be expected to become significant in agriculture, horticulture or forestry in the Community.

Preference will be given to the use of genetic resources for:

- diversification of production in agriculture,

- improved product quality,

- sustainable management and use of natural and agricultural resources,

- improved quality of the environment and the countryside,

- identification of products for new uses and markets.

When collections are recorded and new collecting is undertaken, steps will be taken within the programme to ensure that the traditional regional experience and knowledge of the users (farmers, horticulturists) on methods of cultivation, specific uses, processing, taste, etc., are also included. The latter information should not be recorded as narrative but, as far as possible, in a standardised manner allowing documentation and easy retrieval of the data in a relational database system.

All actions carried out under the programme shall be in conformity with Community legislation on the marketing of seed and propagating material and on the common catalogue.

Appropriate steps, in accordance with the aims of the Common Agricultural Policy and in conformity with Community international commitments, should be taken to promote the dissemination and exploitation of any results of work in the field of the conservation, characterisation, evaluation, collection, documentation, development and utilisation of genetic resources in agriculture which could contribute to the achievement of those aims and commitments. The main objective is to provide an efficient and practical support to the actual and future end users of genetic resources in Europe.

2. Excluded actions and areas

The following actions are specifically not eligible for Community financial support under this programme: theoretical studies, studies to test hypotheses, studies to develop tools or techniques, work involving untested techniques or 'model' systems and all other research activities. Such actions are eligible for consideration under the Community Research and Technological Development Framework Programmes. Adaptation of existing methods for the purpose of an activity within the Regulation might, however, be considered eligible for support under the Community programme.

Actions that are eligible for support under the Framework Programme of the European Community for research, technological development and demonstration activities may not be supported.

No support may be granted under this programme for commitments that are already under way in the Member States and/or eligible under Title II, Chapter VI, of Regulation (EC) No 1257/1999 as specified under Article 14 of Regulation (EC) No 445/2002. However, actions leading to synergy between Regulation (EC) No 1257/1999 and this programme should be encouraged.

Actions involving lower animals, lower plants and micro-organisms, including fungi, are only eligible when these are reared or cultivated on land and when they are or could be of use in agriculture, including organisms which are suited for use as biological control agents in agriculture in its widest sense. Exception will be made in the specific case of defined gene-for-gene relationships between parasite or symbiont and host, and where both organisms are to be conserved. Collecting and acquisition of material is subject to the priorities stipulated above.

3. Types of actions

The implementation of the Community programme for the conservation, characterisation, evaluation, collection, documentation, development and utilisation of genetic resources in agriculture includes targeted actions, concerted actions and accompanying actions. The following actions shall be promoted:

3.1. Targeted actions

Actions aiming at the ex situ, in situ and on-farm conservation, characterisation, evaluation, collection, documentation, development and utilisation of genetic resources in agriculture are intended to support or complement, at Community level, work implemented at regional or national level. They shall be trans-national (taking, where appropriate, into account also bio-geographic regional aspects). These actions may not involve aid to maintain nature protection areas.

The actions should add value (spreading knowledge, increasing use, improving methodologies, exchange between Member States) to the agri-environmental schemes for endangered species, provenance, cultivars or breeds already funded at national or regional level (e.g., characterisation of genetic diversity and distance between the respective breeds, utilisation of local products, co-ordination and search of commonalties between scheme managers).

These actions must, as a general rule, be carried out by participants established within the Community and funded through the present facility, in partnership, when appropriate, with organisations from other regions of the world. Priority is to be given to actions providing for the participation of two or more unconnected participants established in different Member States. Participation by NGOs and other stakeholders in the field of in situ/on farm conservation should be promoted.

The dissemination and exchange of European genetic resources should be promoted with a view to increasing the use of under-utilised species but also the use of a broad diversity of genetic resources in sustainable agricultural production.

For plant genetic resources, a European decentralised, permanent and widely accessible web-based network of national inventories of the ex situ collections (gene banks), in situ facilities (resources) and databases on the basis of national inventories is currently available or being developed in the framework of the EPGRIS (European Plant Genetic Resources Information Infra-Structure) initiative. The development of national inventories of ex situ collections held in European countries, and a European search catalogue (EURISCO) should be established and further improved and inventories of in situ resources (genetic reserves or gene conservation units) should be developed.

A European decentralised, permanent and widely accessible web-based inventory of forest genetic resources, including in situ resources (genetic reserves or gene conservation units) and ex situ collections should be established on the basis of national inventories and taking into consideration the activities of the EUFORGEN networking programme.

For animal genetic resources maintained on farms, efforts should concentrate on a European network of national inventories of administrative aspects (origin and status of funding, state of breeds and their endangerment, location of herdbooks, ...) which should be managed in conformity with DAD-IS, the information system for the Global Strategy for the Management of Farm Animal Genetic Resources (AnGR).

For ex situ conservation of animal genetic resources (semen, embryos) a web-based network of national inventories and a European search catalogue for minimum passport data should be developed. The inventory is to consist principally of the establishment, regular updating and regular publication of the facilities (storage and conservation) for genetic resources in agriculture collected in the Community, and the listing of current work on the conservation, characterisation, evaluation, collection, documentation, development and utilisation of those genetic resources. Minimum passport data of individual accessions may be included.

For microbial genetic resources, a web-based network of national inventories of ex situ and in situ resources should be established, in the framework of the European Biological Resource Centre Network (EBRCN).

Regular exchanges of information between competent organisations in the Member States, in particular on the origins and individual characteristics of available genetic resources, shall be promoted. This will help establish a network of national inventories which will provide a guide to collections of conserved genetic resources and associated activities in the Community. The aims of the network of national inventories are to support the Community and national activities and encourage the widest possible knowledge and use of preserved material.

Expenditure on the capacity building of NGO's, the establishment and monitoring of the inventories, regular exchanges of information between competent organisations in the Member States and the preparation of regular publications and reports, is to be covered from the total appropriations earmarked for the implementation of the programme.

3.2. Concerted actions

Concerted actions are devoted to improve the co-ordination at Community level, mainly through the organisation of seminars and the preparation of reports, of individual (national, regional, local) actions for the conservation, characterisation, evaluation, collection, documentation, development and utilisation of genetic resources in agriculture that are already being carried out in the Member States. In particular, they should promote exchanges of information among the Member States and the Member States and the Commission on thematic issues and on specific local (on-farm), regional, or national actions and programmes (carried out or planned under the authority of Member States or by bodies not under their authority), including also actions which are or may be carried out under Regulation (EC) No 1257/1999, Council Regulations (EEC) No 2081/92 [13] and (EEC) No 2082/92 [14] or Council Directive 98/95/EC [15], for the purposes of co-ordinating these initiatives with each other, with measures to be undertaken at Community level and with relevant international processes, developments and agreements. Concerted actions could also involve co-ordination activities on thematic issues (specific crop or animal genetic resources) through specialised technical groups. The concerted actions shall be trans-national.

[13] OJ L 208, 24.7.1992, p. 1.

[14] OJ L 208, 24.7.1992, p. 9.

[15] OJ L 25, 1.2.1999, p. 1.

3.3. Accompanying actions

Specific accompanying actions shall include information, dissemination and advisory actions involving:

- the organisation of seminars, technical conferences, workshops, occasional meetings with non-governmental organisations (NGOs) and other interested bodies and relevant stakeholders;

- training courses and mobility schemes for specialists;

- preparation of technical reports;

- the promotion of the utilisation of results by the market (users).

4. Targeted actions: more details about eligible areas

4.1. Crop genetic resources

(1) Development of a web-based, permanent and widely accessible network of national inventories on crop genetic resources (in situ and ex situ); maintenance and further improvement of the European search catalogue (EURISCO);

(2) Information exchange on methods, techniques and experiences of on-farm activities, including utilisation and marketing concepts that may promote the use of under-utilised crops and contribute to the diversification of agriculture;

(3) Inventory and documentation of in situ resources of wild crop relatives that are used or potentially useful for food and agriculture;

(4) Establishment, maintenance and improvement of web-based European Central Crop Databases (ECCDBs) with characterisation and evaluation data and linked to the network of national inventories and to the EURISCO catalogue for the passport level data;

(5) Establishment and co-ordination of permanent European ex situ collections based upon the existing national or institutional ex situ collections, implementing concepts for sharing of responsibilities for the conservation of crop genetic resources among European countries;

(6) Establishment and co-ordination of a European network of conservation and demonstration fields/gardens of endangered and under-utilised crop genetic resources;

(7) Characterisation and evaluation of crop genetic resources that could be of interest for European agriculture;

(8) Collecting, in conformity with international law and obligations, of crop genetic resources that could be of interest for European agriculture.

4.2. Forest genetic resources

(1) Establishment of a web-based, permanent and widely accessible network of national inventories on forest genetic resources that are used or potentially useful for sustainable forest management in Europe;

(2) Information exchange on methods, techniques and experiences on forest genetic resource conservation and management;

(3) Assessment and development of best operational management practices for forest genetic resources and integration of related activities into national forest programmes;

(4) Establishment of European networks of representative genetic reserves or gene conservation units for relevant target species in order to improve conservation and characterisation at European level;

(5) Evaluation of forest genetic resources at species and provenance level (including evaluation of trials in the case of existing provenance experiments) that could be of value for sustainable forest management in Europe;

(6) Establishment and co-ordination of collections to promote the use of genetic resources for afforestation, reforestation, rehabilitation and tree improvement purposes at the European level;

(7) Collecting of forest genetic resources that could be of interest at the European level.

4.3. Animal genetic resources

(1) Establishment of a web-based, permanent and widely accessible European network of national inventories of animal genetic resources ex situ and in situ/on farm taking into account activities within the framework of the European National Coordinators for Animal Genetic Resources and linked to the FAO / DAD-IS system;

(2) Development of European-wide standardised and comparable criteria to identify the national priorities for action in the field of sustainable conservation and utilisation of Animal Genetic Resources and related requirements for international co-operation;

(3) Establishment of European cryo-conserves for animal genetic resources based upon national or institutional cryo-conserves;

(4) Characterisation and evaluation of animal genetic resources (species and breeds) used or potentially useful for food and agriculture;

(5) Establishment of a standardised European performance testing regime for animal genetic resources in agriculture, and documentation of characteristics of endangered farm animal breeds and populations;

(6) Establishment and co-ordination of a European-wide network of "Ark farms", Rescue-stations and farm animal parks for endangered European farm animal breed;

(7) Development of common cross-national breeding programmes for endangered breeds and populations. Establishment of rules for the exchange of information, genetic material and breeding animals;

(8) Development of strategies which support the enhancement of profitability of local breeds in order to develop links between local breeds and their typical products, to identify and to promote the value of local breeds for their environmental services (e.g. landscape conservation, agro-ecosystems management) and for their contribution to the multifunctional character of agriculture (e.g. maintenance of rural cultural diversity, rural development and tourism, etc.);

(9) Development of strategies which promote the utilisation of under-utilised animal genetic resources that could be of interest on a European level.

ANNEX II

Indicative financial breakdown for the Community programme on genetic resources in agriculture

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LEGISLATIVE FINANCIAL STATEMENT

Policy area: Agriculture

Activities: Environment/Biodiversity/Genetic resources in agriculture

Title of action: Council Regulation establishing a Community programme on the conservation, characterisation, collection and utilisation of genetic resources in agriculture

1. BUDGET LINES + HEADINGS

- 2003: line B2 - 517; "Plant and animal genetic resources",

- 2004 and following years: line 05 04 03 02; "plant and animal genetic resources",

- 2004 and following years: technical assistance (contract for the provision of services) should be foreseen on a new budget line to be established.

2. OVERALL FIGURES

2.1. Total allocation for action (Part B):

EUR 10 Mio for commitment appropriation.

2.2. Period of application

Community programme: from the adoption up to end 2006. However, the duration of the actions co-financed extends beyond the duration of the Community programme: a final last call for proposals for actions will be launched in 2006 and the related selected actions will last until 2010/2011. Commitments regarding technical and administrative assistance will last until 2010/2011.

Council Regulation: from the adoption up to repealing

2.3. Overall multi-annual estimate of expenditure

(a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

EUR Mio (to three decimal places)

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(1) EUR 1,5 Mio entered in budget (reserve chapter) but will not be used. No call for proposals and actions will be launched in 2003.

(b) Technical and administrative assistance and support expenditure (see point 6.1.2)

NB From 2004, administrative expenditure (contracts for the provision of services) shall be foreseen on a new budget line to be established

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(1) EUR 1,5 Mio entered in budget (reserve chapter) but will not be used. No call for proposals and actions will be launched in 2003.

(c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

NB This expenditure is not covered by the budget allocation to this Community programme. It deals with other administrative expenditure deriving from the action.

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2.4. Compatibility with financial programming and financial perspective

X Proposal is compatible with existing financial programming.

2.5. Financial impact on revenue

X Proposal has no financial implications (involves technical aspects regarding implementation of a measure)

3. BUDGET CHARACTERISTICS

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4. LEGAL BASIS

Treaty establishing the European Community (in particular Article 37).

Proposal for a Council regulation establishing a Community programme on the conservation, characterisation, collection and utilisation of genetic resources in agriculture.

4.1 Line situation concerning the obligations of legal basis

(a) Completion of the actions financed under the Community programme launched by Council Regulation (EC) No 1467/94of 20 June 1994 on the conservation, characterisation, collection and utilisation of genetic resources in agriculture covering the period 1995-1999, which terminated on 31 December 1999.

Being a project-based financing programme the requested budget concerns only payments necessary to honour the various phases and the payments requests which will be presented up to the completion of the last project for which a financing decision has been taken (in 2005).

(b) Proposal for a Council regulation establishing a Community programme on the conservation, characterisation, collection and utilisation of genetic resources in agriculture and repealing Regulation (EC) No 1467/94:

- this new programme is planned for the period 2004-2006 (However, the duration of the actions co-financed extends beyond the duration of the Community programme: a final last call for proposals for actions will be launched in 2006 and the related selected actions will last until 2010/2011),

- non executable appropriations before adoption of the Council Regulation.

4.2 Schedule to be filled for multi-annual interventions

- total budget for the action - new regulation: 10 Mio EUR EU

- implementation period: 2004-2006 (Community programme) and following years for grant agreements and service contracts concluded before 31 December 2006.

- pluri-annual programming (total a + b).

Commitments in EUR Mio, to three decimal places

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5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention

5.1.1. Objectives pursued

Biological and genetic diversity in agriculture is essential to the sustainable development of agricultural production and of rural areas. A new Community programme is proposed for the period 2004-2006 to complement and promote at Community level the work undertaken in the Member States for the conservation, characterisation, collection and utilisation of genetic resources in agriculture. The programme shall contribute to achieving the aims of the Common Agricultural Policy, the implementation of the Convention on Biological Diversity and the related European Community Biodiversity Strategy which includes an Action Plan for Biodiversity conservation and the protection of genetic resources in agriculture.

5.1.2. Measures taken in connection with ex ante evaluation

Owing to the somewhat low budget devoted to the new programme (EUR 10 Mio), its financial impact is not considered as significant in the sense of Article 27(4) of the Financial Regulation (Council Regulation No 1605/2002).

In addition, a new programme was called for on various occasions:

- The ex post evaluation carried out in 2001 on the previous programme (COM(2001) 617 final, Vol II) was mostly positive and provided arguments for continuing the programme.

- The Council requested a new programme in its strategy for the integration of environment and sustainable development in the Common Agricultural Policy (document No 13078/99 of 15.11.1999).

- In its Communication "Biodiversity Action Plan for Agriculture" (COM(2001) 162, Volume III of 27 March 2001), the Commission proposed to launch a new Community programme on the conservation, characterisation, collection and utilisation of genetic resources in agriculture.

- In its Communication "Life Sciences and Biotechnology - A Strategy for Europe" (COM(2002) 27), the Commission announced that it will launch a new Community programme on genetic resources in agriculture.

It should also be mentioned that a first proposal for a Council Regulation on the same topic was presented by the Commission to the Council in October 2001 (COM(2001) 617 final, Volume I) and discussed by the Member States in June 2002 in the Council Special Committee on Agriculture and in the EP Committee on Agriculture and Rural Development before the entry into force of the new Financial Regulation.

As a consequence of the above-mentioned considerations, no specific ex ante evaluation has been deemed necessary for the new programme.

5.1.3. Measures taken following ex-post evaluation

In February 2000, independent experts drew up an evaluation report on the implementation of the previous programme, as provided for in Regulation (EC) No 1467/94. That report was forwarded to the Council and to the Parliament (COM(2001) 617 final, Volume II of 31.10.2001).

The recommendations of the evaluation by independent experts can be summarised as follows:

* maintain and strengthen the action, while taking care to ensure a better balance between projects on "plants" and "animals",

* include the concept of on-farm conservation and respond to regional/local requirements (bio-geographic regions) while promoting more active participation of NGOs,

* increase co-ordination between the Member States and the Commission with regard to negotiations and actions at FAO level,

* target measures more towards a broader coverage concerning the participation of project partners from different Member States in a certain category of projects.

The evaluation by independent experts pursuant to Regulation (EC) No 1467/94 concluded by recommending a new Community Programme.

A series of additional consultations of stakeholders took place in 2000 and a meeting of the Committee on Genetic Resources (set up by Council Regulation (EC) No 1467/94), which was consulted in its advisory function and which was also attended by representatives of the European Parliament, numerous NGOs, scientists (project co-ordinators) and representatives of users of genetic resources, was held in June 2000. The following recommendations emerged in the course of the various consultations:

* the new Community Programme should promote increased participation by NGOs and other operators, in particular in the field of in situ/on farm conservation, and give these operators increased access to Regulation (EC) No 1257/1999 of 17 May 19992,

* it should co-ordinate international activities in the field of genetic resource protection,

* it should provide for more information and publicity-related activities, in particular with a view to increasing the use of local or rare varieties or breeds,

* it should promote better use and transfer of the results towards the market (users),

* it should establish a decentralised and permanent European inventory of the genetic resources available, as well as of their origins and their characteristics.

The proposed text takes account of the recommendations of the experts and stakeholders, as described i.a. in Recitals 3, 4, 5 and 7, in Articles 5, 6 and 7 and in Annex I.

5.2. Action envisaged and budget intervention arrangements

Following adoption the Communication will be transmitted to the Council for adoption and to the European Parliament for opinion. A draft work programme covering the period 2004-2006 shall be established following the entry into force of this Regulation. The work programme shall set out the detailed objectives, the thematic issues, the type of actions, the modalities of participation and the relevant financial provisions to be adopted. It will be adopted by the Commission. The Commission shall ensure the implementation of the Community programme on the basis of this work programme.

5.3. Methods of implementation

The Commission shall, within the work programme referred to in point 5.2 and on the basis of calls for proposals for actions published in the C series of the Official Journal of the European Union, select the actions to be financed under the Community programme. The calls for proposals shall cover the actions referred to in Articles 5, 6 and 7 of the Regulation (targeted, concerted and accompanying actions).

The Commission is assisted by a Committee on the conservation, characterisation, collection and utilisation of genetic resources in agriculture, composed of representatives of the Member States and chaired by a representative of the Commission. The management procedure provided for in Article 4 of Decision 1999/468/EC shall apply, in compliance with Article 7 thereof.

The content of the calls for proposals shall be established in accordance with the procedure referred to in Article 15 of the Regulation.

Proposals for actions to be financed under the Community programme shall be selected on the basis of independent expert assessment and adopted in accordance with the procedure referred to in Article 15 of the Regulation. The independent experts shall be invited by the Commission.

After adoption of the selected actions, the Commission shall conclude grant agreements with the participants in these actions in compliance with the relevant Articles under Title VI of Council Regulation (EC, Euratom) No 1605/2002. The grant agreements shall set out detailed criteria for the reporting, dissemination, protection and exploitation of the results of the actions.

The Commission shall take the necessary steps, in particular by means of technical, administrative and accounting checks at the premises of the beneficiaries, to verify that the information and supporting documents supplied are accurate, and that all the obligations laid down in the grant agreement have been fulfilled.

The Commission may call on the assistance of scientific and technical experts for the implementation of the Community programme, including support for the preparation of calls for proposals, evaluation of technical and financial reports, monitoring, reporting and information purposes.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

6.1.1. Financial intervention

Commitments (in EUR million to three decimal places)

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6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period)

Commitments (in EUR Mio to three decimal places)

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7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

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7.2. Overall financial impact of human resources

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(1) The amounts are total expenditure for twelve months.

7.3. Other administrative expenditure deriving from the action (NB: expenditure not covered by the Community programme budget allocation)

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The amounts are total expenditure for twelve months.

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The needs for human and administrative resources shall be covered within the allocation granted to the managing DGs in the framework of the annual allocation procedure.

8. FOLLOW-UP AND EVALUATION

8.1. Follow-up arrangements

The Commission proposes to review the effectiveness of the new Community programme at the end of the programme, appointing a group of independent experts to report on the implementation of the Regulation, to assess the results and to make appropriate recommendations. The group's report, together with the Commission's comments, shall be submitted to the European Parliament, the Council and the European Economic and Social Committee. Where appropriate, the Commission may propose that the Council adopt a new period of application for the Community programme.

8.2. Arrangements and schedule for the planned evaluation

See follow-up/evaluation arrangements under point 8.1 above.

9. ANTI-FRAUD MEASURES

Expenditure on the proposed actions (targeted, concerted and accompanying actions) and on technical assistance will be subject to the Commission's usual control mechanisms. The Commission shall take the necessary steps, in particular by means of technical, administrative and accounting checks at the premises of the beneficiaries, to verify that the information and supporting documents supplied are accurate, and that all the obligations laid down in the grant agreement have been fulfilled. Therefore there is no need for supplementary anti-fraud measures.