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COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 26.01.1996 
COM(96) 25 final 
95/0093 (SYN) 
Amended proposal for a 
COUNCIL REGULATION ŒO 
amending Council Regulation 
(EEC) n° 1973/92 establishing a financial instrument for 
the Environment 
(Liffe) 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) 

EXPLANATORY MEMORANDUM 
Pursuant to Article 130s(l) of the EC Treaty, the Council consulted the European 
Parliament on the proposal for a Council Regulation amending Council Regulation (EEC) 
N° 1973/92 establishing a financial instrument for the Environment (Life) (COM(95)135 final 
- 95/0093(SYN)). 
During the November 1995 plenary session, Parliament approved 34 amendments, 28 
of which were accepted by the Commission either fully or in part1. 
The various amendments and those not accepted and rejected are discussed below. 
Amendments accepted by the Commission 
Some amendments aim at clarifying Life objectives and are considered by the 
Commission as very useful. Amendment 4, first part (on article 1.1) recalls the actions 
financed by Life and the areas of activity eligible. Amendment 4, second part, can be accepted 
in principle but inserted in following amendment 6. Amendment 6 (on article 1.1) proposes 
definitions of preparatory measures, demonstration measures and technical assistance. 
Amendment 8 (on article 1.2) defines the scope of preparatory measures, and amendments 3 
and 16 (adding a new recital 6a and concerning article 1.2) underline the need for 
accompanying measures to facilitate the Life mission. All these amendments were implicit in 
the Commission proposal, and will render the amended Regulation more explicit. 
The amendments aiming at putting Central and Eastern European Countries (CEECs) 
on the same level as Member States for Life projects (amendments 7 and 28 on articles 1.2 
and 1.7) and allowing non-CEECs third countries to share some fields of action (amendments 
2,15 and 30, creating a new recital 6a and on articles 1.2 and 1.7) are acceptable, either 
completely or partly. Amendment 7, opening to CEECs the whole of the Life field of 
application, deserves support in principle, but "where appropriate" must be added to avoid 
problems with preparatory measures or the enforcement of the Habitats Directive; furthermore 
the origin of financial resources available for these projects needs clarification by appropriate 
redrafting. 
PV PE 195.172 pp. 9-21 of 17.11.95 
2: 
The amendments concerning water treatment or management (amendments 10 and 11, 
both on article 1.2), coastal zones (amendment 9 on article 1.2), air pollution (amendments 
12 and 13, both on article 1.2) or industrial activities (amendments 14 on article 1.2) generally 
correspond with the Commission's thinking, but need the redrafting. 
The amendments on financial matters (amendments 19, 20, 21 on articles 1.5 and 35 
deleting article 1.12) generally correspond to the Commission's desire for equity in the sharing 
out of subsidies between priorities and between beneficiaries. The maximum financial support 
proposed by amendments 19, 20 and 21 fit with current practice, and the principle of 50/50 
sharing between nature and non-nature sectors is accepted (part of amendment 18 on article 
1.5). The deletion of article 1.12 (amendment 35), which proposed an intermediate phase in 
1996 implying a reserve of 1995 proposals, is justified considering the poor quality of non-
selected 1995 proposals. 
The amendments detailing the procedure of proposal submission and reporting 
(amendments 22, 23, 24, 25, 26, 27 and 31 on articles 1.5, 1.6 and 1.8) are helpful to clarify 
procedures and make them more transparent to Member States and to beneficiaries, and 
therefore the Commission agrees with them. They generally correspond to current practice, 
except the amendment 22 which provides a useful tool through the introduction of a reference 
framework intended to orientate potential proposers in all non-nature sectors. This framework 
would take the place of the current Regulation "priorities", whose applicability varies from 
one year to the other. 
Amendments not accepted by the commission 
Amendment 17 (on articles 1.4) is not accepted for legal and technical reasons : the 
Commission is traditionally against showing indicative amounts and an amount of 800 MECU 
is inconsistent with the budgetary schedule. 
Amendment 18, 1st part (on article 1.5), increasing to above 5% the share of funds 
allocated to non-CEECs third countries actions, cannot be accepted because 5% is already an 
increase for the countries concerned and resources are limited. 
The additional criterion concerning the use of Best Available Technology, foreseen by 
amendment 29 (on article 1.7), is not implementable and cannot therefore be accepted. 
?> 
Amendment 37 (on article 1.7) cannot.be accepted because it would create confusion. 
Amendment 32 on comitology (on articles 1.9) is not acceptable because of it runs 
counter to Council Decisions 87/373/EEC2 on Comitology. Life Committee must remain a 
regulatory Committee (Ilia type). 
Concerning amendment 33 (on article 1.11), the first part (in line with amendment 1 
on recital 4) foresees formal annual reports to be adressed by the Commission to the Council 
and the Parliament, either evaluating each action undertaken (amendment 1) or evaluating 
results of Life 1 and Life 2 projects (amendment 33). Because of the great variety of projects 
financed by Life, this would be impractical, but the Commission agrees to supply Parliament 
with information documents on project monitoring in an ad hoc manner. As regards general 
evaluation of the financial instrument, the Commission is already committed to submitting a 
formal report in 1998. The second part of amendment 33 providing for the establishment of 
a legal base for Life after 1999, is contradictory to the Commissions right of initiative. 
The legal base will be chosen in accordance with Court of Justice case law which implies that 
the choice must be made taking into account, amongst other things, the specific content of 
any proposals. 
O.J. L 195 of 18.7.87 pp. 33-35 
ty 

Amended proposal for a Council Regulation amending Council Regulation (EEC) 
N° 1973/92 establishing a financial instrument for the Environment (Life) 
Original text 
Recital 6 
Whereas the additional protocols to the 
Europe agreements between the 
Community and certain Central and 
Eastern European countries provide for 
the participation of those countries in 
Community programmes, in particular 
concerning the environment; Modified text 
Recital 6 
Whereas the additional protocols to the 
Europe agreements between the 
Community and certain Central and 
Eastern European countries provide for 
the participation of those countries in 
Community programmes, in particular 
those concerning the environment; 
whereas, therefore, access of these 
countries to Life must be ensured under 
conditions similar to those applicable to 
the activities to be carried out in the 
Community; 
Recital 7 (new) 
Whereas, given that the aforementioned 
Central and European countries will 
themselves meet the cost of their 
participation, the Community may 
decide, if appropriate for specific cases 
and in conformity with the rules 
applicable to the General Budget of the 
European Communities, to grant 
supplements to the countries' national 
contribution; 
Recital 8 (new) 
Whereas, for third countries of the 
Mediterranean or the Baltic other than 
the Central and Eastern European 
countries which have signed association 
agreements with the European 
Community, there is a need to 
implement technical assistance activities 
and demonstration activities !>• nature 
conservation and in other areas of the 
environment; 
Recital 9 (new) 
Whereas, during the various phases of 
implementation, evaluation of the results 
of the demonstration initiatives must be 
ensured by suitable and sufficient means; 
9 
whereas in particular these means must 
make it possible to monitor the 
initiatives to detect any administrative or 
technical problems in good time and to 
determine the possible synergy between 
projects; whereas this approach aims to 
promote a multiplier effect adding value 
to these activities; 
Article 1 Article 1 
Regulation (EEC) No 1973/92 is hereby 
amended as follows: Regulation (EEC) No 1973/92 is hereby 
amended as follows: 
(1) Article 1 is replaced by the 
following: (1) Article 1 is replaced by the 
following: 
Article 1 Article 1 
A financial instrument for the 
environment, hereinafter referred to as 
"Life", is hereby established. A financial instrument for the 
environment, hereinafter referred to as 
"Life", is hereby established. 
The general objective of Life shall be to 
contribute to the development and, where 
appropriate, to implementation of 
Community environment policy and 
legislation. The general objective of Life shall be to 
contribute to the development and, where 
appropriate, to implementation of 
Community environment policy and 
legislation by financing projects aimed at 
nature conservation, preparatory or 
demonstration activities, or technical 
assistance. 
For the purposes of this Regulation, the 
following definitions shall apply: 
"Nature conservation" means 
measures required to maintain or to 
reestablish natural habitats and wild 
species of fauna and flora in a 
favourable state. 
"Preparatory activities" means 
projects concerning the promotion 
of joint initiatives, cooperation and 
the transfer of know-how between 
(local, regional or national) 
€ 
(2) Article 2 is replaced by the 
following: 
Article 2 
The areas of activity eligible for 
financial support from Life are: 
1. In the Community government agencies and/or 
non-governmental organizations 
and/or socio-economic actors: 
"Demonstration activities" means 
the introduction of a new technical 
process and/or innovative or 
original approaches for the country 
concerned and the carrying out of 
exploratory projects designed to 
facilitate sustainable development. 
"Technical assistance" means 
projects to be promoted by local 
government or non-governmental 
organizations to encourage rational 
management of the environment 
through increased cooperation, in 
particular transnational cooperation, 
where cross-border or global 
problems are involved. 
(2) Article 2 is replaced by the 
following: 
Article 2 
The areas of activity eligible 
financial support from Life are: for 
1. In the Community 
appropriate, in the and, where 
Central and 
Eastern European countries which 
have signed association agreements 
with it. 
1.1 nature protection measures: 
Measures needed to implement 
Council Directive 79/409/EEC, of 
2 April 1979, on the conservation of 
wild birds and Council 
Directive 92/43/EEC, of 
21 May 1992, on the conservation of 
natural habitats and of wild fauna 
and flora and, in particular, the 
Natura 2000 European Network 1.1 nature conservation measures: 
Measures needed to implement 
Council Directive 79/409/EEC, of 
2 April 1979, on the conservation of 
wild birds and Council 
Directive 92/43/EEC, of 
21 May 1992, on the conservation 
of natural habitats and of wild fauna 
and flora and, in particular, the 
Natura 2000 European Network or 
Ï 
1.2 Other measures designed to 
implement Community 
environment policy: 
(a) preparatory and support measures 
designed to help implement 
Community legislation by increasing 
the efficiency of structural aid for 
the environment in the priority 
sectors in which it is used, namely: 
- protection of coastal areas and their 
rational management, 
reduction of industrial waste, in 
particular toxic and hazardous waste, 
including reclamation of 
contaminated sites, 
water protection, including waste 
water treatment; 
(b) demonstration, promotion and 
technical assistance projects for local 
authorities with a view to 
incorporating environmental factors 
into regional planning and 
development; 
(c) innovative and demonstration 
projects designed to promote 
sustainable development in industrial 
activities, such as projects to check 
the economic feasibility of clean 
technologies, to provide appropriate 
environmental training for the use of 
such technologies and to promote equivalent activities outside the 
Community: 
1.2 Other measures designed to 
implement Community environment 
policy and to promote sustainable 
development: 
(a) preparatory and support measures 
designed to help implement 
Community legislation or to help 
direct structural aid towards the 
environment, and namely: 
protection of coastal areas, including 
the coastal part of catchment areas 
and their rational management: 
prevention and reduction of 
industrial waste, especially toxic and 
dangerous waste; 
protection of water resources and 
management of water, including 
waste water and contaminated water 
treatment; 
prevention of atmospheric pollution. 
especially in urban areas; 
(b) demonstration, promotion and 
technical assistance activities for 
local authorities with a view to 
incorporating environmental factors 
into regional planning and 
development; 
(c) innovative and demonstration 
projects designed to promote 
sustainable development in industrial 
activities. 
8 
environmental audits and ecolabels, 
etc. 
2. (c) new 
conservation or rehabilitation, from a 
nature conservation viewpoint, of 
important habitats sheltering endangered 
species of flora and fauna. 
3. Accompanying measures 
implemented at the initiative of the 
Commission needed to analyse, 
evaluate or promote the projects 
^undertaken under paragraphs 1 and 2 
above and dissemination of 
information on this subject. Accompanying measures needed for 
the monitoring, evaluation or the 
promotion of the activities 
undertaken during the first phase 
and/or within the framework defined 
by paragraphs 1 and 2 above, and 
dissémination of information 
concerning the experience gained 
during and the results of these 
activities. 
(5) Article 8 is 
following: 
Article 8 replaced by the (5) Article 8 is replaced by the 
following: 
Article 8 
l.(c) 5% for measures undertaken 
under Article 2(2); l.(c) 5% for activities undertaken 
under Article 2(2) in equal 
shares, between nature 
conservation and other activities. 
2. The rate of Community financial 
support for tlie measures referred to 
in Article 2(1) shall normally be 
50% of the eligible cost. 
Nonetheless, this rate shall be: 
- 30% of the cost for projects 
generating significant income, The rate of Community financial 
support for the measures referred to 
in Article 2(1) and 2b) shall be a 
maximum of 50% of the eligible 
cost. 
However, this rate shall be: 
- a maximum of 30% of the cost 
of activities wjikh it is 
considered will generate a 
potentially significant income, 
* 
by way of exception, a maximum 
of 75% of the cost of projects 
concerning, in the European 
Union, natural habitats or 
priority species as defined in 
Directive 92/43/EEC or 
populations of birds in danger of 
extinction. - by way of exception, a maximum 
of 75% of the cost of activities 
concerning, ' in the European 
Community, natural habitats or 
priority species as defined in 
i Directive 92/43/EEC or the bird 
species covered fry 
Directive 79/409/EEC which ate 
in danger of extinction, 
- hv wav of exception, a maximum 
of 75 % of the cost of activities to 
be carried out, in fields other 
thannatureçomCTvation. fry nçn-
goveiiiuièiitàl orgamzations in 
partnership with pufrlic 
authorities 
appropriate. "agfl. where 
with private 
companies. 
2.(a) (new)^ 
Activities carried out in Central and 
Eastern European countries with which 
the Union has concluded association 
agreements are financed from the 
financial resources provided by these 
countries. Any financial contribution 
from the Community shall be decided on 
a case by case basis according to 
available resources, as provided for in 
the aforementioned association 
agreements. The financial allocation 
between nature conservation measures 
and other activities shall be made under 
the same conditions as for the 
Community. 
Article 8(a) (new) 
1. For activities covered by paragraph 
1.2. (b) and (c) of Article 2, the 
Commission, in accordance with the 
Article 15 procedure and before 
31 May 1996, shall establish a 
reference framework covering: 
Ao 
- the evaluation of the chief 
environmental needs with regard 
to regional planning, particularly 
for urban areas, with a view to 
providing guidelines for activities 
to be undertaken by local 
authorities; 
- an analysis of the environmental 
situation in industry at sectoral 
level with a view to identifying 
suitable guidelines for sustainable 
development in this sector. 
2. The reference framework referred to 
in paragraph 1, which is intended to 
provide information for parties 
concerned by financial support 
under Life in fields which are of 
particular Community interest, shall 
be adapted by the Commission 
every two years as necessary. 
(6) In Article 9: 
Paragraph 1 
following: is replaced by the 
1. Proposals for measures to be 
financed shall be submitted to the 
Commission by the Member States. 
Where measures involve more than 
one Member State, proposals shall 
be submitted by the coordinating 
authority or body." (6) In Article 9: 
Paragraph 1 is replaced by the 
following: 
1. Proposals for ' measures to be 
financed shall be submitted to the 
Commission by the Member States. 
Where measures involve more than 
one Member State, proposals shall 
be submitted by the coordinating 
authority or body." 
Proposals shall be forwarded to the 
Commission before 30 September, 
The Commission shall rule on these 
proposals fry 30 April." 
2. Unchanged compared with 
Regulation EEC 1973/92 (see 
OJ L 206, 22.7.92) [However, the 2. deleted. 
Ai 
Commission may ask any legal or 
natural persons established in the 
Community to submit applications 
for assistance in respect of measures 
of particular interest to the 
Community by means of a notice 
published in the Official Journal of 
the European Communities.] 
Paragraph 4 
following: is replaced by the 
"4. The Commission shall inform the 
Member States of the content of 
proposals received in the framework 
of expressions of interest and of 
applications submitted by third 
countries." Paragraph 4 is replaced by, the 
following: 
"4. The Commission shall transmit to 
Member States a summary of the 
principal points and of the contents 
of the proposals received, including 
requests from third countries and 
the Central and Eastern European 
countries which have signed 
association agreements 
European Community." with the 
Paragraph 
following: 5 is replaced by the 
Measures provided for in 
Article 2(1)(1) shall be subject to 
the procedure set out in Article 21 
of Directive 92/43/EEC; other 
LIFE measures shall be approved in 
accordance with the procedure 
provided for in Article 13. 
The measures approved shall give 
rise: 
- for projects to be undertaken in 
the European Community, to an 
outline decision from the 
Commission addressed to the 
Member States concerning 
proposals which have been 
accepted and to individual Paragraph 5 
following: is replaced by the 
Nature conservation measures 
provided for in paragraphs 1.1 and 
2 of Article 2 and thé corresponding 
accompanying measures shall be 
subject to the procedure set out in 
Article 21 of Directive 92/43/EEC; 
other LIFE measures shall be 
approved in accordance with the 
procedure provided for in 
Article 13. 
The measures approved shall give 
rise: 
- for activities to be undertaken in 
the European Community, to an 
outline decision from the 
Commission addressed to the 
Member States concerning 
/it-
decisions addressed to the 
beneficiaries concerning specific 
projects; 
- for projects to be undertaken in 
third countries, to a contract or 
an agreement setting out the 
rights and obligations of the 
partners, as drawn up with the 
beneficiaries responsible for 
implementation of the said 
projects." 
6. deleted. proposals which have been 
accepted and to individual 
decisions addressed to the 
beneficiaries concerning specific 
projects, the financial conditions 
of jwhich shall be agreed with the 
latter. 
- for activities to be undertaken in 
third countries, to a contract or 
an agreement setting out the 
rights and obligations of the 
partners, as drawn up with the 
beneficiaries responsible for 
implementation of the said 
activities." 
6. deleted. 
(7) A new Article 9a is added as follows: 
Article 9a 
1. Requests for financial support shall be 
for projects meeting the following 
criteria: 
(a) be of Commumty interest, in 
particular as a result of: 
- the habitats or species concerned, 
or 
- the answers found to a problem 
frequently encountered in the 
Community; (7) A new Article 9a is added as follows: 
Article 9a 
1. Requests for financial support 
concerning measures to fre 
implemented in the Community and 
the countries of Central and Eastern 
Europe which have signed association 
agreements with it shall be for 
activities which meet the following 
criteria, where relevant: 
(A) General criteria 
(a) they must be of Community interest, 
in particular because of: 
- the habitats or species concerned, 
or 
- the answers found to a problem 
frequently encountered in the 
Community; 
Sfb 
(b) make a significant contribution to the 
implementation of Community 
environment policy for promoting, in 
particular, a multinational or 
biogeographical region approach; 
(c) as regards nature conservation projects 
be aimed at the sites proposed by a 
Member State under Article 4 of 
Directive 92/43/EEC or sites classified 
pursuant to Article 4 of 
Directive 79/409/EEC or species 
mentioned in Annexes II and I 
respectively to those Directives; 
(d) as regards, in particular, 
demonstration, promotion and 
technical assistance projects: 
- be innovative and example-setting 
and represent progress compared 
with the current situation or current 
available technology, 
- be capable of promoting 
widespread application of practices 
and technologies conducive to 
environmental protection, 
- aim at developing and transferring 
know-how which can be used in 
identical or similar situations, 
- have a satisfactory cost-benefit 
ratio and, where" appropriate, 
guarantees of economic viability, 
- comply with the polluter pays 
principle. (B) Specific criteria 
(b) Unchanged 
(c) as regards nature conservation 
measures, they must concern sites 
proposed by a Member State under 
Article 4 of Directive 92/43/EEC or 
sites classified pursuant to Article 4 of 
Directive 79/409/EEC or species as 
referred to in Annexes II and I, 
respectively, to those Directives; 
(d) Unchanged 
3(a) (new) 
Requests for financial support from third 
countries of the Mediterranean or the 
Baltic other than the Central and Eastern 
European countries which have signed 
association agreements with the European 
Community shall be for activities which 
meet the following criteria: 
AH 
they must be of Community interest, 
and in particular contribute to the 
implementation of the regional and 
international agreements and 
guidelines; 
they must contribute to a policy 
encouraging sustainable development 
at all levels (national, regional or 
international); 
they must help to solve very serious 
environmental problems in the region 
or the field concerned; 
they must increase cross-border 
cooperation; 
they must guarantee the feasibility of 
the technical proposals, and their 
technical and financial management 
and provide a good cost-benefit ratio; 
(8) In Article 12 
2. For each multiannual action the 
beneficiary shall submit progress 
reports to the Commission within six 
months of the end each full year of 
implementation. Within six months of 
completion of the action a final report 
shall also be forwarded to the 
Commission. For each action lasting 
less than two years the beneficiary 
shall submit a report to the 
Commission within six months of 
completion of the action. The 
Commission shall determine the form 
and content of these reports. (8) In Article 12 
2. For each multiannual activities the 
beneficiary shall submit progress 
reports to the Commission within six 
months of the end of each full year of 
implementation. Within six months of 
completion of the action a final report 
shall also be forwarded to the 
Commission. For each action lasting 
less than two years the beneficiary 
shall submit a report to the 
Commission within six months of 
completion of the action. The 
Commission shall determine the form 
and content of these reports. 
Reports are based on physical and 
financial indicators defined in the 
Commission Decision which approves 
the projects, or in the contract or 
A<T 
(11) Article 14 is replaced by the 
following: 
Article 14 agreement concluded with the 
beneficiaries. 
These indicators are structured so as to 
indicate the state of progress of the 
project and the objectives to be 
achieved within a given time. 
(11) Article 14 is replaced by the 
following: 
Article 14 
No later than 31 December 1998, the 
Commission shall submit a report to the 
European Parliament and to the Council on 
the implementation of this Regulation and 
on the use of appropriations and shall 
make proposals for any adjustment to be 
made with a view to continuing the action 
beyond the second phase. 
The Council, acting by a qualified majority 
on a proposal from the Commission, shall 
decide on the implementation of the 
second phase as from 1 January 2000. 
12) A new Article 14a is added as follows: Unchanged 
The Council acting in accordance with the 
Treaty, shall decide on the implementation 
of the third stage as from 1 January 2000. 
Article 14a 
Applications for financial support for 
measures which could not be granted such 
support because of the inadequacy of the 
financial resources available in 1995 may 
be taken into consideration in accordance 
with the conditions of this Regulation in 
the context of the 1996 budget year.' Article 14a 
Deleted 
A 6 

ISSN 0254-1475 
COM(96) 25 final 
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