EN

(...PICT...)|COMMISSION OF THE EUROPEAN COMMUNITIES|

Brussels, 2.7.2008

SEC(2008) 2150

COMMISSION STAFF WORKING DOCUMENT

accompanying the COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 2007 Environment Policy Review {COM(2008) 409 final}

TABLE OF CONTENTS

Introduction 4

Part 1: Achievements, new findings and outlook in the 6 th Environment Action Programme priority areas 5

Climate change 5

Nature and biodiversity 8

Environment and health 11

Natural resources and waste 13

Better regulation in environment policy 15

Part 2 - Statistical data 17

Climate change and energy 18

Nature and biodiversity 28

Environment and health 34

Natural resources and waste 37

Environment and the economy 40

Implementation 41

Indicators "Beyond GDP" 43

Part 3: Commission summary of environment policy actions in the Member States 47

AUSTRIA 47

BELGIUM 50

BULGARIA 53

CYPRUS 55

CZECH REPUBLIC 57

DENMARK 59

ESTONIA 62

FINLAND 64

FRANCE 67

GERMANY 70

GREECE 73

HUNGARY 76

IRELAND 79

ITALY… 82

LATVIA 86

LITHUANIA 89

LUXEMBOURG 91

MALTA 93

THE NETHERLANDS 96

POLAND 99

PORTUGAL 102

ROMANIA 104

SLOVAKIA 107

SLOVENIA 109

SPAIN… 111

SWEDEN 113

UNITED KINGDOM 116

Introduction

This Commission Staff Working Paper is an annex to the 2007 Environment Policy Review, COM(2008) 409 final and presents evidence on selected EU environment policy issues during 2007.[1]

COM(2008) 409 final

It has been prepared in three parts. Part 1 describes EU environment policy during 2007. It describes in more detail the main policy developments for the four priorities of the 6 th Environment Action Programme (6 th EAP). It highlights recent findings and indicates the main issues that will be important in 2008. It then also examines Better Regulation initiatives, which make it simpler for business to comply and easier for Member States to implement environment policy measures, while enhancing environmental standards.

Part 2 draws on statistical data relevant to the four priority areas of the 6 th EAP, commenting on significant issues and providing background for the Commission’s policy work during 2007 and future initiatives. It also provides evidence relevant to discussion of the links between the environment and the economy and progress on implementation. Finally it includes an overview of some selected composite indicators, which were discussed during the international conference "Beyond GDP" on 19-20 November 2007.

Part 3 contains the Commission’s review of environment policy actions in the Member States. The actions listed are by no means exhaustive, but rather present a snapshot of actions that took place around 2007 and which are part of the implementation of the 6th EAP and the Member States' National Lisbon Reform Programmes, notably with respect to Integrated Guideline 11 on environment policy measures to ensure the sustainable use of resources. The information comes from various sources, including Country pilot studies from December 2007 on environment policy developments in Member States, commissioned by DG Environment.

More comprehensive information on the environment in Europe can be found in the European Environment Agency’s webpage www.eea.europa.eu and in the report " Europe's environment. The fourth assessment. " http://reports.eea.europa.eu/state_of_environment_report_2007_1/en Further information can be retrieved from Eurostat’s report “Measuring progress towards a more sustainable Europe - 2007 monitoring report of the EU sustainable development strategy”, which presents environmental issues alongside social and economic indicators. www.ec.europa.eu/eurostat/sustainabledevelopment[2][3][4]

www.eea.europa.eu

http://reports.eea.europa.eu/state_of_environment_report_2007_1/en

www.ec.europa.eu/eurostat/sustainabledevelopment

Part 1: Achievements, new findings and outlook in the 6 th Environment Action Programme priority areas

Climate change

Highlights in 2007

Climate change is one of the greatest threats facing the planet. The 4 th assessment report of the Intergovernmental Panel on Climate Change (IPCC) confirmed that the warming of the climate system is unequivocal. To address the threat, EU Member States agreed at the March 2007 European Council on an energy and climate change package for a new Energy Policy for Europe . It commits the EU to a 30% reduction if there is an international agreement in which other industrial countries commit to comparable mitigation efforts as in the EU and - even if there is no agreement - to a unilateral reduction in greenhouse gas emissions of at least 20% by 2020, a target of 20% share of energy consumption from renewable sources and a target of 10% for biofuels in transport. This package prepared the ground for a major breakthrough in the international climate negotiations. The EU achieved its main objective for the 13 th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC COP13) in December in Bali: it reached agreement on launching intensive negotiations on a global and comprehensive agreement for effective global action on climate change after 2012, and concluding these negotiations in 2009. The Commission translated the package into concrete action by adopting a Climate Action and Renewable Energy implementation package on 23 January 2008 (see below), aiming to set Europe firmly on the path to a low-carbon economy.

In 2007, the Commission fixed strict emission caps when assessing the Member States national plans for allocating CO 2 emission allowances for the 2008-2012 trading period of the EU Emission Trading Scheme (ETS). Allowances will be 12.5% below allocations for the first round of the scheme (2005-2007) and 6.8% below the measured emissions for 2005. In December, Environment Ministers reached political agreement on including aviation in the scheme, starting in 2012. From 2008, also firms from Norway, Iceland, and Liechtenstein will be able to participate in the EU ETS.

CO 2 emissions from road transport have risen by 26% since 1990, accounting for almost a fifth of total emissions in the EU. The February review of the CO 2 and cars strategy showed that the voluntary commitments of the car industry had brought only limited progress towards achieving the 2012 target of 120 g/km CO 2 emissions for new cars. Thus the Commission proposed a legislative framework in December, providing manufacturers with the necessary incentives, like an excess emissions premium if the limit value was not met. The proposed revision of the Fuel Quality Directive also includes an obligation for fuel suppliers to reduce the greenhouse gas emissions that their fuels cause over their life-cycle. To enable greater use of biofuels, a new petrol blend will be established. At the same time, sulphur levels in diesel and gasoil will be cut to reduce dust particles. EC funded research activities under the 7 th Research Framework Programme also focus on both short and long term solutions to reduce transport impact on climate change, considering the whole transport system and its life cycle assessment.

In 2007, the conference " Towards a post carbon society " identified some major social and economic issues related to climate change and energy transition, including the long-term behavioural patterns (e.g. in terms of mobility) and the relations between energy consumption and land-use.

The Commission adopted a new Strategic Energy Technology Plan , to help drive down the cost of existing low carbon and high efficiency technologies and to accelerate their market take-up. It proposed, inter alia, the launch of 6 European Industrial Initiatives , bringing together the appropriate resources and actors to focus on technology development for wind, solar, bio-energy, carbon capture and storage, electricity grid and nuclear fission and to initiate a European Energy Research Alliance to enable greater co-operation across Europe.

Despite all these measures, a certain degree of climate change can no longer be avoided. Thus, the Green Paper on Adaptation to Climate Change considered various policy actions to adapt to the impacts early in order to minimize economic, social and environmental disruptions. In that context, the Commission also adopted a Communication on water scarcity and droughts that identified a set of policy options to address water scarcity and droughts and mitigate their impacts. At the heart of the policy options is the need to put the right price on water. The "user pays" principle needs to become the rule regardless of where the water is taken from. Water savings and water efficiency need to be promoted, given that there is tremendous potential for water saving in the European Union. The Environment Council in October supported this and the need to put the right price on water. In November, t he new Floods Directive entered into force: Member States have to draw up flood maps and flood management plans for the areas at risk.

These domestic initiatives underpinned the EU's ambition to play a continuing leading role in the international climate change negotiations on a comprehensive post-2012 agreement , launched in Bali in December. The EU´s objective is to reach an agreement on binding absolute greenhouse gas emission reduction targets for developed countries and on enhanced contributions by developing countries, especially newly industrialising countries, leading to an emission pathway compatible with the EU's objective to limit the global temperature increase to 2°C above pre-industrial levels.

New Findings:

· In its Fourth Assessment Report, the IPCC states that during the last 100 years the earth has warmed by 0.76°C on average with an increasing trend. The 11 warmest years on record have all occurred in the last 12 years. Based on scenarios assuming no further action, the best estimates of the projected further rise in the global average temperature by 2100 range from 1.8 to 4.0°C. The European Union’s objective is to limit global warming to no more than 2°C above pre-industrial levels because the risks of irreversible and possibly catastrophic changes greatly increase beyond this threshold. The Panel Report confirmed knowledge of future climate impacts and called at the same time for the need to adapt to impacts of climate change and to strengthen efforts to minimise greenhouse gas emissions. Thus enhanced research activities will have to address remaining uncertainties in quantifying future climate change impacts and the need to enhance and accelerate the transition to low carbon technologies.[5]

The European Union’s objective is to limit global warming to no more than 2°C above pre-industrial levels because the risks of irreversible and possibly catastrophic changes greatly increase beyond this threshold.

· In 2005, EU-15 emissions decreased by 0.8% compared to 2004, while EU-15 GDP grew by 1.6%. Compared to base year levels, an overall reduction of 2.0% was achieved. EU-27 emissions saw a similar decrease compared to 2004, and were 11% below the base year in 2005. Projections show that the EU is moving closer to achieving its Kyoto target but additional initiatives need to be adopted and implemented swiftly to ensure success. COM/2007/0757 Provisional data show that greenhouse gas emissions continued their downward trend in 2006.[6]

COM/2007/0757

Outlook for 2008

· In the January package , the Commission put forward proposals for:

– an improved Emissions Trading Scheme (ETS) for the third commitment period from 2013 onwards, covering more emissions and allowing firms in one Member State to buy allowances in any other;

– the effort sharing of emission reductions for sectors not covered by the ETS like road transport, buildings, services and agriculture;

– a Directive with legally enforceable targets for increasing the share of renewables in the energy mix – the targets reflect each country's individual needs and its potential;

– a regulatory framework for Carbon Capture and Geological Storage technologies which addresses the environmental integrity of the technique and other issues relating to safe deployment.

· The package also includes revised Guidelines on State aid for environmental protection which, inter alia, modernise rules on climate change and energy.

· A White Paper on Adaptation will identify ways to adapt to climate change and examine ways to integrate adaptation principles into common policies, such as agriculture, fisheries, transport, energy, regional development, research and health, also taking into account the international dimension.

· By the end of 2008, a follow-up report on water scarcity and droughts will introduce deadlines for the implementation of the measures identified in the 2007 Communication and include water management measures that are the deemed necessary and considered cost-effective in the Commission's assessment.

· To promote energy efficiency and renewable energy in developing countries and economies in transition, the Commission will launch the Global Energy Efficiency and Renewable Energy Fund (GEEREF). This public-private investment fund will provide risk capital to regional funds that specialize in investing in small and medium scale projects.

· In December 2008, the UN Climate conference in Poznan will assess the progress made on the Bali Roadmap and provide additional political guidance to the post-2012 negotiations, taking into account the results of other high level climate change meetings especially the G8 and the Major Economies Meeting.

Nature and biodiversity

Highlights in 2007

In 2007, the Commission continued tackling biodiversity loss at home, by pressing ahead with the urgent implementation of the Biodiversity Action Plan, extension of the Natura 2000 network of protected areas, and internationally, by integrating sustainability concerns into its international agreements.

The first report on the implementation of Biodiversity Action Plan showed some progress, especially in relation to existing legal commitments. It was difficult to demonstrate significant progress in the integration of biodiversity into other sectoral policies , as new programmes were in the process of establishment. A major step in 2007 was the extension of the Natura 2000 network to the new Member States by adopting an initial list of Sites of Community Importance in the Pannonian biogeographical region Pannonian is one of the 9 biogeographical regions of Europe, covering most of Hungary, plus parts of the Czech Republic, Slovakia and Romania. http://ec.europa.eu/environment/nature/natura2000/sites_hab/biogeog_regions/maps/biogeo_map_eur27.pdf and updating existing lists for other regions. A future key challenge will be the extension of the network to the marine environment. Here the Commission issued Guidelines for establishing Natura 2000 marine areas.[7]

Pannonian is one of the 9 biogeographical regions of Europe, covering most of Hungary, plus parts of the Czech Republic, Slovakia and Romania. http://ec.europa.eu/environment/nature/natura2000/sites_hab/biogeog_regions/maps/biogeo_map_eur27.pdf

The Commission also presented an Integrated Maritime Policy for the European Union , including an Action Plan. The Council and the European Parliament agreed on a Marine Strategy Framework Directive which establishes a framework obliging Member States to take the necessary measures for achieving or maintaining good environmental status in the marine environment by 2020.

In December, despite the efforts of the Presidency and strong support from a majority of Member States, the Council did not reach a political agreement on the Soil Framework Directive on grounds of subsidiarity and possible costs. The proposal is a key element of the 6 th EAP.

The Commission and the Portuguese Presidency jointly launched an EU initiative on business and biodiversity , aiming to introduce biodiversity considerations into corporate governance through voluntary agreements. In response to the request of G8+5 Environment Ministers in Potsdam, the Commission and Germany launched an international review of the economic value of biodiversity .

At international level, a consensus agreement on ivory was reached at the 14 th COP to the Convention on International Trade in Endangered Species ( CITES ). It provides for a nine-year moratorium on ivory sales after an agreed one-off sale of government-owned stocks of raw ivory. Furthermore the EU proposal to regulate trade in European eels was adopted, while the Parties acknowledged that trade in timber and marine species needs further attention. In line with the EU commitments, the Commission adopted an action plan on CITES enforcement .

Under the Convention on Biological Diversity (CBD), negotiations continued on international rules on access to genetic resources and benefit-sharing. With a view to implementing decisions of the CBD and Resolutions of the General Assembly on marine biodiversity, the Commission presented proposals on combating illegal fishing practices and on preventing the destruction of biodiverse deep sea habitats in marine areas beyond national jurisdiction.

The Commission also started formal negotiations towards voluntary partnership agreements on Forest Law Enforcement Governance and Trade ( FLEGT ) with Indonesia , Ghana and Cameroon , and continued negotiations with Malaysia . The aim is to gain assurance that forest products imported into the EU from signatory countries are verified to be legal. Furthermore, the Commission continued its work with the Member States to develop FLEGT's implementing rules.

New Findings

· The EEA’s fourth pan-European Assessment http://www.eea.europa.eu/pan-european/fourth-assessment/nature-and-biodiversity showed that the EU target of halting biodiversity loss by 2010 will not be achieved without additional efforts. More than 700 European species are currently under threat, 43% of European bird species have an unfavourable conservation status, while the number of invasive alien species in the pan-European region continues to increase.[8]

http://www.eea.europa.eu/pan-european/fourth-assessment/nature-and-biodiversity

· T he first global-scale census of deep ocean ecosystems found some first evidence that the health of the deep sea and its ability to function increases with the diversity of species living there. HERMES project http://www.eu-hermes.net[9]

HERMES project http://www.eu-hermes.net

Outlook for 2008

· The COP-9 to the CBD in Bonn assessed progress towards achieving the global target to significantly reduce the rate of biodiversity loss by 2010. With only two years left to 2010, COP-9 adopted decisions strengthening implementation of the CBD. Most importantly, it adopted criteria for the identification of marine protected areas, including in the high seas, and agreed that the production and consumption of biofuels must be sustainable in relation to biodiversity. COP-9 also developed a roadmap for the finalisation of negotiations on an international regime on access to genetic resources and the fair and equitable sharing of benefits arising from their use.

· First results of the review on the economics of biodiversity will be presented to COP-9.

· As part of a Biodiversity package, the Commission plans to present a mid-term report on the implementation of the Biodiversity Action Plan on progress towards the 2010 target at both Community and Member State level and a Communication on policy actions to tackle Invasive Alien Species .

· The Commission will update the Community lists of Natura 2000 sites for the Alpine, Macaronesian The Canaries, Madeira and the Azores . and Mediterranean biogeographical regions in 2008.[10]

The Canaries, Madeira and the Azores .

· The Commission will present a several proposals concerning forests , including a Communication on deforestation, a a Regulation setting out implementing rules for the FLEGT Regulation and a proposal aimed to prevent the placing of illegally harvested timber on the EU market . It is hoped that he first FLEGT agreements will be concluded in 2008.

· The adoption of the Marine Strategy Directive will be followed by work establishing European Marine Regions based on geographical and environmental criteria, and developing Marine Strategies for each Member States' marine waters, containing assessments and clear targets.

· In May, the 16 th Meeting of the United Nations Commission on Sustainable Development (CSD 16) addressed agriculture, rural development, land, drought, desertification and Africa, and served as a follow-up on water. When looking at the interlinkages of these topics, it also looked at biodiversity loss, water and natural resource use in agriculture, the food life-cycle and the importance of sustainable consumption and production.

· In line with its Communication on an Integrated Maritime Policy for the EU, the Commission will produce an assessment of EU interests in the Arctic , as the basis for a possible EU Arctic strategy. Environmental issues will be central to a future strategy.

· In line with its Communication on a European Ports Policy, the Commission will develop further guidance on the implementation of the EU nature legislation and the Water Framework Directive in estuaries and coastal zones, with particular attention to port-related activities and dredging.

Environment and health

Highlights in 2007

A clean and healthy environment is essential for human well-being. To limit environmental threats to human health, the Commission continued in 2007 to take action in various fields, including on chemicals, water and air quality.

The mid-term review of the 2004-2010 Environment & Health Action Plan concluded that the strengthened cooperation between environment policy, health policy and the corresponding research fields is one of the major achievements over the last three years. In the coming years, the Commission will maintain the focus on integration of environment and health concerns into other policies. In response to the review, Environment ministers adopted a resolution urging further progress on health-related aspects of environmental issues .

In June, the new European chemicals legislation REACH (Registration, Evaluation and Authorisation and restriction of Chemicals) entered into force. REACH requires the registration of some 30 000 chemical substances in use today, in order to identify risk management measures to ensure their safe use. The new EU Chemicals Agency in Helsinki will manage the databases to operate the system, co-ordinate the evaluation and make information on chemicals publicly accessible. To complement REACH, the Commission proposed legislation to align classification , labelling and packaging of chemical substances to UN standards .

The European Community Implementation Plan for the Stockholm Convention on Persistent Organic Pollutants (POP) was adopted in March 2007. It takes stock of measures to control POPs, assesses their efficiency and sufficiency in meeting the obligations of the Convention and identifies needs for possible additional measures.

Since 2005, consensus has emerged on the urgent need for knowledge of the safety aspects of nanomaterials, which were addressed by the 2005-2009 Nanotechnologies Action Plan . In 2007, the first implementation report showed the commitment from all stakeholders to this approach.

In December the Commission adopted the proposal for new legislation on industrial emissions , which tightens emission limits in certain industrial sectors, introduces standards for environmental inspections and extends the scope to medium sized combustion plants. The proposal merges a revised Integrated Pollution Prevention and Control Directive and six other sectoral directives (the Large Combustion Plants, Waste Incineration and Solvents Emissions Directives and three directives on the production of Titanium Dioxide). Also in December, the Council and Parliament reached agreement on the Directive on ambient air quality and cleaner air for Europe . The new directive also merges different directives and gives Member States more flexibility in meeting standards. Member States will be required to reduce exposure levels to small particles (PM 2.5 ) in urban areas by an average of 20% by 2020 compared to 2010.

Earlier in the year, new vehicle emission standards (Euro 5 and 6) were formally adopted by Council and Parliament, setting tighter limits on emissions of particles from 2009 and of nitrogen oxides from 2014. Euro 5 will lead to the introduction of particle filters for diesel cars. The Commission also proposed new emission norms for heavy duty vehicles (Euro VI) which - once adopted by Council and Parliament - will lead to cleaner trucks and buses. The Commission adopted a Green Paper on urban mobility in September 2007 and launched a public consultation on follow-up actions, which will be presented in an Action Plan on urban mobility in autumn 2008. The Commission also submitted for public consultation guidance documents on sustainable urban transport plans. On public procurement, a Directive was proposed that introduces environmental aspects into procurement of vehicles for public transport services .

On the water policy side, the Water Information System for Europe (WISE) was launched in March; it gathers a wide range of data from across the EU. The first implementation report of the Water Framework Directive showed that Member States have made significant progress but must do more to achieve the objective of good water quality in all water bodies by 2015. Two related implementation reports, on the Urban Waste Water Treatment Directive and on the Nitrates Directive , identified important shortcomings and incomplete implementation: only 51% of all treatment plants in the European Union met the standards; an increase in nitrate pollution was observed in 36% of groundwater monitoring sites and 14% of surface water monitoring sites. The Commission started legal action against several Member States for not properly transposing or implementing key water directives. The 2007 bathing water report however revealed that the large majority of bathing sites across the European Union met EU hygiene standards in 2006.

New Findings

· Emissions of certain industrial pollutants, such as nitrogen to water bodies, and phosphorus and dioxins to the atmosphere, have fallen significantly but others continue to rise. From 2009 onwards, a European Pollutant Release and Transfer Register will replace EPER - European Pollutant Emission Register - and cover a wider range of substances and fields of activity. EPER Review report : http://www.eper.cec.eu.int[11]

EPER Review report : http://www.eper.cec.eu.int

· Living close to high-voltage power lines for a long period may increase the risk of developing certain cancers. In particular, people who lived less than 300 metres from a high-voltage power line during early childhood are up to five times more likely to develop cancers such as leukaemia and lymphoma. Lowenthal et all. (2007) Internal Medicine Journal[12]

Lowenthal et all. (2007) Internal Medicine Journal

· The potential for outbreaks of certain diseases, in particular infectious diseases transmitted through insects, could increase with climate change. Substantial changes in the distribution of some of these disease-transmitting insects (vectors) have already occurred over the last decade, as demonstrated by the recent outbreak of Chikungunya (a disease previously only occurring in Africa and South and South East Asia) in Northern Italy or the spread of bluetongue disease in cattle to Northern Europe. Patz et al., (2005) Nature, Chretien and Linthicum (2007), The Lancet.[13]

Patz et al., (2005) Nature, Chretien and Linthicum (2007), The Lancet.

Outlook for 2008

· The Commission will present a proposal to revise the National Emissions Ceilings Directive .

· Many ozone depleting substances have been reduced or phased out, but some provisions of the regulation on ozone depleting substances need to be updated or repealed for clarification and simplification .

· The revision of the Drinking Water Directive is planned for 2008. Currently, a total of 48 microbiological and chemical parameters must be monitored and tested regularly.

· The REACH Regulation enters into operation. Registration is effective as of June 2008 and pre-registration of phase-in substances will run from June 2008 until December 2008.

Natural resources and waste

Highlights in 2007

Current patterns of consumption and production are leading to the rapid depletion of some natural resources while also causing serious environmental pressures through e.g. waste. The Commission in 2007 developed a set of strategies to promote, at home and internationally, resource efficiency and eco-innovation. It also further refined its waste policies.

In response to the request in the renewed EU Sustainable Development Strategy, the Commission is developing an Action Plan on Sustainable Consumption & Production (SCP). As a first step, various consultation rounds were held in 2007. The need to take action was overwhelmingly acknowledged, with consumption deemed the most important area of action.

The Commission's second report on the implementation of the Environmental Technologies Action Plan (ETAP) assesses the progress and sets priorities for the future. 21 Member States have submitted national roadmaps which show measures with potential for replication in other Member States. The first out of three instruments envisaged under the Competitiveness and Innovation Framework Programme for support for eco-innovative small and medium-sized enterprises (SMEs) was launched in 2007 . The High Growth and Innovative SME Facility, managed by the European Investment Fund, will facilitate access to finance. € 228 million is earmarked for eco-innovation in 2007-13. In December, the Commission launched a public consultation on the different options for an EU-wide system for the verification of the performance and potential impacts of new technologies on the environment.

Together with the United Nations Environment Programme (UNEP), the Commission installed in November the International Panel for Sustainable Resource Management to provide authorative scientific advice to policy makers globally.

Most disused ships are currently being broken up in Southern Asia under dangerous conditions and with serious risks of pollution. Because of rising concerns the Commission launched a Green Paper on better ship dismantling . The paper presented a range of options, both at EU and international level, such as better enforcement in ports (of waste shipment legislation), technical assistance and exemplary action on warships. The new EU Waste Shipment legislation applies since July and aims to ensure that waste is properly handled from the time it is shipped to the time it reaches its destination. The regulation reinforces and clarifies the existing legal framework for waste shipment within the EU and with non-EU countries. It also bans the export of hazardous waste or waste for disposal to certain countries.

Following the first reading by the European Parliament, the Council unanimously adopted in December a common position on the Commission proposal for the Waste Framework Directive that aims to clarify and streamline existing provisions to facilitate the creation of a European recycling society.

Because of the implementation gaps and potentially severe environmental impacts of the Waste Shipment Regulation and the Landfill Directive, a number of awareness raising events were organised in 2007. The Commission also started legal action against several Member States for not properly implementing or transposing key waste directives like the Landfill, WEEE (Waste Electrical and Electronic Equipment), ROHS (Restriction of the use of certain Hazardous Substances) and ELV (End-of-Life Vehicles) Directives.

New Findings

· Recent studies have identified the most cost-effective methods of environmental improvement of transport, food and buildings, the three products groups identified in 2006 as most polluting in a life cycle approach. For passenger cars, the environmental benefits are particularly high for engine improvements, weight reduction and a shift to hybrid cars. For meat and dairy products, the biggest potentials lie within agricultural production (e.g. pig diets) but also in better household management to avoid food losses. For buildings, thermal insulation measures are shown to be a major source of environmental improvements. Source: IPTS - IMPRO studies 2007 (environmental IMprovement of PROducts) as follow up of EIPRO studies 2006 ( Environmental Impact of PROducts).[14]

Source: IPTS - IMPRO studies 2007 (environmental IMprovement of PROducts) as follow up of EIPRO studies 2006 ( Environmental Impact of PROducts).

· The process of bringing landfills into line with the requirements of the Landfill Directive is not equally advanced in the 10 new Member States. Legal responsibility for dealing with illegal dumping and dumpsites is mostly at the municipal level and it is rarely enforced because of lack of administrative capacity. Follow-up study on the implementation of Directive 1999/31/EC on the landfill of waste – commissioned by DG Environment, June 2007.[15]

Follow-up study on the implementation of Directive 1999/31/EC on the landfill of waste – commissioned by DG Environment, June 2007.

Outlook for 2008

· The Commission will:

– present Action Plans on Sustainable Consumption & Production and on Sustainable Industrial Policy. It will build further on and strengthen existing instruments, including a revision of the Eco-label and EMAS schemes, initiatives towards greener public procurement, eco-design, and work with retailers to impact on the supply chain.

– revise the WEEE and RoHS directives in order to increase their efficiency and effectiveness as well as facilitating implementation and enforcement.

– present a legislative proposal for an EU Environmental Technology Verification System.

– present an EU strategy on ship dismantling.

– strengthen the enforcement of the new waste shipment regulation , in particular regarding inspections and spot checks.

– organise a Regional Conference under the Marrakech Process on Sustainable Consumption and Production in June.

– continue efforts and where necessary initiate legal action to combat uncontrolled dumping of waste and to bring uncontrolled landfills, in particular in the EU-12, up to the EU standards.

· The European Parliament and the Council will start second reading of the Waste Framework Directive in early 2008. The co-decision procedure is planned to be finished in 2008.

Better regulation in environment policy

Highlights in 2007

Improving the outcomes of legislation - including the environmental outcomes - was a focus of the Commission's Better Regulation work in 2007. Scope exists for greater environmental results, achieved more efficiently, through better implementation or redesign of policy and selection of the best new policy instruments.

The Commission report on implementation of Community law highlighted the need to pay closer attention to this issue and presented new tools and procedures. To adapt them to the specificities of environment policy, a Communication on the implementation and enforcement of EU environment law will be adopted in 2008. In October, the Commission proposed an Environmental Compliance Assistance Programme in order to help SMEs minimise the environmental impact of their activities and to facilitate compliance.

As environmental crimes can have devastating effects, a proposal for a directive was presented which will ensure that serious environmental offences are subject to criminal sanctions across the Member States. Furthermore, EU legislation laying down liability rules for damage to the environment came into force. The new directive is specifically based on the "polluter pays principle" and aims to ensure that environmental damage is prevented or remedied, and that those who cause it are held responsible. The Green Paper on market-based instruments (MBI) launched a public consultation in March, and seeks to stimulate a discussion on ways to further promote the use of MBI both at Community and national level. The Beyond GDP conference in November - organised by the Commission, European Parliament, Club of Rome, WWF and OECD - launched the process to complement GDP with more comprehensive measures of wealth and well-being, incorporating social and environmental issues. The Commission will present a road map for action in 2008.

Streamlining legislation brings environmental and economic benefits. In the context of the simplification rolling programme of the Commission, the above-mentioned Commission proposal for a new Industrial Emissions Directive offers a clear, coherent and simplified legal framework and should lead to reduced administrative costs. Another Commission Decision adopted in 2007 will streamline monitoring and reporting and resolve some interpretation problems in the Emission Trading Scheme . It includes reduced requirements for low-emitting installations. In addition, the Commission started a project to streamline inter-linked monitoring and reporting requirements of EU legislation on air pollution and climate change.

To further strengthen Better Regulation principles in environment policy making, ensuring that all new policy initiatives are assessed according to their economic, social and environmental impact, the Commission strengthened its impact assessment system . In 2007 around 100 impact assessments accompanying significant policy proposals were scrutinised by the Impact Assessment Board; 15 were on the environment.

Outlook for 2008

The Commission will present:

– a review of the 2001 Recommendation on minimum criteria for environmental inspections which will widen its scope, develop planning criteria for environmental inspections and establish a reporting system to provide comparable information;

– a Communication on the Development of an Integrated Strategy on Disaster Prevention ;

– an implementation plan for a European Shared Environment Information System and a legal proposal to modernise the information requirements of environmental legislation;

– the results of an exercise identifying any unnecessary administrative burdens across the EU from five pieces of environmental legislation chosen as most significant;

In the context of the Better Regulation’s agenda, the Commission’s efforts will also be intensified for simplifying the regulatory environment. Examples of forthcoming simplification initiatives in environmental legislation include the revision of the legislation on the placing of biocidal products on the market as well as the revision of the WEEE and RoHS directive.

Part 2 - Statistical data

This part highlights selected key indicators on the environment and environment policy, including the four priority areas of the 6 th EAP. The indicators have mainly been chosen from the EU Sustainable Development Indicators to monitor the EU Sustainable Development Strategy, http://ec.europa.eu/eurostat/sustainabledevelopment http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1073,46587259&_dad=portal&_schema=PORTAL&p_product_code=KS-77-07-115 the EU Structural Indicators used for reporting for the Lisbon process, http://ec.europa.eu/eurostat/structuralindicators and the EEA’s Core Set of Indicators, http://themes.eea.europa.eu/IMS/CSI which provide a comprehensive basis for assessment of progress against environment policy priorities.[16][17][18]

http://ec.europa.eu/eurostat/sustainabledevelopment http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1073,46587259&_dad=portal&_schema=PORTAL&p_product_code=KS-77-07-115

http://ec.europa.eu/eurostat/structuralindicators

http://themes.eea.europa.eu/IMS/CSI

Wherever possible the information provided describes the full circumstance of the environmental issue – covering all links in the causal chain:

– showing the state of the environment, illustrating what to preserve or regain,

– highlighting aspects of the pressures exerted by society and the economy on the state of the environment,

– informing about underlying social and economic driving forces behind the pressures,

– reporting what action has been taken as a response to mitigate these pressures or driving forces,

– other indicators show the current or projected performance of Member States or the eco-efficiency of their economies.

At the end of this section, a number of indices are presented that are discussed as complementary ways to measure progress, wealth, and the well-being of nations. Such indices formed part of the debate at the international conference "Beyond GDP" that is mentioned in the Environment Policy Review Communication.

Climate change and energy

State indicator: Global air temperature change Global annual mean temperature deviations, 1850-2007. The source of the original data is the Climatic Research Unit of the University of East Anglia. The global mean annual temperature deviations are in the source in relation to the base period 1961-1990. The annual deviations shown in the chart have been adjusted to be relative to the period 1850-1899 to better monitor the EU objective not to exceed 2°C above pre-industrial values. Over Europe average annual temperatures during the real pre-industrial period (1750-1799) were very similar to those during 1850-99 (°C, as a temperature change compared to the mean 1850-1899)[19]

Global annual mean temperature deviations, 1850-2007. The source of the original data is the Climatic Research Unit of the University of East Anglia. The global mean annual temperature deviations are in the source in relation to the base period 1961-1990. The annual deviations shown in the chart have been adjusted to be relative to the period 1850-1899 to better monitor the EU objective not to exceed 2°C above pre-industrial values. Over Europe average annual temperatures during the real pre-industrial period (1750-1799) were very similar to those during 1850-99

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Data source: European Environment Agency, based on HadCRU3 dataset from Climate Research Unit, University of East Anglia.

"Warming of the climate system is unequivocal, as is evident from observations of increases in global average air and ocean temperatures, widespread melting of snow and ice, and rising global average sea level". Intergovernmental Panel on Climate Change's Fourth Assessment (Synthesis)[20]

Intergovernmental Panel on Climate Change's Fourth Assessment (Synthesis)

2007 is the eighth warmest year on record since 1850, exceeded only by 1998, 2005, 2003, 2002, 2004, 2006 and 2001 Years are put in descending order of temperature . Moreover, for the northern hemisphere alone, 2007 is the second warmest recorded, while for the southern hemisphere it ranks ninth warmest. Met Office Hadley Centre and UEA Climatic Research Unit[21][22]

Years are put in descending order of temperature

Met Office Hadley Centre and UEA Climatic Research Unit

The EU has set an objective not to exceed 2°C above pre-industrial levels.

The graph, which indicates the combined global land and marine surface temperatures recorded from 1850 to 2007, shows an accelerating increase in temperature during the 20 th century. The global (land and ocean) temperature increase from 1850-1899 to 2007 is 0.74°C for the world, and Europe Europe is defined as the area between 35 o to 70 o Northern latitude, -25 o to 30 o Eastern longitude, plus Turkey (=35 o to 40 o North, 30 o to 45 o East) has warmed more than the global average. The increase for the European land area has been 1.22°C, while for the European land and ocean area it has been 0.98°C.[23]

Europe is defined as the area between 35 o to 70 o Northern latitude, -25 o to 30 o Eastern longitude, plus Turkey (=35 o to 40 o North, 30 o to 45 o East)

Twelve of the thirteen warmest years in the series have occurred in the last thirteen years (1995-2007), in particular the period 2001-2007 is 0.21 °C warmer than the 1991-2000 decade (the 1990s being the warmest complete decade in the series). Scientific analysis, which confirms that the second half of the 20 th century was the warmest phase during at least the last 1300 years in the Northern hemisphere, attributes the warming of the climate system to the accumulation of carbon dioxide and other greenhouse gases in the atmosphere.

The global average temperature is expected to further increase between 1.1°C and 6.4°C during the 21 st century, depending on the scenario, with a best estimate range from 1.8°C to 4°C for the world and from 1°C to 5.5°C for Europe. The forecasts indicate the greatest warming will happen over Eastern Europe and Scandinavia in winter, and over south-western and Mediterranean Europe in summer. Moreover, it is very likely that hot extremes, heat waves, and heavy precipitation events will continue to become more frequent and cold events less frequent overall in Europe.

Pressure indicator : Total Kyoto greenhouse gas emissions (CO 2 equivalents) as a percentage change of Kyoto base year emissions, with Kyoto Protocol / Burden-sharing agreement targets

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Data source: European Environment Agency, European Topic Centre on Air and Climate Change

The EU-15 Kyoto target is an 8% reduction in greenhouse gas emissions compared to base year levels (mostly 1990) by 2008-2012; all EU-15 Member States have individual targets under the burden-sharing agreement, while most new Member States (besides Cyprus and Malta) have individual targets under the Kyoto protocol. The graph shows greenhouse gas emissions relative to the base years and includes the MS target to show the distance to target.

In 2005 emission levels for both EU-15 and EU-27 were lower compared to 2004, when they had increased compared to the previous year. Moreover in 2005, EU-15 emissions decreased by 2% against the base year, showing that major efforts are still needed to meet the Kyoto target of 8% reduction compared to base year levels. During the reported period 2003-2005 greenhouse gas emissions decreased for the EU-15 and EU-27, in particular by more than 13% in Denmark and Finland, showing a large improvement on previous years. However, in the same period emissions increased in many Member States, in particular by more than 10% in Luxembourg, Lithuania and Malta. Provisional data show that greenhouse gas emissions continued their downward trend in 2006 in EU-27.

Currently, three Member States out of the EU-15 (Germany, Sweden and the United Kingdom) are projected to be on track to achieve their targets by 2010 using only existing domestic policies and measures. Communication from the Commission on Progress towards achieving the Kyoto objectives, COM(2007) 757 final In addition, 8 Member States are projected to reach their targets once the effect of the Kyoto mechanisms, carbon sinks and additional domestic policies and measures, that are already being discussed, are accounted for. According to this analysis, Denmark, Italy, and Spain appear not to be able to achieve their Kyoto target. However, it should be noted that this analysis does not yet fully include the potential effect of the recent Commission decisions on the National Allocation Plans on 2008-2012 emissions. Furthermore, it does not include the effect of supplementary actions that most of these Member States have recently identified or are in the process of identifying in order to reach their Kyoto target. Such measures, however, must be introduced swiftly to be effective. All new Member States, except Slovenia, are projected to meet or even over-comply with their Kyoto targets using only existing domestic policies and measures. Slovenia projects that it will meet its Kyoto target with planned additional policies and measures, the use of Kyoto mechanisms and carbon sinks.[24][25]

Communication from the Commission on Progress towards achieving the Kyoto objectives, COM(2007) 757 final

However, it should be noted that this analysis does not yet fully include the potential effect of the recent Commission decisions on the National Allocation Plans on 2008-2012 emissions. Furthermore, it does not include the effect of supplementary actions that most of these Member States have recently identified or are in the process of identifying in order to reach their Kyoto target. Such measures, however, must be introduced swiftly to be effective.

Response indicator : Electricity produced from renewable energy sources (percentage of all electricity produced)

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Data source: Eurostat. 2006 data are provisional

The EU has an agreed target to produce 21% of all electricity from renewable energy sources by 2010. In 2005, 14% of electricity in the EU-27 was produced from renewable energy sources. In 2006, Austria reached a share of more than 56%, followed by Sweden with 48%, while 12 Member States still produce less then 10% of their electricity from renewable sources.

In 2005, there was no significant increase to the previous year for EU-27. Provisional data for 2006 indicate that Greece and Ireland showed the most remarkable growth, compared to 2005, while for Latvia, Sweden and Romania a significant drop was reported.

Most of the renewable electricity in 2005 is generated from hydropower (almost 66%), while the rest comes mainly from biomass (about 17%) and wind (about 15%).

On the basis of 2005 data and national policy initiatives, Denmark, Germany and Hungary are on track to meet the 2010 target, while six other countries (Finland, Ireland, Luxembourg, Spain, Sweden and the Netherlands) will probably reach their 2010 targets. However, for Belgium, Greece and Portugal strong additional efforts are needed in order to reach their 2010 targets, while eight other countries are far from their commitments: Austria, Cyprus, Estonia, France, Italy, Latvia, Malta and Slovak Republic. Green Paper follow-up action. Report on progress in renewable electricity, COM(2006) 849 final of 10.1.2007[26]

Green Paper follow-up action. Report on progress in renewable electricity, COM(2006) 849 final of 10.1.2007

Response indicator: Combined heat and power generation (percentage of gross electricity generation)

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Data source: Eurostat. EU27 data in 2002 refers to EU25. Data for Cyprus is 0.3%, while for Malta is 0.

Combined heat and power is on the rise in the EU. The share of electricity stemming from power plants that produce electricity and usable heat at the same time increased from 10.5% in 2004 to 11.1% in 2005, i.e. an increase of nearly 6%. The highest increases were reported for Germany and Lithuania (35% and 33% respectively). Furthermore, Finland, Italy and Slovenia showed a growth rate of more than 10%. On the other hand, in Ireland, Luxembourg and Sweden the share decreased at a rate of more than 5%.

The level of usage of Combined Heat and Power (CHP) differs noticeably amongst Member States. While Denmark produces more than 50% of its electricity this way, Cyprus, Greece, France, Malta and Ireland use this technology for only 5% or less of its production.

Combined heat and power improves the efficiency of the energy production by recovering the excess heat that is lost in normal electricity production. When electricity is produced without heat recovery, some two thirds of the primary energy contained in the fuel (e.g. coal, natural gas, biomass and nuclear fuel) is lost. The waste heat can be considered as pollution, e.g. as it increases the temperature of rivers, which is a threat to biodiversity in warm periods.

Efficiency indicator: Energy intensity (kilogram oil equivalent used per €1000 GDP)

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Data source: Eurostat

Energy intensity is a measure of the energy efficiency of the economy as a whole. The figures show the amount of energy used to produce €1000 of GDP. Decreasing energy intensity is one of the indispensable responses to climate change, especially as many options are profitable in business terms.

Most countries with very high energy intensity showed a continuous improvement during the three-year report period (Bulgaria, Czech Republic, Estonia, Lithuania, Latvia, Poland, Romania and Slovakia). After a decrease from 2003 to 2004, only Hungary showed an increase from 2004 to 2005. Also the whole EU-27 showed an improvement in terms of energy intensity from 2004 to 2005. During the period 2003-2005 energy intensity decreased by 2.6% per year in the EU-27. Among the EU-15, Finland and Ireland showed the most significant improvement, while Portugal and Italy slightly increased their energy intensity, so losing ground on the way to higher energy efficiency.

Worldwide and within the EU, energy intensity varies enormously. The EU as a whole uses roughly 30% less energy per euro of GDP than the US, but still 75% more than Japan. Denmark is the country that is performing the best, even overtaking Japan in 2005. Austria, Ireland and Germany have an energy intensity about 30% lower than the EU average.

In 2007, 17 Member States fixed energy saving targets: Requirements of the Directive 2006/32/EC on energy end-use efficiency and energy services 12 Members States (Austria, Bulgaria, Czech Republic, Denmark, Estonia, Finland, Germany, Ireland, Malta, Netherlands, Poland and United Kingdom) adopted a saving target in line with the minimum requirement of the Directive: "an overall national indicative savings target of 9%, to be achieved by the end of 2016" (the period 2008-2016), while 5 Member States have adopted a target that goes beyond the minimum indicative target (Cyprus: 10%; Lithuania: 11%; Italy: 9.6%; Romania: 13,5% and Spain: 11%). Communication on a First Assessment of National Energy Efficiency Action Plans as required by Directive 2006/32/EC on Energy End-use Efficiency and Energy Services, Moving forward together on energy efficiency, COM(2008) 11 final[27][28]

Requirements of the Directive 2006/32/EC on energy end-use efficiency and energy services

Communication on a First Assessment of National Energy Efficiency Action Plans as required by Directive 2006/32/EC on Energy End-use Efficiency and Energy Services, Moving forward together on energy efficiency, COM(2008) 11 final

Driving force indicator: Final energy consumption by transport

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Data source: Eurostat

In 2005, greenhouse gas emissions from transport accounted for 21% of total EU-15 emissions, as energy for transport comes mainly from fossil fuels. Final energy consumption for transport in the EU-25 reached a new peak in 2005, amounting to 362 million tonnes oil equivalents. It increased by 10% between 1998 and 2005, and there is no sign of reduction as transport growth offsets efficiency gains due to technological vehicle development.

Road transport is the biggest energy consumer, followed by aviation, which increased at the end of the report period to reach 14% of all energy used for transport.

Driving force indicator: Spent fuel from nuclear power plants

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Data source: OECD Nuclear Energy Data, Nuclear Energy Agency. Data for BG, LT, RO and SI are not available; 2006 data for BE, FI, FR and UK are provisional.

Nuclear energy represents roughly thirty per cent of the EU's present electricity production. Nuclear energy is one of the biggest low-carbon energy sources in EU and its contribution to global warming and air pollution is less than those of the fossil fuels. However, the use of nuclear fuels entails environmental impacts and risks related to radioactive substances (mostly heavy metals) along the fuel production chain.

The amount of nuclear waste produced annually remains fairly stable over the years reported, although there are exceptions. While in Belgium and Sweden the amount increased over the years 2004 to 2006, it decreased in Germany, Hungary and the United Kingdom. The vast majority of highly radioactive waste consists of spent fuel and spent fuel reprocessing wastes. [29]

The vast majority of highly radioactive waste consists of spent fuel and spent fuel reprocessing wastes.

Nature and biodiversity

State indicator: Common birds

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Data source: EBCC/RSPB/BirdLife/Statistics Netherlands

Bird populations are well known, widespread, mobile, they tend to be at (or near) the top of the food chain, have large ranges and are responsive to environmental change. For these reasons they are considered good proxies for biodiversity and the integrity of ecosystems.

The EU aims to halt the loss of biological diversity by 2010. During the last 25 years reported, the common birds index The Common birds index is based on data from the European Bird Census Council (EBCC, http://www.ebcc.info ), the Pan-European Common Bird Monitoring scheme (PECBM), BirdLife International and Statistics Netherlands. The methodology has recently improved and the index covers 123 species of common birds, among which 33 species of common farmland birds and 27 species of common forest birds, from 18 countries (Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Latvia, the Netherlands, Poland, Portugal, Spain, Sweden, United Kingdom). The list of species is available at: http://www.ebcc.info/index.php?ID=340. shows a negative trend, indicating a reduction by 15% overall in 2005 compared to 1980.[30]

The Common birds index is based on data from the European Bird Census Council (EBCC, http://www.ebcc.info ), the Pan-European Common Bird Monitoring scheme (PECBM), BirdLife International and Statistics Netherlands. The methodology has recently improved and the index covers 123 species of common birds, among which 33 species of common farmland birds and 27 species of common forest birds, from 18 countries (Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Latvia, the Netherlands, Poland, Portugal, Spain, Sweden, United Kingdom). The list of species is available at: http://www.ebcc.info/index.php?ID=340.

Common farmland birds showed the most severe decline of all the broad categories monitored: on average, a decline by 44% over the last 25 years, mainly due to current agricultural practices and in particular intensive agriculture.

Pressure indicator: Landscape fragmentation in 2006 The map shows the Effective Meshsize (MEFF), a geo-statistical measure, which converts the probability that randomly selected points in an area are connected into the size of an unfragmented patch, measured in km2. The smaller the meshsize, the higher the landscape fragmentation and vice versa. MEFF actually measures landscape "connectivity" that is the inverse of fragmentation.[31]

The map shows the Effective Meshsize (MEFF), a geo-statistical measure, which converts the probability that randomly selected points in an area are connected into the size of an unfragmented patch, measured in km2. The smaller the meshsize, the higher the landscape fragmentation and vice versa. MEFF actually measures landscape "connectivity" that is the inverse of fragmentation.

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Source: European Environment Agency, based on Teleatlas 2006 - (areas of high fragmentation are bright; areas of high connectivity are dark). Data are not available for all Member States.

The map shows the fragmentation of ecosystems and habitats by transport infrastructure and settlements for the year 2006. Regions with a low level of fragmentation are marked by a darker colour, while a high level of fragmentation is indicated by light colour. The highest level of fragmentation is reported for large agglomerations. Biodiversity conservation depends inter alia on the integrity of habitats and ecosystems, and is therefore negatively affected by the fragmentation of territory, mainly due to the expansion of transport infrastructure.

Driving force indicator: Freight transport (tkm)

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Data source: Eurostat. Data include transport by road, rail and inland waterways. D ata for Malta were not available; 2006 figures are preliminary.

Freight transport in the EU has continuously increased in the recent years. From 2004 to 2006 it increased in EU-27 by 7.3%, mainly due to road transport (plus 8%) and rail (plus 6.2%), while the amount of goods transported by inland waterways increased by only 1.4%. This increasing amount of transported goods is one important driving force behind the need to extend transport infrastructure, which is in most cases detrimental for nature and biodiversity.

Germany, Italy and Spain are the countries with the highest levels of freight transport and at the same time increased it constantly during the period reported.

From 2004 to 2006 the most significant increase in freight transport was recorded in the territory of Hungary and Romania (more than 30%), followed by Lithuania and Slovenia: about 27-29 %. On the contrary, Denmark and Luxembourg showed a decrease of more than 8%.

Response indicator: Area occupied by organic farming (percentage of organic farming in Utilised Agricultural Area) Farming is only considered to be organic at EU-level if it complies with Council Regulation (EEC) No 2092/91.[32]

Farming is only considered to be organic at EU-level if it complies with Council Regulation (EEC) No 2092/91.

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Data source: Eurostat and Institute of Rural Sciences, University of Wales, Aberystwyth. In 2004 Malta had 1 ha of area occupied by organic farming. Eurostat estimates for Lithuania (2004), Latvia (2006) and Slovakia (2004, 2005, 2006).

Organic farming provides important environmental benefits compared to conventional agriculture. These benefits include a reduction of nutrient and pesticide leaching, lower energy inputs and conservation of soil resources and biodiversity. The area under organic farming is therefore inter alia an indicator of farmland biodiversity protection.

The area under organic farming in 2006 covered about 6.8 million ha in the EU-27, i.e. around 3.8% of total utilised agricultural area (UAA). The share of organic farming in utilised agricultural area varies considerably between and within Member States. In 2006 Austria had the highest share of organic area - around 11% of total UAA, followed by Latvia with 10.3%. Italy, with 9%, accounts for nearly 17% of the total organic area in the EU-27.

In the period 2004-2006, the share of organic farming in EU-25 increased by only 0.5 percentage points (pp) (from 3.3% to 3.8%), which is lower than the increases in previous years. Some countries showed a large increase, e.g. Latvia increased the share of organic farming by 8.5 pp (from 1.8% to 10.3%) and Slovakia by 3.9 pp, while others show losses, e.g. Finland with -0.8 pp, followed by Denmark and United Kingdom (-0.5 pp).

Organic farming represents only a minority of EU agriculture, which is mainly based on conventional practices, so there is room for extensive future development.

Response indicator: Area under agri-environmental commitment (percentage of Utilised Agricultural Area )

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Data source: European Commission, DG for Agriculture and Rural Development. Data not available for AT, BG, EE, FI, HU, LU, NL, RO, SE. 2005 figure for FR refers to 2004.

Agri-environment support is currently the only compulsory scheme for the integration of environmental goals into the Common Agricultural Policy: they are a key tool for achieving environmental objectives, such as those set out in the EU biodiversity action plan for agriculture, in the nitrates directive and under the Kyoto Protocol. Member States must include agri-environmental measures in their rural development programme, anyway participation by farmers or other land managers to these is voluntary: support is granted to farmers if they commit themselves for a period of at least five years to use agricultural production methods designed to protect the environment or maintain landscape features which go beyond conventional good farming practise.

In 2005 the share of utilised agricultural area for that agri-environmental support is paid was very different across Member States. France, Germany, Slovenia and Ireland have more than 40% of agricultural area under agri-environmental commitment, while Lithuania, Poland and Cyprus have less than 5%. One reason might be that the scheme started for the new Member States only recently.

There is a concern that the distribution of area under agri-environmental commitment across EU-15 Member States does not target sufficiently area of potential environmental concerns.

Response indicator: Sufficiency of protected areas State of progress by Member State in reaching sufficiency for the Habitats Directive Annex I habitats and Annex II species (percentage)[33]

State of progress by Member State in reaching sufficiency for the Habitats Directive Annex I habitats and Annex II species (percentage)

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Data source: European Environment Agency, European Topic Centre on Biological Diversity. Some Member States did not provide a formal proposal for designated areas in 2005. 2007 data refers to the situation on December 2007.

This indicator shows the state and quality of implementation of the Habitats Directive, The aim of the Habitats Directive (Directive 92/43/EEC) is the conservation of natural habitats and of wild fauna and flora, through the creation of a Europe-wide network of special conservation areas, Natura 2000. in particular the fulfilment of the minimum standards required by the Directive.[34]

The aim of the Habitats Directive (Directive 92/43/EEC) is the conservation of natural habitats and of wild fauna and flora, through the creation of a Europe-wide network of special conservation areas, Natura 2000.

Denmark and the Netherlands were the first to fully comply with the minimum standards of the Habitats Directive. In total 13 Member States have complied or are close to complying with these standards by the end of 2007. Among the new Member States, Malta and Latvia have reached about 90% of the minimum standards. However, Poland and Cyprus are far from complying with the Habitats Directive, having achieved less than 25% of minimum standards.

Main changes between 2005 and 2006 were due to proposals made by the 10 new Member States and to new proposals made by the EU-15. As in 2007 there were no important new proposals, the indicator was stable compared to 2006. In 2008 new proposals are expected from the 12 new Member States with first proposals from Romania and Bulgaria.

Environment and health

State indicator: Urban population exposure to air pollution by particles (µg PM 10 /m³) Population weighted annual mean concentration of particulate matter (PM 10 : particulate matter with a diameter smaller than 10 µm) at urban background locations in agglomerations. To ensure comparability only data from measurement stations operating in all three years is used. This requirement limits the coverage to 18 Member States.[35]

Population weighted annual mean concentration of particulate matter (PM 10 : particulate matter with a diameter smaller than 10 µm) at urban background locations in agglomerations. To ensure comparability only data from measurement stations operating in all three years is used. This requirement limits the coverage to 18 Member States.

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Data source: European Commission, DG Environment, Mandatory reporting by Member States under Exchange of Information Decision 1997/101/EC and Directive 2002/3/EC.

Exposure to particulate matter causes serious health risks. To portray these risks the indicator shows the annual mean urban background concentration of PM 10 weighted by the population exposed to this kind of pollution. There are significant differences between EU Member States. Ireland and Finland show figures less the 15 µg/m³, while 10 Member States record pollution levels above 30 µg/m³: Belgium, Czech Republic, Greece, Spain, Italy, Netherlands, Poland, Portugal, Slovenia and Slovakia.

2005 data for EU-25 showed a light improvement compared with 2003. However, comparison with 2004 indicates a worsening situation in EU and most Member States. In particular there is a clear deterioration of air quality in Greece, Italy and Slovakia, while Belgium, Germany, the Netherlands, Slovenia and Spain show sign of improvement.

Traffic is considered to bear most responsibility for worsening air quality in 2005: over half of the PM 10 exceedances (and at least of a fifth of ozone exceedances) are caused by local traffic. 2005 Annual Member States reporting on ambient air quality assessment, EEA January 2008[36]

2005 Annual Member States reporting on ambient air quality assessment, EEA January 2008

State indicator: Urban population exposure to air pollution by ozone Population weighted annual mean concentration of ozone (SOMO35: Sum of Means Over 35 ppb ozone) at urban background locations in agglomerations. To ensure comparability only data from measurement stations operating in all three years is used. This requirement limits the coverage to 17 Member States. [37]

Population weighted annual mean concentration of ozone (SOMO35: Sum of Means Over 35 ppb ozone) at urban background locations in agglomerations. To ensure comparability only data from measurement stations operating in all three years is used. This requirement limits the coverage to 17 Member States.

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Source: European Commission, DG Environment, Mandatory reporting by Member States under Exchange of Information Decision 1997/101/EC and Directive 2002/3/EC

High concentrations of ground-level ozone cause important risks to human health: not only peak concentrations during the summer, but also the continuous exposure to lower level concentration has a significant detrimental impact on our health. The ozone indicator measures combined risks, including from low concentrations, with any figure above zero indicating a risk to health.

Ozone concentrations differ a lot among Member States, as they depend on geographic and climatic conditions, local air emissions and transboundary contributions. Greece, Italy and Slovakia had the highest values in 2005.

While the heat wave in 2003 boosted ozone concentrations in most Member States, they fell in 2004. Recent data, however, show again a worsening trend in EU. In particular, in 2005, they have increased in Slovakia, Poland and Italy by more than 20% compared to 2004 levels.

Pressure indicator: Production of toxic chemicals (million tonnes), by toxicity class The classes are derived from the Risk Phrases assigned to the individual substances in Annex 6 of the Dangerous Substance Directive (Directive 67/548/EEC as last amended in 2001). The substances making part of this index comprise a wide range of uses: from intermediates - used for the production of also non-toxic chemicals, products and articles (with a potential human exposure limited to workers during their production and subsequent synthesis, and to the environment through potential releases during processing or transportation) - to household chemicals intended for consumer use.[38]

The classes are derived from the Risk Phrases assigned to the individual substances in Annex 6 of the Dangerous Substance Directive (Directive 67/548/EEC as last amended in 2001). The substances making part of this index comprise a wide range of uses: from intermediates - used for the production of also non-toxic chemicals, products and articles (with a potential human exposure limited to workers during their production and subsequent synthesis, and to the environment through potential releases during processing or transportation) - to household chemicals intended for consumer use.

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Source: Eurostat

In 2006 the EU-25 produced 207 million tonnes of toxic industrial chemicals, which represents about 60% of total chemicals production. The toxic chemicals covered by this indicator are divided into five toxicity classes. The most dangerous ones are the CMR chemicals (carcinogenic, mutagenic and reprotoxic), followed by chronic toxic chemicals, very toxic chemicals, toxic chemicals and harmful chemicals. The three most toxic classes of chemicals represent 40% of total production of toxic chemicals.

This data set, covering the EU-15 and, from 2004 also the EU-25, shows that between 1995 and 2006 the production of toxic chemicals in the EU-15 increased by 19% (i.e. around 1.7% annual increase on average), and in particular it does not show any reduction of the most toxic chemicals. It also shows that in the EU-15 the production of toxic chemicals increased by 4.5% during the last five years reported (2002-2006), while it has declined slightly in 2006.

The relatively high growth of CMR chemicals (+18% during 1995-2006, i.e. +1.6% annual change on average) within the group of toxic chemicals represents a worrying trend if continued. REACH, which is based on a life cycle approach, will aim at maximum reduction of the production of toxic chemicals.

Natural resources and waste

State indicator: Fish catches from stocks outside safe biological limits

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Data source: European Commission, DG Fish, International Council for the Exploration of the Sea, Eurostat

This indicator links the issues of nature and biodiversity with the sustainable use of natural resources. It shows the percentage of fish landings which originate from fish stocks managed under EU responsibility considered to be over-exploited. In 2006, 21% of fish catches came from unsustainably managed sources. The figure had doubled from the previous year and again reached the levels of 2003 and 2004. Especially for fish that live in or close to the seabed (benthic and demersal stocks) the critical situation - 42 % and 50% of catches from over-exploited stocks - has not significantly improved over the years reported. While before 2003 no stock of industrial fish had been outside safe biological limits, since then the rate oscillates between 20 and over 40 %.

Pressure indicator: Municipal waste generated (kg per person)

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Data source: Eurostat

Waste generation and management are strongly linked to the way we use natural resources. While excessive waste generation can be seen as a symptom of inefficient use of resources, recovering materials and energy embedded in waste can help to use resources in a better way.

The EU aims at reducing the overall environmental impacts associated with the use of resources, by decreasing the amount of waste generated and by increasing the share of waste which is recycled and recovered, i.e. re-entering the economic productive cycle. The EU target to reduce municipal waste generation to 300 kg/capita by the year 2000 was not achieved. No new quantitative targets have been set.

EU-wide statistics on waste treatment are available only for municipal waste Municipal waste consists of waste collected by or on behalf of municipal authorities. The bulk of this waste stream is from households, though similar wastes from sources such as commerce, offices and public institutions are included. , which represents about 14% of total waste produced. In 2006 EU-27 produced 517 kg of municipal waste per person, while EU-15 produced on average 563 kg of municipal waste per person. In total in 2006, 255 millions tonnes of municipal waste were generated in EU-27, 41% of which were land-filled and 19% were incinerated.[39]

Municipal waste consists of waste collected by or on behalf of municipal authorities. The bulk of this waste stream is from households, though similar wastes from sources such as commerce, offices and public institutions are included.

There are big differences among Member States, Ireland producing 804 kg/capita of municipal waste, followed by Cyprus and Denmark with more than 730 kg/capita. Poland produced only 259 kg/capita of municipal waste (50% of the EU-27 average), and Slovakia and Czech Republic about 300 kg/capita.

The generation of municipal waste per capita in Western European countries has stabilized, even if at very high levels. Some countries showed a constant increase of about 10% from 2004 to 2006, i.e. Romania and Slovakia, while other countries decreased the amount of municipal waste/capita by 4% or more during 2004-2006, i.e. Bulgaria and Spain. The big increase for Latvia in 2006 is due to an improved reporting system.

Response indicator: Recycling of packaging waste (percentage)

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Source: European Commission, DG Environment, Mandatory reporting by Member States under Commission Decisions 97/138/EC and 2005/270/EC; EU data for 2004 refers to EU25; Slovakia has not sent data for 2005; Malta has not reported any data.

Recycling helps to manage natural resources more responsibly: on the one hand it saves material from being put in landfills or incinerators, on the other hand, by replacing virgin materials, recycling can reduce environmental impacts. Packaging waste is roughly 5% of total waste generation.

In 2005, 55% of packaging waste was recycled in the EU-27, thus already reaching the 2008 target. In particular 73.5% of packaging waste in paper and board was recycled, while only 24.8% of plastic packaging waste was recycled. Different performances of individual Member States suggest further potential for improvements: Belgium and Germany continue to be the countries which perform best with more than 68% of recycling, while a few countries (Cyprus, Romania and Poland) still recycle less than 30% of their packaging waste.

Not only levels but also trends are different for the 2003-2005 period: most Member States increasing their recycling rate, in particular Slovenia by 11 percentage points (pp) (from 34% to 45%) while others show a decline, in particular Cyprus by 11 pp and Sweden by 12 pp.

There is a general increase per capita in quantities of packaging being put on the market, which is not in line with the objective of the Directive on Packaging and Packaging Waste, which aims at preventing the production of packaging waste.

Environment and the economy

Response indicator: share of environmental taxes in total tax revenue

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Data source: European Commission, Eurostat and DG Taxation and Customs Union Taxation trends in the European Union. Data for the EU Member States and Norway. 2007 [40]

Taxation trends in the European Union. Data for the EU Member States and Norway. 2007

Environmental taxes are an efficient market-based instrument to achieve environment policy objectives. In 2005, the EU-27 share of environmental taxes in total tax revenue was 6.6%. There are big differences in the use of environmental taxes among Member States: the share of environmental taxes in total tax revenue varies from less then 6% in Belgium, France, Spain and Sweden, to over 10 % in Denmark and the Netherlands. Compared with revenues from taxes on labour the share of environmental taxes is low.

During the period 2003-2005, the total for the EU-27 shows a decrease in the share of environmental taxes, from 6.9% to 6.6%. First data for 2006 show that the downward trend continues. Between Member States, the trends are very different : Estonia has increased the share by 1 percentage point (pp) (from 6.1% to 7.1%), Denmark by 0.9 pp and Luxembourg and the Netherlands by 0.6 pp, while Cyprus and Romania have decreased their share by 1.5 pp and Malta by 1 pp.

Implementation

Performance indicator: Infringements of EU environmental legislation (as of 31 December 2007)

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Source: European Commission, DG Environment (Impact = Environmental Impact Assessment and Strategic Impact Assessment)

At the end of 2007 (31 December), there were 479 open infringement cases This means that the Commission sent an official letter of formal notice to the Member State. concerning EU environmental legislation as against 420 at the end of 2006. In total, around 22% of all infringements cases of EU legislation relate to the environment.[41]

This means that the Commission sent an official letter of formal notice to the Member State.

There is a wide variety of reasons for this. A majority of cases concern bad application of EU environmental law, but there are also cases concerning the lack of transposition and improper transposition of environmental directives. In this respect there is now more proactive and systematic checking of the content of national transposition measures by the European Commission. This is one of the reasons for the increase in the number of infringements in 2007.

At the end of 2007, 77 cases concerned possible non-implementation of European Court of Justice judgements (at the end of 2006 they were 66).

Of all Member States, Italy is the country with the highest number of ongoing infringement cases (60), and has by far the highest number of ongoing infringement cases related to waste legislation (13). Spain follows with 42 open infringements. Among EU-15, the Netherlands is the country with the lowest number of open infringements. The number of infringements in the Member States that joined the EU in 2004 experienced a significant increase in 2007 (+82% compared to 2006). Malta has the highest number of infringements (26) within this group. Bulgaria and Romania are currently the Member States with the lowest number of infringement cases, possibly due to their recent adhesion (in 2007).

A quarter of the infringements open at the end of 2007 concern nature protection legislation (i.e. 121), other important sectors being waste (93), air (83), water (74), and environmental impact assessment (57).

Indicators "Beyond GDP"

"Measuring progress, true wealth, and the well-being of nations" was the subtitle of the international conference "Beyond GDP" in November 2007. Full information on the conference, including speeches and video archive, is available via www.beyond-gdp.eu . Its objectives included clarifying which indices are most appropriate to measure progress, and how these can best be integrated into the decision-making process and taken up by public debate. The starting point was the assumption that these indices should be as clear and appealing as GDP but more inclusive than GDP - to incorporate social and environmental issues. This sub-section presents a few selected indices – developed by international organisations, research or civil society organisations – that illustrate the wide range of statistical tools that were discussed at the conference.[42]

Full information on the conference, including speeches and video archive, is available via www.beyond-gdp.eu .

Human Development Index

The Human Development Index (HDI) was developed to measure progress in developing countries beyond purely economic figures, such as GDP. Since 1993, it has been used in the UNDP's Human Development Reports to compare the development of nations world-wide. A long and healthy life, knowledge, and a decent standard of living are considered key elements of progress or development. Therefore, the index combines data on life expectancy, adult literacy, school enrolment, and GDP. A value of more then 0.8 is considered "high human development". All EU Member States pass this benchmark.

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Data source: UNDP

Globally, in 2005 Iceland scored highest (0.968). At the other end of the scale, there are a few developing countries with a HDI near 0.3. At EU level, Ireland comes first, followed by Sweden and the Netherlands, while Bulgaria and Romania have the lowest HDI amongst EU countries. The majority of Member States have a HDI of more than 0.9.

Genuine savings / adjusted net saving

This indicator focuses on the wealth of nations, which can only be increased by savings. While the standard savings from the System of National Accounts show only changes in "physical capital", (i.e. man-made assets like machinery and infrastructure), "genuine savings" strive also to include changes in the natural, environmental and human capital. So far, only a few component variables, besides the standard net savings, can be factored in. Expenditure on education is added, while depletion of sub-soil assets (like iron ore and coal) and forests, and the damage caused by some pollutants, is subtracted. The World Bank publishes these figures for most countries, in percentage of GNI (Gross National Income). One main finding is that some countries (outside the EU) have actually become poorer while at the same time increasing their GDP. This is caused by a failure to compensate for the depletion of natural resources by either reconstituting their natural capital or investing in human capital.

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Data source: World Bank

Genuine savings rates in the EU range from 23% of GNI in Ireland to 2.3% in Portugal. Also main competitors, such as Japan or the USA, have quite different genuine savings rates. A look at the underlying data shows e.g. that the countries with a high level of genuine savings have normally also high net standard savings; however, Denmark compensates for low net standard savings with very high investments in education, while Portugal's above average investment in education do not outweigh the low net standard savings; depletion of natural resources is most significant in Romania and Estonia; and damage to the environment is most significant in Bulgaria, Poland, Estonia and Greece.

Ecological footprint

This approach tries to capture one critical aspect of environmental sustainability: the use and potential over-exploitation of biological resources, such as forests and fishing grounds, grassland and cropland. The ecological footprint adds up the hectares of land and sea area needed to produce the goods consumed in a country. Also the area needed to cope with waste and pollution is added. In this way, the footprint estimates societies' demand on nature. To make the various land and sea areas comparable the unit of measurement is a standardised "global hectare" (gha).

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Data source: Global Footprint Network/WWF

For EU Member States, the data vary widely: from under 3 gha/capita for Romania and Latvia to over 6 gha/capita for Finland, Estonia and Sweden. Also the figures for Japan and the USA differ by a factor of 2. Different levels of production and consumption, but also different structures of production and consumption cause these significant differences.

In addition to the comparison between countries, the ecological footprint can be compared with the available land and sea area, the so called bio-capacity. For the EU-27 the footprint is 4.7 gha/capita, while the available bio-capacity within the EU-27 is 2.2 gha/capita. Globally there are 1.8 gha/capita available, while the overall global footprint is 2.2 gha/capita. The usual interpretation of this data is that humanity’s demand on nature is now larger then the planet's carrying capacity.

Life satisfaction

This indicator shows the degree to which the citizens of a country are satisfied with their life. It is based on surveys asking people about their individual perception of well-being. The graph below shows the average for each country.

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Data source: World database of happiness, Erasmus University Rotterdam

In the EU-27, the Danes, Austrians, Finns, and Swedes are most satisfied with their life, while people living in the Baltic states, Romania and Bulgaria are the least happy. Research is looking further into different aspects of life satisfaction and the determinants of perceived well-being.

Part 3: Commission summary of environment policy actions in the Member States

AUSTRIA

HIGHLIGHTS 2007

Meeting the Kyoto commitments and, more broadly, fighting climate change have become key priorities of the newly installed government. Austria faces a big gap between its Kyoto target and projections and needs to apply additional policies to meet the target. The National Climate Strategy updated in March could be seen as a first important step in this area. In su m mer 2007, two research and innovation centred initiatives followed: the Climate and Energy Fund and the Energy of the Future research programme. Another important legislative project, the r e form of the Eco-electricity act started in a u tumn 2007.

Climate change

Austria's target is to reduce greenhouse gas emissions by 13% compared to the base year, but in 2005 emissions were 18,1% higher than the base year level. According to projections 2010 projections for greenhouse gas emission come from the Communication from the Commission on Progress towards achieving the Kyoto objectives, COM (2007) 757. for 2010, with existing policy measures, use of Kyoto mech a nisms and carbon sinks Austria would fall short of its Kyoto target by 17.9%. However, Austria is expected to reach the Kyoto target if all planned policy measures are applied strictly. Therefore, the country will have to step up its efforts in order to get back within reach of its Kyoto target.[43]

2010 projections for greenhouse gas emission come from the Communication from the Commission on Progress towards achieving the Kyoto objectives, COM (2007) 757.

· In March the federal government adopted the revised N a tional Climate Strategy, which seeks to put Austria back on track to reach its Kyoto 2008-2012 commitments. The focus of the renewed strategy is on mea s ures designed to encourage more sustainable energy production and use as well as more sustainable transport modes. Scientific innovation and quick adaptation of new technologies are moved to the centre of the stra t egy.

· The Austrian eco-electricity law "Ökostromg e setz" was amended in April 2007; another revision is being prepared. The goal is the co n tinued expansion of the market share of renewable electricity by impro v ing the framework conditions for producers. At the same time, tariffs for feeding eco-electricity into the main grid will be revised. In Austria about 56.6% (2006 provisional data) of all electricity is produced from renewable energy sources, which is the highest share in the EU. Nevertheless it is far from reaching its 2010 target of 78.1%.

· In the area of transport a new plan called "Bahnpaket Umwelt" (railways environmental package) aims at increa s ing rail usage by 15% (passenger) and 10% (freight) in the next five years thanks to the introdu c tion of new rail traffic control technologies together with the new infrastructure.

Nature and biodiversity

Austria is integrating nature concerns into agricultural production, by increasing organic farming. It has by far the highest proportion of area occupied by organic farming (as a share of total agricultural area), i.e. 11.1% in 2006 (10.5% in 2004) against an EU average of 3.8%.

· In 2007, the European Court of Justice ruled that Austria had failed to transpose the EU Habitats Directive and the Birds Directive adequately. Furthermore the list of Natura 2000 sites in Austria is still incomplete under both Directives.

· Austria continued its efforts to integrate nature conservation into other policies, for example into civil and flood protection, and to implement the W a ter Framework Directive. Its long experience of river environmental management was used to prepare the TEN (Trans-European Network) project for the maintenance of the Danube east of Vienna.

Environment and health

· In order to reduce the level of airborne particulate matter, a sy s tem of financial ince n tives and disincentives to encourage the uptake of particle filters in diesel passenger cars was extended by the Austrian parli a ment for another year.

· In June, the "Austrian Children Environment Health Action Plan" was presented to the public. The aim is a health-promoting environment and the stronger co n sideration of chi l dren's needs in all sectors and policies. The first steps to implement the plan in Austria have already been made, for instance the pr o gramme "Mobility management for schools" aimed at promoting environmentally friendly and physically active way of going to and from school.

· The first European Commission report on the implementation of the Water Framework Directive showed that Austria has made good progress in implementing the Directive. Austria presented a good analysis of the pressures and impacts affecting the environment and a comprehensive development of national methods for the assessment of ecological status.

Natural resources and waste

In 2006, Austria on average produced 617 kg of municipal waste per person against an EU average of 517 kg/per person. Only 59 kg/person (9.6%) was landfilled and 181 kg/capita (30%) was incinerated, which results in 377 kg/capita (61%) being treated by other means including recycling and composting.

· In July, Austria adopted an amended version of waste management law, which transposes recent Community legislation and introduces stricter conditions for companies operating in the waste management sector.

· A newly published White Paper on waste avoidance and rec y cling in Austria defines key principles and policy goals and assesses how the cu r rent limitations can be overcome . In Austria over 60% of packaging waste is recycled, which is well above the EU average.

· A national action plan for green public procur e ment is being drafted. It will put forward procurement quotas for eco-friendly products.

Use of market-based instruments

· In July, Austria i n creased fuel tax rates (by 3 cents/l for petrol and 5 cents/l for diesel). The additional revenue, expected to be € 370 million per year, will be spent on cl i mate change mitigation measures. Austria is also considering a further rise in its distance-based road charges.

Environmental technologies

· The Climate and Energy Fund was set up in 2007 and the Energy of the Future research programme will support eco-innovation and the development of new tec h nologies. Financial support provided by both funds is expected to increase the share of rene w ables in total energy consumption to 45% and to boost energy e f ficiency by 20% by 2020.

OUTLOOK FOR 2008

· As constantly growing transit lorry traffic features high on the public agenda, there is current discussion on drastically increasing the existing road charges for lorries to provide stronger incentives for a shift of freight transport to rail. In order to achieve ambient air quality standards in the Inn valley a sectoral ban for lorries is to be gradually imposed as from 1 May 2008, with an alternative rail option provided.

· An amendment of the law regulating passenger car registr a tion tax is to enter into force on 1 July 2008. The tax for cars with CO 2 emi s sions below 120 g/km and for alternatively fuelled cars will be significantly reduced. For cars with high CO 2 emissions the tax will increase.

BELGIUM

HIGHLIGHTS IN 2007

Following the parliamentary elections in June an interim government was installed only in December. This resulted in a period of low legislative activity at the federal level. The agenda was dominated by the transposition of recent EU Directives. Environment policy was less affected by the federal situation, as most environmental compete n cies are the responsibility of the three regions.

During the past year a strong policy f o cus has been on climate change, transport, energy and environment and health. These topics received significant public attention. The issues ranged from the saturation of the Belgian road network and the implications on air poll u tion (fine particles, smog alerts, etc.) to the threat of an emerging energy shor t age.

Climate change

Belgium, where greenhouse gas emissions in 2005 were 2% less compared to base year levels, is currently performing relatively well considering the distance between the pr o jections for 2010 and the Kyoto target: projected over-delivery of 0.9% for 2010 with existing policy measures, use of Kyoto mech a nisms and carbon sinks. However, in 2006, only 3.9% of gross electricity consumption in Belgium came from r e newable sources as compared to an EU average of 14% (in 2005). At 205.7 kg oil equivalent/€1000 GDP, Belgium had an energy inte n sity ratio in 2005 comparable to the EU average.

· A new federal law came into force to promote environmentally friendly cars. A rebate is granted when purchasing a car emitting less than 115 gram of CO 2 per kilometre. Another federal law introduced tax reductions for building, buying or renovating a low energy house. Also in 2007, the first petrol stations supplying bio fuels became operational.

· The Walloon government adopted an Air Climate Plan, which includes indicative targets for renewable energy and reduction of energy consumption. Instruments include green certificates and rebates for installing solar panels, which are expected to contribute significantly to the increase of renewable electricity.

Nature and biodiversity

· Belgium has undertaken many initiatives to meet the 2010 biodiversity ta r get, including the designation of Natura 2000 sites and the current esta b lishment of marine protected areas, which will cover 7% of the Belgian North Sea area. Objectives regarding the protection of ecosystems have been integrated into the Flemish Enviro n ment and Nature Policy Plans as well as into legislation based on Natura 2000. In 2007 the Natura 2000 network in Belgium consists of 234 Special Protection Areas (9.7% of the total land area) under the Birds D i rective and is largely complete, and 280 Sites of Community Importance (10% of the total land area) under the Habitats Directive which is still incomplete.

Environment and health

· The urban population in Belgium is highly exposed to air pollution by particles, though 2005 data show a slight improvement compared to the previous year.

· In December, several Belgian authorities took measures to limit fine dust and particle pollution when emission levels peaked beyond thresholds. In Flanders speed limits of 90 km were imposed and actively enforced, while the Walloon gover n ment limited car use for several days in the Charleroi area. The Brussels region combined its integrated air abatement/climate change plan with a short term action plan addressing high air pollution events occurring mainly during the winter months. When concentrations of fine particles exceed a certain threshold the plan is act i vated. Speed limits are reduced in the city and on the surrounding motorways, while a driving ban can be imposed in the Brussels region in exce p tional cases.

· Since January 2007 all restaurants in Belgium are smoke free, and the implementation of this ban has been actively enforced. This is not the case for bars that sell drinks and snacks.

Natural resources and waste

· Pressures on surface water by households and industry are decreasing, but water quality in Belgium remains substandard and much needs to be done to achieve the objectives of the Water Framework Directive in 2015 . Belgium is also facing a problem of polluted sediment in its waterways.

· Belgium ranks among the top EU Member States in terms of separate collection and recycling of waste. In 2005 the share of recycling of packaging waste was almost 77%, far above the EU average of 55%. In 2006 on average every person produced 475 kg of municipal waste (EU average being 517 kg/per person), of which only 24 kg were landfilled and 155 kg incinerated, thus most went to recycling collection systems.

· The Flemish government approved in December a new Waste Implementation plan for the period 2008-2012 concerning prevention, selection, recycling and disposal of waste from households. Further efforts will be made to optimise the selective collection and recycling and to expand the capacity of final treatment infrastructure; the plan includes specific attention for a life-cycle approach of products and materials.

Better regulation

· In December