WRITTEN QUESTION P-0441/00

by Hiltrud Breyer (Verts/ALE) to the Commission

(11 February 2000)

Subject: Draft version of a new Community framework for state aids for environmental protection

The Commission departments are currently finalising in consultation with the Member States an important document concerning a Community framework for state aids for environmental protection. This is due to enter into force in July 2000. These guidelines are essential for the management of state aids in the environmental field, e.g. in respect of the support provided by the Member States for renewable energies.

1. What are the main criteria by which the Commission assesses state aids for environmental protection?

2. More specifically, what approach underlies the guidelines by which renewable energies are aided?

3. What steps will it be taking to consult with the European Parliament and environmental organisations before reaching a decision on this important issue?

4. How will the transparency and cooperation with Parliament pledged by Commission President Prodi be ensured before the guidelines are adopted?

Answer given by Mr Monti on behalf of the Commission

(15 March 2000)

1. In accordance with Article 6 (formerly Article 3c) of the EC Treaty, the Commission has the task of ensuring that environmental protection requirements are integrated into the definition and implementation of Community policies and activities. In order to ensure better long-term protection for the environment, it take the view that Community policy in this connection must be based on the polluter-pays principle, this being the best way to encourage society at large to protect the environment. Generally speaking, the granting of state aid can thwart this principle by allowing firms to avoid the environmental costs linked to their activities. The Commission considers therefore that the granting of aid can be counter-productive for

the environment in the long term. Consequently, aid must be confined to situations in which it makes a genuine contribution to improving the environment significantly and enables firms to adapt to new circumstances, notably in the tax field. These provisions will be spelt out in the new guidelines for state aid for environmental protection, which is currently being drawn up and should be applicable as from 1 July 2000.

2. The use and development of renewable energies are encouraged by the Commission, which is aware that, in some cases, these forms of energy are still faced with higher production costs than traditional sources of energy. In the Commission's view, therefore, temporary aid for renewable energies may be justified. However, it must not be permanent and the firms concerned should adapt progressively to market conditions.

3. and 4. The Commission has drafted new Community guidelines for environmental aid. They will be examined by Member States' experts at a meeting of the Advisory Committee and will then be adopted by the Commission. Organisations active in the environmental field are not consulted directly by the Commission but are usually consulted on an informal basis by the Member States' representatives who sit on the Advisory Committee responsible for giving an opinion to the Commission. The views of organisations active in the environmental field are therefore brought to the Commission's attention indirectly.

Where Parliament is concerned, the procedure does not provide for any consultations prior to the adoption of Community state aid guidelines. However, the Commissioner responsible for competition considers it extremely important that Parliament should be regularly informed of the Commission's work. This matter should, therefore, be addressed at a forthcoming meeting.