Re-examined proposal for a COUNCIL REGULATION (EC) on operations to promote tropical forests
Date: 1995-09-05
Institutions: European Commission
Subjects: EU environmental policy, EU financing, action programme, forest conservation, tropical forest

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  05.09.1995 
COM(95) 408 final - SYN  500 

Re-examined  proposal  for a 

COUNCIL REGULATION (EC) 

on operations to promote tropical  forests 

(presented by the Commission  pursuant to Article  189 c (d) 
of the EC Treaty) 

EXPLANATORY  MEMORANDUM 

The  scale  of  the  threat  to  the  tropical  forests  and  the  need  for  concerted  international 
action within an approach linking the environment  and development  have been stressed by 
all Community institutions and were confirmed  at the recent Rio Conference. 

Against  this background,  action  by the  Community,  complementing  that  of  the  Member 
States, will help achieve the objectives pursued and mobilize the requisite resources. 

This Regulation  sets out the objectives and procedures for  such action,  which is aimed at 
helping preserve tropical forests and manage them sustainably. 

A 

Commission  opinion  on the amendments  adopted  by the European  Parliament  during  the 
second  reading with  regard  to the Council's  common  position  with  a view  to  adopting a 
Regulation on operations to promote tropical forests  (00/0500(SYN) 

On  15 June  1955 Parliament adopted 29 amendments. 

1. 

The Commission incorporated the following amendments in its revised position: 

(geographical area or climate zone) 
(development aid and trade instruments) 
(substantial resources for significant  protection of tropical  forests) 
(compromise A: amount of financial  reference) 
(five-year  reviews) 

No 2 
No 3 
No 6 
No 7 
No 9 
No  10  (definition  of tropical  forests) 
No  11  (indigenous peoples) 
No  13  (qualitative and quantitative conservation) 
No  15  (sustainable management) 
No  17  (participation of forest  peoples) 

2 

The  Commission  incorporated  the  following  amendments,  with  certain  minor 
changes to the wording: 

No 8 

(setting-up  of  a  permanent  framework  to  encourage  such  activities  and 
ensure consistency) 

No  18  (promotion  of  sustainable  exploitation  of  tropical  forests,  mainly  outside 

primary  forests) 

No 22  (increased consultations rather than uniform position) 
No 29  (harmonized  methods rather than criteria designed to ...) 
No 30  (funding  guidelines) 
No 31  (evaluation) 

Parts of the following amendments were incorporated: 

No 20  (minus  the  reference  to  the  consent  of  local  people,  which  is  already 
into  Article  4(1) 

broadly  covered  by  Amendment  17  incorporated 
providing for the participation of the forest  peoples concerned) 

No 25  (compromise B: minus the rate of 60%,  left  out because  absolutely  all the 
operations funded  must have the support of local people and the assistance 
of the local authorities) 

No 37  (minus  the  aspects  relating  to  the  introduction  and  implementation  at 
Community  level  of  a  system  for  evaluating  and  monitoring  certificates  -
see 3 below) 

l bi o 

The Commission is unable to include Amendment  28 (evaluation  reports) which is 
broadly covered by the provisions of Articles 12 and  14 or those concerning: 

trade  issues,  such  as  import  restrictions  or  the  introduction  of  a 
Community certification  system (Amendments  1, 4, 5, 23) 
actions  within  the  scope  of  the  Commission's  powers  of  initiative  or 
organization (Amendments 23, 24, 27) 
subjects too general and broad to be implemented  easily (Amendments  12, 
14, 19) 

-tc 

Re-examined  proposal  for  a 

COUNCIL  RROriT ATION  ŒO 

on operations to promote tropical  forests 

THE  COUNCIL  OF  THE  EUROPEAN  UNION, 

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

Having  regard  to the  proposal  from  the  Commission,1 

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

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

Whereas  the  Commission  communication  to  the  Council  of  16  October  1989  on  "The 
conservation  of  tropical  forests:  the  role  of  the  Community"3  sets  out  broad  guidelines 
for  Community  action  in  this  sphere; 

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

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

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

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

Whereas  the  Community's  operations  to  promote  tropical  forests  form  part  of  its 
objectives  on  the conservation  of  forests,  in  whatever  geographical  area  or  climate  zone 
they  may  be  situated; 

1 
: 

3 

OJ  N oC  78,  19.3.1993, p.8; OJ  No C 201,  13.7.1994,  p. 15 
Opinions  of  the  European  Parliament  of  29  October  1993  (OJ  No  C  315, 
22.12.1993,  p.644) and  15 June  1995 (OJ  No  . .,  ... ). 
1 6 . 1 0 . 1 9 9 4. 
OJ  No  C  2 6 4, 

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

the  context, 

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

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

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

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

Whereas a substantial  commitment  of  resources  is required  to  have a significant  impact 
on the protection  of tropical  forests; 

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

to  in  this 

Whereas  an  amount  of  ECU 250 million  is  proposed  as  a  financial 
reference, 
illustrating  the  will  of  the  legislative  authority,  for  the  implementation  of  the  actions 
covered  by  this  Regulation  for  an  initial  five-year  period  (1995  to  1999),  in  so  far  as 
this  financial  reference  is consistent  with  the  Financial  Perspective  ceilings  in  heading 
4; 

Whereas  it  is  therefore  necessary  to  set  up  a  properly 
framework  in order  to encourage these actions and  to guarantee a cohesive policy; 

thought-out  permanent 

Whereas  the  Council  and  the  European  Parliament  will  consider,  every  five  years,  the 
mechanisms  for  funding  of operations  to promote  tropical  forests,  taking account  of the 
provisions  of  the  ACP-EEC  Convention  in  force  and  the  framework  regulation 
concerning  cooperation  with  developing  countries in Asia and  Latin  America; 

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

HAS ADOPTED THIS REGULATION: 

Article 1 

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

For the purposes of this Regulation: 

Article 2 

1.  "Tropical  forests"  shall  be  defined  as  those  natural  and  semi-natural  tropical  or 
subtropical  forest  ecosystems,  whether  in  an  undisturbed  (primary)  or  a  disturbed 
(secondary)  state,  which  are characterized  by a predominance  of  trees,  in  both  dry 
and  humid  areas.  The  areas  concerned  are  those  found  within  the  tropics  and 
subtropics delimited  by the 30th  northern  and  southern  parallels. 

2. 

3. 

4. 

5. 

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

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

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

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

Article  3 

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

o 

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

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

Article  4 

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

(a) 

(b) 

(c) 

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

their  biodiversity 

forests  and 

tropical 

sustainable  management  of  forests  designated  for  the  production  of  timber 
and  other  products,  but  excluding  commercial  logging  operations  in  primary 
tropical  forests,  except  those  which  are  community-based,  on  a  small  scale, 
sustainable,  environmentally  sound  and 
forest 
management; 

implementing  sustainable 

the  definition  and  development  of  certification  systems,  combined  with 
independent  assessment  systems,  for  timber  produced  from  tropical  forests 
as  part  of 
according 
internationally  harmonized  certification  systems  envisaged  for  all  kinds  of 
timber  and  forest  products; 

forest  management  principles 

sustainable 

to 

(d)  provision  of  prior 

participation 
implementation  of  actions; 

and 

in 

information 
support 

to 
for 

forest  peoples, 

the 

identification, 

followed  by 
planning 

their 
and 

(e) 

(0 

to  address 

capacity-building 
local 
the  needs  for 
populations,  forest  managers  and  researchers,  for  legislation,  for  increased 
for 
political  and 
organizations  and  associations  active  in  forest  conservation 

training  schemes  for 

strengthening  and 

support  and 

institutional 

social 

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

(g)  development  of  buffer  zones  to  assist  the  conservation  or  regeneration  of 

tropical  forests,  as  part  of  a  broader  land  utilization  plan; 

(h)  development  and 

implementation  of  forest  management  plans  aimed  at 
conserving  tropical  forests  and  promoting  sustainable  exploitation  of  timber 
and  other  forest  products,  mainly  outside  primary  forests. 

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

The  above  shall  also  apply  to  evaluations  of  the  actions  carried  out,  for  which 
purposes  specific  indicators  shall  be given  in  the  reference  conditions  for  the  action 
which  is  to  be  supported.  The  indicators  shall  be  both  quantitative  and  qualitative. 

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

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

5.  Wherever  possible,  operations  shall  be  carried  out  within 

the  framework  of 
regional  organizations  and  international  programmes  of  cooperation  in  the  context 
of  increased  consultations  with  a  view  to  contributing  to  the  formulation,  at 
international  level,  of  a global  policy  on  the conservation  of  forests. 

Article 5 

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

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

Article 6 

Article 7 

1.  Community  funding  of  the  actions- referred  to  in  Article  3  shall  cover  an  initial 
five-year  period  (1995  to  1999).  The  financial  reference,  illustrating  the  will  of 
the  legislative  authority,  for  Community  funding  for  the  implementation  of  these 
actions during this period  shall be ECU 250 million. 

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

the  principles  of  sound 

Article 8 

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

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

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

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

financing. 

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

Article 9 

1.  Participation  in  invitations  to  tender  and  purchasing  and  other  contracts  shall  be 

open on equal  terms to all natural  or legal persons of the Member States. 

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

3. 

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

Article  10 

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

1.  The Commission  shall  administer  tropical  forest  cooperation  activities. 

Article 11 

2.  The  Commission  shall  be  assisted,  as  appropriate,  by  the  Committee  set  up 
pursuant  to  Article  15  of  Council  Regulation  (EEC)  No  443/92  of  25  February 
1992 on  financial  and  technical  assistance  to,  and  economic  cooperation  with,  the 
developing  countries  in  Asia  and  Latin  America4  or  by  the  Committee  set  up 
pursuant 
the  financing  and 
administration  of Community  aid  under the Fourth  ACP-EEC  Convention.'' 

the  Internal  Agreement  on 

to  Article 21  of 

3.  The representative of  the Commission  shall  submit  to the Committee  a draft  of  the 
measures  to be  taken.  The  Committee  shall  deliver  its opinion  on  the draft,  within 
a  time  limit  which  the  chairman  may  lay  down  according  to  the  urgency  of  the 
matter.  The opinion  shall  be delivered  by  the majority  laid  down  in  Article  148(2) 
of  the Treaty  in  the case of  decisions  which  the  Council  is  required  to  adopt  on  a 

4  OJ  No  L  5 2,  2 7 . 7 . 1 9 9 2, 
5  OJ  No  L  2 2 9,  1 7 . 8 . 1 9 9 1, 

p . l. 

p . 2 8 8. 

proposal  from  the  Commission.  The  votes  of  the  representatives  of  the  Member 
States within  the Committee  shall be weighted  in the manner  set out in that  Article. 
The chairman  shall  not vote. 

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

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

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

Article 12 

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

It  shall  also  contain  specific,  detailed 

Regular  evaluation  reports  shall  be  submitted  to  the  Committee  mentioned  in  Article 

Article  13 

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

Funding  guidelines  shall  be published  for  organizations  which  intend  to  submit  project 
proposals  under  this  Regulation; 
the  guidelines  will  specify  the  criteria  for  the 
selection  and evaluation  of  projects. 

Article 14 

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

It shall  apply  until  31  December  1999. 

In  1997  the  Commission  will  present  to  the  Council  and  Parliament  an  overall 
evaluation  of  the  actions  funded  by  the  Community  in  the  field  of  tropical  forests 
accompanied  by a proposal  extending  or revising  this Regulation. 

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

Done at  Brussels  ... 

10 

FINANCIAL STATEMENT 

1 

TITLE OF OPERATION 

Operations to promote tropical  forests 

2 

BUDGET HEADING  INVOLVED 

B7-5041 

3 

\A\Al\l;  BASIS 

EC  Treaty,  Articles  130r  and  130s  (concerning  the  environment),  and 
130u and  130w (concerning  development). 

Council  Regulation  (EC) No  .../95 of  ...  on operations  to promote  tropical 
forests  (Commission  proposal  of  26 February  1993,  OJ  No  C  78, 
19.3.1993,  p.8  -  and  of  10 June  1994,  OJ  No  C201,  23.7.1994,  p.15. 
Common  position  adopted  by the Council on 23 January  1995). 

Regulation  scheduled  for  adoption  by the Council  in October  1995. 

4 

DESCRIPTION OF OPERATION 

4.1  General  objective 

Tropical  forests  play a crucial  environmental  role both  globally  (in  terms 
of  biodiversity,  climatic  change  etc.)  and  locally  (in  terms  of  the 
prevention  of  soil  erosion  etc.). 
These  functions  are,  however, 
increasingly  under  threat  from  over-exploitation  of  these  forests  owing 
to  a  multitude  of  factors  (including  demographic  growth,  need  for 
farmland,  logging and  the extraction  of other  resources). 

At  the  Rio  Conference  of  June  1992,  all  participants  committed 
themselves  to  the  conservation  and  sustainable  management  of  forests. 
Through  operations  funded  under  this  budget  heading,  the  Community 
encourages 
local 
countries, 
communities,  in their sustainable development  efforts. 

the  developing 

in  particular 

and 

A4 

4.2 

Period covered 

The Commission's  revised  proposal  covers an  initial  period  of five  years 
(1995-99),  in  so  far  as  this  financial  reference  is  consistent  with  the 
Financial  Perspective ceilings in heading 4. 

5 

CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1 

Non-compulsory  expenditure 

5.2 

Differentiated  appropriations 

6 

TYPE OF EXPENDITURE OR REVENUE 

Grant 

Systematic  efforts  will  be  made  to  seek  contributions,  particularly  in  financial 
form,  from  the beneficiaries.  Cofinancing  will also be sought  from  the Member 
States  or  multilateral,  regional  or  other  organizations;  for  example,  the  largest 
is  a 
tropical 
multilateral  programme  coordinated  by  the  World  Bank  and  financed  by  the 
Community  and various other  donors,  among  them  Germany,  the UK,  France, 
Japan and the USA. 

forest  programme,  which  concerns 

the  Brazilian 

forests, 

In exceptional  cases, the grant  may cover the entire cost of an  operation. 

Interest  subsidy 

None. 

Should  the operation  prove  an  economic  success,  is  there  provision  for  all  or 
part of the Community  contribution  to be reimbursed? 

No. 

7 

FINANCIAL IMPACT 

7.1  Method  of  calculating  total  cost  of  operation  (definition  of  unit 

costs) 

^12-

The  volume  of  funding  has  been  calculated  on  the  basis  of  the  needs 
identified  and  the  principles  of  sound  financial  management,  within  the 
limits  set  by  the  budgetary  authority;  the  cost  of  each  project  is 
calculated  on a case-by-case basis following  identification  and  appraisal. 

Personnel  costs  are  calculated  on  the  basis  of  unit  prices;  equipment, 
operating  and  travel  costs are calculated  according  to  real  costs and  paid 
on presentation  of documentary  proof. 

7.2 

Itemised breakdown  of cost 

Breakdown 
Projects 
Instruments 
TOTAL 

1995 

1996 

1997 

38 
12 
50 

40 
10 
50 

42 
8 
50 

1998 
42 
8 
50 

1999 
42 
8 
50 

TOTAL 
204 
46 
250 

7.3  Indicative schedule of  appropriations 

Commitment 
appropriations 
Payment 
appropriations 

1995 
1996 
1997 
1998 
1999  and  following 
financial  year 
TOTAL 

1995 
50 

1996 
50 

1997 
50 

1998 
50 

(FCU  millions) 
TOTAL 
250 

1999 
50 

30 

^ 

30 

50 

50 

30 

30 

50 

50 

90 

90 

250 

8  FRAUD PREVENTION  MEASURES;  RESULTS OF MEASURES TAKEN 

There will  be regular audits by the Court of  Auditors and  Financial  Control. 
Technical  audits  will  be  conducted  by  Commission  officials  assisted 
independent experts. 

by 

The  verification  of  grants  or  the  receipt  of  the  services,  preparatory,  feasibility 
and  evaluation  studies  ordered  is  performed  by  Commission  officials  before 
payment,  taking  account  of  the  contractual  obligations  and  the  principles  of 
Fraud 
value  for  money 
prevention  measures  (auditing,  reporting  etc.)  are  written  into  agreements  or 
contracts concluded  between  the Commission  and  recipients  of  payment. 

and  sound  financial  or  general  management. 

-H3 

9  ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 

91  Specific and quantified objectives ; 

target population 

Specific  objectives:  relationship to the general  objective 

The  conservation  and  sustainable  management  of  tropical  forests 
involve  measures  to  enhance  operational  capacities,  training, 
research  etc.  Conducted  in close liaison  with  the relevant  national 
and  local  authorities,  these  operations  take  the  form  of  practical 
projects and  the development  of  instruments  designed  to  promote 
conservation  and  sustainable  management  (e.g.  certification  of 
tropical  timber). 

The priorities are: 

- sustainable methods of forest  management; 
- design  and application  of timber certification  systems; 
- actively  involving  the local population; 
- capacity  building  (training,  legislation,  institutions etc.); 
- application  of research  results; 
- the introduction  of buffer  zones and  management plans. 

Target  population 

The  operations  directly  target  communities  living  in  and  around 
forests.  The  direct  beneficiaries  include  not  only  central  and 
regional  government  but  local  authorities,  regional  organizations, 
government  agencies, 
traditional  communities  and 
NGOs. 

local  or 

9.2 

(.rounds  for  the  operation 

Need  for  Community  financial  aid 

Supplementing  measures  by  the  Member  States,  Community 
financial  aid  will  help counter  the threat  to the tropical  forests  by 
supporting  aid  operations  in  support  of  efforts  by  the  developing 
countries. 

Choice of ways and  means 

(a)  This  Regulation  is  a  vital  component  of  the  strategy  on 
tropical  forests  (which  also  includes  the  development  of  trade 
incentives,  investment promotion  and  technology  transfers). 

Ai\ 

(b)  The  operations  are  consistent  with  the  ALA  developing 
countries'  development  programmes  and  the  provisions  of  the 
Lomé Convention. 

(c)  Apart  from  specific  measures  concerning  tropical  forests,  the 
aid  operations  in  question  are  intended  to  act  as  a  catalyst,  in 
particular  through  the  development  of  pilot  and  demonstration 
projects. 

Main  factors  of  uncertainty  which  could  affect  the  specific  results 
of the operation 

The  chief  factor  is  the  late  recognition  of  the  need  to  conserve 
tropical  forests  and  the  developing  countries'  lack  of  operational 
resources. 

<).3  Monitoring  and  evaluation  of  the  operation 

iV 

Performance  indicators  selected 

The principal  indicators  used concern: 

- the surface  area of the tropical  forests  concerned 
- the establishment  of conservation  areas 
-  the  drafting  and  implementation  of  management  plans  and 
operational  capacities 
- grassroots  participation 
- consistency  with  local,  national  and  international  measures. 

Details and  frequency  of planned  evaluations 

Operations are monitored  by the Commission  in close liaison with 
the external  delegations by  means  of: 

- regular reports; 
- field  visits; 
- mid-term  evaluations  in the case of some pilot  projects; 
- ex-post evaluation  reports on representative  projects. 

Assessment of the results obtained 

The  proposed  Regulation  provides  for  the  Commission  to  submit 
an  annual  report  on  its  implementation.  The  Commission  has 
also  undertaken  to  provide  the  Council,  by  the  end  of  this  year, 
with  a  report  on  the  operations  financed  under  heading  B7-5041 
in the period  1992-95 and,  by the end of  1997, with  an evaluation 
of all operating concerning  tropical  forests. 

AC 

10 

ADMINISTRATIVE  EXPENDITURE 

The administrative  resources  needed  will  be allocated  by  the  Commission  in  its 
annual  decision  on  the allocation  of  resources,  taking  particular  account  of  the 
increases  in staffing  and  funding  approved  by the budgetary  authority. 

10.1 

Impact on  staffing 

The  requisite  officials  will  be  drawn  from  the  current  staff  of 
Directorates-General  I and VIII. 

Types  of  job 

Staff  assigned  to  the 
operation's  administration 
Permanent 
Temporary 

A 
B 
C 

Officials  or 
temporary 
staff 
Other  resources 
Total 

2 

2 

1 

1 

Of  whom 

Duration 

From 
recourse  to 
additional 
resources 

5  years 

From 
existing 
resources 
of  DG  or 
service 
concerned 
3 

3 

10.2  Overall  financial  impact  of  increase  in  staffing 

Not applicable 

10.3 

Increase  in other operating  costs  as  a  result 
of  the operation 

in  mission 

The  costs  for  the  initial  five-year  period  total  ECU 215 200  and 
will  be  covered  from  current  resources.  This  sum  consists  of 
ECU  180 000 
expenses  under  Article A/130 
(ECU  12 000  a  year  per  A  official/temporary  agent)  and 
ECU  32 500 
in  meeting  expenses  under  Article A/250  (2 
meetings  of  4  experts  per  year  at  a  cost  of  ECU  880  per  expert 
per meeting). 

AG 

ISSN  0254-1475 

COM(95) 408 final 

DOCUMENTS 

EN 

14  11 

Catalogue number  : CB-CO-95-447-EN-C 

ISBN 92-77-92870-0 

Office for Official Publications of the European Communities 

L-2985 Luxembourg 

^¥