Regulation (EC) No 2494/2000 of the European Parliament and of the Council of 7 November 2000 on measures to promote the conservation and sustainable management of tropical forests and other forests in developing countries
Date: 2000-11-07
Institutions: Council of the European Union, European Parliament
Subjects: EU aid, developing countries, financial aid, forestry policy, sustainable development, tropical forest

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REGULATION (EC) No 2494/2000 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on measures to promote the conservation and sustainable management of tropical forests and
other forests in developing countries

of 7 November 2000

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Articles 175 and 179 thereof,

Having regard to the proposal from the Commission (1),

Having regard to the Opinion of the Economic and Social
Committee (2),

After consulting the Committee of the Regions,

Acting in accordance with the procedure laid down in Article
251 of the Treaty (3), in the light of the joint text approved by
the Conciliation Committee on 27 July 2000.

Whereas:

(1)

(2)

(3)

(4)

(5)

Forests have a variety of
functions and values for
mankind and can contribute to the achievement of
Community development and environment objectives
such as
sustainable
the campaign against poverty,
economic and social development and the protection of
the environment.

In numerous resolutions, the European Parliament has
expressed its concern over the destruction of forests and
the consequences for forest-dependent people, in partic-
ular indigenous peoples.

In reply to the request by the European Parliament in its
Resolution on the European Union's forestry strategy (4)
the Commission has adopted, a Communication ‘Forests
setting out a
and Development:
strategy for Community action on the promotion of the
conservation and sustainable management of forests in
developing countries.

the EC approach’

The objectives of this strategy are to be pursued in the
context of the broader Community aim of promoting
the conservation and sustainable use of forests, in what-
ever geographical area or climate zone they may be
situated.

The Community and its Member States are signatories to
the Rio Declaration and the Agenda 21 action
programme and are committed to the United Nations
General Assembly Special Session (Ungass) resolution
‘Programme for the further implementation of Agenda
21’.

(1) OJ C 87, 29.3.1999, p. 97 andOJ C 248 E, 29.8.2000, p. 97.
(2) OJ C 258, 10.9.1999, p. 13.
(3) Opinion of the European Parliament of 5 May 1999 (OJ C 279,
1.10.1999, p. 184), Council Common Position of 16 December
1999 (OJ C 64, 6.3.2000, p. 55) and Decision of the European
Parliament of 14 March 2000 (not yet published in the Official
Journal). Decision of
the European Parliament of 20 September
2000 and Council Decision of 7 September 2000.

(4) OJ C 55, 24.2.1997, p. 22.

(6)

(7)

(8)

(9)

(10)

(11)

(12)

The Community and its Member States are members of
the World Trade Organisation and parties to Multilateral
Environment Agreements, notably the Convention on
Biological Diversity,
the Framework Convention on
Climate Change and the Convention to Combat Deserti-
fication; They are thus committed to take into account
the common but differentiated responsibilities of devel-
oped parties and developing parties on these subjects.

In its 1997 Special Session, the United Nations General
Assembly has endorsed the proposals for action formu-
lated in the framework of the Intergovernmental Panel
on Forests (IPF). The Community and its Member States
are fully committed to the implementation of
these
proposals.

Council Regulation (EC) No 3062/95 of 20 December
1995 on operations to promote tropical forests (5) set
out the framework for Community assistance in this
area. Regulation (EC) No 3062/95 was applicable until
31 December 1999. The experience acquired during the
implementation of Regulation (EC) No 3062/95 should
be reflected in this Regulation.

In its Resolution of 30 November 1998, the Council
acknowledges the role that indigenous peoples play in
managing the environment, in particular with regard to
the conservation and sustainable use of forests in devel-
oping countries.

The financial instruments available to the Community
for supporting the conservation and sustainable develop-
ment of forests should be supplemented.

Provision should be made for funding the activities
referred to in this Regulation. Considerable financial
resources are necessary for a significant contribution to
the protection of tropical and other forests in developing
countries, where deforestation has led, or threatens to
lead, to environmental disasters such as flooding or air
pollution.

This Regulation lays down, for the entire duration of the
programme it establishes, a financial framework consti-
tuting the prime reference, within the meaning of point
33 of
the Interinstitutional Agreement between the
European Parliament, the Council and the Commission
of 6 May 1999 on budgetary discipline and improve-
ment of the budgetary procedure (6), for the budgetary
authority during the annual budgetary procedure.

(5) OJ L 327, 30.12.1995, p. 9.
(6) OJ C 172, 18.6.1999, p. 1.

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(13) Detailed rules for implementation should be laid down,
in particular the form of action, the cooperation part-
ners and the decision-making procedure.

(14)

The measures necessary for the implementation of this
Regulation should be adopted in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing
powers conferred on the Commission (1),

HAVE ADOPTED THIS REGULATION:

Article 1

The Community shall provide financial assistance and appro-
priate expertise to promote the conservation and sustainable
management of tropical forests and other forests in developing
countries, so as to meet the economic, social and environ-
mental demands placed on forests at local, national and global
levels.

The assistance and expertise provided under this Regulation
shall complement and reinforce that provided through other
instruments of development cooperation.

Article 2

For the purposes of this Regulation:

1.

2.

3.

‘Tropical forests and other forests’, hereinafter referred to as
‘forests’, means natural and semi-natural forest ecosystems,
whether primary or secondary, whether closed or open
forests,

in dry, semi-arid and humid areas.

‘Conservation’ means all activities to preserve and rehabili-
tate forests,
in particular activities designed to protect or
restore the biological diversity and ecological functions of
the forest ecosystem, while securing as far as possible their
current and future value for mankind and in particular for
forest-dependent people.

‘Sustainable forest management’ means the management
and use of forests and wooded lands in a way, and at a rate,
that maintains their biological diversity, productivity, regen-
eration capacity, vitality and their potential to fulfil, now
and in the future, relevant ecological, economic and social
levels, without
local, national, and global
functions, at
causing any damage to other ecosystems.

4.

‘Sustainable development’ means the improvement of the
standard of living and welfare of the relevant populations
within the limits of
the ecosystems by
the capacity of
maintaining natural assets and their biological diversity for
the benefit of present and future generations.

(1) OJ L 184, 17.7.1999, p. 23.

5.

‘Forest-dependent people’ means the indigenous peoples
who inhabit the forest or claim it as their traditional 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

Activities to be carried out under this Regulation shall aim at:

— raising the status of forests in national policies and inte-
grating forest policies based on sustainable forest manage-
ment in development planning;

— promoting the production and use of wood and non-wood
forest products from sustainably managed resources;

— contributing to the adequate valuation of forest resources

and services;

— ensuring active participation of

forest-dependent people
and local communities in the development of national
forest policies and in development planning;

— improving coordination and the flow of

information
between Commission and Member State projects so as to
put in place coherent actions in that area.

Article 4

The activities to be carried out under this Regulation shall

1.
address in particular:

(a) development of appropriate national and international
forest policy frameworks based on realistic valuation of
forests, which include land use planning, equitable trade in
sustainably produced forest products, legal and fiscal meas-
ures, institution building, support to the private sector and
support to self-development of forest-dependent people to
shape their own social, economic and cultural develop-
ment. These shall take into account other sectoral policies
which have an impact on forests and the interests and
customary rights of forest-dependent people;

(b) conservation and restoration of forests which are consid-
ered to be of importance due to their high ecological value,
in particular their value for the preservation of biodiversity,
impacts, such as the
or due to their local and global
protection of hydrographic basins, the prevention of soil
erosion, or of climate change;

forest certification — taking account of

(c) sustainable forest management and utilisation to provide
economic, social and environmental benefits and including,
inter alia,
the
different management conditions for small and large forest
areas — and environmentally sound harvesting of both
wood and non-wood forest products and natural and
assisted forest regeneration;

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(d) economic viability of

forest

sustainable

forest management
through more efficient utilisation of forest products and
technical improvements of downstream activities related to
the
small and medium scale
processing and marketing of wood and nonwood forest
products, the sustainable use of wood as an energy source
and the promotion of alternatives to agricultural practices
based on forest clearing;

such as

sector

(e) knowledge and information generation and management
concerning forest services and products, in order to provide
a sound scientific basis for the activities listed under (a) to
(d).

— Community cooperation objectives as established by the
Commission in jointly agreed country strategy papers.

5.
Activities carried out under this Regulation shall be
impact assess-
preceded by environmental and socio-cultural
ments, including an assessment of the congruence of the envis-
aged operations with the development priorities of the forest-
dependent people and local communities concerned, as well as
analysis of financial and economic feasibility. These activities
shall also be preceded by a transparent exchange of informa-
tion with forest-dependent people and local communities and
be conditional on their support.

2.
Activities eligible for financing shall include pilot projects
in the field, innovative programmes, studies and research, the
results of which will, in addition to their specific objectives,
contribute to the development, adjustment and better imple-
mentation of forestry policies of the Community and of partner
countries.

6.
Activities carried out under this Regulation shall be coor-
dinated with, and may provide support for, national and inter-
national programmes and activities on the conservation and
sustainable management of forests, in particular the proposals
for
for action formulated by the Intergovernmental Panel
Forests/Intergovernmental Forum for Forests (IPF/IFF) process.

3.

Particular attention shall be given to:

— encouraging environmentally

responsible
private entrepreneurship in the forest products processing
and marketing chain, in the context of agreed policies for
private sector development and taking into account existing
social systems and community-based economic activities;

and socially

7. When appropriate, activities shall be carried out within
the framework of regional organisations and international
programmes of cooperation and shall be supportive to the
development of a global policy on the conservation and
sustainable management of forests in which Community policy
can be integrated.

— encouraging the direct participation of cooperation partners
in the developing countries, and at the same time ensuring
an appropriate scale of
interventions and adaptation of
administrative procedures to local management capacity;

— providing prior information and ensuring the participation
of forest-dependent people and local communities in activi-
ties carried out under this Regulation, taking into account
their development priorities and economic, social and
cultural rights, inter alia, through capacity building, in order
to ensure their full participation in all decision-making
processes;

Article 5

Cooperation partners which may receive assistance under this
include international organisations, States,
Regulation shall
regions and regional bodies, decentralised departments, public
agencies, private operators and industries, cooperatives, local
communities, non-governmental organisations and associations
representing local people,
forest-dependent
people.

in particular

— the sustainability of any proposed activity, social, economic

as well as environmental;

Article 6

— proper coordination and information flows between the
Commission and the Member States in order to ensure
coherence of activities in the regions concerned;

— gender-specific roles, knowledge, perspectives and contribu-
tions of women/girls and men/boys in the management and
use of forests.

4.

Priorities shall be determined in accordance with:

1.
Community financing may cover studies, technical assis-
tance, education, training or other services, supplies and works,
small grant funds as well as appraisals, audits and evaluation
and monitoring missions. It may cover, within the limit estab-
lished annually by the budgetary authority,
technical and
administrative assistance costs, to the benefit of the Commis-
sion and the beneficiary, related to operations other than the
permanent tasks of the public administration,
linked to the
identification, preparation, management, monitoring, auditing
and control of programmes or projects.

— the needs of each country as reflected in regional and
national development and environment policies relating to
forests, considering national forest plans and local needs,
and

Community financing may cover both investment, linked to a
specific activity, with the exception of the purchase of real
estate, and recurrent expenditure (including administrative,
maintenance and operating expenditure).

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training, education and research
With the exception of
programmes, recurrent expenditure may normally be covered
only during the start-up phase and on a gradually decreasing
basis.

A contribution from the cooperation partners defined in
2.
Article 5 shall be sought for each cooperation activity. Their
contribution shall be requested according to their means and
the nature of the activity concerned.

3.
Opportunities may be sought for cofinancing with other
donors, especially with Member States and the international
organisations concerned. In this respect, coordination with the
measures taken by other donors shall be sought.

4.
The necessary measures shall be taken to emphasise the
Community character of the assistance provided under this
Regulation.

5.
In order to attain the objectives of consistency and
complementarity laid down in the Treaty and with the aim of
guaranteeing optimum efficiency for all these activities, the
Commission shall, in liaison with Member States, take all coor-
dination measures necessary,

including in particular:

(a) the systematic exchange and analysis of information on
activities financed or being considered for financing by the
Community and the Member States;

(b) on-the-spot coordination of these activities by means of
regular meetings and of information between representa-
tives of the Commission and of the Member States in the
beneficiary countries.

6.
In order to obtain the greatest possible impact of the
activities at global, national and local levels, the Commission,
in liaison with the Member States, shall take any initiative
necessary for ensuring proper coordination and close collab-
oration, especially regarding the exchange of information, with
the cooperation partners, donors and other
international
organisations involved, in particular those forming part of the
United Nations system.

Article 7

Financial assistance under this Regulation shall take the form of
grants.

Article 8

The financial
framework for implementing this Regulation
during the period from 2000 to 2006 shall be EUR 249
million.

The annual appropriations shall be authorised by the budgetary
authority within the limits of the financial perspective.

Financial Regulation applicable to the general budget of the
European Communities.

Every second year,

the Commission shall adopt,

2.
in
accordance with the procedure laid down in Article 10(2),
strategic guidelines and priorities for implementing the activi-
ties to be carried out in the following years. It shall inform the
European Parliament thereof.

Decisions relating to grants of EUR 3,5 million or more
3.
for individual activities financed under this Regulation shall be
adopted by the Commission in accordance with the procedure
laid down in Article 10(2).

The Commission shall inform the Committee referred to
4.
in Article 10(1) succinctly of any financing decisions it intends
to take with regard to grants of less than EUR 3,5 million for
activities covered by this Regulation. The information shall be
made available not later than one week before the decision is
taken.

5.
The Commission shall be authorised to approve any extra
commitments needed for covering any expected or real cost
overruns or additional requirements in connection with the
activities, provided that the overrun or additional requirement
is less than or equal to 20 % of the initial commitment fixed by
the financing decision.

6.
All financing agreements or contracts concluded under
this Regulation shall provide for the Commission and the Court
of Auditors to conduct on-the-spot checks in accordance with
the usual procedures laid down by the Commission under the
rules in force, in particular those of the Financial Regulation
applicable to the general budget of the European Communities.

7. Where operations are the subject of financing agreements
between the Community and the recipient country, such agree-
ments shall stipulate that the payment of taxes, duties or any
other charges is not to be covered by the Community.

8.
Participation in invitations to tender and the award of
contracts shall be open on equal terms to all natural and legal
persons of the Member States and of the recipient country. It
may be extended to other developing countries and, in excep-
tional cases which are fully justified, to other third countries.

9.
Supplies shall originate in the Member States, the reci-
pient country or other developing countries. In exceptional
cases, where circumstances warrant, supplies may originate in
other countries.

10.

Particular attention shall be given to:

— the pursuit of cost-effectiveness and sustainable impact of

activities,

— the clear definition and monitoring of objectives and indi-

cators of achievement for all activities.

Article 9

Article 10

1.
The Commission shall be responsible for appraising,
taking decisions to finance and administering activities covered
by this Regulation according to the budgetary and other
procedures in force, and in particular those laid down in the

1.
The Commission shall be assisted by the appropriate
geographically-determined committee responsible for develop-
ment, hereinafter referred to as the ‘Committee’.

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2. Where reference is made to this paragraph, Articles 4 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

summary of the evaluations made. The evaluation reports shall
be available to any Member State, to the European Parliament
and to other interested parties.

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

3.

The Committee shall adopt its rules of procedure.

Article 11

By 1 September after each budget year, the Commission
1.
shall submit an annual report to the European Parliament and
the Council, summarising the activities financed in the course
of that year and evaluating the implementation of this Regula-
tion over that period.

The summary shall in particular provide information about the
number and nature of the activities financed, the cooperation
partners and the countries concerned. The report shall also
indicate the number of external evaluations carried out
regarding specific activities.

evaluate

regularly

The Commission shall

2.
activities
financed by the Community with a view to establishing
whether the objectives aimed at by those activities have been
achieved and to providing guidelines for improving the effec-
take into
future activities. The evaluations will
tiveness of
account
including forest-
dependent people and local communities. The Commission
shall submit to the Committee referred to in Article 10(1) a

the beneficiaries,

the views of

3.
The Commission shall inform the Member States, at the
latest one month after its decision, of the activities that have
been approved, stating their cost and nature,
the country
concerned and the cooperation partners.

4.
A financing guide specifying the guidelines and criteria
applicable to the selection of activities shall be published and
communicated to the interested parties by the Commission
services,
including Commission delegations in the countries
concerned.

Article 12

1.
This Regulation shall enter into force on the third day
following that of its publication in the Official Journal of the
European Communities.

It shall apply until 31 December 2006.

2.
Four years after the entry into force of this Regulation the
Commission shall submit to the European Parliament and to
the Council an overall evaluation of the activities financed by
the Community under this Regulation, in the context of overall
Community development cooperation, together with proposals
concerning the future of this Regulation, including its possible
modification or termination.

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

Done at Brussels, 7 November 2000.

For the European Parliament

The President

N. FONTAINE

For the Council

The President

L. FABIUS