Commission working document - Integrating environmental considerations into other policy areas- a stocktaking of the Cardiff process
Date: 2004-06-01
Institutions: European Commission
Subjects: EU environmental policy, economic and social cohesion, environmental policy, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 01.06.2004 
COM(2004) 394 final 

COMMISSION WORKING DOCUMENT 

Integrating environmental considerations into other policy areas- a stocktaking of the 
Cardiff process 

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1. 

INTRODUCTION 

This  stocktaking  of  environmental  integration  follows  from  the  2003  Spring  European 
Council, which noted “the Commission’s intention to carry out an annual stocktaking of the 
Cardiff  process  of  environmental  integration  process  and  a  regular  environment  policy 
review and to report in time for the outcomes of these exercises to be taken into account in the 
preparation of its future Spring reports, starting in 2004” .1 The stocktaking complements the 
2003 Environment Policy Review 2 (EPR) adopted in December 2003, and should be read in 
the context of the information presented in the 2003 EPR. 

The principle of environmental integration recognises that environmental policy alone cannot 
achieve  the  environmental  improvements  needed  as  part  of  sustainable  development.  The 
changes  required  to  reduce  environmental  pressures  of  high  concern  from  fisheries, 
agriculture,  transport,  energy  and  other  areas  so  as  to  achieve  sustainable  development,  can 
only be achieved through a process of environmental integration in these sectors.3 

At EU level the importance of environmental integration is recognised in Article 6 of the EC 
Treaty, which stipulates that “environmental protection requirements must be integrated into 
the definition and implementation of the Community policies […] in particular with a view to 
promoting  sustainable  development”.4  Environmental  integration  was  given  an  institutional 
impetus  in  1998  with  the  launch  by  the  European  Council  of  the  so-called  Cardiff  process 
requesting different Council formations to develop strategies to this effect. 

The EU Sustainable Development Strategy (EU SDS), adopted in Gothenburg in 2001, went a 
step  further,  requiring  the  pursuit  of  both  priority  environmental  goals  and  environmental 
integration  alongside  economic  and  social  objectives.  The  Strategy  provides  a  long-term 
vision  that  involves  combining  a  dynamic  economy  with  social  cohesion  and  high 
environmental  standards.  This  requires  a  renewed  emphasis  on  policy  coherence  and 
integration,  as  emphasised  in  the  2001  European  Council  conclusions  adopting  the  EU’s 
Sustainable Development Strategy, which invited the Council “to finalise and further develop 
sector strategies for integrating environment into all relevant Community policy areas with a 
view to implementing them as soon as possible”, and in doing this that “Relevant objectives 
set  out  in  the  forthcoming  sixth  environment  action  programme  and  the  sustainable 
development strategy should be taken into account”. 

At  the  EU  level,  the  more  holistic,  long-term  approach  of  the  sectoral  environmental 
integration strategies is complemented by the  extended impact assessment tool designed for 
use when proposing individual policy measures or initiatives5. Both of these are instruments 
that are key to striking the right balance between the three pillars of sustainable development, 
and thus to achieving a higher level of environmental integration. 

1 
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3 
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5 

Paragraph 58, Presidency Conclusions, Brussels European Council, 20-21 March 2003. 
COM(2003)745, 3 December 2003. 
See box below.  
The  importance  of  integration  was  reaffirmed  in  the  draft  constitutional  treaty  proposed  by  the 
Convention  on  the  Future  of  Europe  on  18  July  2003  (articles  II-37  and  III-4).  –  see  
http://european-convention.eu.int/DraftTreaty.asp?lang=EN 
Environmental  Impact  Assessment  (EIA)  and  Strategic  Environmental  Assessment  (SEA)  are  other 
tools  to  promote  environmental  integration  at  national  or  regional  level  (for  projects  and  plans  and 
programmes). 

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The processes set in place over the past few years have led to environmental improvements in 
several  sectors.  However,  the  pace  of  progress  towards  further  environmental  integration 
would be boosted if all sectors implemented commitments made over the past five years. This 
will  be  a  difficult  process:  as  many  of  the  ‘low  hanging  fruits’  of  integration  have  already 
been  picked,  future  efforts  to  reverse  persisting  unsustainable  trends  will  need  to  focus 
increasingly  on  structural  reforms,  which  may  generate  tensions  with  established  interest 
groups in the sectors concerned. In addition, action at national level is needed to deliver on 
the  commitments  made  at  the  Union  level,  as  in  many  areas  Community  competence  is 
limited. 

The stocktaking first sets out the framework for environmental integration at EU level since 
the launch of the Cardiff process in 1998. It then presents a synthesised review of the status of 
environmental  integration  in  the  sectors,  which  have  been  requested  to  develop  integration 
strategies. It finally draws conclusions as to how to take environmental integration forward at 
EU  level.  These  highlight  priority  actions  to  push  forward  with  the  implementation  of  the 
Cardiff  process,  and  to  support  it  with  complementary  actions  at  national  and  community 
levels,  notably  by  adapting  and  building  on  existing  environmental  policy  approaches  and 
seeking win-win solutions. 

2. 

EU FRAMEWORK FOR ENVIRONMENTAL INTEGRATION  

Following  the  inclusion  of  a  new  integration  clause,  in  the  Amsterdam  Treaty  in  1997,  the 
Luxembourg European Council (December 1997) “stressed its conviction that environmental 
protection  requirements  must  be  integrated  into  the  Community's  policies  and  activities,  in 
particular with a view to promoting sustainable development” and requested the Commission 
to “to submit a strategy to it, before its June 1998 meeting, for achieving that goal.”6 

The Commission Communication ‘Partnership for Integration’7 responded to this request by 
highlighting  actions  needed  to  translate  article  6  into  concrete  results  for  environmental 
integration. Key guidelines included: 

•  The  Commission’s  commitment  to  ensuring  that  its  key  policy  initiatives  integrate 
environmental  concerns  through  the  introduction  of  a  detailed  environmental  assessment 
mechanism. 

•  The  Commission’s  commitment  to  undertaking  reviews  of  EU  policies  and  preparing 
strategies  for  action  in  key  sectors,  including  identification  of  policy  and  performance 
indicators and indicative targets. 

•  The  call  for  the  identification  by  the  Council  of  a  set  of  priority  actions  for  the 
incorporation of environmental requirements, and of effective mechanisms for monitoring 
strategy implementation. 

•  The  call  for  European  Council  periodical  reviews  of  environmental  integration  into  key 

sectoral policies. 

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7 

See  paragraph  56  of  the  Presidency  Conclusions  to  the  Luxembourg  European  Council  (12-13 
December 1997). 
COM(98)333, 27 June 1998. 

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Five  years  on,  important  progress  has  been  made  to  give  substance  to  the  above  guidelines 
and in turn achieve further environmental integration, including the following milestones: 

•  The launch of the Cardiff process in 1998. The European Council took a significant step 
to  give  practical  application  to  Article  6  by  requesting  different  Council  formations  to 
prepare strategies and programmes aimed at integrating environmental considerations into 
their  policy  areas,  starting  with  energy,  transport  and  agriculture.  The  process  now 
embraces nine sectors (in addition to the transport, agriculture and energy sectors, Cardiff 
covers industry, internal market, development, fisheries, General Affairs and economic and 
financial affairs), all of which have adopted integration strategies. 

•  In  1999,  the  Helsinki  European  Council  provided  further  clarifications  as  to  the 
implementation  of  environmental  integration  strategies.  It  stated  that  “the  completion 
of  sectoral  strategies  should  be  followed  by  their  immediate  implementation.  Regular 
evaluation,  follow-up  and  monitoring  must  be  undertaken  so  that  the  strategies  can  be 
adjusted  and  deepened.  The  Commission  and  the  Council  are  expected  to  develop 
adequate instruments and applicable data for these purposes”.8 

•  2001 marked a turning point in the process of environmental integration with the adoption 
by  the  Gothenburg European Council of  an EU Sustainable Development Strategy and 
the addition of a third, environmental, pillar, to the Lisbon Strategy. Economic growth and 
social cohesion now need to be promoted alongside environmental protection. In this new 
policy context, the European Council invited the Council “to finalise and further develop 
sector strategies for integrating environment into all relevant Community policy areas with 
a  view  to  implementing  them  as  soon  as  possible  […].  Relevant  objectives  set  out  in  the 
forthcoming  6th  EAP  and  the  Sustainable  Development  Strategy  should  be  taken  into 
account”.9 The sectoral integration strategies developed under the Cardiff are therefore one 
of  the  means  of  implementing  environmental  objectives  of  the  Sustainable  Development 
Strategy. 

•  As  part  of  the  implementation  of  the  EU  sustainable  development  strategy,  a  unified 
system for ex-ante impact assessment of all major policy proposals was introduced in the 
Commission  in  2002,10  starting  with  a  pilot  phase  in  2003  covering  43  policy  proposals. 
This scheme will allow informed trade-offs to be made on a case by case basis, based upon 
sound  analysis  of  economic,  social  and  environmental  effects  when  adopting  new  policy 
proposals.  It  is  an  essential  complement  to  the  more  holistic  approach  of  the  sectoral 
strategies. 

•  In  September  2002,  the  entry  into  force  of  Commission’s  6th  Environment  Action 
Programme11  (6th  EAP)  put  renewed  emphasis  on  the  importance  of  environmental 
integration.  The  development  under  the  6th  EAP  of  thematic  strategies  on  key 
environmental  issues  is  an  opportunity,  which  will  foster  integration  as  the  strategies  are 
cross-cutting and require joint action from a wide array of policy sectors.  

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Paragraph 47, Presidency Conclusions to the Helsinki European Council Conclusions (10-11 December 
1999). 
Paragraph 32, Presidency Conclusions to the Gothenburg European Council (15-16 June 2001). 
Commission Communication on Impact Assessment, COM(2002)276 final, 5 June 2002. 
Decision 1600/2002/EC of the European Parliament and of the Council laying down the 6th Community 
Environment Action Programme, OJ L 242, 10 September 2002. 

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•  In October 2002, the Environment Council called upon the European Council “to invite the 
Council  formations  responsible  for  education,  health,  consumer  affairs,  tourism, 
research,  employment  and  social  policies  to  develop  strategies  to  promote  sustainable 
development  by  integrating  environmental  considerations  into  their  existing  policies  and 
action.”12 

•  As of 2003, most current and new EU Member States had developed national sustainable 
development strategies, many of which address the issue of environmental integration and 
policy coherence.  

ENVIRONMENTAL PRESSURES IN KEY INTEGRATION SECTORS 

The  following  provides  an  illustration  of  the  challenges  to  be  tackled  through  environmental 
integration,  with  a  review  of  some  of  the  most  acute  environmental  pressures  in  key  integration 
sectors. These pressures have been identified and action is being taken by the EU to address 
these as described in section 3. In many cases, this action is too recent for its full benefits yet 
to be felt13.However, given the particular severity of some environmental trends, further environmental 
integration efforts will need to be steadily pursued at EU and national levels. 

Fisheries:  Humans  impact  on  the  marine  environment  through  fishing  but  also  through  man-
generated climate change, discharges of pollutants and nutrients and a variety of uses of the sea bed 
such  as  aggregate  extraction  and  oil  extraction.  Fish  stocks  themselves  are  also  subject  to  cyclical 
variations.  Despite  these  facts,  continued  over-fishing  has  been  mostly  responsible  for  spawning 
stocks and landings have been halved over the last 25 years, despite efforts to address the problem. 
40% of all EU catches are taken from stocks that are considered to be below safe biological limits. For 
certain  types  of  fish, notably  demersal  and  diadromous  fish,  the percentage  is  as  high  as 60%.  The 
situation for certain species, such as cod and hake, is even more acute. However, the situation is not 
bad for all stocks. Pelagic stocks have increased over the last two decades, as have stocks of shrimps 
and  Norway  lobster.  The  recovery  of  the  pelagic  species  such  as  the  North  Sea  herring  following  a 
collapse  in  stocks  in  the  1970’s  demonstrates  the  potential  for  stock  recovery  if  the  right  action  is 
taken. The latest report from the International Council for the Exploration of the Sea (ICES) in October 
2003  confirms  the  need  for  recovery  measures  to  ensure  the  rebuilding  of  a  number  of  stocks.14  In 
view of this situation, numerous measures have been taken, and most recently, the December 2003 
Fisheries Council agreed recovery plans for a number of species, as well as, for the first time since the 
launch of the Common Fisheries Policy in 1983, multiannual management plans. 

Transport: Transport is crucial for the EU’s economic competitiveness and for commercial, economic 
and  cultural  exchanges.  As  economic  activity  and  incomes  increase,  there  has  been  a  trend  for 
increased  transport  demand,  particular  for  road  transport  and  aviation.  Considerable  advances  have 
been  achieved  in  vehicle  and  fuel  technology  resulting  in  reductions  in  local  air  pollutants.  However 

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Paragraph  9,  Environment  Council  Conclusions  on  putting  into  practice  the  European  Union 
Sustainable Development Strategy and the environmental dimension of the Johannesburg commitments 
(Brussels, 17 October 2002). 
For example in the transport sector, measures to encourage modal shift from road and air transport to 
the more environmentally friendly modes of rail and waterway transport, the biofuels directive with a 
target  of  5.75%  market  share  of  motor  fuels  by  2010,  the  proposal  for  a  modification  of  the 
Eurovignette  directive,  and  fuel  taxation,  with  lower  minimum  tax  rates  for  fuels  with  lower  CO2 
emissions. 
Including cod in the North Sea, Skagerrak, Eastern Channel, Irish Sea and West of Scotland for which 
ICES advises zero catch. ICES’s advice is the same for whiting in the Irish Sea. In the case of hake 
from Ireland down to Portugal, ICES recommends rebuilding plans and zero catch for the southern hake 
stock. Plans to allow stocks to recover are also recommended for plaice in the North Sea, cod and plaice 
in the Celtic Sea and sole in the Western Channel and Bay of Biscay. See International Council for the 
Exploration of the Sea Report on cod and other fish stocks in the northeast Atlantic (24 October 2003). 
– http://www.ices.dk/committee/acfm/comwork/report/asp/acfmrep.asp) 

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fuel  efficiency  gains  have  so  far  been  more  than  offset  by  the  growth  in  both  passenger  and  freight 
transport, resulting in a net increase in greenhouse gas emissions (The International Climate Change 
Partnership  database,  European  Environment  Agency  -  EEA).  Emissions  of  greenhouse  gases  from 
the  transport  sector,  principally  CO2,  grew  by  20%  in  the  EU  between  1990  and  2000  to  represent 
21% of total EU greenhouse gas emissions, neutralising the improvements made in other sectors. At a 
local  level,  significant  problems  remain,  in  particular  congestion,  noise  pollution  and  particulate 
emissions from the use of diesel.  

Agriculture: Half of the EU’s land is farmed - this alone makes farming important for the EU’s natural 
environment.  Farming  has  contributed  over  the  centuries  to  creating  and  maintaining  a  variety  of 
valuable semi-natural habitats. Today these shape the majority of the EU’s landscapes and are home 
to  some  of  the  EU’s  richest  wildlife.  The  links  between  the  richness  of  the  natural  environment  and 
farming practices are complex. While many valuable habitats in Europe are maintained by extensive 
farming, and a wide range of wild species rely on this for their survival, agricultural practices can also 
have an adverse impact on natural resources. Pollution of soil, water and air, fragmentation of habitats 
and  loss  of  wildlife  can  be  the  result  of  inappropriate  agricultural  practices  and  land  use.  In  recent 
years there has been increasing concern about the effects of intensive agricultural production methods 
on both human health and the environment. Agriculture continues to account for about 10% of total EU 
greenhouse  emissions  mainly  through  methane  and  nitrous  oxide  emissions,  despite  a  reduction  of 
6.4% over the period 1990-2000. In addition, the increased use of pesticides and fertilisers has led to 
environmental  degradation.  The  general  trends  in  nitrate  concentrations  in  EU  waters  may  serve  as 
example.  Agricultural  activities  are  not  the  only  activities  contributing  to  water  pollution,  but  they  are 
responsible for a significant part of it. Overall, levels of nitrate concentrations in groundwater remain 
very high, with about 40 % of the EU area in a concerning situation (in 2001). EU policies, and notably 
the  Common  Agricultural  Policy  (CAP),  are  therefore  increasingly  aimed  at  heading  off  the  risks  of 
environmental degradation, while encouraging farmers to play a positive role in the maintenance of the 
countryside and the environment. 

Energy: In 2000, the energy sector continued to be the largest contributor to total EU greenhouse gas 
emissions,  accounting  for  27%  of  total  EU  (15)  emissions15.  The  EU’s  energy  intensity  improved 
between  1985  and  2000  decreasing  by  on  average  just  over  1%  per  annum,  demonstrating 
possibilities for a relative decoupling of energy use from economic growth. Further efforts are needed 
to  improve  on  current  trends.  Both  renewable  energy  and  energy  efficiency  offer  opportunities  for 
reducing  environmental  pressures,  but  projections  are  not  encouraging.  For  example,  the  share  of 
renewables is for the time being not rising fast enough to meet EU targets. While the EU’s total inland 
energy consumption has increased steadily, at approximately 1% per year, since 1985, the share of 
renewable  energy  remains  low  at  around  6%  (2001).  Member  States  are  currently  implementing 
policies  to  promote  energy  from  renewable  energy  sources,  under  the  renewable  electricity  and 
biofuels  directives.  Although  it  may  be  a  little  too  early  to  draw  firm  conclusions,  it  seems  likely  that 
stronger  efforts  will  be  needed.  Good  implementation  of  measures  already  adopted  is  of  utmost 
importance.  Latest  projections  from  the  EEA  indicate  that,  unless  additional  policy  measures  are 
taken, the EU will fail to meet its indicative target of 12% by 2010. It seems also unlikely that the EU 
will  be  able  to  meet  its  indicative  target  of  generating  22%  of  gross  electricity  consumption  from 
renewables by 2010. In terms of energy efficiency, the full cost-effective potential for energy savings, 
estimated at around 18% of current energy consumption, still has to be realised. According the ‘World 
Energy,  Technology  and  Climate  Policy  Outlook’  published  by  the  European  Commission  in  May 
200316, under a business as usual scenario (that does not include recent EU climate change policies) 
the world’s energy consumption will have doubled by 2030; fossil fuels – oil – will continue to dominate 
as  energy  sources  and  carbon  dioxide  emissions  will  be  nearly  twice  those  recorded  in  1990. 
Alternative  scenarios  based  on  a  strong  development  of  renewable  energy  and  energy  efficiency 
demonstrate that cost-effective solutions are possible with the right policy input. 

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16 

The energy sector refers to coal mining, oil and gas extraction, refineries, electricity generation etc, as 
opposed to energy use in industry, transport, households and so on 
The ‘World Energy, Technology and Climate Policy Outlook’ (WETO) published by the European 
Commission on 12 May 2003 was produced by a consortium of EU research teams, including 
ENERDATA and CNRS-IEPE from France, Bureau Fédéral du Plan in Belgium and the Commission 
Joint Research Centre’s facility in Seville, Spain. – see 
http://194.185.30.69/energysite/gp/gp_pubs_en.html 

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Industry: Measures to integrate environmental considerations into industrial activities have resulted in 
substantial positive achievements. These efforts contributed to an overall reduction of carbon dioxide 
emissions  from  EU  manufacturing  of  over  11%  in  the  period  1985  to  2000.  At  the  same  time 
manufacturing  production  rose  by  31%  over  the  same  period.  An  absolute  decoupling  of  production 
from emissions of acidifying gases and ozone precursors has also occurred, while there has been a 
relative  decoupling  of  production  from  energy  and  raw  material  use17.  However,  despite  major 
improvements  in  industry  over  the  last  decades  with  regard  to  several  major  polluting  substances, 
industrial production processes still account for a considerable share of the overall pollution in Europe. 
Industry represents 21% of total EU greenhouse gas emissions and is a major source of pollution (for 
example heavy metals, volatile organic compounds, nutrients). 

3. 

SECTORAL ASSESSMENT 

This  section  looks  at  the  nine  sectors  covered  so  far  by  the  Cardiff  process:  agriculture, 
energy,  transport,  development  co-operation,  industry,  internal  market,  fisheries,  economic 
and financial affairs and trade and foreign policy.18 

The assessment below is presented so as to reflect the order in which sectoral councils were 
invited  to  develop  integration  strategies.  When  they  launched  the  Cardiff  process  at  their 
meeting in June 1998, the EU heads of state and government invited three sectors -agriculture, 
transport  and  energy-  to  start  the  process.  Further  sectors  were  invited  to  do  the  same  at 
following  European  Council  meetings:  development,  industry  and  internal  market  in 
December  1998  and  fisheries,  economic  and  financial  affairs  and  trade  and  foreign  policy 
(general affairs) in June 1999. 

The starting point of this sectoral assessment is strategy implementation rather than strategy 
formulation  or  contents.19  Environmental  integration  strategies  must  be  assessed  on  their 
capacity to deliver on the commitments and/ or objectives set.  

For each of the nine sectors, the assessment considers the actions that have been taken to date, 
pointing  to  the  most  recent  policy  developments  and  highlighting  the  challenges  and 
opportunities for environmental integration in the year to come. Efforts taken to take forward 
environmental integration are assessed according to priority objectives (see tables under each 
sector  heading).  These  objectives  are  drawn  from  commitments  made  in  the  respective 
Council  integration  strategies,  which  have  been  complemented  by  commitments  made 
subsequently,  notably  in  the  EU  6th  Environment  Action  Programme,  the  EU  Sustainable 
Development Strategy and the Plan of Implementation of the Johannesburg World Summit on 
Sustainable  Development.  They  are  overarching,  selective  objectives  against  which 
integration  efforts  to  date,  which  sometimes  go  beyond  the  commitments  made  in  original 
strategies, can be assessed. 

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19 

See Chapter 5 of the European Competitiveness Report 2002 
It should be noted that actions are taken to promote the integration of environmental concerns into other 
policy areas, for example through the EU’s research programmes. The 6th Framework Programme has a 
thematic priority on sustainable development, global change and ecosystems, focusing on environment 
as well as transport and energy, with some actions highlighted in the tables below. The total budget for 
this theme over four years is €2.12 billion. 
The latter were addressed in several studies commissioned by Member States in 2001. 

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3.1. 

Agriculture 

Status 

Political commitments 

15 November 1999 

Agriculture integration strategy adoption in Council 

24 April 2001 

Council Conclusions on Agriculture Integration 

10 July 2002 

Commission Proposals on the mid-term review of the Common Agricultural Policy (CAP) 

June 2003 

Agreement of the Council of Agricultural Ministers on CAP Reform 

By end 2003 

Deadline by which a review of the integration strategy should have taken place 

Priority objectives of environmental 
integration 

Progress to date 

Commission 

Commission and Council/ 
Parliament 

Reduce health and environment risks from 
agriculture (source: 1999 Integration Strategy, EU 
SDS20, 6th EAP) 

Commission Proposal COM 
(2002) 394 for complete 
decoupling of support from 
production by 2005 and 
more comprehensive 
requirements for cross- 
compliance and mandatory 
farm advisory services for 
farmers linked to cross-
compliance.  

The Council Regulation 
1782/2003 introduces a 
single farm payment (SFP) 
decoupled from production 
from 2005 (and at the latest 
2007). The SFP and other 
direct aids will be granted 
subject to compliance with 
environmental and other 
standards and good 
agricultural and 
environmental conditions 
(cross –compliance). 

Council Regulation 
1783/2003 increases the 
emphasis of rural 
development policy on 
environment, with greater co-
financing for agri-
environment measures, 
support for farm advisory 
services (voluntary for 
farmers).  

The second package of 
reform of Common Market 
Organisations decided on by 
Council on 22nd April 2004 
(tobacco, olive oil, cotton and 
hops) confirms the change of 
direction taken in the 2003 
reform of the CAP by 
decoupling support from the 
production of the sectors 
concerned. 

20 

EU Sustainable Development Strategy, adopted by European Council, Gothenburg 2001 

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Cross-compliance 
requirements under 
Regulation 1783/03 include 
respect for the Wild Birds 
and Habitats Directives and 
measures to maintain 
habitats and landscapes. 
Article 16 allows increased 
support levels for agricultural 
practices and management 
compatible with the 
protection of biodiversity in 
Natura 2000 sites.  

Energy crop premium 
introduced. Maintenance of 
possibility to grow non-food 
crops on set-aside land.  

Decoupling of agricultural 
support under Regulation 
1782/03 is expected to lead 
to more sustainable use of 
water resources 

Better protect nature/landscape and biodiversity 
(source: 1999 Integration Strategy, EU SDS, 6th 
EAP, Plan of Implementation of the 
Johannesburg WSSD) 

Commitment to use new 
Rural Development 
Programme funds to finance 
management of Natura 2000 
sites. 

Reduce agriculture’s greenhouse gas emissions 
(source: 1999 Integration Strategy, EU SDS, 6th 
EAP) 

Sustainable use of natural resources- including 
improved use of water resources (source: 1999 
Integration Strategy, EU SDS, 6th EAP) 

Develop agri-environment indicators to monitor 
progress (Source: 1999 Integration Strategy, 6th 
EAP) 

The IRENA21 project will 
develop 35 agri-
environmental indicators to 
assess the extent of 
environmental integration 
into the Common Agricultural 
Policy. The 35 indicator fact 
sheets and two reports will 
be presented by end of 
2004.  

Challenges and opportunities ahead for environmental integration 

The  2003  reform  of  the  CAP  represents  a  significant  step  forward  in  further  integrating 
environmental concerns, with on the one hand measures that integrate environmental concerns 
into agricultural market and income policy and on the other targeted environmental measures 
in  rural  development  programmes.  The  next  step  is  to  use  the  new  and  extended  policy 
instruments now available to Member States in the best possible way to concretely improve 
the  environmental  performance  of  agriculture.  For  example,  the  implementation  of  cross 
compliance  standards  will  encourage  farmers  to  adapt  their  practices  to  environmental 
requirements.  The  farm  advisory  service  will  be  an  important  tool  for  improving  the 
application of standards and use of good practice in the production process.  

Other opportunities for environmental integration include: 

•  The  mid-term  evaluation  of  rural  development  policy  and  the  discussion  on  the  new 
programming period 2007-2013 is an opportunity to further strengthen the contribution of 
rural development to environmental policy objectives in the context of the 6th EAP and the 
Johannesburg  Plan  of  Implementation,  in  particular  as  regards  climate  change  and  the 

21 

Indicator Report on the integration of Environmental concerns into the Agricultural policy 

EN 

9 

   EN 

 
 
 
 
 
                                                 
protection  of  Natura  2000  sites  and  other  environmental  issues.  In  this  context,  the 
Commission  Communication  “Building  our  common  future”  (COM  (101))  indicates  that 
future rural development policy will focus on competitiveness, enhancing the environment 
and countryside, including NATURA 2000, and quality of life in rural areas.  

•  The  Thematic  Strategies  on  Sustainable  use  of  pesticides  and  Soils  foreseen  for  2004 
and 2005 are intended, respectively, to reduce the impacts of pesticides on human health 
and the environment and, more generally to achieve a more sustainable use of pesticides, 
and  to  promote  sustainable  soil  use,  focusing  in  particular  on  preventing  erosion, 
deterioration, contamination and desertification. One way of achieving these objectives is 
to further adapt farming practices. 

•  The  Commission  Communication  to  the  European  Parliament  and  to  the  Council  on  a 
Community Action Plan to stimulate organic farming will be presented in the first half of 
2004. 

EN 

10 

   EN 

 
3.2. 

Transport 

Status 

Political commitments 

6 October 1999 

Transport integration strategy adopted in Council 

21 March 2001 

Commission review of Transport Council’s integration strategy 

4-5 April 2001 

Council Resolution on integration of environmental concerns into transport policy 

12 September 2001 

Commission White Paper on Transport Policy 

6 December 2002 

Council Conclusions on the integration of environment and sustainable development into 
transport  policy  –  reaffirming  commitment  to  implement  the  operational  part  of  the 
strategy by the end of 2004 and to regularly review it 

Priority objectives of environmental 
integration 

Progress to date 

Shifting the balance between modes of transport 
(source: 1999 Integration Strategy, EU SDS, 
White Paper on Transport Policy, 6th EAP) 

Commission 

Commission and Council/ 
Parliament 

Steps taken to ensure 
interoperability and 
compatibility between 
national railway systems, 
and to develop interface with 
other transport modes - 
package of technical 
specifications adopted in 
2002 

Commission proposal on 
Intermodal Loading Units, 
April 2003 COM (2003) 155 

Commission programme for 
the promotion of short sea 
shipping April 2003. COM 
(2003) 155 

Amended proposal for a 
regulation on action by 
Member States on public 
service requirements and the 
award of public service 
contracts for passenger 
transport by rail, road and 
inland waterway, COM 
(2002) 107 

3rd railway package 
containing measures to 
revitalise the European 
railways. The package 
consists of a 
Communication, four 
legislative measures and a 
Working Document on the 
extended impact assessment 
for the gradual opening up of 

Second railway package 
adopted on April 2004 that 
includes: 

–  Steps taken to reform 

and liberalise the railway 
sector to boost its 
competitiveness and stop 
decline in its use- 
package (amendment of 
Directive 1991/440) 

–  Steps taken to ensure 
interoperability and 
compatibility between 
national railway systems, 
and to develop interface 
with other transport 
modes-(amendment of 
Directives 96/48/EC and 
2001/16/EC) 

–  Regulation establishing a 

European Railway 
Agency 

–  Safety Directive 
(COM(2002)21) 

Revision amending decision 
1692/96/EC on Community 
guidelines for the 
development of the trans-
European transport network 
adopted in April 2004 

Marco Polo support 
programme for intermodal 

EN 

11 

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Fair and efficient pricing of transport infrastructure 
(source: 1999 Integration Strategy, EU SDS, 6th 
EAP) 

Quantified targets and indicators (source: 1999 
Integration Strategy, 6EAP) 

Reduce greenhouse gas emissions from 
transport (source: 1999 Integration Strategy, EU 
SDS, White Paper on Transport Policy, 6th EAP) 

Reduce other air pollutants (source: 1999 
Integration Strategy, White Paper on Transport 
Policy, 6th EAP) 

freight transport adopted July 
2003. 

Sixth Framework Programme 
for RTD, adopted in 2002, 
support for research and 
development of Sustainable 
Transport Systems (Under 
priority 6- Sustainable 
Development, Global 
Change and Ecosystems). 

Directive 2001/14/EC of 
February 2001 on the 
allocation of railway 
infrastructure capacity, 
levying of charges for the 
use of railway infrastructure 
and safety certification 

the market for international 
passenger services, adopted 
in March 2004 COM (2004) 
139, 140, 142, 143, 144. 

Commission proposal for 
revision of Eurovignette 
directive on charging of 
heavy goods vehicles, 
adopted July 2003, COM 
(2003) 448. 

Indicators: Transport and 
Environment Reporting 
Mechanism (TERM) 

Negotiated agreement with 
the car industry supporting 
its commitment to reach 
140g/km by 2008/9: 
European and Japanese 
carmakers on track to meet 
their commitments, Korean 
car industry still somewhat 
lagging behind. 

Directive 2003/30/EC on the 
promotion of bio-fuels and 
other renewable fuels for 
transport adopted in 2003 
with an indicative target of 
5.75% of biofuels 
contribution to diesel and 
gasoline consumption by 
2010 

Final Council and European 
Parliament positions on the 
Commission’s ship 
emissions strategy, 
December 2003 

Adoption of directive 
2003/17/EC introducing 
requirements on the sulphur 
content of road transport 
fuels.  

By 2003 only 5 Member 
States had ratified Annex VI 
to the MARPOL convention 
on the prevention of air 
pollution from ships 

EN 

12 

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Reduce noise originating from transport (source: 
1999 Integration Strategy, White Paper on 
Transport Policy, 6th EAP) 

Safer and cleaner maritime transport (source: 
1999 Integration Strategy, White Paper on 
Transport Policy, 6th EAP) 

Amended proposal for a 
directive on the shipment of 
waste COM (2004) 172 

Proposal for a revised 
directive on sulphur in 
marine fuels COM (2002) 
595. 

Proposals from the 
Commission (March 2003) to 
implement international rules 
to prevent deliberate 
discharges of waste or cargo 
residues to the sea and on 
imposing criminal sanctions 
on those responsible for 
pollution by ships. 

Implementation  of  the  60  or 
so  measures  set  out  in  the 
White  Paper  on  European 
transport  policy  is  hoped  to 
lead  to  a  decoupling  of  the 
transport 
link 
growth 
economic 
growth,  without  the  need  to 
unduly restrict the mobility of 
people and goods. 

between 
and 

Decoupling of transport growth from economic 
growth (source: 1999 Integration Strategy, EU 
SDS, 6th EAP) 

Environmental noise 
directive 2002/49/EC 
adopted, requiring strategic 
noise maps to be made by 
2007 

Community framework for 
noise-related operating 
restrictions at noise-sensitive 
airports – Directive 
2002/30/EC- including 
noisiest aircraft (“Chapter 2”) 
banned from operating in the 
EU from 1 April 2002.  

Adoption of a range of 
directives and regulations 
under the Erika packages I 
and II in 2001, introducing 
new maritime safety 
measures to reduce the risks 
of oil spills.  

Adoption of Regulation 
1726/03 banning the 
transport of heavy oils in 
single hull tankers and 
speeding up the phase out of 
single hulls and amendment 
to the MARPOL convention 
approved in December 2003 
to this effect.  

Extension of the role of the 
European Maritime Safety 
Agency, European 
Parliament decision of 
February 2004 

“STEER”: the transport part 
of the Intelligent Energy 
Europe programme which is 
aimed at addressing 
transport energy issues. 

Challenges and opportunities ahead for environmental integration 

In its conclusions of 6 December 2002, the Transport Council noted that “although progress 
has  been  made  to  reduce  the  environmental  impact  of  transport  in  Member  States  and  at 
Community level, significant progress still has to be made to reach the objectives set out in 
the  1999  Council  strategy.”  The  need  for  further  action  was  corroborated  in  the  2003 
European Climate Change Programme (ECCP) Progress Report, which stated “the limitation 
of greenhouse gases in the transport sector will require the development of new strategies and 
strengthened  policies  and  measures  in  the  future.  This  is  necessary  to  preserve  the  overall 
reductions that are achieved in view of meeting the target of the first commitment, and even 

EN 

13 

   EN 

 
 
more prominently, in view of future commitment periods.” The White Paper on Transport is 
comprised  of  a  series  of  measures  ranging  from  pricing  to  revitalising  alternative  modes  of 
transport  to  road  and  targeted  investment  in  the  trans-European  network.  This  integrated 
approach  aims  to  allow  the  market  shares  of  the  alternative  modes  to  return  to  their  1998 
levels and thus shift the modal balance from 2010 onwards. Achieving this is harder than it 
may look, as there has been a historical imbalance in favour of road transport for the last 50 
years. Proper implementation of the measures proposed in the framework of the White Paper 
is of utmost importance. Other opportunities for environmental integration include:  

•  A  continuation  of  efforts  to  shift  the  balance  between  modes  of  transport,  especially 
through the full implementation of measures in the White Paper on transport policy.22 

•  Discussions on the rapid growth in greenhouse gas emissions from aviation and shipping in 
the context of the International Civil Aviation Organisation and the International Maritime 
Organisation  have  not  yet  resulted  in  concrete  proposals.  Specific  actions  to  reduce 
emissions  will  have  to  be  taken  by  the  EU  as  decided  in  the  6th  Environment  Action 
Programme. 

•  In  parallel,  emission  standards,  in  particular  fine  particulate  matter  and  NOx  emissions 

from diesel cars and trucks need further attention. 

•  Commission’s  contribution  to  the  Gothenburg  European  Council  called  for  a  shift  of 
balance between the modes by way of an investment policy in infrastructure geared to the 
railways,  inland  waterways,  short  sea  shipping  and  intermodal  operations.  In  this 
framework, Transeuropean Networks are set to play an important role. The implementation 
of the Trans-European Networks (TENs), as boosted by the European Growth Initiative 
through  the  Quick-start  Programme,  has  to  be  done  in  accordance  with  environmental 
standards.  “A  preference  should  be  given  to  projects  offering  strong  environmental 
benefits. For example, projects linked to supporting a hydrogen economy or shifting traffic 
from road to rail or from road to the sea”. 23 As a first step, the identification of priorities 
for pending projects should take fully into account the EU’s environmental and sustainable 
development commitments. 

•  The voluntary CO2 commitments by the passenger car manufacturers are up for midterm 
review  in  2003/4.  One  element  is  review  of  the  potential  to  move  further  towards  the 
Community target of 120  CO2/km  by 2012. In  addition, the other pillars of the strategy, 
e.g. car taxation and car labelling, need to be developed further.  

•  Measures  to  encourage  the  purchase  of  vehicles  that  use  less  energy  and  with  reduced 

pollutant emissions should be promoted. 

impacts, 

•  Further  measures  are  planned  to  reduce  the  risks  of  maritime  accidents  and  associated 
environmental 
include 
development of a legal framework for investigations after accidents, a harmonised traffic 
information and management system and reinforcement of controls in ports. Further work 
is  needed  to  build  on  commitments  made  by  several  member  states  through  the  IMO  to 
designate Particularly Sensitive Sea Areas.  

including  an  ‘Erika-III’  package.  These  should 

22 
23 

COM(2003)745, 3 December 2003, p. 46. 
Communication from the Commission – A European Initiative for Growth – Investing in Networks and 
Knowledge for Growth and Jobs – COM(2003)690 final, 11 November 2003. 

EN 

14 

   EN 

 
                                                 
3.3. 

Energy 

Status 

Political commitments 

November 1999 

Energy integration strategy adopted in Council 

29th November 2000 

Commission  Green  Paper:  Towards  a  European  strategy  for  the  security  of  energy 
supply 

21 March 2001 

Commission review of energy integration strategy 

14-15 May 2001 

Industry/Energy Council Resolution on Energy Integration, setting deadline of December 
2002 for second review  

15-16 June 2001 

Second set of indicators presented to the Gothenburg European Council 

25 November 2002 

Council  Conclusions  on  sustainable  development  –  commitment  to  pursue  the 
implementation of the strategy in a way that is supportive to the conclusions reached at 
the 2002 World Summit on Sustainable Development. 

Priority objectives of environmental 
integration 

Milestones to date 

Promoting  the  efficient  use  and  production  of 
energy (source: 1999 Integration Strategy, Green 
Paper on Energy Supply, EU SDS, 6th EAP, Plan 
of Implementation of the Johannesburg WSSD) 

Developing  an  efficient  internal  energy  market 
(including 
energy 
for 
generators)  (1999  Integration  Strategy,  Green 
Paper on Energy Supply) 

renewable 

access 

Increasing the competitiveness and use of 
renewable energy sources (source: 1999 
Integration Strategy, Green Paper on Energy 
Supply, EU SDS, 6th EAP, Plan of 
Implementation of the Johannesburg WSSD) 

Commission 

Commission and Council/ 
Parliament 

Commission Proposal for a 
Directive COM (2003) 453 
on establishing a framework 
for the setting of eco-design 
requirements for energy-
using products adopted in 
August 2003 

Commission Proposal for a 
Directive COM (2003) 739 
on promoting energy 
efficiency at the level of final 
consumption and energy 
services, adopted December 
2003 

Directives 2002/ 31/EC, 
2002/ 40/EC and 
2003/66/EC on energy 
labelling of domestic 
appliances 

Directive 2002/91/EC 
adopted in December 2002 
on the energy performance 
of buildings 

Directive 2004/8/EC on 
cogeneration, adopted 
February 2004.  

Revision of internal energy 
market under directives 
2003/54/EC (electricity) and 
2003/55/EC (gas) – more 
focus on consumer choice, 
energy efficiency and priority 
access for Renewable 
Energy Sources (RES) 

Directive 2001/77/EC on the 
promotion of electricity from 
renewable energy sources, 
adopted in September 2001, 
with an indicative EU target 
of 22% of electricity 
consumption from renewable 
sources by 2010. 

Directive 2003/30/EC, 

EN 

15 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Internalising external costs/environmental 
benefits (source: 1999 Integration Strategy, EU 
SDS, 6th EAP, Plan of Implementation of the 
Johannesburg WSSD) 

Giving  adequate  priority  to  energy  research  and 
technological  development  and  demonstration 
activities  in  Europe  (Source:  1999  Integration 
Strategy,  Green  Paper  on  Energy  Supply,  EU 
SDS) 

integration 

Develop 
to  monitor 
progress  (Source:  1999  Integration  Strategy,  6th 
EAP) 

indicators 

adopted in May 2003, on the 
promotion of biofuels and 
other renewable fuels for 
transport 

Energy products taxation 
directive 2003/96/EC 
adopted in October 2003 

Intelligent Energy in Europe- 
Community programme for 
2003-2006 to promote 
energy efficiency and 
renewable energy Sixth 
Framework Programme for 
RTD, adopted in 2002, 
support for research on 
Sustainable Energy Systems 
(Under priority 6- Sustainable 
Development, Global 
Change and Ecosystems) 

Indicators: ERM (Energy-
Environment Indicators) 

Contribute to Meeting the Kyoto Targets 

(Source:  1999  Integration  Strategy,  EU  SDS,  6th 
EAP) 

Directive 2003/87/EC on 
greenhouse gas emissions 
trading, adopted October 
2003 

Challenges and opportunities ahead for environmental integration 

The second review of the energy strategy was due in 2002. Instead, the Energy Council (25 
November  2002)  adopted  Conclusions  on  sustainable  development  in  which  it  recalled  the 
importance  of  the  objective  of  achieving  by  2010  12%  of  gross  energy  consumption  from 
renewable  energy  and  22%  of  gross  electricity  consumption  from  renewable  electricity 
production. In addition, the Council encouraged the promotion of energy systems compatible 
with  sustainable  development  through  the  use of  improved  market  signals  and  by  removing 
market distortions, and called for further use of market based instruments in the energy field.  

Regarding the implementation of its integration strategy, the Council stated its determination 
“to pursue [its] implementation […] in a way that is supportive to the conclusions reached at 
the WSSD24.” In light of this, future action will focus on the following areas, complementing 
long term energy policy objectives to ensure energy security and the economic functioning of 
energy markets: 

•  Timely  implementation  of  the  Directive  on  the  promotion  of  electricity  from 
renewable  energy  sources  and  of  other  relevant  legislation  recently  set  in  place  is  a 
priority.  Existing  support  schemes  for  renewables  in  the  Member  States  can  provide 
valuable hands-on expertise on the environmental and economic success of various support 
systems. A proactive policy is needed in Member States for a fair integration of renewable 

24 

WSSD:  Second  World  Summit  on  Sustainable  Development  held  in  Johannesbourg  in  August-
September 2002. 

EN 

16 

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energy  sources  in  the  liberalised  internal  electricity  market,  while  acknowledging  fully 
their  environmental  and  societal  value.  In  addition,  it  is  necessary  to  further  support 
technological breakthroughs in the field of renewables and the effective dissemination of 
research in the field of energy efficiency in order to overcome market barriers.25 

•  Given the importance of energy related emissions and in order to translate legislation into 
concrete  results  for  the  environment,  it  is  important  that  Member  States  complete  their 
National Allocation Plans under the Directive on Emissions Trading, due for submission to 
the  Commission  by  March  2004,  and  increase  their  efforts  to  meet  their  burden-sharing 
targets under the Kyoto Protocol by developing and implementing national climate change 
strategies.  In  addition  new  policies  to  further  integrate  environment  into  energy  policies 
need to be considered. 

25 

It should be noted in this context that EU Member States were founding members of the Johannesburg 
Renewable  Energy  Coalition.  (More  info  on  http://forum.europa.eu.int/Public/irc/env/ctf/home)  (see 
also below) 

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17 

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3.4. 

Industry 

Status 

Political commitments 

November 1999 

Council Report to the Helsinki European Council on environmental integration 

14-15 May 2001 

Council Conclusions on industry integration 

6 June 2002 

Council  Conclusions  on  enterprise  policy  and  sustainable  development  – 
the 
Commission  was  invited  to  report  every  second  year  on  the  progress  made  on  the 
contribution of Enterprise policy to Sustainable Development. and the Council undertook 
to  evaluate  on  a  regular  basis  whether  the  balance  between  the  three  pillars  of 
sustainable  development  is  maintained,  in  particular  in  terms  of  ensuring  the 
competitiveness of European enterprises and to draw appropriate conclusions in relation 
to any corrective action required. 

Priority objectives of environmental 
integration 

Milestones to date 

Commission 

Commission and Council/ 
Parliament 

Reduce  impacts  of  chemicals  on  human  health 
and  the  environment  (source:  EU  SDS,  6th  EAP, 
Plan  of  Implementation  of  the  Johannesburg 
WSSD) 

Proposal for a new 
regulatory framework on the 
registration, evaluation, 
authorisation and restrictions 
of chemicals (REACH) – 
COM (2003) 644, of October 
2003 

Proposal for Directive COM 
(2003) 723 on Batteries 
Recycling adopted 
November 2003. 

Integrating environmental aspects into 
standardisation activities to meet environmental 
objectives and support sustainable development 
(Source: Council Integration Decisions 2002, EU 
SDS) 

Communication on 
integration of environmental 
aspects in European 
standardisation, COM(2004) 
130, February 2004 

Sustainable production and consumption 

Integration  Decisions  and 
(source:  Council 
Reports  1999,  2002,  EU  SDS,  6th  EAP,  Plan  of 
Implementation of the Johannesburg WSSD) 

Communication ‘Basic 
orientations for the 
sustainability of European 
tourism’ (COM(2003)716 of 
November 2003 

Development of Integrated 
Product Policy (IPP) 
including Communication on 
IPP, COM (2003) 302, June 
2003 

Communication ”on the road 
to sustainable production “on 
Progress in Implementing 
the Integrated Pollution 
Prevention and Control –
IPPC- Directive, COM (2003) 
354, June 2003 

EN 

18 

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Communication ‘Industrial 
policy in an enlarged Union’ 
(COM(2002)714final) of 
December 2002 recognised 
the need to strengthen 
policies in the area of 
sustainable production 

First BEST (exchange of 
best practice) Study on 
environmental management 
systems and SMEs (2002) 

Contributing  to  Kyoto  Protocol  targets  (Source: 
Council Report 1999, EU SDS, 6th EAP) 

Directive 2003/87/EC on 
greenhouse gas emissions 
trading, October 2003 

Promoting  the  development  of  environmental 
technology  (Source:  Council  Decision  2002,  EU 
SDS, 6th EAP) 

Proposal for an 
Environmental Technologies 
Action Plan COM (2004) 38, 
January 2004 

Challenges and opportunities ahead for environmental integration 

•  Adoption  by  the  Council  and  Parliament  of  the  Commission’s  proposal  for  a  new 
chemicals  policy  is  a  priority  so  as  to  allow  the  timely  entry  into  force  of  the  REACH 
system. 

•  The Communication on Sustainable Production, planned for 2004, will focus on the way 
producers  integrate  environmental  aspects  (measures  to  reduce  the  impacts  of  their 
production  processes  and  of  their  products  on  the  environment)  into  their  long-term 
business  strategy,  and  create  market  opportunities  through  superior  environmental 
performance.  

•  The Thematic Strategy on waste prevention and recycling, coupled with the strategy 
on  sustainable  use  of  natural  resources  planned  for  2005  will  focus  on  the  means  to 
promote more sustainable waste management, to reduce waste generation ] minimising the 
environmental impacts of waste generated and of increasing resource efficiency and reduce 
resource use.  

•  The  Action  Plan  on  Innovation  planned  for  2004  as  a  follow-up  to  the  Commission 
Communication  on  Innovation  of  2003  will  contribute  to  further  promoting  clean 
technologies, in line with the Environmental Technology Action Plan (ETAP) adopted in 
January 2004. 

•  The  new  Programme  on  the  Competitiveness  of  Enterprises  to  be  adopted  in  2004  to 
replace the current Multiannual Programme for Enterprises and Entrepreneurship expiring 
in 2005, will foster progress towards the objectives of the Lisbon Strategy and therefore, 
including environmental integration 

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3.5. 

Internal Market 

Status 

June 1999 

Political commitments 

Commission  Communication:  Strategy  for  integrating  the  environment  into  the  single 
market COM (99) 263. 

November 1999 

Council Report to the Helsinki European Council on environmental integration 

March 2000 

Community guidelines on state aid for environmental protection 

31 May 2001 

Council strategy on the integration of environment into internal market policies adopted  

4 July 2001 

Commission Interpretative Communication on public procurement and the environment 

14 November 2002 

Council  Report  on  integrating  environmental  protection  and  sustainable  development 
into internal aspects of competitiveness policy – comprehensive review planned for 2003 
to  take  into  account  the  EU  Sustainable  Development  Strategy  and  the  World  Summit 
on Sustainable Development 

By end 2003 

Deadline by which the Competitiveness Council was due to review its strategy 

Priority objectives of environmental 
integration 

Milestones to date 

Commission 

Commission and Council/ 
Parliament 

Interpretative 
Communication on public 
procurement and the 
environment COM (2001) 
0274 

Practical handbook on green 
procurement, to be adopted 
after the directives, before 
summer 2004 

Council and European 
Parliament adoption in March 
2004 of the Directive 
2004/18/EC on coordination 
of procedures for the award 
of public supply contracts, 
public services contracts and 
public works contracts 
(“classical” directive) and the 
Directive 2004/17/EC on 
procurement procedures of 
entities operating in the 
water, energy, transport and 
postal services sectors 
(“utilities” directive). 

Public  procurement  (Source  Council  Report  on 
Integration 199926, EU SDS) 

Better  fit  between  free  movement  of  goods  and 
services and the environment (Council Report on 
Integration 1999) 

Implementation  of  environmental  Internal  Market 
legislation (Council Report on Integration 1999) 

Challenges and opportunities ahead for environmental integration 

The  Commission  outlined  priorities  for  2003-2006  in  a  Communication  on  the  Internal 
Market  Strategy  (COM(2003)238  final).  Actions  of  particular  importance  for  further 
integration of environmental considerations into Internal Market legislation include: 

26 

Report from Internal Market Council to Helsinki European Council, November 1999 

EN 

20 

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•  Adoption by the Council and European Parliament of the framework Directive on the eco-

design of energy using products 

•  Review  of  the  Community  Guidelines  on  State  aid  for  Environmental  Protection  (timing 
2004-  2007),  to  adjust  the  framework  to  adapt  it  to  the  increasing  sophistication  of 
investments in environmental technologies and to new forms of public/private partnership. 

The Commission should also put forward a proposal to restructure the tax bases of the annual 
circulation and registration taxes in order to make passenger car taxation more carbon dioxide 
efficient and more consistent with the Internal Market.  

EN 

21 

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3.6. 

Development co-operation 

Status 

Political commitments 

November 1999 

Council  Conclusions  on  integrating  environment  and  sustainable  development  into  EC 
Development Policy 

7 November 2000 

Council  Regulation  2493/2000  on  measures  to  promote  the  full  integration  of  the 
environmental dimension in the development process of developing countries 

10 November 2000 

Council  and  Commission  Joint  Statement  on  EC  Development  Policy  commitment  to 
environmental integration into the Community’s development instruments. 

31 May 2001 

Strategy  for  the  integration  of  environmental  considerations  into  development  policy  to 
promote sustainable development – Council Conclusions 

By end 2004 

First review of integration strategy foreseen  

Priority objectives of environmental 
integration 

Milestones to date 

Commission 

Commission and Council/ 
Parliament 

Better  exploit  development  and  environment 
synergies (Source: 2001 Integration Strategy, EU 
SDS, 6th EAP) 

Council Conclusions on the 
Action Plan on Forest Law 
Enforcement, Governance 
and Trade, adopted 13th 
October 2003. Parliamentary 
motion 19th January 2004 

Council conclusions of 27th 
January 2003 on Fighting 
Rural Poverty: European 
Community policy and 
approach to rural 
development and sustainable 
natural resources 
management in developing 
countries 

Council conclusions on water 
management in developing 
countries, 30 May 2002.  

Launch of EU Water and 
Energy Initiatives COM 
(2002) 132 and COM (2002) 
408 (September 2002) 

Adoption of the Action Plan 
on Forest Law Enforcement, 
Governance and Trade COM 
(2003) 251 (May 2003) 

Publication of joint agency 
reports (World Bank, DFID, 
UNDP, EC) on ‘Linking 
poverty reduction and 
environmental management’ 
and on ‘poverty and climate 
change’ 

Commission Communication 
Fighting rural poverty: 
European Community policy 
and approach to rural 
development and 
sustainable natural 
resources management in 
developing countries 
(COM(2002)429 final) 

Commission Programming 
guidelines for environment in 
developing countries and 
tropical forests 2002-2004 

“COOPENER” support for 
initiatives for the promotion 
of renewable energy sources 
and energy efficiency in the 

EN 

22 

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Commitments and obligations of Multilateral 
Environmental Agreements (MEAs) 
mainstreamed into development cooperation 
(Source: 2001 Integration Strategy, 6th EAP, Plan 
of Implementation of the Johannesburg WSSD) 

Council conclusions of 
December 2003 on the 
Communication – Climate 
Change in the context of 
development co-operation 

developing countries, as part 
of the Intelligent Energy- 
Europe Programme.  

2nd Report of the European 
Community to the 
Conference of the Parties of 
the Convention on Biological 
Diversity (CBD) on the 
implementation of the CBD 
(October 2002) 

Communication – Climate 
Change in the context of 
development co-operation 
COM(2003)85 

EU-ACP Joint paper on 
combating drought and 
desertification (15-16 May 
2003) 

Community Report (May 
2002) on activities in support 
of the implementation of the 
UN Convention to Combat 
Desertification 

for  new 

financial  means 

Need 
the 
implementation  of  Multilateral  Environmental 
Agreements  (MEAs)  (Plan  of  Implementation  of 
the Johannesburg WSSD) 

for 

Challenges and opportunities ahead for environmental integration 

•  The review of the EU Sustainable Development Strategy planned for 2004 provides the 

opportunity to better integrate the internal and external pillars of the Strategy. 

•  The  mid-term  review  of  Country  Strategy  Papers  funded  under  the  Cotonou 
agreement  scheduled  for  2004  offers  an  opportunity  to  strengthen  environment  and 
development  synergies,  which  should  be  seized,  including  strategic  environment  reviews 
of  Country  Strategy  Papers  and  the  establishment  of  environmental  profiles  during  the 
preparation of country strategies 

•  The EU Water Initiative should be taken forward by moving to action on the ground in 
concert with all major stakeholders, following the decision by Council in March 2004 on 
initial  funding  for  the  ACP-EU  water  facility.  The  EU  Energy  Initiative  should  also  be 
taken  forward,  notably  by  ensuring  adequate  financing.  The  initiative  should  assist  in 
identifying  energy  –  environment  links,  to  provide  modern,  environmentally  sustainable, 
energy services to the general public, particularly in Sub-Saharan Africa.  

•  The Action Plan for Forest Law Enforcement, Governance and Trade, should be taken 
forward by the Commission, in particular by adopting a Regulation on the subject in 2004 
with a view to implementing a voluntary licensing scheme for timber exports from partner 
countries.  A  Sustainability  Impact  Assessment  (SIA)  of  this  scheme  is  scheduled  to  take 
place  in  2004.  Still  on  the  theme  of  forests,  the  Commission  will  propose  a  negotiating 

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mandate for the re-negotiation of the International Tropical Timber Agreement, which will 
take place in July 2004. 

•  The review of the Biodiversity Action Plan for Economic and Development Cooperation 
in  2004  offers  opportunities  to  better  address  biodiversity  issues  in  development 
cooperation. 

•  In  the  framework  of  the  review  of  the  integration  strategy  foreseen  for  2004  and  the 
evaluation  of  environment  aid,  the  Union  should  address  in  priority  the  need  for  new 
financial means to facilitate the implementation of Multilateral Environmental Agreements 
and other key environmental policies in developing countries. 

•  The strategy for integration of environmental considerations into development policy sets a 
timetable  and  indicators.  Key  actions  for  2004  include  the  training  in  environmental 
integration for headquarter and delegation staff working on development issues, setting up 
an  environmental  helpdesk,  evaluating  the  budget  line  on  environment  in  developing 
countries and tropical forests and drafting new programming guidelines for 2005-2006 and 
updating the manual on integration for development cooperation. 

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3.7. 

Fisheries 

Status 

Political commitments 

16 March 2001 

Commission Communication on the elements for a comprehensive integration strategy 

20 March 2001 

Commission Green Paper on the Reform of the Common Fisheries Policy (CFP) 

28 March 2001 

Community Biodiversity Action Plan for Fisheries and Aquaculture 

25 April 2001 

28 May 2002 

By end2005 

Council  Conclusions  on  integration  of  environment  and  sustainable  development  into 
CFP 

Commission Communication on CFP Reform and related proposals; Commission Action 
Plan to integrate environmental protection requirements into CFP 

First  report  by  the  Commission  to  the  Council  and  European  Parliament  on  the 
environmental performance of the CFP  

Priority objectives of environmental 
integration 

Milestones to date 

Commission 

Commission and Council/ 
Parliament 

CFP should explicitly include environmental, 
economic and social objectives, which should be 
considered on a same footing. These objectives 
must apply to the Community’s external fisheries 
policy and in particular fisheries agreements with 
developing countries (Source: EU SDS) 

Reduction in fishing pressure on fishing grounds 
to sustainable levels (source: 2001 and 2002 
Commission Communications on integration) by 
2015 (source: Plan of Implementation for 
Johannesburg WSSD) 

Emergency measures to 
protect certain deep sea 
habitats such as coral reefs 
from effects of bottom 
trawling, e.g. for Darwin 
Mounds coral reefs, 
Commission Regulation 
1475/2003, extended by 
further regulations and 
Commission proposal COM 
(2004) 58 for longer term 
measures 

Commission proposals for 
recovery plans for sole, 
southern hake and Norway 
lobster, January 2004; Total 
Allowable Catch regulation 
for 2004, effort regime in 
Western waters.  

Eco-system-based approach to fisheries policy. 
Improvement of fishing methods with a view to 
reducing discards, incidental by-catch and impact 
on habitats (source: 2001 and 2002 Commission 
Communications on integration, Plan of 
Implementation for Johannesburg WSSD) 

.  

Council agreement on CFP 
Reform (Regulation 
2371/2002 of December 
2002) objectives includes to 
ensure exploitation of aquatic 
resources that promote 
sustainable development. 

Council agreement and 
European Parliament support 
on stock recovery plans for 
cod and Northern Hake and 
on western water regimes 
December 2003  

Council agreement and 
European Parliament support 
on shark finning in June 
2003- to regulate the 
removal of shark fins on 
board to protect shark 
populations.  

Council agreement 
(Regulation 812/2004) 
adopted April 2004 to curb 
the accidental capture of 
cetaceans such as dolphins 
and harbour porpoises. 

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Elimination of public aid for the modernisation or 
renewal of the fishing fleet except for aid to 
improve safety or product quality not likely to 
increase fishing capacity (2001 and 2002 
Commission Communications on integration) 

Improve governance by stakeholder involvement 
(source: 2001 and 2002 Commission 
Communications on integration, EU SDS) 

Phase out of modernisation 
subsidies by end 2004 
agreed under Council 
regulation 2371/2002 for 
CFP reform, European 
Parliament support. And 
regulation 1438/2003 setting 
out rules for implementing 
this decision  

 Council decision of 24th May 
2004 on provisions for 
establishing Regional 
Advisory Councils  

Challenges and opportunities ahead for environmental integration 

Building  upon  the  Commission’s  Proposals  under  the  Common  Fisheries  Policy  and  the 
Council agreement of December 2002 and December 2003, efforts should be pursued to meet 
the WSSD objective of securing sustainable exploitation of fish resources by 2015: 

•  All  necessary  steps  need  to  be  taken  to  implement  the  CFP  reform,  notably  through 
reductions  in  fishing  pressure,  the  setting  up  of  the  first  Regional  Advisory  Councils  in 
2004,  developing  new  fisheries  partnership  agreements  and  integrating  environmental 
concerns into aquaculture. 

•  The  number  of  species  and  areas  affected  by  fishing  pressure  is  increasing.  The  2003 
International Council for the Exploration of the Sea (ICES) report notes that, of 113 fish 
stocks  that  ICES  assessed  in  the  Northeast  Atlantic  in  2001,  only  18%  were  inside  safe 
biological limits and that over fishing is a major reason for the decline in stocks. Steps are 
needed to further reduce fishing effort. 

•  In the longer term, the Union should bear in mind the effects of climate change on the size 

and distribution of stocks in setting policy and operational objectives. 

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3.8. 

Economic and financial affairs 

Status 

Political commitments 

20 September 2000 

Commission Communication on integrating environmental issues into economic policy 

27 November 2000 

Council Report to the Nice European Council 

5 March 2002 

Strategy on integrating environmental issues into economic policy adopted in Council 

Annual 

Broad Economic Policy Guidelines (BEPGs) to be used to monitor and review progress 

Priority objectives of environmental 
integration 

Milestones to date 

Commission 

Commission and Council/ 
Parliament 

Decouple 
resource  use  and  environmental 
pressure  from  economic  growth  (source:  2002 
Integration Strategy, EU SDS) 

Insertion of environmental 
considerations in BEPGs 
since 2001 

Inclusion of environmental 
indicators in the list of 
structural indicators 

On the basis of the polluter-pays principle, 
increasingly rely on market mechanisms and 
market-based instruments to promote 
environmental protection (source: 2000 
Commission Communication, 2001 Council report 
and 2002 Integration Strategy, EU SDS) 

Base policy decisions on sound analysis of 
economic, environmental and social costs and 
benefits (source: 2002 Integration Strategy and 
2001 Council report, EU SDS) 

Introduction of Extended 
Impact Assessment scheme 
in 2002 

Energy products taxation 
Directive 2003/96/EC 
adopted in October 2003 

Challenges and opportunities ahead for environmental integration 

•  Building upon the new Directive on energy products taxation, which entered into force in 
January 2004, further steps need to be taken to foster the use of flexible, market-based, 
instruments  to  promote  environmental  protection.  To  this  end,  the  Commission  will 
present in 2004 a Communication on the subject.  

•  The current Broad Economic Policy Guidelines, which are a major input to the preparation 
of  the  Commission  Spring  Report  and  involve  establishing  a  dialogue  with  the  Member 
States  on  economic  policy,  cover  the  period  2003-2005.  While  they  include  general 
environmental 
environmental 
recommendations  should  be  considered  for  the  BEPGs  for  2005  onwards,  where  there  is 
evidence  of  a  problem  that  is  specific  to  the  country  concerned  and  which  poses  a 
substantial economic challenge or has implications for economic policy 

country-specific 

considerations 

2001, 

since 

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•  Further action should be taken, using the OECD framework to be published at the end of 
2004, to highlight environmentally harmful subsidies, and to consider their removal, albeit 
taking  into  account  their  social  and  economic  aspects  as  set  out  in  the  Environmental 
Technologies Action Plan.  

•  The Commission should put forward proposals for more ambitious environmental targets 
for energy taxation within two years of the energy products tax directive’s adoption, as set 
out in its communication COM (2001) 264) on the Sustainable Development Strategy.  

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3.9. 

Trade and foreign policy 

Status 

Political commitments 

9 April 2001. 

Council Conclusions on environmental integration in the external policies of the General 
Affairs Council (GAC) 

February 2002 

Commission Communication ‘Towards a global partnership for sustainable development’ 

11 March 2002 

Strategy on integrating environment into external policies adopted in Council 

March 2003 

European Council Conclusions on the follow-up of WSSD 

June 2003 

Thessaloniki European Council – Green Diplomacy Initiative 

By end 2003 

First strategy review foreseen 

Priority objectives of environmental 
integration 

Milestones to date 

Commission 

Commission and Council/ 
Parliament 

Promote mainstreaming of environment in the 
outcome of trade negotiations on the Doha 
Development Agenda and bilateral/regional 
agreements, clarifying the interface between 
multilateral trade and environmental policy and 
improving market access for environmental goods 
and services (source: 2002 Integration Strategy, 
6th EAP, Plan of Implementation of the 
Johannesburg WSSD) 

Provide technical assistance, capacity building for 
negotiations and implementation in the trade and 
environment interface (source: 2002 Integration 
Strategy , Plan of Implementation of the 
Johannesburg WSSD 

Foster greater Corporate Social Responsibility 
(CSR) in trade and investment decisions through 
voluntary international codes of conduct  

(source: 2002 Integration Strategy , Plan of 
Implementation of the Johannesburg WSSD) 

Work towards adoption of export credit disciplines 
with strong integrated environmental 
considerations (source: 2002 Integration 
Strategy, 6th EAP) 

On-going development of 
Sustainability Impact 
Assessments of WTO 
negotiations.  

Sustainability Impact 
Assessments for regional 
and bilateral trade 
agreements (on-going: EU-
Gulf Cooperation Council 
(GCC), Economic 
Partnership Agreements with 
ACP countries, Euromed, 
EU-Mercosur).  

Launching of the Sustainable 
Trade and Innovation Centre 
in Johannesburg as a type-II 
initiative.  

Establishment of the 
European Multi-Stakeholder 
Forum on CSR in 2002, 
including round tables on 
Development, Environment 
and Trade. 

Decision in 2002 to include 
Sustainable Development in 
the negotiations for an EU-
Mercosur Free Trade 
Agreement. 

Adoption of the OECD 
Recommendation on 
Common Approaches on 
Environment and officially 
Supported Export Credits in 
December 2003. 

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Mainstream environmental objectives into 
European foreign policy (source: 2002 Integration 
Strategy, 6th EAP) 

European Green diplomacy 
initiative (June 2003) 

Raising the profile of environmental issues in the 
EU’s relations with third countries and regions 
(source: 2002 Integration Strategy) 

Launching of the EC/China 
Ministerial Dialogue on the 
Environment in November 
2003. 

Meetings of the ASEM 
Environment Ministers in 
January 2002 and October 
2003. 

European Council endorsed 
2nd Northern Dimension 
Action Plan in October 2003 

Conclusions of several Euro-
Mediterranean Ministers 
meetings (Environment, 
Athens, July 2002; 
Agriculture, Venice, 
November 2003; Foreign 
Affairs, Naples, December 
2003) 

Challenges and opportunities ahead for environmental integration 

•  The  Union  should  take  on  board  the  challenge,  recognised  in  the  European  Security 
Strategy adopted by the December 2003 European Council, that climate change could pose 
over the next decades through increasing competition for natural resources, notably water. 
This might create further turbulence and migratory movements in various regions.  

•  The  European  Neighbourhood  Policy  (Wider  Europe)  Initiative,  under  development 
following  the  adoption  of  the  Commission  Communication  of  March  2003,  addresses 
environmental issues. As part of this, the reflection on establishing a New Neighbourhood 
Instrument  offers  an  opportunity  to  take  into  consideration  the  particular  environmental 
challenges of the countries concerned.  

•  The  environmental  dimension  should  be  integrated  in  the  planned  Common  European 

Economic Space (CEES), endorsed at the EU-Russia Summit in November 2003. 

•  The  recently  set-up  European  Green  Diplomacy  Initiative  should  be  built  upon  to 
enhance  operationally  the  EU’s  voice  and  influence  on  international  environmental 
negotiations  and  processes.  It  should  also  enhance  dialogue  with  key  partners  on 
environmental issues. 

•  The  Commission  and  Member  States  should  further  promote  a  trade  and  environment 
agenda in WTO negotiations in the framework of the Doha Development Agenda and the 
environment dimension of regional and bilateral trade agreements should be strengthened, 
notably  through  improved  Sustainability  Impact  Assessments  and  use  of  their  results  in 
negotiations.  

•  Implementation of the OECD Recommendation on Common Approaches on Environment 
and Officially Supported Export Credits, should be taken forward with Member States and 
additional  action  taken  to  enhance  the  contribution  of  export  credits  to  sustainable 
development, for example for renewable energy. 

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4. 

THE NEED TO IMPROVE DELIVERY ON ENVIRONMENTAL INTEGRATION 

From  the  analysis  of  sectoral  achievements  above,  it  may  be  concluded  that  the  Cardiff 
process has produced mixed results. On the positive side, it has helped bring about concrete 
improvements in some sectors - the Commission’s initiatives on renewable energy and energy 
efficiency  being  an  undeniable  step  forward  on  that  score.  The  2003  and  2004  CAP  reform 
greatly  contributed  to  progress  towards  Cardiff  process  objectives.  The  Cardiff  process  has 
also contributed to raising the profile of environmental integration, now regularly discussed at 
EU level.  

However, environmental integration commitments are still largely to be translated into further 
concrete results for the environment. To date, the Cardiff process has failed to deliver fully on 
expectations. It suffers from several shortcomings: 

•  A  general  lack  of  consistency:  quality  and  ambition  vary  widely  from  one  sector  to 
another.  Not  all  Council  formations  have  shown  the  same  degree  of  commitment  to  the 
process.  Some  strategies  have  taken  the  form  of  a  fully  developed  set  of  environmental 
commitments,  with  deadlines,  milestones,  and  reporting  and  review  mechanisms.  Others 
are  limited  to  declarations  of  intent  through  Council  conclusions,  more  focused  on  how 
environmental  policy  should  be  pursued  than  on  commitments  for  environmental 
integration in the concerned sectors. Ways of improving consistency should be explored. 

•  Political  commitment  could  be  strengthened:  The  Cardiff  process  seems  to  have  been 
perceived by several Council formations as a pro forma exercise, imposed on them by the 
European Council, for which they did not feel ownership. The pace of progress seems also 
to have varied according to the degree of commitment to environmental integration of the 
successive Council Presidencies. 

•  Delivery,  implementation  and  review  mechanisms  can  be  improved:  Undoubtedly 
some perseverance is needed, as integration efforts require time to pay off – the sectors that 
first  developed  integration  strategies  have  tended  to  achieve  results,  as  illustrated  by 
agriculture.  However,  provisions  for  implementation  can  help  delivery.  For  example,  the 
Development strategy adopted in 2001 goes into detail on measures needed for delivery on 
the  ground,  including  human  resource  issues,  awareness  raising  and  training.  However, 
many  Council  formations  seem  to  have  interpreted  Cardiff  as  a  one-off  exercise.  Yet 
integration  is  a  dynamic  process,  which  requires  regular  monitoring,  reviewing  and 
updating  to  be  effective.  But  only  a  few  strategies  set  out  plans  for  regular  reviews.  For 
example, the Energy Strategy adopted in 1999 includes a commitment to review every two 
years. 

•  Clearer priorities and focus are needed: Many strategies have tended to be all-inclusive 
and failed to clearly identify priority areas where focussed actions could make a difference. 
However,  the  momentum  of  environmental  integration  appears  to  be  boosted  for  sectors, 
for  which  the  Union  has  set  clear  targets  and  milestones.  For  instance,  the  1999  Energy 
Strategy  and  2001  Development  Strategy  re-emphasise  established  targets  for  2010  or 
2015 (for action on climate change, renewable energy and combined heat and power and 
for reversing the trend in loss of environmental resources). The Development and Fisheries 
strategies  also  include  a  table  of  milestones  setting  out  actions  with  deadlines  for  their 
completion.  In  addition,  where  competence  lies  with  the  Union,  targets  against  which 

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progress can be monitored and reviewed are often easier to achieve. In many other areas, 
objectives tend to be more ambiguous and the path towards integration less clear. It often 
requires compromises between different national interests that are difficult to reach and the 
sometimes equally difficult mobilisation of national efforts for their implementation. 

•  Adopting a strategic forward looking approach would help: So far, many of the most 
significant steps taken to advance environmental integration at EU level have responded to 
crisis situations, in the form of pressing threats to sustained economic activity (fisheries), 
repeated  food  scares  (agriculture)  or  recurring  ecological  disasters  (maritime  transport), 
rather than resulted from the environmental integration strategies devised in the framework 
of the Cardiff process. More focus on the development and implementation of the strategic 
approach  established  by  the  Cardiff  process  would  increase  the  cost-effectiveness  of 
environmental  integration.  It  is  generally  accepted  that  strategic  approaches  by  planning 
ahead, allow better management of risks and can reduce both future damage costs and the 
costs of avoiding damage. 

These shortcomings have led to calls for renewed action. In October 2002, the Environment 
Council called upon the European Council to “reinforce the Cardiff process […] with the aim 
of  achieving  sustainable  development,  in  particular  by  calling  upon  relevant  Council 
formations  to  put  into  practice  the  decoupling  of  economic  growth  from  resource  use  and 
environmental degradation under the co-ordination of the Council (General Affairs/External 
Relations) in accordance with the Seville conclusions, and to give an account of integration 
actions and achievements at the Spring European Council every two years starting from 2003 
or 2004 as appropriate”27. 

The  Brussels  European  Council  of  March  2003  reaffirmed  the  importance  of  the 
environmental  integration  mandate  in  the  context  of  the  EU’s  strive  to  move  towards 
sustainable  development,  and  called  to  this  end  for  a  strengthening  of  the  Cardiff  process, 
notably through the development of “sector-specific decoupling objectives”. The specificities 
of each strategy’s institutional and policy contexts should of course be taken into account in 
setting these objectives as well as in the future development of the Cardiff process. 

The  Spring  European  Council  of  March  2004  again  emphasised  the  importance  of 
environmental  integration,  stating:  “Growth,  to  be  sustainable,  must  be  environmentally 
sound. Through better policy integration and more sustainable consumption and production 
patterns, growth must be decoupled from negative environmental impacts.” 

27 

Environment Council conclusions on putting into practice the European Union sustainable development 
strategy  and  the  environmental  dimension  of  the  Johannesburg  commitments  (Brussels,  17  October 
2002). 

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5. 

WAY FORWARD 

As  underscored  by  the  Spring  European  Council  in  March  200328  and  in  the  Environment 
Policy Review 2003, environmental integration needs to  be  reinvigorated. This  is  supported 
by  the  assessment  above.  Given  the  persistence  of  significant  negative  environmental 
pressures and unsustainable trends, the Cardiff process must be pursued, in some cases with 
more  vigour.  However,  successful  integration  of  environmental  concerns  into  other  sectors 
will  require  further  steps  to  support  this  process  and  promote  integration,  within  the  wider 
sustainable development context. In the following section a number of suggestions are made 
for increasing the effectiveness of the Cardiff process through complementary actions at the 
Community  and  national  level  to  ensure  that  it  feeds  through  into  environmental 
improvements on the ground. 

5.1. 

Revitalising the Cardiff process 

i) The Cardiff process needs clear leadership. A clear policy signal should be given by the 
European  Council  on  the  need  to  pursue  environmental  integration  with  determination 
through the Cardiff process. The European Council should regularly be informed on the pace 
of progress in this area and therefore provided with the opportunity to recall its commitment 
to  environmental  integration,  so  as  to  give  the  political  impulse  needed  to  mobilise  the 
different Council formations to that end.  

ii) In line with the March 2003 European Council conclusions, the Commission will carry out 
an annual stocktaking of the Cardiff process to feed into the Environmental Policy Review 
and  the  Commission’s  Spring  Report  and  to  contribute  to  the  Spring  European  Council 
discussion. 

Approaches  to  promoting  good  practice  and  consistency  between  strategies  in  terms  of 
monitoring,  review  and  updating  the  content  of  strategies  should  also  be  explored.  The 
Commission  will  develop  a  common  framework  and  guidelines  during  2005,  identifying 
possible approaches and presenting options as how best to ensure the necessary coordination 
and oversight role.  

iii) The sectoral councils should ensure that: 

•  Emphasis  is  put  on  strategy  implementation  and  on  delivering  on  the  commitments 

already made. 

•  Strategic aims are translated into clear operational targets. More focussed objectives and 
milestones  should  be  included  in  the  strategies  to  establish  a  pathway  to  environmental 
integration  for  each  sector.  Monitoring  will  also  benefit  from  a  more  systematic  and 
focussed approach. For instance, as suggested by the United Kingdom in its contribution to 
the preparation of the Spring 2004 Council, the different council formations could be asked 
by  the  European  Council  to  report  every  year  on  the  measures  taken  to  combat  climate 
change. 

28 

See paragraph 57 of the Presidency Conclusions to the European Council (20-21 March 2003). 

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•  Strategy  monitoring  is  put  into  practice:  further  efforts  need  to  be  made  on  the 
development  and  use  of  sector-specific  decoupling  objectives,  milestones  and  integration 
indicators (building upon steps taken in the transport – TERM, agriculture – IRENA, and 
energy  –  ERM,  fields),  against  which  to  measure  progress  towards  sustainable 
development.29 

•  Strategies include updating and review mechanisms to allow for adjustments to reflect 
progress and lessons learned and relevant policy developments to be taken into account in 
ongoing implementation. 

More specifically:  

•  The  General  Affairs  and  External  Relations  Council  whose  strategy  review  was  due  in 
2003 should be invited to proceed with the reviews in a timely manner. In the framework 
of  the  review  of  the  Development  strategy  planned  for  2004,  to  adjust  the  strategy’s 
objective  to  the  Johannesburg  Plan  of  Implementation  to  contribute  actively  to  its 
achievement. In addition,  the review should address the need  for new  financial  means to 
facilitate  the  implementation  of  Multilateral  Agreements  and  other  key  environmental 
policies in developing countries. 

•  As underlined by the Environment Council (17 October 2002), environmental integration 
efforts  need  to  be  extended  to  other  sectoral  policies.  Given  their  close  interlinkages 
with environmental policy, the Council identified tourism, research, cohesion policy and 
education as priority candidates for further environmental integration efforts at EU level.  

5.2. 

Complementing the Cardiff process  

To  ensure  that  the  Cardiff  process  feeds  through  into  real  improvements  in  environmental 
quality and promotes sustainable development in the actions that it generates, it is clear that 
the  institutional  and  top-down  approach  of  this  process  needs  to  be  complemented  by  more 
practical steps at both Community and national levels. 

The aim of these complementary measures would be to mobilise other actors at Community 
level and in member states to support environmental integration, re-inforcing the effectiveness 
of efforts made by Council formations and other institutions under of the Cardiff process, by 
demonstrating that it is necessary, that it can be mutually beneficial for the sectors concerned 
and  the  environment,  and  that  appropriate  instruments  and  solutions  exist  and  can  be 
developed to achieve it. This implies in particular: 

5.2.1.  At Community level 

i) Promoting win-win solutions: 

More  emphasis  must  be  placed  on  setting  out  how  environmental  integration  can  help 
achieve other sectoral objectives, by identifying mutually beneficial solutions to problems. 
The Commission together with Member States should identify such solutions and examples of 
best  practice.  For  example,  in  transport,  reductions  in  congestion,  through  congestion 
charging or modal shift for example, may improve mobility and reduce costs to the economy, 

29 

This  was  underlined  in  the  Presidency  Conclusions  to  the  Spring  European  Council  (20-21  March 
2003), paragraph 57. 

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whilst improving air quality30. Improving the environmental quality of less favoured regions 
can be an important factor in attracting private investment or developing tourist activity in a 
region, and can therefore foster regional development with cohesion benefits. Promising areas 
include the promotion of environmental technologies. 

ii) Demonstrating that environmental integration is feasible: 

In  parallel,  there  is  a  need  to  develop  innovative  instruments  and  approaches  that  can 
actively  foster  environmental  integration  while  minimising  economic  and  social  costs. 
Legislation,  while  remaining  one  of  the  main  means  of  achieving  environmental  objectives, 
needs  to  be  complemented  with  a  wider  range  of  policy  instruments  to  help  attain  those 
objectives  in  the  most  cost-effective  way,  while  taking  full  account  of  economic  and  social 
considerations. As indicated in the EU SDS, the 6 EAP and ETAP, measures that lead to the 
internalisation  of  environmental  costs  offer  one  of  the  fastest  routes  for  environmental 
integration  as  a  successful  internalisation  means  that  price  signals  would  reflect  the  real 
environmental  costs,  thus  informing  the  decisions  of  both  economic  operators  and  policy 
makers  in  the  concerned  sectors.  This  internalisation  of  costs  is  facilitated  by  the  use  of 
market-based instruments to promote environmental objectives as illustrated by the recently 
adopted emissions trading scheme, or the directive on the taxation of energy products. There 
are  many  advantages  to  the  use  of  market-based  instruments.  As  flexible  mechanisms,  they 
allow sectoral actors to develop cost-effective approaches to reducing environmental impacts. 
By internalising environmental costs, they can lead to changes in behaviour. Yet, competence 
in this field principally lies with the Member States and the full deployment of some market 
based instruments at Community level suffers from this situation, as exemplified by the time 
needed to adopt measures in the area of taxation. 

Other  instruments  that  are  designed  to  contribute  to  environmental  integration  include  the 
thematic strategies foreseen in the 6th EAP (soils; marine; air quality; resources; waste and 
recycling;  urban;  pesticides)  and  the  Strategy  on  environment  and  health.  These  strategies 
exemplify the Commission’s new integrated approach to policy-making in the environmental 
field. They are being developed with the full consultation of stakeholders and the involvement 
of  the  concerned  policy  sectors,  so  as  to  promote  environmental  integration  and  policy 
convergence.  The  strategies  will  set  out  clear  quantifiable  targets  and,  where  possible, 
promote  the  use  of  market-based  instruments.  They  provide  a  test  bed  for  innovative 
approaches.31 

The full implementation as of January 2004 of the Extended Impact Assessments, as part of 
the Better regulation package and in the context of the Sustainable Development Strategy will 
allow spill-overs from one policy area to another or synergies to be identified and addressed, 
hence  facilitating  the  identification  and  negotiation  of  trade-offs.  Experience  so  far  has 

30 

31 

Indeed,  the  new  Eurovignette  proposal  encourages  Member  States  to  differentiate  the  tolls.  This  new 
framework,  when  adopted  by  the  Council  and  the  Parliament,  holds  the  potential  for  making  an 
important contribution to improve the environmental performance of the transport sector, provided that 
Member States make use of the possibilities offered by the directive. 
Development of the strategies takes place in two stages. The first stage, completed in 2003, resulted in a 
Communication  defining  the  problems  to  be  addressed  and  outlining  proposed  solutions.  The  second 
stage will define the objectives and the various means and policy measures, and will be completed by 
2005. Three strategies will complete the second phase in 2004 (soils, pesticides and waste prevention 
and recycling); in parallel, an Action Plan on Environment and Health will be developed as a follow up 
to the adoption of an overarching strategy on this matter in 2003. 

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confirmed that, properly used, extended impact assessments could be a powerful instrument 
for  promoting  environmental  integration  while  ensuring  that  due  account  is  taken  of  the 
economic and social dimensions of sustainable development.  

iii) Illustrating the need for environmental integration: 

Raising awareness of environmental problems and solutions available may sensitise the 
public and decision makers to the need to further environmental integration. Information can 
also be used to promote stakeholder participation for better environmental policy making and 
encourage changes in behaviour.  

Efforts  to  gather  and  publish  information  and  data  on  the  state  of  the  environment,  the 
pressures it is under and their sources and the distance that remains to achieve the targets set 
must  be  strengthened  and  should  go  hand  in  hand  with  efforts  to  summarise  this 
information, notably through indicators. 

5.2.2. At national level 

To  achieve  the  full  potential  benefits  of  the  Cardiff  process  and  related  efforts  in  terms  of 
environmental and sustainable development improvements on the ground, efforts to improve 
integration at EU level need to be backed by commitments and action at national level. 

For instance, stringent implementation by Member States of the directives on Environmental 
Impact Assessment (EIA)32 and on Strategic Environmental Assessment (SEA)33 is key to 
advancing  environmental  integration  through  projects,  plans  and  programmes  at  national 
level. 

Furthermore,  a  regular  exchange  of  good  integration  practice  at  national,  regional  and 
local level could help put integration into effect. There is a wealth of experience at all levels, 
notably  in  the  framework  of  local  Agenda  21  initiatives,  which  should  be  pooled  and  made 
more  widely  accessible.  The  review  of  the  environmental  dimension  of  national  sustainable 
development strategies currently under preparation will provide a first analytical tool to assess 
approaches, with a view to highlighting and fostering exchange of good practice. Measures to 
strengthen  existing  networks  of  environmental  integration  and  sustainable  development 
practitioners and to simplify and speed up the exchange of information between practitioners 
should  be  explored.  For  example,  the  development  of  an  interactive  Internet  portal  to 
support  access  to  and  updates  of  information  on  relevant  national,  regional  and  local 
experience could be considered. 

Continued  political  commitment  to  the  use  of  such  approaches  at  EU  and  national  level  is 
needed  to  enable  the  process  of  environmental  integration  to  bring  further  results  on  the 
ground. 

32 

33 

Directive 85/337/EEC, amended by Directive 97/11/EC. The EIA directive requires the environmental 
impacts of range of projects from different sectors to be taken into account before a decision is taken for 
the project to proceed 
Directive 2001/42/EC. A SEA allows the environmental consequences of certain plans and programmes 
to be identified and assessed during the programme or plan preparation, before their adoption 

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6. 

CONCLUSION  

While this stocktaking has shown the positive results of the Cardiff process, both in terms of 
raising  the  profile  of  environmental  integration  and  in  terms  of  concrete  improvements  in 
some  sectors,  it  also  points  to  a  number  of  weaknesses  in  implementation.  Amongst  other 
issues,  it  emphasises  the  need  to  improve  the  consistency  of  strategies  across  Council 
formations and for greater emphasis on good practice in terms of content and implementation. 
It  also  points  to  a  set  of  measures  at  Community  and  national  levels  to  support  sectoral 
Councils  in  their  efforts  under  the  Cardiff  Process  to  integrate  environmental  concerns  into 
their  policies  and  to  help  maximise  the  benefits  of  these  efforts  in  terms  of  concrete 
environmental  improvements.  Further  efforts  are  also  needed  at  national  level  to  fully 
implement the decisions taken at Community level. 

While  sustainable  development  involves  dealing  with  economic,  social  and  environmental 
policies  in  a  mutually  reinforcing  way,  environmental  integration  needs  increased  visibility 
and political support at the highest level. It should become a regular item on the agenda of the 
Spring European Council. In this respect and in line with the Presidency Conclusions to the 
March  2003  European  Council,  the  European  Commission  will  carry  out  an  annual 
stocktaking  of  environmental  integration  as  a  complement  to  the  Environment  Policy 
Review,  which  will  feed  into  the  Commission’s  Spring  Report  and  the  Spring  European 
Council debate. 

Forthcoming  opportunities  to  further  promote  environmental  integration  should  also  be 
seized: 

•  The  Review  of  the  Sustainable  Development  Strategy  planned  for  2004-  2005  will 
examine  progress  made  since  2001  and  identify  priority  actions  to  ensure  delivery.  This 
exercise  will  enable  the  EU  to  pinpoint  where  environmental  integration  gaps  lie  at  EU 
level, hampering the EU’s efforts to curb unsustainable environmental trends, and to make 
concrete proposals to address them.  

•  The mid-term review of the Lisbon strategy in 2005 offers an additional opportunity to 
examine  how  environmental  integration  and  economic  and  employment  growth  could 
increasingly be mutually supportive.  

•  The  Commission’s  emphasis  on  sustainable  development  in  its  Communication  on  the 
Union’s  next  financial  perspectives  (2007  onwards)34  will  give  an  additional  boost  to 
further environmental integration, in particular in the agricultural and regional policy. The 
adoption in 2004 of a Commission proposal for a regulation on the structural and cohesion 
funds in the period post-2006, setting new guidelines, will provide an opportunity to better 
integrate  the  environmental,  economic  and  social  pillars  of  sustainable  development  into 
cohesion policy. 

34 

See  Communication  from  the  Commission  to  the  European  Parliament  and  the  Council,  The 
Commission’s legislative and work programme for 2004, COM(2003)645 final of 29 October 2003 (p. 
5). 

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integration 

Environmental 
towards  sustainable 
development. It requires the unfailing and continuous commitment of all policy sectors at all 
levels of governance in the Union. 

is  a  key  condition  for  progressing 

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