Report from the Commission to the Council and the European Parliament on incentives for EMAS registered organisations {SEC(2004)1375}
Date: 2004-11-09
Institutions: European Commission
Subjects: EU environmental policy, business policy, environmental monitoring, environmental policy, public contract, report, small and medium-sized enterprises

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 9.11.2004 
COM(2004) 745 final 

REPORT FROM THE COMMISSION TO THE COUNCIL AND 
THE EUROPEAN PARLIAMENT 

ON INCENTIVES FOR EMAS REGISTERED ORGANISATIONS 

{SEC(2004)1375} 

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TABLE OF CONTENTS 

1. 

Introduction .................................................................................................................. 3 

1.1. 

EMAS challenges......................................................................................................... 3 

2. 

2.1. 

2.2. 

Types of external incentives......................................................................................... 4 

Regulatory flexibility ................................................................................................... 4 

Promotional incentives................................................................................................. 6 

2.2.1.  Public procurement ...................................................................................................... 6 

2.2.2.  Support funding............................................................................................................ 7 

2.2.3.  Technical and information support .............................................................................. 7 

3. 

Conclusions .................................................................................................................. 8 

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1. 

INTRODUCTION 

The  Eco-Management  and  Auditing  Scheme  (EMAS)  is  a  voluntary  environmental 
management system, under which organisations evaluate, manage and continuously 
improve their environmental performance.  

The two main purposes of this report are to inform the European Parliament and the 
Council  about  the  incentives  currently  in  Member  States  for  EMAS-registered 
organisations  and  to  raise  the  awareness  of  national  authorities  about  different 
national practices. 

The report is designed to help government policy and regulatory decisions to become 
more knowledge-based so that incentives are provided in the most suitable way for 
each individual case. In addition, the information covered in this report will be useful 
for  the  Commission  during  the  forthcoming  revision  of  the  EMAS  Regulation1 
(hereinafter “the Regulation”). 

The report meets the requirement in the second subparagraph of Article 10(2) and in 
Article 11(3) of the Regulation that the European Commission shall transmit to the 
European  Parliament  and  the  Council  information  received  from  Member  States  in 
the following fields:  

– 

the  avoidance of duplication of  effort in the implementation  and enforcement 
of environmental legislation by EMAS-registered organisations; and 

– 

the promotion of participation of organisations in EMAS. 

This report starts by describing the context of EMAS and the challenges lying ahead. 
It then lists the incentive measures provided by national authorities. 

1.1. 

EMAS challenges 

Since the Regulation  took  effect  in 1995, it has been  targeted at raising  the  quality 
threshold  of  environmental  management  systems.  Its  unique  design,  which  aims  at 
delivering high performance, transparency and credibility, makes EMAS a valuable 
tool  which  has  the  potential  to  contribute  to  environmental  improvement  by 
encouraging better environmental performance from all type of organisations. 

EMAS  incorporates  a  formal  environmental  management  system  (EN  ISO  14001). 
Other  less  formal  environmental  management  systems2  are  available  in  the  market 
providing  for  different  options  for  organisations  in  search  of  environmental 
management. It is worth noting that EMAS goes beyond EN ISO 14001 and sets the 
strictest requirements of all and so may require more effort from organisations trying 
to  meet  them.  This  may  explain  the  difference  between  the  statistics  collected  for 
EMAS and EN ISO 14001 registrations and certifications. 

1 
2  

Regulation N° 761/2001 of 19 March 2001. 
BEST-Project 
http://europa.eu.int/comm/enterprise/environment/events/sme_conference/presentations/best_report.pdf  

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Organisations  can  benefit  in  many  ways  from  implementing  EMAS.  For  example, 
more sustainable use of resources gives financial advantages; a better public image; 
reduced  risk  of  non-compliance  with  environmental  legislation;  improved  relations 
with environmental regulators and other stakeholders, and proper risk management, 
which  in  turn  may  prompt  lenders  and  insurers  to  offer  better  financial  terms.  But 
despite all these benefits, the scheme is now facing several challenges: 

•  The number of new registrations has declined over the last two years; 

•  The  business  community  is  particularly  critical  about  the  lack  of  external 
incentives as well as of the unbalance between costs and benefits; in particular for 
SMES; 

•  Most registered companies are located in only a few Member States, presenting an 

incoherent picture of EMAS uptake in the EU; 

•  In May 2004, the scheme became fully applicable in the new Member States, thus 

enlarging the potential for new registrations. 

2. 

TYPES OF EXTERNAL INCENTIVES  

The  nature  of  the  external  incentives  provided  by  national  authorities  can  vary 
depending  on  the  aims  they  are  pursuing.  Two  main  groups  have  been  identified: 
those  of  a  regulatory  nature  and  those  which  aim  to  promote  wider  uptake  of  the 
scheme through public procurement, funding support and technical and information 
support.  

2.1. 

Regulatory flexibility 

Issue 

Article 10(2) of the Regulation provides the legal base for Member States to consider 
how  EMAS  registration  can  be  taken  into  account  in  the  implementation  and 
enforcement  of  environmental  legislation.  The  aim  of  this  provision  is  to  avoid 
unnecessary duplication of effort by both organisations and enforcement authorities. 

Governments  are  committed  to  providing  an  efficient,  responsive  and  transparent 
regulatory  framework  that  ensures  compliance  with  environment  legislation.  Until 
now,  command  and  control  practices  have  been  applied  with  different  degrees  of 
success. This may explain why, despite the use of these practices, there is still a high 
level of non- environmental compliance.  

The  issue  is  also  linked  to  how  enforcement  authorities  use  what  may  be  scarce 
resources. Often authorities are forced to optimise the use of their resources e.g. for 
monitoring  sites.  If  resources  are  in  short  supply,  this  may  prevent  efficient 
monitoring and control, leading to unintentional failures of enforcement. 

The Regulation sets out strict requirements regarding compliance with environmental 
legislation since it requests the independent and external verifiers to ensure that the 
organisation  can  demonstrate  legal  compliance.  In  compensation,  some  Member 

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States have granted regulatory flexibility to EMAS-registered organisations so as to 
alleviate the burden of regulatory pressure and streamline their own resources. 

Objectives 

The  degree  of  regulatory  flexibility  varies  from  one  country  to  another,  so  for  the 
purpose of this report the term regulatory flexibility includes both regulatory relief, 
construed  as  substitution  of  legal  requirements  without  changes  in  environmental 
legislation as such, and deregulation, which involves changes in the legislation itself. 

The main objectives of regulatory flexibility are:  

– 

– 

– 

to simplify and reduce the regulatory framework in cases of redundancy; 

to remove procedural impediments; 

to  reduce  the  need  to  submit  unnecessary  and  repetitive  documents  to  the 
regulator; 

– 

to foster responsible behaviour by operators. 

General types 

Regulatory  flexibility  has  been  applied  by  some  Member  States  in  the  following 
fields: 

– 

Information required for permits: streamlining applications 

Flexibility  regarding  permitting  procedures  may  be  possible  for  registered 
companies.  Much  of  the  information  required  for  permit  applications  is  already 
collected through the EMAS system. The environmental information provided by it 
can be regarded as reliable, up to date and suitable for use. 

– 

Reduced reporting and monitoring requirements 

If  an  EMAS  company  can  demonstrate  significant  compliance  history  or  superior 
performance over a period of time, then less information would need to be reported 
to  the  enforcement  authorities  to  verify  its  performance.  This  could  also  justify 
requiring this information less frequently. 

– 

Consolidated reporting and monitoring requirements 

The  implementation  of  EMAS  presents  the  regulator  with  an  opportunity  to  take 
advantage  of  the  environmental  information  available  from  the  Environmental 
Statement.  In  fact,  this  Statement  provides  the  competent  authorities  with  data  and 
information  that  can  be  used  for  subsequent  reporting  and/or  monitoring  purposes 
thus, avoiding duplication of tasks.  

–  Reduced inspections 

In  some  cases,  national  enforcement  resources  are  scarce.  Given  that  the 
implementation of EMAS facilitates the compliance with environmental legislation, 

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it  could  be  suggested  that  registered  companies  be  subject  to  fewer  inspections 
and/or inspections that are narrower in scope. 

2.2. 

Promotional incentives 

Introduction 

Article  11  of  the  Regulation  lays  down  requirements  to  ensure  the  promotion  of 
organisations’ participation in EMAS by providing incentives in the fields of support 
funds, public procurement, technical and information support. This Article makes a 
special reference to the promotion of EMAS amongst SMEs. 

There are three main areas where promotional incentives can be provided:  

– 

– 

– 

Public procurement  

Funding support 

Technical and information support 

2.2.1.  Public procurement 

Public  purchasers  and  other  entities  covered  by  the  public  procurement  Directives 
constitute an important group of consumers; some €1,000 billion or about 16% of the 
is  spent  on  public  procurement.  Integrating  environmental 
Union’s  GDP 
considerations alongside economic and social considerations into public procurement 
could  substantially  contribute  to  sustainable  development.  If,  wherever  appropriate, 
public purchasers referred to EMAS in their calls for tenders, this would help create 
awareness of the scheme and act as an incentive for contractors to join it. 

Taking  into  account  environmental  considerations  like  environmental  management 
systems in public procurement should be linked to the subject matter of the contract 
and  comply  with  the  general  principles  of  Community  law  such  as  the  rule  on 
transparency or equal treatment3. 

Article  11(2)  of  the  Regulation  provides  the  basis  for  promoting  EMAS  widely 
through procurement practices. To this end, it requires public authorities to consider, 
without prejudice to Community law, how registration under EMAS could be taken 
into account when setting criteria for their procurement policies.  

The  European  Commission  interpretative  Communication  on  public  procurement4 
explains  the  existing  possibilities  for  public  authorities  to  take  EMAS  registration 
into account during  the  tendering  process. It states that environmental management 
systems  such  as  EMAS  cannot  be  specifically  requested  as  a  procurement  criterion 
but, as proof of the organisation’s technical capacity in dealing with environmental 
issues.  

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“Buying  Green”  -  A  Handbook  on  environmental  public  procurement,  Commission  staff  working 
document, SEC(2004) 1050 of 18 August 2004. 
COM(2001) 274 final of 4.7.2001. 

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This  was  confirmed  by  the  amended  public  procurement  Directives,5  which  is 
designed to simplify, clarify and modernise existing EU procurement legislation. The 
new  public  procurement  directives  have  introduced  a  new  technical  selection 
criterion whereby bidders have to show, in appropriate cases and if it is requested by 
the public authorities that they can apply environmental management measures when 
executing  specific  works  or  service  contracts  e.g.  a  contract  to  build  a  bridge  in  a 
nature  reserve  implies  the  need  for  continuous  environmental  management  and 
adoption  of  specific  protection  measures  during  the  works.  In  these  cases  the 
Directives  state  that  EMAS  or  any  other  equivalent  environmental  management 
system could be provided as evidence of compliance with the requirement to adopt 
environmental management measures.  

2.2.2. 

Support funding  

Article 11(1) of the Regulation emphasises the need for Member States to guarantee 
the  participation  of  SMEs  in  the  scheme.  One  way  of  doing  this  is  by  facilitating 
support funds and ensuring reasonable registration fees. 

General types 

The main current areas for financial support can be listed as follows:  

– 

– 

– 

– 

– 

Subsidies to new EMAS registrations in the form of lump sums or a percentage 
of total costs incurred;.  

Tax breaks on purchases designed to improve environmental performance are 
an indirect way of providing funds;. 

Special funds for technical assistance, staff training and external consulting; 

Reduced registration fees; 

Finally, preferable conditions for EMAS-registered companies negotiated with 
bankers and insurers.  

2.2.3.  Technical and information support 

Article  11(1)  of  the  Regulation  not  only  invites  Member  States  to  promote 
participation in EMAS, but it also stresses the need to ensure more participation by 
SMEs by providing proper technical assistance and facilitating access to information.  

General types 

On technical assistance the main areas of support are as follows: 

– 

Educational  programmes  in  co-operation  with  relevant  associations,  e.g. 
Chambers of Industry and Commerce, or under the supervision of the national 
EMAS body;  

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Directive 2004/17/EC and Directive 2004/18/EC of 31 March 2004.  

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– 

– 

– 

Phased  implementation  programmes  especially  designed  for  SMEs..  These 
systems are designed to help SMEs reach environmental excellence at different 
levels depending on their particular needs; 

Synergies involving all the actors in environmental management systems, e.g. 
working groups, partnerships, peer reviews and customised coaching;  

Short-  and  long-term  investment  by  the  authorities  to  educate  and  train 
professionals through specialised programmes;  

– 

Guidelines and toolkits for specific sectors. 

On information the main areas are as follows: 

– 

– 

– 

Specific  information  programmes  customised  for  economic  operators,  small 
industries  and  craft  trades,  trade  unions,  public  authorities,  and  the  general 
public, etc; 

Information campaigns aimed at specific interest groups and the general public, 
supported by television campaigns, articles in specialist publications and local 
newspapers, promotional campaigns or any other means of promoting general 
awareness; 

Conferences  and  workshops  to  foster  active  participation,  and  exchange  of 
experiences and best practices. 

3. 

CONCLUSIONS 

By  providing  external  incentives,  national  authorities  can  do  much  to  ensure  the 
success  of  EMAS.  Through  targeted  policies  and  programmes,  supported  by  valid 
incentives, they can attract organisations and encourage new EMAS registrations. 

This  report  reveals  that  practically  all  Member  States  apply  measures  that  provide 
some sort of external incentives for EMAS-registered organisations. The fact that the 
business community regularly complains about the shortage of substantial measures 
is  an  indicator  that  there  is  potential  for  improvement.  Nevertheless,  whatever 
combination  of  incentives  a  country  decides  to  apply,  they  need  to  be  designed  in 
such  a  way  that  they  meet  the  aspirations  of  the  organisations  concerned  and  the 
needs of national regulators. 

Who does what? - A quantitative assessment 

Annex II gives an overview of the incentives provided by each Member State. 

In  addition  to  this  quantitative  assessment,  there  should  also  be  a  qualitative 
assessment  of  existing  incentives.  This  will  require  a  detailed  study  which  is  being 
commissioned  under  the  ongoing  revision  of  the  Regulation.  It  is  expected  that  the 
study  will  show  which  incentives  prove  to  be  most  beneficial  and  useful  for 
operators.  

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Priorities  need  to  be  established  by  national  authorities.  When  designing  external 
incentives some Member States have given EMAS more recognition and promotion 
than other formal (e.g. EN ISO 14001) and  less formal environmental management 
systems  while  other  countries  took  a  different  approach  supporting  systems  other 
than  EMAS.  It  is  noted  that,  in  general,  incentives  are  designed  for  the  benefit  of 
private organisations. As EMAS is also available to public organisations it is relevant 
that  Member  States  provide  also  incentives  in  this  sector  especially  to  local 
authorities.  

Countries may learn from each other and where necessary step up efforts to provide 
substantial  incentives  for  EMAS  organisations.  Member  States  have  developed 
policies  on  incentives  together  with  long-term  incentive  programmes  to  encourage 
the  best  practices.  Consultations  with  the  main  stakeholders  e.g.  the  managers  of 
organisations usually facilitate establishing future measures taking into account their 
needs and expectations. 

Newcomers 

With a couple of exceptions, incentives in the new Member States are negligible or 
even  non-existent.  These  countries  have  had  to  implement  a  large  body  of  EU 
environment law, and although administrative capacity building and the transposition 
of legislation is now practically complete, national authorities and private operators 
alike now have to deal successfully with the new legal obligations.  

Against  this  background,  the  authorities  may  consider  EMAS  as  an  adequate 
management  tool  for  addressing  these  legal  issues  and  therefore  encourage  both 
public  and  private  organisations  to  participate.  Real  incentives  for  EMAS 
implementation and registration are a powerful way of doing this.  

The  Commission  will  continue  to  provide  the  technical  assistance  and  information 
support  necessary  for  the  implementation  of  EMAS  in  private  and  public 
organisations.  

Turning challenges into opportunities 

This report identifies a number of challenges being faced by the scheme that cannot 
be overlooked. 

The  Commission  has  launched  a  revision  of  EMAS  which  will  include,  amongst 
other elements, looking at the legal requirements on incentives in order to strengthen 
their  scope  and  efficiency.  The  revision  process  should  ensure  that  all  interested 
parties  are  consulted,  thereby  guaranteeing  that  national  regulators  and  operators 
alike will be able to provide their views. 

The revision of EMAS represents a turning point for the scheme, and an opportunity 
to make incentives play a crucial role. The Commission and national regulators need 
to  work  to  identify  the  most  appropriate  policy  choices  for  encouraging  efficient 
management and rational use of the environment. 

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