Communication from the Commission to the Council and the European Parliament - The 2005 Review of the EU Sustainable Development Strategy: Initial Stocktaking and Future Orientations {SEC(2005) 225}
Date: 2005-02-09
Institutions: European Commission
Subjects: EU policy, climate change, globalisation, management of resources, marginalisation, population ageing, poverty, public health, sustainable development, transport policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 9.2.2005 

COM(2005) 37 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 

EUROPEAN PARLIAMENT  

The 2005 Review of the EU Sustainable Development Strategy:  

Initial Stocktaking and Future Orientations 

{SEC(2005) 225} 

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TABLE OF CONTENTS 

Foreword .....................................................................................................................3 

Part I: Sustainable Development – What is at stake?..................................................6 

1. 

2. 

3. 

4. 

Introduction .....................................................................................................6 

The European Union’s approach to sustainable development ........................7 

Why a review? ................................................................................................8 

Taking Stock of Progress ................................................................................9 

Part II: Responding to the challenges........................................................................18 

5. 

Future Orientations .......................................................................................18 

5.1. 

Reaffirm the basic principles of the European Union Sustainable 

Development Strategy ..................................................................................18 

5.2. 

Reaffirm the new approach to policy making and policy coherence..............18 

5.3.  Maintaining a focus on key unsustainable trends and exploring the linkages 

between unsustainable trends in greater detail.............................................19 

5.4. 

Setting objectives, targets and milestones ....................................................20 

5.5. 

Ensuring effective monitoring........................................................................21 

5.6. 

Strengthen ownership and improve co-operation with public and private 

actors at all levels .........................................................................................21 

6. 

Next steps .....................................................................................................22 

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Foreword 

Sustainable development is a fundamental objective of the European Union, but it is 

also  a  global  challenge  faced  by  our  partners  around  the  world.  It  raises  the 

questions  of  how  to  reconcile  economic  development,  social  cohesion,  north/south 

equity and protection of the environment. Its importance is reflected in the EU Treaty 

and  taken  up  in  the  Constitution,  which  challenges  the  Union  “to  work  for  the 

sustainable  development  of  Europe  based  on  balanced  economic  growth  and  price 

stability, a highly competitive social market economy, aiming at full employment and 

social progress, and a high level of protection and improvement of the quality of the 
environment”.  

With rapid demographic changes, the next decades will put enormous and increasing 

pressure  on  the  world’s  resources,  whether  in  terms  of  climate  change,  natural 
resources,  biodiversity,  or  the  wealth  gap  between  North  and  South.  We  must  take 

action  today  in  order  to  preserve  for  tomorrow  the  delicate  economic,  social  and 

environmental balances governing the globe.  

Europe’s  future  can  only  be  seen  in  this  global  context.  The  EU  has  already  made 

significant  efforts  to  promote  sustainable  development  at  home  and  internationally. 

By  taking  a  proactive  approach,  the  EU  can  turn  the  need  for  environmental 

protection and social cohesion into opportunities for innovation, growth and jobs. With 

the review of the sustainable development strategy (SDS) we recall our commitments 

to better define the structural changes needed in our economies and society, and set 

up a positive agenda to steer this process of change for better quality of life for all. 

To  respond  to  this  challenge,  co-ordinated  action  and  strong  leadership  is  needed 

from  the  Union  in  order  to  shape  solutions  that  can  make  a  lasting  difference  to 

people in Europe and in every part of the world.  

This  is  why  at  the  start  of  this  millennium  the  European  Union  engaged  itself  in  a 

compelling  agenda  for  change,  to  ensure  that  we  start  to  face  up  to  unsustainable 

economic,  social  and  environmental  trends.  In  2000  the  Lisbon  Strategy  set  out  an 

ambitious  agenda  of  economic  and  social  reforms  to  create  a  highly  dynamic  and 

competitive  knowledge-based  economy.  In  2001  a  broad  Strategy  for  Sustainable 

Development was launched by the European Council in Gothenburg and in 2002 its 

external  dimension  was  defined  in  Barcelona,  ahead  of  the  UN’s  World  Summit  on 

Sustainable  Development  in  the  summer  of  2002.  Each  of  these  steps  has  been 

accompanied  by  important  decisions  and  action  to  fulfil  the  commitments  made. 

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However, despite all this not enough progress has been seen; unsustainable trends 

have yet to start to reverse and the international stakes remain high.  

The combination of the start of a new Commission and the arrival of a new European 

Parliament  provides  the  right  moment  to  take  stock  of  progress  and  to  push  to 

accelerate the pace of change.  

The  first  steps  have  been  made.  The  Commission  in  proposing  the  Strategic 

Objectives  for  the  Union  over  the  next  five  years  has  reaffirmed  its  commitment  to 

sustainable  development.  It  has  just  proposed  in  the  mid-term  review  of  the  Lisbon 

Strategy  to  make  a  renewed  Lisbon  agenda  our  strategy  for  growth  and  jobs; 

allowing us to use the motor of a more dynamic economy to fuel our wider social and 

environmental  ambition.  In  this  way,  Lisbon  remains  an  essential  component  of  the 

overarching  objective  of  sustainable  development  set  out  in  the  Treaty:  improving 

welfare and living conditions in a sustainable way for present and future generations. 

As  the  Commission  affirmed  in  the  mid-term  review:  “Both  Lisbon  and  the 

Sustainable  Development  Strategy  contribute  to  ensuring  this  goal.  Being  mutually 

reinforcing,  they  target  complementary  actions,  use  a  range  of  instruments  and 
produce their results in different time frames.” 

Moreover, the review of the Lisbon strategy is accompanied by the launch also today 

by  the  Commission  of  an  updated  EU  Social  Agenda;  an  agenda  mapping  out  the 

policies  that  can  help  to  ensure  a  more  cohesive  continent  and  the  further 

development of our social model in response to unsustainable trends. In this way, our 

Social Agenda is contributing in its own right to the goal of sustainable development.  

This  Communication  represents  the  Commission’s  first  step  in  reviewing  the 

Sustainable  Development  Strategy 

in  2005.  This  report  provides  an 

initial 

assessment  of  the  progress  made  since  2001  and  outlines  a  number  of  future 

orientations,  which  can  guide  the  review  of  the  Sustainable  Development  Strategy 

which  will  be  presented  in  a  separate  Communication  to  the  European  Parliament 

and  Council  later  this  year.  This  Communication  builds  on  debate  over  the 

proceeding  year,  including  the  opinion  of  the  European  Economic  and  Social 

Committee  last  April  and  the  results  of  a  public  consultation  launched  by  the 
Commission last October1. 

1 

A  more  detailed  summary  of  the  outcome  of  these  exercises  is  set  out  in  Parts  1  and  2  of  the 
Commission  staff  working  document,  SEC(2005)  225.  The  full  Commission  report  on  the  consultation 
results will shortly be available at http://europa.eu.int/comm/sustainable/pages/review_en.htm. 

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The  European  Union  has  a  broad,  long  term  vision  on  its  future.  We  believe  in  the 

strength and underlying values of our dynamic European model. We will ensure that 

the  needs  of  the  present  and  future  generations  can  be  met.  This  fundamental 

objective will transpire in all Union policies. Sustainable development requires action 

now. The European Union has the capacity, competence and creativity to make the 

changes  needed.  Europeans  and  all  other  citizens  of  the  world  can  count  on  the 

Union’s commitment to ensure a sustainable future for all. 

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Part I: Sustainable Development – What is at stake? 

1. 

INTRODUCTION 

Sustainable  Development  –  meeting  the  needs  of  the  present  generation  without 

compromising the ability of future generations to meet their needs – is a fundamental 
objective  under  the  Treaty  on  European  Union2  and  the  Constitution.  It  is  an 
overarching  concept  which  underpins  all  Union  policies,  actions  and  strategies  and 

requires  economic,  environmental  and  social  policies 

to  be  designed  and 

implemented in a mutually reinforcing way.  

In an ever more globalised world, clear political leadership is necessary to promote a 

dynamic  European  model  for  today  and  in  the  future.  The  Commission  is  firmly 

committed  to  sustainable  development  and  wants  to  set  a  positive  agenda  for 

change. Our future in Europe and in the world requires a long term vision and action 

across  a  wide  range  of  policies.  The  Commission  is  convinced  that  we  need  to 

improve prosperity, solidarity and security in order to deliver a better quality of life for 

us and future generations. We need growth and more jobs, a cleaner and healthier 

environment. We need a more cohesive society where prosperity and opportunity is 

shared across the European Union and beyond. We need more innovation, research 

and  education.  We  need  to  fulfil  our  global  responsibilities  and  commitments.  Our 

future  prosperity  and  quality  of  life  will  depend  on  our  capacity  and  commitment  to 

change our production and consumption patterns and to decouple economic growth 

from environmental degradation.  

Action on these issues cannot be confined to the Union alone. Sustainability remains 

a global challenge. This is why it is essential to show European leadership along twin 

internal  and  external  tracks.  This  requires  an  integrated  approach  and  reflects  the 

fact  that  with  globalisation  and  increasing  interdependence  between  issues,  the  EU 
can only deliver fully on its key internal priorities if it succeeds at the same time on 

the  world  scene.  Equally,  the  EU’s  ability  to  reflect  its  global  commitments  in  all  its 

policies is crucial if it is to turn words into deeds, maintaining its credibility as a world 

leader in the field of sustainable development.  

While  this  Commission’s  mandate  continues  until  the  end  of  2009,  it  has  a  clear 

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Art. 2 of the Treaty on European Union. 

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obligation  to  look  beyond  that  date  in  formulating  policy.  If  we  want  to  achieve  our 

future goals, we must not wait until tomorrow; we have to take action now. Realising 

the long term vision calls for concrete objectives to steer long term trends as well as 

mechanisms  to  meet  the  goals  set  out,  starting  now.  This  Commission  has  already 

confirmed  the  relevance  of  its  core  strategic  objectives  of  prosperity,  solidarity  and 
security to sustainable development3.  

The EU first set out its commitment to sustainable development in June 2001. At this 

time  the  Gothenburg  European  Council  adopted  the  EU  Sustainable  Development 

Strategy  (SDS)  on  the  basis  of  a  Commission  Communication.  In  2002,  the 
Commission  presented  a  second  Communication4  focussing  on  the  external 
dimension  of  sustainable  development,  which  was  endorsed  by  the  European 

Council in Barcelona. These texts together form the basis of the comprehensive EU 

Sustainable  Development  Strategy.  The  Commission  has  committed  to  review  the 

Strategy at the start of each new Commission’s term in office. This will be done in the 
course of 2005 on the basis of experience over the past four years.  

The  revised  Sustainable  Development  Strategy  will  need  to  adopt  a  broader 

approach  highlighting  the  structural  changes  in  the  economy  needed  to  move 

towards  more  sustainable  production  and  consumption  patterns  and  covering  un-

sustainable  trends.  With  a  further  strengthening  of  the  new  approach  to  policy-

making,  the  revised  Strategy  will  reaffirm  its  three  dimensional  approach  and  also 

ensure  the  full  integration  and  reinforcement  of  the  external  aspects  of  sustainable 

development. It will furthermore confirm the commitment made in the proposal on the 

financial  perspectives  2007-2013  that  sustainable  development  will  be  a  guiding 

principle for EU policies.  

2. 

THE EUROPEAN UNION’S APPROACH TO SUSTAINABLE DEVELOPMENT  

The Strategy on Sustainable Development has the following components:  

First,  it  sets  out  a  broad  vision  of  what  is  sustainable.  The  strategy’s  basic 

message  is  that,  ultimately,  the  economic,  social  and  environmental  dimensions  of 

sustainability must go hand–in-hand and mutually reinforce one another: “Sustainable 

development offers the European Union a positive long-term vision of a society that is 

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COM(2005) 12, 26.1.2005 : “Strategic objectives 2005-2009 - Europe 2010: A partnership for European 
Renewal: Prosperity, Solidarity and Security”. 

COM(2002) 82, 13.2.2002: "Towards a global partnership for sustainable development". 

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more  prosperous  and  more  just,  and  which  promises  a  cleaner,  safer,  healthier 

environment - a society which delivers a better quality of life for us, for our children, 
the 
and 
interrelationships between these three pillars of sustainable development is crucial.  

for  our  grandchildren”5.  Understanding 

importance  of  and 

the 

The second, and arguably the most ambitious part of the strategy, seeks to improve 

the way in which we make policies, focussing on improving policy coherence and 

making people aware of possible trade offs between contradictory objectives so that 

informed policy-decisions can be taken. This implies careful examination of their full 

effects, including those of non-action notably through early impact assessment, and 

sending the right signals to the market by getting prices right. It also requires that EU 

policy makers take into account the global context and actively promote consistency 

between  internal  and  external  policies.  Furthermore,  it  also  calls  for  investment  in 

science  and  technology  to  support  the  adjustments  needed  for  sustainable 

development.  Finally,  the  new  approach  to  policy-making  insists  on  improving 
communication and mobilizing citizens and business. 

Third,  it  addresses  a  limited  number  of  trends  that  are  clearly  not  sustainable, 

such  as  the  issues  of  climate  change  and  energy  use,  threats  to  public  health, 

poverty  and  social  exclusion,  ageing  societies,  management  of  natural  resources, 

and land use and transport. 

Finally, the global dimension expands on some of the international goals and focuses 

on  the  priority  objectives  identified  in  the  EU  contribution  to  the  World  Summit  on 

Sustainable  Development  (WSSD).  These  are  harnessing  globalisation,  trade  for 

sustainable  development, 

fighting  poverty,  social  development,  sustainable 

management  of  natural  and  environmental  resources,  improving  the  coherence  of 

European  Union  policies,  better  governance  at  all  levels  and  financing  sustainable 

development.  

3. 

WHY A REVIEW? 

The Commission is already committed to review the strategy at the beginning of each 

new  Commission’s  mandate.  This  has  been  welcomed  by  the  European  Council, 

most  recently  in  June  and  November  2004.  In  addition,  a  number  of  developments 

further underline the need for a review at this point in time: 

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COM(2001) 264 “ A Sustainable Europe for a Better World: A European Union Strategy for Sustainable 
Development”, p. 2. 

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•  the  worsening  of  unsustainable  trends,  notably,  the  growing  pressure  on  natural 
resources,  biodiversity  and  the  climate  as  well  as  the  persistent  inequality  and 

poverty  and  the  increasing  economic  and  social  challenges  posed  by  an  ageing 

population; 

•  Europe’s  economic  underperformance  coupled  with  new  competitive  pressures 
triggered  by  continued  globalisation  and  the  emergence  of  newly  industrialised 

countries  (such  as  China,  India  and  Brazil),  signalling  increased  economic 

competition  and  possible  shifts  in  national  production  structures,  which  have 

implications for sustainable development at a global level; 

•  new  international  commitments  and  negotiations  which  all  have  the  potential  to 
contribute  to  global  sustainable  development  need  to  be  matched  by  increased 

implementation  efforts  (such  as  the  WTO  Doha  Development  agenda,  the 

Johannesburg  plan  of  implementation  decided  at  the  WSSD,  the  Monterrey 

commitments  on  financing  for  development  and  the  Millennium  Development 

Goals ); 

•  new  security  threats,  such  as  terrorism (11 September  2001  and  11  March  2004 
attacks),  natural  crises  (flooding)  and  health  scares  (e.g.  SARS)  have  led  to  a 

heightened sense of vulnerability. Moreover, there is a growing awareness of the 

need to take action against organised crime, corruption and racism; 

•  finally, the review should take account of the enlargement of the European Union 
to 25 Member States, the definition of national sustainable development strategies 

in  most  of  the  Member  States  and  the  greater  involvement  of  local  and  regional 

authorities. 

4. 

TAKING STOCK OF PROGRESS 

While  some  progress  has  been  made  in  implementing  the  Strategy  and  immediate 

results cannot be expected, it is clear that much remains to be done. There are few 

signs that most of the threats to sustainable development have been reversed. They 

require  urgent  and  continued  attention.  While  a  more  detailed  account  of  progress 
can  be  found  in  the  Commission  staff  working  document6,  a  number  of  important 
developments can be highlighted.  

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Changing  the  way  we  make  policies.  Since  2001  a  “new  way  of 

SEC(2005) 225. 

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policymaking” has been introduced to make policies more coherent and to create the 

right conditions to promote sustainable development.  

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Improving policy coherence  

The integration of a number of horizontal principles of the Treaties in all EU policies is 

a  central  objective.  An  example  of  EU  action  to  this  end  is  the  “Cardiff  process”, 

which  promotes  integration  of  environmental  concerns  into  sectoral  policies. 

However, a first stocktaking in 2004 of the Cardiff process showed that progress has 

been limited so far.  

A new Impact Assessment mechanism was introduced in the Commission in 2003 as 

one  instrument  to  help  improve  policy  coherence.  It  is  designed  to  assess  the 

economic,  environmental  and  social  impacts  of  major  policy  proposals  in  an 

integrated  manner  and  to  make  the  trade-offs  between  competing  goals  more 

explicit.  To  date,  the  Commission  has  produced  over  50  Impact  Assessments  on  a 

wide  range  of  policies  from  proposals  for  the  Re-Insurance  Directive  to  policy 

orientations  on  the  Common  Market  Organisation  of  Sugar,  and  the  financing  of 

Natura  2000.  On  the  external  side,  sustainability  impact  studies  have  been  initiated 

on all major trade negotiations.  

Developing the open method of coordination  

The open method of coordination can be a powerful instrument to promote exchange 

of  good  practice,  involve  and  mobilize  stakeholders  and  put  pressure  on  Member 

States to adopt a more strategic and integrated approach and deliver more efficient 

policies. Common objectives and common indicators have, for example, been agreed 

by  the  Commission  and  the  Member  States  in  the  areas  of  social  inclusion  and 

pensions.  Most  Member  States  have  set  quantitative  targets  for  the  reduction  of 

poverty and social exclusion.  

Getting prices and incentives right 

Making sure that market prices reflect the true costs of economic activities to society 

will  encourage  changes  in  production  and  consumption  patterns.  To  achieve  this, 

market-based  instruments  like  environmentally-related  taxes,  emission  trading 

schemes  and  subsidies  can  be  an  effective  complement  to  traditional  regulatory 

measures.  In  this  area,  progress  has  been  made  in  recent  years  at  EU  level,  but 

decision making is still sometimes difficult, in particular in relation to taxation because 

of  the  unanimity  requirement  in  the  Council.  Examples  where  the  EU  has  applied 

market-based instruments include the 2003 Energy Tax Directive, which extends the 
Community system of minimum tax rates from mineral oils to other energy products, 

and the EU-wide allowance trading scheme for greenhouse gas emissions, which is 

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in place since 2005 to help achieve the Kyoto reduction targets.  

Investing in science and technology  

Advances  in  knowledge  and  technological  progress  are  key  to  achieving  a  balance 

between  economic  growth  and  social  and  environmental  sustainability.  There  are 

many  synergies  to  exploit  between  innovation  for  quality  and  performance  and 

innovation to optimise energy use, waste and safety. More energy-efficient machines, 

for  example,  consume  fewer  natural  resources  and  lead  to  lower  emissions. 

Investments in new technology will also create jobs and growth. EU action in this field 
includes the sustainable development activities of the 6th Framework Programme for 
Research  and  Technology  Development.  The  Environmental  Technologies  Action 

Plan  promotes  technology  platforms  on  hydrogen  and  fuel  cells,  photovoltaics, 

sustainable  chemistry,  water  supply  and  sanitation.  The  EU  is  also  stimulating  the 

take  up  of  technologies  having  an  impact  on  our  social  systems,  for  example, 

healthcare systems7. 

Communicating and mobilising citizens and business 

Civil society and the private sector play important roles in sustainable development. 

Several  initiatives  have  been  taken  at  EU  level  to  encourage  active  involvement  of 

these  groups,  and  to  improve  the  consultation  processes  and  the  mobilisation  of 

stakeholders. Among other things the Commission has adopted minimum standards 

for  stakeholder  consultation  and  improved  information  on  and  participation  in 

environmental  decision  making.  It  has  also  taken  various  initiatives  to  promote 

Corporate Social Responsibility.   

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Unsustainable trends 

Climate change and clean energy 

In the last 100 years Europe’s temperature has risen faster than the global average 
(0.95°C in Europe compared with 0.7°C globally); 8 out of 9 glaciers are retreating to 

a  significant  extent;  extreme  weather  events  -  such  as  droughts,  heat  waves  and 

floods  -  have  increased8.  Keeping  the  global  temperature  rise  below  the  level  at 

which more dangerous climate change becomes probable requires deep global cuts 

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See  for  example  the  recently  adopted  e-health  action  plan:  making  healthcare  better  for  European 
citizens – an action plan for a European e-health area, COM(2004) 356. 

EEA report “Impacts of Europe’s changing climate”, August 2004. 

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in  greenhouse  gas  emissions.  Certain  estimates  of  damage  caused  by  extreme 

events in 2002 indicate a loss of €25 billion9. A reliable and affordable energy supply 

is far from commonplace in the developing world, where over 2 billion people rely on 

biomass  (wood,  waste,  etc.)  as  their  primary  energy  source  and  1.6  billion  lack 

access to electricity. 

The European Climate Change  Programme (ECCP) has served as a key vehicle to 

take action against climate change in Europe. It covers crucial energy initiatives and 

the  recently  launched  EU-wide  allowance  trading  scheme  for  greenhouse  gas 

emissions, which started operating on 1 January 2005. The  EU is also promoting a 

number  of  measures  contributing  to  tackle  climate  change  through  its  Regional 

Funds.  However,  while  the  latest  available  data  show  that  by  2002  the  EU-15  had 

reduced greenhouse gas emissions by 2.9% from 1990 levels, much more needs to 

be  done  in  order  to  reach  the  Kyoto  Protocol  target  of  a  8%  reduction  from  1990 

levels during the period 2008-2012. Internationally, the EU has also continued to play 

a  leading  role  in  promoting  the  ratification  of  Kyoto  and  in  implementing  the 

commitments  made  at  the  2002  Johannesburg  World  Summit  on  Sustainable 

Development  (WSSD).  The  EU  has  in  this  regard  advocated  the  use  of  renewable 

energies worldwide, through the Johannesburg Renewable Energy Coalition. The EU 

Energy  Initiative  is  a  contribution  to  the  WSSD,  aiming  to  improve  access  to 

adequate, sustainable and affordable energy services in rural, peri-urban and urban 

areas.  

In Europe, renewed commitment is given to make real progress on energy efficiency 

through a new Energy Efficiency Initiative.  

Public health 

The  threats  to  public  health  in  the  EU  have  continued  to  increase  since  2001.  Life-
style-related  and  chronic  diseases  increase  rapidly  worldwide  with  obesity  showing 

the most alarming developments (10-40% increase during the last 10 years in most 

EU  countries).  The  HIV/AIDS  epidemic  has  globally  reached  its  highest  level  of 

infections ever (39.4 million) and the proportion of newly reported HIV infections has 

more  than  doubled  in  Europe  since  1996.  Greater  contact  and  mobility  around  the 

globe has increased the impact of health threats through infectious diseases such as 
avian  flu  and  SARS.  Bioterrorism  is  another  new  element.  In  developing  countries, 

recent  health  and  development  gains  have  been  reversed  and  the  spread  of  major 

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Munich Re, Geo risk research department, January 2004. 

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communicable  diseases  is  a  serious  threat  to  their  future  development.  The  World 

Health Organisation (WHO) estimates that unhealthy environments every year cause 

the death of over 5 million children worldwide.  

Examples  of  policy  measures  taken  since  2001  include  the  funding  of  genome 

research  to  fight  antibiotic  resistance;  the  establishment  of  a  joint  EU  surveillance 

and  early  warning  networks  for  communicable  diseases;  the  adoption  of  a  proposal 

for  a  new  EU  regulatory  framework  for  chemicals  (REACH);  the  adoption  of  the 

European  Environment  and  Health  Action  Plan  2004-2010;  and  the  setting  up  of  a 

European  Food  Safety  Authority  (EFSA)  and  European  Centre  on  Communicable 

Diseases (ECDC). 

Internationally, EU financing to tackle diseases such as HIV/AIDS, Tuberculosis and 

malaria  has  increased  substantially.  Contributions  have  also  been  made  to  reduce 

the price of essential pharmaceutical products in developing countries.  

Poverty and social exclusion 

Poverty and social exclusion represent a growing problem. In the EU, around 15% of 

the  population  lives  at  risk  of  income  poverty.  The  situation  in  some  of  the  new 

Member States is of particular concern. Other worrying trends are the transmission of 

poverty and exclusion across generations and the disproportionate burden borne by 

certain  population  sub-groups  (e.g.  unemployed,  single  parents,  disabled  people, 

ethnic  minorities).  Worldwide,  2.8  billion  of  the  world’s  6  billion  people  live  on  less 

than € 2 per day.  

EU  Member  States  have  agreed  to  co-ordinate  their  policies  for  combating  poverty 

and  social  exclusion  by  setting  common  objectives,  designing  national  action  plans 

and  evaluating  these  using  common  indicators  to  monitor  progress.  The  European 

Commission  is  supporting  this  co-ordination  process.  European  Regional  Policy 

funding also contributes to this goal, for example, through investments in education, 

training and local employment.  

To tackle the issue worldwide, the EU’s development policy sets as its main objective 

to significantly reduce and, eventually, to eradicate poverty. A variety of actions have 

been taken within the framework of the new global partnership for poverty eradication 

and sustainable development established at the Doha, Monterrey and Johannesburg 

summits.  

An ageing society 

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Population  growth  in  the  EU  is  projected  to  come  to  an  end  and  a  decreasing  and 

ageing working population will have to support an increasing number of old people. 

The  old-age  dependency  ratio  is  forecast  to  increase  from  24%  in  2004  to  47%  in 

2050.  

Whereas increasing life expectancy is a major achievement, Europe's ageing society 

raises sustainability issues which need to be addressed. Neither migration nor a rapid 

increase  in  birth  rates  can  avert  a  sharp  rise  in  the  share  of  older  people  in  the 

population over the next two decades.  

The  Commission  is  working  with  Member  States  to  modernize  social  protection 

systems  to  ensure  that  they  remain  financially  sustainable  and  socially  adequate. 

Measures  also  include  prolonging  the  working  lives  of  older  workers.  The  target, 

established by the European Council in Barcelona, is for 50% of 55-64 year olds to 

be  in  work  by  2010  and  for  the  effective  labour  market  exit  age  to  be  raised  by  5 
years by 2010. Apart from tackling the financial side, healthcare systems also need to 

evolve to cope with expected demand from the increased number of elderly people, 

in  particular  in  order  to  improve  access  to  healthcare.  The  Union  is  facilitating 

structured co-operation in this field and the exchange of good practice.  

Management of natural resources 

Rapid global population growth means that by 2010 there will already be 400 million 

more  people  on  Earth  compared  to  now,  essentially  located  in  urban  areas.  In  a 

world of growing ‘interdependence’ we cannot continue to produce and consume as 
we  are  doing  today.  Bio-diversity  is  under  threat.  Worldwide,  there  are  15  500 

species  of  plants  and  animals  which  face  a  high  risk  of  extinction.  Recent  decades 

have  already  seen  very  significant  losses  in  virtually  all  types  of  eco-systems  and 

species (animals, plants, forests, fresh water, fertile land, etc). Fresh water is another 

precious  natural  resource  under  pressure.  Overall,  the  global  water  crisis  threatens 

lives, sustainable development and ultimately peace and security. 

Policy  actions  taken  to  achieve  the  EU’s  target  of  halting  the  loss  of  biodiversity  by 

2010  include  the  reform  of  the  Common  Agricultural  Policy  and  the  Common 

Fisheries Policy, and the creation of the Natura 2000 network. A Communication on 

halting  the  loss  of  biodiversity  by  2010  is  in  preparation.  Measures  to  enhance 

resource  efficiency  include  the  EU  Directive  on  waste  electrical  and  electronic 

equipment  and  Commission  Communications  on  integrated  product  policy.  In  the 
period from 2000-2006, the European Union is also deploying large amount of money 

from  the  Structural  and  Cohesion  Funds  to  co-finance  investments  in  favour  of 

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environmental  infrastructures  and  the  rehabilitation  and  maintenance  of  industrial, 

urban and natural sites.  

International initiatives include the EU Water Initiative – “Water for Life” - as a follow 

up  to  the  World  Summit  on  Sustainable  Development.  The  EU  is  also  taking  a 

leading role both in the Convention on Biodiversity and in the work to establish a ten-

year framework of programmes on sustainable consumption and production.  

Land use and transport 

Despite  the  aim  to  decouple  transport  from  GDP  growth,  the  volume  of  transport 

continues  to  rise  faster  than  GDP.  This  has  impacts  in  a  variety  of  areas,  ranging 

from  traffic  congestion  and  health  problems  caused  by  air  pollutants,  to  increased 
CO2 emissions affecting the EU’s targets on climate change. 

The EU has initiated a number of policy initiatives to limit the negative effects of this 

trend in the growth in transport. It is encouraging a shift from road transport to modes 

with  lower  environmental  impacts,  such  as  clean  buses,  shipping  and  rail.  The 

Commission has also proposed that Member States introduce infrastructure charging 

to  influence  transport  demand,  by  moving  towards  a  situation  where  prices  paid  by 

transport  users  reflect  the  full  costs  to  society  (e.g.  the  Euro  vignette  directive),  but 

implementation  remains  limited.  Moreover,  significant  progress  albeit  offset  by 

increase  in  demand  and  volume  of  transport,  has  been  made  in  vehicle  and  fuel 

technology, driven by EU legislation and initiatives. Finally, actions are being pursued 

to  improve  the  urban  environment  and  land-use  management,  for  example  through 

the  EU  Structural  Funds  programme  “Urban  II”  and  the  Research  Framework 

Programme.  The  Commission  is  also  preparing  a  Thematic  Strategy  on  the  Urban 

Environment which is due to be published in 2005. 

External aspects of sustainable development 

In  addition  to  the  unsustainable  trends  listed  above,  promoting  sustainable 

development at the global level has, inter alia, included the following EU actions: 

– 

Harnessing Globalisation  

Globalisation  is  the  new  context  in  which  sustainable  development  has  to  be 
achieved.  While  it  can  be  an  important  stimulus  to  sustainable  development,  the 

gains from globalisation are too often unevenly spread between and within countries 

and  unregulated  integration  can  have  negative  impacts  on  the  environment  and 

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society as a whole.  

The  EU  supports  a  coherent  and  integrated  approach  to  questions  relating  to 

globalisation in WTO, International Financial Institutions (IFIs) and across UN bodies. 

It  also  wants  to  strengthen  key  bodies  –  such  as,  for  example,  the  International 

Labour Organisation.  

To effectively and equitably integrate the developing world into the global economy, 

the ongoing WTO-negotiations, the Doha Development Agenda (DDA), are essential. 

In the DDA-negotiations, the EU has since 2002 consistently been working to pursue 

its objectives in terms of the promotion of global sustainable development across the 

board  on  a  large  number  of  negotiating  issues.  Furthermore,  since  developing 

countries’  efforts  to  integrate  into  the  global  trading  system  need  to  be  effectively 

supported, trade related assistance (TRA) has been designated as one of the priority 

areas  for  the  EU's  development  co-operation  and  the  TRA  dimension  has  been 
integrated in all the relevant levels of decision making on how to allocate funds. 

In  addition,  since  the  WSSD,  the  EU  has  also  taken  important  steps  to  implement 

supportive  action  related  to  trade  policy  outside  the  scope  of  the  DDA,  inter  alia, 

through  pursuing  its  efforts  to  include  a  substantive  element  on  sustainable 

development in all ongoing or future bilateral or regional negotiations.  

– 

Better Governance at Global level 

Good governance and the promotion of democracy are critical factors in reaching the 
Millennium  Development  Goals.  The  Millennium  Declaration  states  that  creating  an 

environment  that  is  conducive  to  development  and  to  the  elimination  of  poverty 

depends, inter alia, on good governance within each country, on good governance at 

the  international  level  and  on  transparency  in  the  financial,  monetary  and  trading 

systems.  

The Commission has addressed institutional capacity building, good governance and 

the  rule  of  law  in  a  Communication  on  Governance  and  Development,  focusing  on 

institutional  capacity  building  and  dialogue  on  governance  in  different  types  of 

country situations. Efforts have also been made to promote sustainable development 

in  all  existing  international  and  regional  cooperation  agreements  and  policy 

instruments.  In  addition,  strengthened  international  governance  for  sustainable 

development  has  been  at 

the  heart  of  EU’s  efforts 

to  develop  effective 

multilateralism. 

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- 

Financing for development (FfD) 

To reach the Millennium Development Goals, financing is needed. However, the UN 

target  of  0.7%  Official  Development  Assistance  (ODA)  of  Gross  National  Income 

(GNI) is still far from being fulfilled. 

The  EU  defined  its  contribution  to  the  “Financing  for  development  process”  in  eight 

explicit commitments, endorsed by the European Council in Barcelona on 14 March 

2002.  The  latest  monitoring  report  forecasts  that  aid  levels  in  the  enlarged  EU  (25 

Member States), as a whole, will exceed its intermediate target of 0.39% ODA/Gross 

National  Income  (GNI)  and  provide  0.42  %  of  its  GNI  in  ODA  by  2006,  or  an 

estimated  €  38.5  billion.  The  total  volume  of  additional  resources  mobilised  during 

2002–2006 is € 19 billion.  

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Part II: Responding to the challenges 

5. 

FUTURE ORIENTATIONS  

In  the  light  of  the  continuing  challenges,  Europe  must  not  only  stand  by  its 

commitment to a long-term agenda for sustainable development and a better quality 

of life, but also to find ways to tackle these more effectively. 

5.1. 

Reaffirm  the  basic  principles  of  the  European  Union  Sustainable 

Development Strategy 

The  concept  of  sustainable  development  and  the  complementarity  between  the 

Sustainable Development Strategy and the Lisbon Strategy have been clarified in the 

foreword. 

Beyond that, the review will confirm the quintessential three-dimensional nature of 

sustainable development as the cornerstone of the strategy, i.e. a development that 

can  only  be  achieved  if  economic  growth,  social  inclusion  and  environmental 

protection go hand in hand, both in Europe and in other parts of the world. 

The review will also take into account the EU's contribution to global sustainable 

development  in  two  ways:  first,  by  addressing  the  international  aspects  of  the  six 

unsustainable  trends  addressed  by  the  strategy;  second,  by  integrating  into  it  the 

external  EU  policies  that  contribute  to  global  sustainable  development.  In  doing  so, 

the EU will reconfirm and strengthen its commitment to take a leading role in driving 

the sustainable development agenda at global level.  

5.2. 

Reaffirm the new approach to policy making and policy coherence  

The  review  will  re-enforce  the  ‘new  approach  to  policy  making’  as  the  central 
means  of  placing  sustainable  development  at  the  core  of  EU  policy-making.  In 

particular, the future EU Sustainable Development Strategy will  give a further boost 

to  the  different  components  of  the  EU’s  Better  Regulation  agenda,  including  impact 

assessment, stakeholder consultation and regulatory simplification. 

This  means  that  sustainable  and  cost-effective  policy  making  will  continue  to  be 

promoted  through  Better  Regulation,  including  a  more  effective  implementation  of  a 
balanced Impact Assessment mechanism covering both new internal and external 

Commission  policy  initiatives.  In  addition,  sustainability  impact  assessment  studies 

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will  continue  to  be  applied  to  major  trade  agreements.  While  the  tool  has  recently 

been  refined  to  take  account  of  first  lessons  learned10,  continued  attention  will  be 

given to possible ways to further improve the method, particularly with regard to the 

economic,  social  and  environmental  aspects  of  sustainable  development.  In  this 

respect the Commission also intends to improve consultation of stakeholders on EU 

policies.  Furthermore,  attention  will  also  be  paid  to  the  importance  of  ensuring 

adequate follow-up to the Inter-Institutional Agreement with the European Parliament 

and the Council11 (e.g. to the need for European Parliament and the Council to apply 

the  same  principles  and  standards  regarding  impact  assessment  when  it  comes  to 

impact assessment of substantial amendments to Commission proposals). 

Also included under the new approach is the open method of coordination, notably 

in  the  fields  of  social  inclusion,  access  to  the  labour  market  and  social  protection 

where this method plays a key role in modernizing social protection systems.  

As  part  of  the  new  approach  to  policy  making,  the  Commission  will  continue  to 

promote the use of market-based instruments to reflect the true costs of resource 

use  and  its  environmental  impact  to  society.  For  example,  Member  States  will  be 

invited  to  look  at  how  they  could  shift  the  burden  of  taxation  onto  the  causes  of 

environmental damage and away from labour. The review will also further emphasize 

the 

importance  of 

investments 

in  science  and  technology 

for  sustainable 

development.  Possible  means  to  further  promote  eco-innovations  include  the  EU’s 

research  programme,  the  Commission’s  Innovation  Policy,  as  well  as  public 

procurement. Exchanging information with external partners on sustainable research, 

science and technology will also be promoted.  

5.3.  Maintaining  a  focus  on  key  unsustainable  trends  and  exploring  the 

linkages between unsustainable trends in greater detail 

The review will maintain the Strategy’s focus on main trends that pose a threat to 

sustainable  development.  Many  of  these  trends  can  only  be  tackled  through 

continued action over a long period of time and will involve major structural changes 

in  the  functioning  of  our  societies  and  economies.  However,  this  should  not  be  an 

excuse for inaction in the short run.  

The  review  will  therefore  include  a  thorough  assessment  of  the  unsustainable 

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Ref.  Impact  Assessment:  Next  Steps  –  in  support  of  Competitiveness  and  Sustainable  Development, 
SEC(2004) 1377, 21.10.2004. 

Interinstitutional agreement on better lawmaking, OJ C 321, 31.12.2003, p. 1. 

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trends  covered  in  the  current  strategy  with  a  view  to  identifying  objectives  and 

necessary actions for the years to come. The priority areas identified in 2001 should 

also be brought into line with the international commitments made by the EU at the 

World  Summit  on  Sustainable  Development,  the  UN  conference  for  Financing  for 

Development as well as the UN Millennium Declaration and other related multilateral 

agreements and commitments undertaken by the EU. Moreover, they will be updated 

to reflect the accession of ten new Member States to the EU – and the prospect of 

further enlargement in the not too distant future – which poses new challenges for the 

Union’s capacity to address the unsustainable trends. In this context, the review will 

also  examine  the  case  for  adding  a  limited  number  of  new  or  not  previously 

considered trends, including economically unsustainable trends. 

Finally,  the  review  will  pay  greater  attention  to  identifying  inter-relationships 

between  the  selected  unsustainable  trends.  It  will  seek  to  maximize  positive 

synergies and reduce trade-offs. For example, by promoting a shift in transport from 
road to rail it is possible to reduce greenhouse gas emissions and reduce congestion 

at one and the same time (creating a ‘win-win’ situation). Another example would be 

how 

investment 

in 

fundamental 

technological  change  could  result 

in  better 

competitiveness  and  at  the  same  time  improve  environmental  quality  and  social 

cohesion.  

5.4. 

Setting objectives, targets and milestones  

The  approach  taken  in  the  2001  strategy  was  to  define  medium-term  headline 

objectives  relating  to  each  of  the  unsustainable  trends  and  to  identify  a  number  of 

measures  intended  to  address  these.  The  review  will  confirm  the  need  for  clearer 

objectives, targets and related deadlines as a way of giving focus to action in priority 

areas and enabling progress to be measured. 

Although the trends represent long-term problems that will need long-term solutions, 

the  only  way  to  ascertain  that  society  is  moving  in  the  right  direction  is  by  setting 

clear  intermediate  targets  and  measuring  progress.  Setting  long-term  objectives, 

therefore, must not come to mean postponing action. 

The  revised  strategy  will  therefore  present  new  headline  objectives  for  each  of  the 

unsustainable trends and set the intermediate milestones which will allow the EU to 

monitor actual progress. The operational objectives and action plans will be identified 

within the relevant internal and external sectoral policies which will also be the main 

vehicles  for  implementation  and  monitoring  of  the  policy  initiatives,  including 

international  commitments  agreed  under  the  Millennium  Declaration  and  the 

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Barcelona and Monterrey summits. 

5.5. 

Ensuring effective monitoring 

The decision in Gothenburg to ensure yearly monitoring of the strategy at the Spring 

European Councils has fallen short of expectations. A reinforced reporting system will 

be developed in the review. It will focus on the short and medium-term delivery of the 

strategy’s objectives, combining and simplifying as far as possible current reports on 

sustainable  development  issues.  The  institutional  responsibilities  (particularly  the 

roles  of  the  European  Council  and  the  European  Parliament)  in  the  monitoring 

process will also be made clearer.  

Monitoring  will  take  place  in  particular  on  the  basis  of  sustainable  development 

indicators  developed  by  the  Commission.  These  will  draw  on,  among  other  things, 

the  various  indicators  developed  within  the  sectoral  policy  processes  and  the 

synthesis  already  made  from  these  in  the  set  of  structural  indicators  which  have 

monitored  progress  towards  the  targets  set  as  part  of  the  Lisbon  reform  agenda. 

More  effort  will  also  be  put  into  developing  future  models,  forecasts  and  further 

gathering of scientific data to help effective monitoring.  

5.6. 

Strengthen ownership and improve co-operation with public and private 

actors at all levels  

Further action is needed to raise awareness, mobilise and involve stakeholders at all 

levels. It must be clear who is responsible for what action at what point in time and 

who  will  bear  the  costs.  To  this  end,  the  Commission  will  explore  how  to  create 

effective  partnerships  with  industry,  trade  unions,  non-governmental  organisations 

and consumer interests, particularly with a view to discussing ways of helping to curb 

the unsustainable trends identified in the context of the review. 

More  consistency  will  be  sought  between  EU,  global,  national,  regional  and  local 
initiatives  to  promote  sustainable  development.  Possible  actions  will  include 

identifying  common  priorities  under  each  of  the  headline  objectives;  starting  a 

process  of  mutual  learning  with  Member  States  and/or  regions;  and  setting  up 

mechanisms for the permanent exchange of information on best practice.  

The Union will also need to step up its efforts to stimulate further action in other parts 

of  the  world,  both  in  industrialised  countries  and  countries  in  transition,  and  in  the 

developing world. The Commission will strive to develop the dialogue on sustainable 

development  objectives  with  partners  outside  the  EU,  notably  administrations  and 

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civil  society  in  third  countries  as  well  as  international  organisations  and  NGOs 

focused on global issues.  

6. 

NEXT STEPS 

The  Commission 

invites 

the  European  Council, 

the  Council, 

the  European 

Parliament,  Member  States,  regional  authorities  and  all  parts  of  civil  society  to 

comment  on  the  proposed  orientations  for  the  strategy.  An  initial  opportunity  for 

discussion  will  be  the  holding  of  the  stakeholder  forum  organised  by  the  European 

Economic and Social Committee on 14 and 15 April 2005. The Commission will then 

present a proposal for a revised sustainable development strategy for the Union later 
this year.  

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