Report from the Commission to the European Parliament and the Council - Updating the mid-term review of Regulation (EC) No 1655/2000 - LIFE
Date: 2005-08-30
Institutions: European Commission
Subjects: EU aid, EU financial instrument, EU programme, environmental law, environmental policy, environmental protection, financial aid, report

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.8.2005 
COM(2005) 394 final 

REPORT FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Updating the mid-term review of Regulation (EC) No 1655/2000 
LIFE 

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REPORT FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Updating the mid-term review of Regulation (EC) No 1655/2000 
LIFE 

1. 

EXECUTIVE SUMMARY 

The Financial Instrument for the Environment (LIFE) III programme has been extended by 
two years, until 31 December 2006, by the provisions of Article 1 (5) a of Regulation (EC) 
No 1682/2004 amending Regulation (EC) No 1655/2000. The extension was made in order 
to  avoid  a  gap  between  the  close  of  LIFE  III  at  the  end  of  2004  and  new  Community 
financial perspectives from 2007.  

Article  12  (1)  a  of  Regulation  (EC)  No  1655/2000,  as  amended,  stipulates  that  the 
Commission  must  submit  a  report  updating  the  mid-term  review  submitted  in  November 
2003, evaluating the implementation of this Regulation, its contribution to the development 
of Community environmental policy and the use made of the appropriations. 

This  update  covers  the  period  from  mid  2003  when  the  mid-term  review  was  prepared, 
resulting in the report of 5 November 2003 (COM(2003) 668 final), until Spring 2005. 

Between 1992 and 2004, the LIFE programme has co-funded almost 2500 projects covering 
40  countries  and  territories  and  made  commitments  of  €  1.3  billion  towards  the  total 
estimated cost of the projects of € 3.6 billion.  

The  programme  has  supported  a  wide  range  of  projects,  tackling  problems  and  developing 
solutions  across  a  number  of  sectors  and  has  addressed  most  key  environmental  issues,  in 
line with EU environmental policy priorities.  

2. 

DESCRIPTION OF THE LIFE-PROGRAMME 

The  general  objective  of  LIFE  is  to  contribute  to  the  implementation,  development  and 
enhancement of Community environmental policy and legislation. LIFE should also favour 
the integration of the environment into other EU policies and lead to new solutions for EU 
environmental problems under examination. 

LIFE  has  co-financed  environmental  projects  in  the  Member  States,  Acceding  Countries, 
Candidate  Countries,  certain  countries  within  the  stabilisation  and  association  process  and 
third countries.  

LIFE  consists  of  three  thematic  components:  “LIFE-Nature”,  “LIFE-Environment”  and 
“LIFE-Third countries”. 

The specific objective of LIFE-Nature is to contribute to the implementation of Community 
nature protection legislation. In particular, it supports the establishment of the “Natura 2000” 
network. 

The  aim  of  LIFE-Environment  is  to  contribute  to  the  development  of  innovative  and 
integrated  techniques  and  to  the  further  development  of  Community  environment  policy. 
‘LIFE-Environment demonstration projects’ focus on the development of innovation whilst 

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‘LIFE-Environment  Preparatory  Actions’  focus  on  updating  existing  policy  or  the 
development of new policy.  

Both  LIFE-Nature  and  LIFE-Environment  have  co-financed  projects  in  the  Member  States 
and in Acceding Countries, providing they have agreed to participate in LIFE.  

LIFE-Third countries has operated in the framework of Association Agreements concluded 
between  the  European  Union  and  third  countries  bordering  on  the  Mediterranean  and  the 
Baltic  Seas,  certain  candidate  countries  and  a  number  of  countries  within  the  stabilisation 
and association process. Its objective is to contribute to the establishment of capacities and 
administrative  structures  needed  in  the  environmental  sector  and  in  the  development  of 
environmental policy and action programmes. 

3. 

IMPLEMENTATION OF THE LIFE-III PROGRAMME  

This section gives global results: details can be found in two publications on the LIFE web 
site,  http://europa.eu.int/comm/environment/life/home.htm  ‘LIFE  for  Natura  2000’  for 
Nature  and  ‘Life  Environment  1992-2004:  demonstrating  excellence  in  environmental 
innovation’.  

3.1. 

LIFE-Nature 

Funding  is  only  available  to  projects  that  meet  the  objectives  of  EC  nature  conservation 
legislation, namely the “Birds” and “Habitats” Directives. In practical terms, projects should 
assist  the  establishment  of  the  Natura  2000  network  of  protected  areas  and  ensure  “the 
maintenance or, where appropriate, the re-establishment of a favourable state of conservation 
of types of natural habitat and habitats of species concerned.” 

3.1.1. 

Actions financed under LIFE III  

The  average  total  budget  for  LIFE  III  nature  projects  for  the  period  2000-2004  is  about  € 
1.75  million  and  the  average  EC  co-funding  rate  is  53.4  %.  This  represents  an  increase 
compared to the previous LIFE II period 1996-1999, where the average total budget was € 
1.3 million.  

Year 

Number of 
proposals 
received 

Number of 
projects 
funded 

Total EC 
commitment

Average 
commitment per 
project 

2000 - 2001 

2002 

2003 

2004 

Total 

310 

188 

182 

250 

930 

(€) 

(€) 

94

70

77

77

79,483,006

845,564 

71,718,204

1,024,546 

70,944,574

921,358 

75,934,754

986,166 

318

298,080,538

937,360 

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3.1.2. 

Type of projects/geographical distribution  

LIFE-Nature  projects  target  either  primarily  birds  on  SPA  (Special  Protection  Area)Natura 
2000 sites, species/habitats within pSCI/SAC (proposed Sites of Community Interest/Special 
Areas of Conservation) Natura 2000 sites, or in duly justified cases species outside Natura 
2000 sites. 

National  and  regional  authorities  are  the  main  beneficiaries  (73%).  Non-governmental 
organisations  (NGOs)  account  for  another  25%  of  the  beneficiaries  and,  together  with 
scientific institutions, are frequently partners to projects. 

LIFE III-Nature projects generally include most or all of the following actions: 

•  Preparation or implementation of site management plans or species action plans; 
•  Involvement of different stakeholders concerned with the site(s) or species; 
•  Restoration of degraded sites and in exceptional cases creation of new sites; 
•  Safeguarding existing and restored sites (including purchase and long term leases); 
•  Awareness raising amongst administrations, experts and the general public; 
•  Scientific monitoring of habitats and species. 

Projects in northern Member States tend to be larger than those in southern Member States, 
but there are more projects in southern Member States. With the exception of Lithuania and 
Malta, all 25 EU member states were participating in the LIFE-Nature programme by the end 
of 2004.  

Factsheets with detailed statistics on LIFE Nature will be available on the LIFE website from 
30 September 2005.  

Natura 2000 sites 

To  date  at  least  10%  of  the  22  600  proposed  Natura  2000  sites  have  been  the  subject  of  a 
LIFE-Nature project. Only 2.5% of sites have been the subject of more than one project. This 
is in line with the “pump-priming” function of LIFE. Projects proposed are selected as far as 
possible to cover new areas of Natura 2000 and continuation projects are given lower priority 
for funding.  

Habitats and species 

Detailed  analysis  of  projects  over  a  four-year  period  shows  that  87%  of  habitat  types  of 
Community interest were targeted at least once by a LIFE-Nature project.  

A  majority  of  projects  targeted,  at  least  partially,  wetlands  and  in  this  way  LIFE  also 
contributed  to  the  objectives  of  the  1971  International  Convention  on  Wet  Areas  (Ramsar 
Convention) and the 1995 Commission communication on wetlands. 

Almost  28%  of  the  species  in  the  "Habitats"  and  "Birds"  Directives  have  been  directly 
targeted by one or more LIFE-Nature projects. 

Several LIFE-Nature projects have  concerned emergency actions covering the entire world 
population of species in imminent danger of extinction. 

Coverage by LIFE projects has been relatively large and sufficiently significant to contribute 
to stemming the decline in biodiversity throughout the European Union. 

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3.2. 

LIFE-Environment 

The main characteristic of LIFE-Environment projects is their potential to demonstrate new 
innovative  methods,  techniques  and  schemes  paving  the  way  for  the  implementation  of 
existing  EU  policies  in  different  environmental  fields,  or  for  the  future  development  of 
policy. 

3.2.1. 

Actions financed under LIFE III 

LIFE III Environment actions consist of demonstration projects covering the topics set out in 
the Regulation. 

Although there are fluctuations in the number of proposals received, the average funding per 
project has gradually increased from one year to the next. 

Year 

Number of 
proposals 
received 

Number of 
projects 
funded 

Total EC 
commitment 

Average 
commitment per 
project 

(€) 

(€) 

2000 - 2001 

2002 

2003 

2004 

898 

479 

532 

679 

103

114

104

109

63,411,036 

615,641 

71,766,257 

629,529 

69,470,808 

667,989 

76,670,530

703,399 

Total 

2,588 

430

281,318,631

654,229 

3.2.2. 

Type of projects / geographical distribution 

Projects in northern Member States tend to be larger than those in southern Member States. 
Spain and Italy continue to be the countries with the highest number of projects funded. Italy 
continues to be the main beneficiary, both in terms of number of projects as well as regards 
the EC contribution.  

The  breakdown  by  theme  of  the  projects  financed  under  LIFE-Environment  between  2000 
and 2004 reveals a rather uniform allocation of resources amongst the broad project themes 
‘urban and planning’, ‘water’, ‘clean technologies’, ‘waste’ and ‘products’. The two themes 
which received the highest share of funding were waste and products (accounting for 23% 
and  22%  of  the  expenditure  respectively).  Clean  technologies,  waste  and  products  have 
shown growth over the period, while planning has declined in terms of share of projects and 
funding.  

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25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0

PLANNING

WATER         

CLEAN TEC

WASTE

PRODUCTS

2000

2002

2003

2004

3.3. 

LIFE-Third Countries 

The  objective  of  LIFE  Third  Countries  (TCY)  is  to  contribute  towards  creating 
administrative  capacities  and  structures  and  developing  policies  and  action  programmes  in 
some neighbouring countries of the European Union and certain countries bordering on the 
Baltic  and  Mediterranean  Seas.  Cyprus  and  Malta  ceased  to  be  eligible  to  present  new 
proposals under LIFE TCY upon membership of the EU in 2004.  

3.3.1. 

Actions financed under LIFE III 

Year 

Number of 
proposals 
received 

Number of 
projects 
funded 

Total EC 
commitment 

Average 
commitment 
per project 

2000 - 2001 

2002 

2003 

2004 

Total 

92 

74 

70 

70 

306 

(€) 

(€) 

9,013,840 

321,923 

6,522,300 

407,644 

6,567,232 

386,307 

7,828,320

391,416 

29,931,692

369,527 

28

16

17

20

81

3.3.2. 

Type of projects / geographical distribution 

There are currently 14 LIFE TCY countries/territories, 8 of which are around the Baltic Sea 
(Russian regions of St Petersburg and Kaliningrad), and six around the Mediterranean (from 
Croatia to Morocco). Within the broad framework of “capacity building”, most LIFE-TCY 
projects  consist  of  a  set  of  diverse  measures,  according  to  the  local  or  national  needs.  All 
LIFE TCY projects address one or more of the following types of measures: 

•  development or adaptation of legislation; 
•  training of staff; 
•  creation or reinforcement of environmental management structures; 
•  creation  or  reinforcement  of  structures  for  data  collection,  inventory,  storage, 

monitoring or dissemination; 

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•  definition of planning processes including policies, strategies or action plans;  
•  drawing-up of standards or regulations; 
•  awareness raising; and/or 
•  development of technical tools, including technical guidelines, the transfer of know-how 

and the identification of best practice. 

4. 

EVALUATION AND SELECTION OF LIFE PROJECTS 

An annual call for project proposals is made and proposals are evaluated in a 3 phase process 
comprising  eligibility,  selection  and  award.  The  process  is  now  administered  on-line  using 
the Evaluation Selection Award Programme (ESAP). Extensive effort is put into ensuring the 
process is both fair and transparent. Evaluations of various technical criteria are undertaken 
both by external evaluators and Commission staff. A common synthesis evaluation is agreed 
during panel meetings at which all evaluators are present. 

The thematic Units of the Directorate General as well as other Directorate Generals assist the 
LIFE Unit in the evaluation of the proposals. The output of this process is a ranked shortlist 
in order of merit which is presented to the LIFE Committee in advance of the Commission 
Decision. The evaluation results are communicated to all applicants for funding. 

The  number  of  projects  which  can  be  financed  in  each  of  the  three  thematic  strands  in  a 
particular year is dependent on the available budget and the cumulative total of co-funding 
requested  in  the  ranked  shortlist  of  individual  proposals  receiving  the  highest  scores.  The 
annual success rate of proposals submitted in each of the three strands following an open call 
for  proposals  varies,  therefore,  in  function  of  the  number  of  proposals  received  that  year, 
their respective individual qualities and the available budget. 

5. 

MANAGEMENT OF LIFE PROJECTS BY THE COMMISSION 

5.1. 

Technical management  

Simplification of management. 

The  harmonisation  of  management  and  procedures  applicable  to  the  three  strands  of  LIFE 
has  been  completed  with  success  and  harmonized  tools  and  standards  are  now  fully 
operational.  

From  2005,  standard  grants  agreements  have  replaced  individual  financing  decisions;  this 
procedure is intended to simplify and speed up the financing procedure.  

Efficiency and transparency of procedures 

The  selection  criteria  and  rules  are  prepared  and  made  available  on  the  Internet  before  the 
selection procedure. Presentations of the LIFE programme are organised in the majority of 
Member States. 

New Standard Administrative Provisions 

The  standard  administrative  provisions  have  been  adapted  to  comply  with  the  Court  of 
Auditors’ requirements in order to: reduce the risk of double funding from other European 
programmes, better define land purchase acquisition, limit the risk of co-funding the salaries 
of  public  servants  already  funded  from  national  taxes  and  impose  new  accounting 
obligations on beneficiaries.  

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Monitoring and evaluation of actions 

The  single  project  management  database  has  been  improved  and  now  includes  new  tools 
allowing a better follow-up of projects. The precise situation of each project can be reviewed 
at all times and statistical data on the projects can be collected in order to make analyses of 
their impact by sector. 

The  standard  format  for  presenting  accounting  data  is  more  widely  used  since  2003.  This 
computer  tool  allows  project  managers  to  fill  in  their  statements  of  expenditure  in  a 
standardised manner. 

5.2. 

Financial management 

The LIFE programme is managed using a fully decentralised financial structure with the Unit 
D1 being in charge of all operations connected with the implementation of the LIFE budget. 

Commitments 

Since  the  start  of  LIFE  III  a  positive  evolution  can  be  seen  as  regards  used  commitment 
appropriations: in 2000 83.18%, in 2002 99.73%, in 2003 99.95%, in 2004 99%.  

Payments 

The  execution  of  payment  appropriations  has  been  stable  since  2002,  at  between  80%  and 
95%. 

Payment delays 

Payment delays have systematically decreased since 2000 and in 2004 90% of the payments 
were made within 90 days (64% in 2000 and 82% in 2002). 

Outstanding commitments where project finished/final payment made 

In March 2001 there were 187 outstanding commitments. The number has decreased steadily 
over time and there are currently no such commitments. 

6. 

LIFE III COMMUNICATION AND DISSEMINATION OF RESULTS 

The LIFE III Regulation strongly emphasises the importance of communication as a means 
for  the  dissemination  of  information  concerning  LIFE  projects  to  other  similar  projects 
programmes or Community legislation in the environmental area. The years 2003 and 2004 
were  devoted  to  the  implementation  of  the  LIFE-Communication  Strategy,  launched  in 
March 2002, with a wide-ranging set of communication actions having been carried out. 

The LIFE web-site was completely revised in June 2002 and has been continually updated 
and  improved.  It  remains  the  most  visited  web-site  of  the  Directorate  General,  with  an 
average  of  120,000  visitors  per  month  at  the  beginning  of  2005,  compared  to  65,000  per 
month  in  2002.  The  project  database  has  been  completed  and  a  detailed  search  engine 
installed allowing easy access to the results of the projects per field. 

Eight  thematic  brochures  giving  details  of  LIFE  projects  and  their  policy  contributions  in 
particular  themes  have  been  published  and  all  of  these  are  available  on  the  web. 
Compilations  of  newly  selected  LIFE  Nature  and  LIFE  Environment  projects  in  2004,  and 
the related press releases, were also published.  

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The  electronic  monthly  Newsletter  is  now  sent  directly  to  almost  9000  subscribers  and 
indirectly diffused to 45000 potential readers. A media library with video, CDs and photos 
from LIFE projects has been created.  

Several  new  dissemination  initiatives  are  being  developed  and  it  is  planned  to  review  and 
update the Communication Strategy in 2006. 

7. 

CONCLUSION 

LIFE  has  been  an  effective  instrument  for  the  implementation,  development  and 
enhancement  of  Community  environmental  policy.  For  this  reason  the  Commission  has 
decided  to  propose  the  LIFE  +  programme  for  2007/2013  to  take  forward  the  relevant 
lessons  learned  from  LIFE  III  in  the  broader  context  of  the  6th  Environmental  Action 
Programme. 

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