ECAP, Environmental Compliance Assistance Programme for SMEs : small, clean and competitive.
Date: 2008-06-03
Institutions: Directorate-General for Environment
Subjects: EU aid, EU programme, administrative formalities, corporate social responsibility, environmental law, environmental protection, exchange of information, small and medium-sized enterprises

ECAP 
Environmental Compliance Assistance Programme for SMEs

Small, Clean and Competitive

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Luxembourg  : Office for Official Publications of the European Communities, 2008

ISBN 978-92-79-08747-9

© European Communities, 2008
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European Commission

Small, Clean and Competitive

Luxembourg: Offi  ce for Offi  cial Publications of the European Communities

2008 —  28 pp. —  21 x 21 cm

ISBN 978-92-79-08747-9

How to obtain EU publications 
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Contents

Introduction 

  Better regulation 

Environmental management 

Targeted funding 

  Building expertise 

  Communication 

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I n t r o d u c t i o n

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Small, Clean and Competitive

I n t ro d u c t i o n

SMEs of the future: 
cleaner and more competitive
Small to medium-sized enterprises (SMEs) can 

on  the  environment,  the  combined  eff ect  of 
their  activities  is  considerable.  It  is  important 
therefore that, if progress is to be made, eff orts 
to  address  environmental  problems  include 
SMEs.

fi nd it diffi  cult to meet the requirements of en-
vironmental legislation and take steps to im-
prove their eco-effi  ciency. The EU’s Environmental 
Compliance Assistance Programme (ECAP) is here 
to  lend  a  helping  hand,  providing  the  resources, 
information and tools that Europe’s entrepreneurs 
need to green their operations.

Representing around 99% of all enterprises and 
57%  of  the  economic  value-added,  SMEs  ac-
count for a signifi cant proportion of economic 
activity  in  the  EU.  This  means  that  although 
individual businesses may have a small impact 

Tricky situation
However,  many  SMEs  across  Europe  are  un-
aware of the impact their operations have on 
the  environment,  or  the  legislation  that  ap-
plies to them. There are a number of reasons 
for this. 

Eco-innovation – an opportunity

The Scottish company Windsave has developed a small wind turbine generator system which uses low 
wind speeds to create electricity, and which is designed to be mounted on almost any building, off ering 
both fi nancial and environmental rewards to its users. 

The turbine is the fi rst worldwide low-cost product that delivers electricity directly into homes and other 
buildings merely by plugging the supply into the wall socket. 

The  system  uses  wind  speed  to  create  environmentally  friendly  electricity  and  acts  as  the  fi rst  source 
of  power,  thus  reducing  the  amount  of  electricity  that  needs  to  be  drawn  from  the  national  grid  and, 
subsequently, the amount of CO2 emitted. For domestic and charitable users, the product costs £1 898 and 
off ers an annual saving on energy bills of around £200. This means that the turbine system should pay for 
itself in a few years.

Widespread  uptake  amongst  public  services,  such  as  schools,  could  have  a  signifi cant  impact  on  CO2 
emission levels.

3

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Small, Clean and Competitive

I n t ro d u c t i o n

First,  smaller  businesses  generally  lack  the 
dedicated  resources  and  expertise  to  devote 
to environmental or legal issues. They tend to 
have  shorter  planning  times  and  less  access 
to  capital  than  larger  ones,  meaning  upfront 
investments in eco-technology make less eco-
nomic  sense  or  are  beyond  their  reach.  Also, 
there are limited market incentives or recogni-
tion for environmentally friendly behaviour at 
present.

In addition, SMEs are often below the thresh-
old  for  many  of  the  EU’s  environmental 
schemes  and  legislation,  such  as  the  emis-
sions trading scheme, the main EU action on 

Greener meals on wheels

Sotral is an Italian SME that delivers meals to schools, hospitals and the armed forces. To comply with hygiene 
and environmental requirements, it is vital that the food arrives on time and at the correct temperature. 

Using the Environmental Product Declaration system, the company analysed the environmental impact of 
its business and made improvements. By equating environmental effi  ciency with economic effi  ciency, and 
cutting their use of fi nancial and natural resources, Sotral was able to reduce the CO2 produced for each 
transported meal whilst boosting its turnover. 

Changes such as switching to an alternative, cheaper fuel like methane demonstrated that environmental 
considerations can have a positive commercial eff ect as well. Employees were also encouraged to approach 
business in a more responsible and sustainable way.

Sotral shows that action to improve a company’s environmental impact does not have to harm its profi tability. 
Indeed, the reverse is true – its turnover rose by more than 15% in 2005 and by 25% in 2006, with a continuing 
upward trend expected in 2007. Following a Life Cycle Assessment, the company has even gone on to create 
a new ecological catering unit to extend the good work.

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Small, Clean and Competitive

I n t ro d u c t i o n

climate  change,  or  the  Integrated  Pollution 
Prevention  and  Control  Directive  (IPPC)  con-
trolling industrial pollution.

Improved  environmental  behaviour  by  com-
panies  is  usually  driven  by  the  need  to  meet 
regulations  and  enforcement  of  the  rules  by 
authorities.  However,  actions  such  as  inspec-
tions  are  insuffi  cient  to  ensure  compliance 
and  rarely  produce  more  permanent  change 
in behaviour among SMEs. 

These factors mean that SMEs may be missing 
out  on  the  signifi cant  benefi ts  that  greening 
their operations can bring. Better environmen-
tal management can cut costs, for instance, by 
improving  energy  and  resource  effi  ciency.  It 
can  also  make  conditions  healthier  and  safer 
for workers by reducing exposure to chemicals 
or air pollution. 

THE ECAP PROGRAMME

Adopted  in  October  2007,  the  Environmental  Compliance  Assistance  Programme  (ECAP)  provides  a 
framework to help small and medium-sized companies implement European environmental legislation and 
minimise the environmental impacts of their activities. 

Actions are planned for:

 Better regulation in the design and implementation of policies to minimise the administrative burden of 
compliance on SMEs. The European Commission is examining all Community legislation to identify where 
it can cut unnecessary costs or reduce the administrative burden. It is also working with implementation 
authorities and seeking to involve the SME sector more closely when making new policies. 

 Developing  more  accessible  tailor-made  environmental  management  schemes  to  integrate  environ-
mental concerns into SMEs’ core business activities in a coherent and cost-eff ective way.

 Focused fi nancial assistance to promote and support initiatives by public authorities or business support 
networks aiming at sustainable production in SMEs.

 Building local environmental expertise for SMEs to overcome the lack of know-how at company level. 

 Improved communication and targeted information. The ECAP website is already on-line and a series of 
further information tools are planned. 

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5

 
 
 
 
 
Small, Clean and Competitive

I n t ro d u c t i o n

Companies  that  do  make  the  eff ort  to  green 
their  operations  often  secure  additional 
benefi ts.  For  example,  they  may  gain  access 
to  more  business  opportunities,  for  instance, 
by  being  able  to  supply  large  companies  or 
public authorities that require environmental 
criteria  from  their  suppliers.  They  can  also 
build an image as a responsible company and 
use this as a marketing tool – a factor that is 
becoming increasingly important.  

Providing know-how
The  European  Commission  understands  the 
pressures faced by SMEs and has established 
the  Environmental  Compliance  Assistance 

Programme  (ECAP)  (see  box)  to  provide 
resources  and  make  know-how  available  to 
companies.

ECAP outlines a series of actions which aim to 
minimise  the  administrative  burden  of  com-
plying  with  regulation,  make  environmental 
management  schemes  more  accessible  and 
cost-eff ective  for  SMEs,  provide  focused  fi -
nancial  assistance,  and  give  wider  access  to 
environmental expertise in their local regions 
and targeted information.

This  brochure  outlines  the  programme,  pre-
senting  basic  facts  on  environmental  policy 
and  SMEs,   together  with  case  studies  from 
around the EU.

EUROPEAN ENVIRONMENTAL LEGISLATION

There are a number of areas of EU environmental legislation of relevance to SMEs:

Air quality and noise

EU  rules  set  limits  on  the  emissions  of  certain  pollutants,  such  as  sulphur  dioxide  (SO2),  nitrogen  oxide 
(NOx), volatile organic compounds (VOC), ammonia (NH3) and lead. These can be translated into national 
rules that put obligations on those businesses which emit these substances.

Maximum noise levels are established for equipment used outdoors in construction and other industries.

Chemicals 

The EU’s Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), 
which  came  into  eff ect  in  2006,  puts  an  obligation  on  all  companies  that  produce  or  use  chemicals  to 
ensure they are safe. The most dangerous chemicals will be phased out.

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Small, Clean and Competitive

I n t ro d u c t i o n

Environmental management 

Firms  can  introduce  better  environmental  management  through  several  initiatives,  such  as  the   Eco-
Management and Audit Scheme (EMAS), Life Cycle Assessment and Corporate Social Responsibility.

Greener products 

Several Union policies aim to encourage greener products. Green Public Procurement (GPP) means public 
authorities can set environmental criteria when buying products or services. 

The EU Eco-label makes it easy for consumers to identify environmentally friendly products. 

Integrated  Product  Policy  (IPP)  looks  at  all  the  environmental  impacts  resulting  from  each  phase  of  a 
product’s life cycle. For electrical and electronic devices, the Energy Using Products (EuP) Directive sets rules 
on eco-design, while the Waste Electrical and Electronic Equipment (WEEE) and Restriction of Hazardous 
Substances (RoHS) Directives cover the materials that can be used in electrical and electronic equipment 
and how they are treated once they become waste. The End of Life Vehicles (ELV) Directive does the same 
for scrap road vehicles. 

Waste 

There are a number of pieces of EU legislation on diff erent aspects of waste and its management. Businesses 
must ensure that the waste they produce is treated in an effi  cient, safe and environmentally friendly way – 
and pay for the costs of treatment. Specifi c legislation covers packaging, vehicles, batteries, oils, electrical 
equipment, food waste, hazardous waste and shipments of waste. 

Water 

EU legislation aims to minimise pollution and improve the quality of Europe’s drinking water, rivers, lakes 
and seas. Directives control emissions from specifi c industrial and agricultural sectors, urban waste water 
and dangerous substances.

Soil

Several individual pieces of legislation cover discharges into soil. They include rules on the biodegradability 
of detergents, persistent organic pollutants, nitrates and mercury.

Specifi c sectors whose activities impact soil are also covered by legislation, such as waste 
landfi ll, extractive industries and agriculture. Future action to protect soil is laid out in 
the European Commission’s Thematic Strategy on soil, which was released in 2006.

Since national laws must be put into place to meet central EU legislation, rules may vary 
from country to country.

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7

B e t t e r   r e g u l a t i o n

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Small, Clean and Competitive

B e t t e r   re g u l a t i o n

Cutting red tape
SMEs can fi nd environmental legislation com-

plex and diffi  cult to understand, and in gen-
eral,  the  smaller  the  company,  the  harder 
it  is.  In  future,  legislation  needs  to  take  account 
of  these  diffi  culties.  Requirements  can  be  better 
defi ned  and  procedures  made  simpler  in  order  to 
achieve  the  same  environmental  objectives  with 
less red tape, and at less cost.

The fi rst step towards this ‘better regulation’ is 
in the actual formulation and operation of the 
legislation  itself.  The  European  Commission 
and national governments are working togeth-
er to design all their legislation in such a way 
that  the  administrative  burden  is  minimised. 
Company resources can then be focused on ac-
tually  improving  environmental  performance 
and  compliance,  as  opposed  to   expending 
them on administrative formalities.

Simplifi cation
The Commission is currently examining all EU 
legislation  to  see  where  it  can  cut  unneces-
sary  administration  and  costs  as  regards  the 
 information it requires from SMEs. 

José  Manuel  Barroso,  the  EU  Commission 
President,  has  vowed  to  restrict  Union 
legislation  to “what  is  absolutely  necessary 
to  achieve  our  stated  objectives”.  The  aim 
of  the  programme,  which  he  launched  in 
2007, is to cut the administration burden on 
companies  by  25%  by  2012.  A  Commission 
report on the first year of the drive towards 
simplification  estimated  that  savings  of 
€500  million  have  already  been  made,  with 
over  300  legal  acts  axed. The  process  is  set 
to intensify in coming years.

Bavaria: agreeing to improve

The  Bavarian  Environmental  Agreement  gives  incentives  to  SMEs  who  take  action  to  improve  the 
environmental impacts of their businesses, going beyond actions required by law. The system is based on 
agreements between SMEs and public authorities, under which businesses can receive fi nancial assistance 
or  are  relieved  of  some  administrative  obligations  if  they  improve  their  environmental  record  beyond 
simply complying with legislation. Evaluations are carried out regularly to ensure that objectives are being 
achieved.

An  important  element  is  that  SMEs  receive  subsidies  to  introduce  environmental  management  systems, 
such as the EU’s Eco-Management and Audit Scheme (EMAS), through which environmental performance 
is  continuously  monitored.  Companies  gain  relief  from  certain  administrative  requirements,  such  as 
monitoring and reporting emissions and waste, or inspection of installations under German Water Law.

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Small, Clean and Competitive

B e t t e r   re g u l a t i o n

At a national level, costs can be cut by avoiding 
duplicate requests, using IT solutions to share 
common information and simplifying the way 
it  has  to  be  presented.  Permit  procedures 
can  be  streamlined  and  options  should  also 
be  explored,  such  as  making  one-stop  shops 
for businesses to apply for permits and other 
regulatory procedures.

Learning from best practices is also important. 
A  study  into  the  most  eff ective  support  ac-
tions to improve the implementation of envi-
ronmental regulation has already been done, 
with  76  successful  actions  from  24  countries. 
Knowledge of these examples will be dissemi-
nated more widely throughout the EU.

The Netherlands: one permit fi ts all

The  Dutch  Environment  Ministry  (VROM)  has  simplifi ed  its  procedures  by  consolidating  its  permit 
requirements into a single framework. Around 25 diff erent types of permit have been reduced to one.

The initiative unites a range of permits issued by VROM, including those for Integrated Pollution Prevention 
and Control (IPPC), building, spatial planning and other aspects of air quality protection. In addition, the 
new permit extends to areas that fall under the remit of other ministries, including water, monuments and 
nature protection.

The new system also provides a simpler web-based application form which allows applicants to complete 
only those sections that are directly relevant to them. 

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Small, Clean and Competitive

B e t t e r   re g u l a t i o n

Improved enforcement
Environmental  authorities  across  Europe  col-
laborate through the IMPEL network (see box), 
and  the  Commission  will  continue  to  work 
with this network to improve the enforcement 
of environmental laws. In particular, IMPEL will 
contribute  to  the  revision  of  current  guide-
lines on criteria for environmental inspections, 
using  its  practical  experience  of  SMEs’  needs 
and constraints.

Many  problems  with  the  implementation  of 
legislation can be avoided through the greater 
involvement of SME stakeholders in the policy-
making process – both when policies are fi rst 
proposed  and  then  when  they  are  put  into 
practice. The Commission will seek closer con-
sultation when drawing up and implementing 
new  legislation,  and  has  recently  strength-
ened its guidelines for impact assessments of 
policy options and existing  legislation to take 
greater account of SMEs.

IMPEL: ENFORCING TOGETHER

In operation since 1992, IMPEL (The European Union Network for the Implementation and Enforcement of 
Environmental Law) is an informal network of European environmental authorities which work together to 
improve the application of legislation. 

Amongst  the  network’s  priorities,  international  collaboration  through  the  network  focuses  on  the 
exchange of information in the implementation and enforcement of EU environmental rules, inspection 
activities, and it is engaged in better legislation issues.

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E nv i r o n m e n t a l 
m a n a g e m e n t

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Small, Clean and Competitive

E nv i ro n m e n t a l   m a n a g e m e n t

Tailor-made environmental 
management schemes 
Businesses can dramatically improve their en-

vironmental performances in a cost-eff  ective 
way through the adoption of environmental 
management  systems,  such  as  the  EU’s  Eco-Man-
agement  and  Audit  Scheme  (EMAS).  Developing 
made-to-measure  systems  will  increase  their  up-
take by SMEs.

Several other systems have been developed in 
recent years, either to address the needs of a 
specifi c business sector, or individual environ-
mental issues.

For  regulating  authorities,  the  management 
systems can act as a guarantee that companies 
are  meeting  their  legal  requirements,  while 
greater acceptance of a certifi ed EMS, such as 
the  EMAS  scheme,  is  a  reliable  alternative  to 
compliance  checks  or  inspections,  and  cuts 
administration requirements for businesses. 

Environmental  Management  Systems  (EMS) 
establish  a  framework  for  organisations  to 
evaluate  and  report  their  environmental  im-
pacts,  and  then  to  plan  a  course  of  action  to 
make improvements accordingly. 

Adopting a reputable EMS ensures that com-
panies  comply  with  legislation,  as  well  as 
bringing  added  effi  ciency  –  and  cost  savings 
–  to  operations.    Experience  shows  that  they 
have  a  much  more  positive  infl uence  on  a 
company’s  environmental  engagement  than 
inspections  or  compliance  checks,  and  bring 
much  greater  benefi ts  in  terms  of  effi  ciency 
gains.

The  European  Eco-Management  and  Audit 
Scheme (EMAS, see box) is the environmental 
management system developed by the EU. The 
scheme is now under revision in order to make 
it  more  robust  and  reliable,  in  terms  of  both 
environmental performance and legal compli-
ance, and to make it easier to apply for SMEs. 

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Small, Clean and Competitive

E nv i ro n m e n t a l   m a n a g e m e n t

Developing solutions
ECAP  is  taking  a  series  of  actions  aimed 
 making environmental management systems 
more accessible for SMEs. The Commission will 
promote  the  uptake  of  EMAS  by  clusters  of 
SMEs working together, encouraging the use 

of  public-private  partnerships  to  do  so.  This 
should  reduce  auditing  and  consulting  costs 
for individual fi rms and ease the exchange of 
information  between  diff erent  organisations. 
It will also mean that companies working to-
gether  can  adopt  a  coherent  environmental 
policy. 

MAPPING A COMPANY’S GREEN CREDENTIALS

The  EU’s  Eco-Management  and  Audit  Scheme  (EMAS)  is  an  environmental  management  tool  to  help 
companies and other organisations to evaluate, report and improve their environmental performance.

To  obtain  EMAS  certifi cation,  an  organisation  must  conduct  a  thorough  environmental  review  of  all  its 
activities,  establish  an  environmental  management  system  based  on  this  review,  and  produce  regular 
audits and statements of environmental performance.

EMAS registration ensures that a company is in compliance with EU environmental legislation and avoids 
fi nes. Businesses can identify how to make their processes more eco-effi  cient and so make costs savings. 
And it helps prevent the need for costly clean-ups. 

MAKING IT EASIER

EMAS can be a sophisticated and complex system to set up and run. The EMAS Easy tool is a project to build 
capacity in the EU’s Member States and candidate countries for the implementation of the management 
and auditing schemes in SMEs. 

It uses a process known as ‘Ecomapping’ to pinpoint issues of environmental concern on a simplifi ed map of 
the production facilities. The results of the mapping exercise are used to complete ten simple forms devised 
specifi cally to ensure compliance with EMAS requirements.

EMAS  Easy  national  pilot  projects  began  in  December  2004  and  are  planned  to  cover  all  Member  States 
by 2009. The pilots aim to train fi ve national experts and ten SMEs to use the system. The best-performing 
enterprises have been awarded EMAS certifi cation. The completed projects successfully demonstrated that it 
is perfectly possible to implement the EMAS scheme in very small organisations.

More information: 
EMAS: http://ec.europa.eu/environment/emas/about/summary_en.htm
EMAS Easy: http://www.emas-easy.eu/

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Small, Clean and Competitive

E nv i ro n m e n t a l   m a n a g e m e n t

Tools,  such  as  EMAS  Easy  (see  case  study), 
already exist for the implementation of EMAS 
within SMEs. These will be further developed 
and applied on a larger scale with projects in 
all EU Member States. A pilot phase of EMAS 
Easy  has  already  been  run  in  new  Member 
States and showed that full EMAS registration 
is feasible, even in the smallest companies. 

This  revision  will  also  reduce  the  administra-
tive burden of EMAS, which will be particularly 
benefi cial  for  SMEs.  EMAS  should  be  made 
more  accessible,  more  understandable  and 
more eff ective, with less red tape but the same 
high standards. 

Improving the visibility of the scheme through 
promotion  activities  by  the  Commission  and 
Member States is also a priority. Greater aware-
ness will make this a more valuable marketing 
instrument for  registered businesses. 

Cleaner printing

The  CREW  printing  company  was  one  of  the  fi rst  Hungarian  companies  to  achieve  EMAS  certifi cation, 
in 2005. The company – which employs 33 people – worked with the Követ, the Hungarian Association for 
Environmentally Aware Management, and used the EMAS Easy tool to ‘eco-map’ issues of environmental 
concern. The storage of hazardous materials and waste, energy consumption, noise, and paper waste were 
areas found to be requiring action. 

An action programme was put into place for 2005-2006 to deal with the problems identifi ed. The fi rst year 
saw some dramatic improvements – hazardous waste per tonne of print produced decreased by 40%, paper 
waste by 40%, water consumption by 45% and energy consumption by 55%.

More information: 
http://ec.europa.eu/environment/sme/cases/cases10_en.htm

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Ta r g e t e d   f u n d i n g

environmental  compliance  assistance  meas-
ures  for  SMEs  in  the  2007-13  period.  Actions 
include,  for  instance,  the  creation  of  cluster 
coordination  bodies  for  EMAS  registration, 
regional  compliance  assistance  programmes 
to off er SMEs environmental audits and guid-
ance, sector-specifi c information initiatives, or 
training of business support networks. 

Structural Funding
The  new  Cohesion  Policy  instruments  pro-
vide  substantial  funding  for  Member  States 

Focused fi nancing 
Enterprises need fi nancial incentives and sup-

port  in  order  to  adopt  or  develop  the  most 
innovative  environmental  technologies  and 
business  practices.  Specifi c  funding  is  allocated 
for  SMEs  and  the  environment  under  various  EU 
mechanisms for the 2007-13 period.

Companies that adopt the most innovative en-
vironmental technologies and business prac-
tices can rapidly improve their environmental 
performances  and  compliance.  However, 
SMEs often need fi nancial incentives and sup-
port in order to innovate as they have limited 
scope to make investments in environmental 
technologies,  and  frequently  require  extra 
support  to  be  able  to  participate  in  joint 
 research programmes.

A  number  of  EU  instruments  are  available  to 
help SMEs comply with legislation, make more 
eco-friendly products, use cleaner technology, 
save  energy  or  take  part  in  research  projects 
(see box for an explanation of the instruments). 
Although these are Community mechanisms, 
national  and  regional  authorities  often  man-
age and allocate funds.

The  LIFE+  Programme,  the  EU’s  main  fi nan-
cial  instrument  for  environmental  projects, 
includes in its priorities support for projects on 

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Small, Clean and Competitive

Ta r g e t e d   f u n d i n g

An EcoStep in the right direction

EcoStep  is  an  all-in-one,  integrated  environmental,  quality  and  labour  protection  management  system 
designed for SMEs. For a modest additional cost, it also helps enterprises to qualify for EMAS, the EU Eco-
Management Audit Scheme (see box on page 14).

The  new  system  will  generate  both  economic  and  environmental  benefi ts  by  reducing  resource 
consumption and optimising business processes. It will also raise awareness of environmental and labour 
protection issues.

The EU-funded project seeks to make EcoStep a standard system for SMEs across Europe. A modifi ed version, 
EcoStep Viniculture, has been developed for small-scale grape growers.

EcoStep  employs  a  novel  fi nancing  scheme  known  as  ‘management  contracting’.  This  means  that  its 
implementation costs are funded by the savings accrued from implementing the scheme.

The system was developed by the Hessen State Ministry for the Environment, Rural Areas and Consumer 
Protection. It is funded by the EU’s LIFE programme which is the Union’s main funding mechanism to ensure 
environmental policies are put into practice.

More information: 
http://www.umwelt-unternehmen.bremen.de/Ecostep.html

for  investments  in  environmental  protection, 
especially for SMEs. A large part of the envir-
onmental funding for SMEs will come from the 
Structural  Funds,  particularly  the  European 
Regional  Development  Fund,  the  Cohesion 
Fund and the new European Social Fund.

Environmental investments have been identi-
fi ed  as  one  of  the  main  sectors  for  support 
under  JEREMIE  (Joint  European  Resources 
Enterprises). 
for  Micro 
to  Medium 
This 
instrument,  which  began  operat-
ing  in  2007,  allows  Member  States  to  use 

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Ta r g e t e d   f u n d i n g

Structural Funds to set up (regional) fi nancial 
instruments for SMEs, including advisory and 
technical assistance, equity and venture capi-
tal, and guarantees.

Under  state  aid  guidelines,  Member  States 
can  grant  transitional  investment  aid  to  help 
SMEs  adapt  to  EU  environmental  standards 
not yet in force. They allow aid for investments 
in energy saving and for waste management, 
along with other initiatives. 

SMEs  can  also  benefi t  from  EU  programmes  to 
encourage  research  and  innovation.  They  will 

be  the  main  benefi ciaries,  either  directly  or 
indirectly,  of  the  Union’s  Competitiveness 
and Innovation Programme (CIP). Part of the 
programme focuses specifi cally on entrepre-
neurship and innovation – granting access to 
fi nance for the start-up and growth of SMEs. 
The  EU’s  Seventh  Framework  Programme 
for  Research  (FP7),  its  main  funding  pro-
gramme  for  research,  also  prioritises  envir-
onmental  projects  and  encourages  SMEs  to 
participate.

Paving the way to greener asphalt

Producing asphalt is dirty and energy guzzling. Conventional plants churn out vast amounts of asphalt-
coated products in order to ensure their own commercial viability. However, this is wasteful, particularly 
when  product  recipes  are  changed.  Wastage  also  occurs  owing  to  diffi  culties  in  matching  the  various 
elements of the process, while the inability to modulate burners and dryers eff ectively consumes a lot of 
energy unnecessarily.

Smaller, more localised batch-heater plants overcome some of the problems connected to conventional 
facilities, namely that they produce smaller batches of a wide range of products nearer the markets they are 
destined for, thereby reducing the plant’s environmental footprint. Nevertheless, even these facilities are 
highly polluting.

One demonstration project funded by the EU’s LIFE programme managed to come up with a plant that 
used 75% less electricity and 30% less gas and fuel oil. Mixlance REF also slashed particulate emissions to 
below 10 mg/m3 (less than a fi fth of the UK’s new legal limit). In addition, the project managed to boost the 
amount of recycled materials used in the production process by 50%.

More information:
http://www.mixlance.com/LIFE/

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Small, Clean and Competitive

Ta r g e t e d   f u n d i n g

CLEANAIR

This Norwegian project brought together SMEs and 
the  National  Institute  of Technology  in  Norway  to 
research technology to enhance air quality in urban 
areas.  The  initiative,  co-funded  by  the  European 
Union  through  the  FP5  programme,  successfully 
developed  two  pieces  of  innovative  equipment 
to  remove  tiny  particles  from  domestic  chimney 
emissions.

The  fi rst  was  a  dust-removal  system  for  domestic 
solid fuel burners, with an effi  ciency level of over 90%. 
The second was the creation of a miniaturised high-
voltage supply unit for the system; this proved to be 
the greater challenge of the two.

In addition to the innovative technology developed, 
the  participating  SMEs  gained  experience 
in 
developing a network and will be able to collaborate 
in the future.

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Ta r g e t e d   f u n d i n g

TAPPING EU FINANCIAL SOURCES

Various  European  Union  fi nancial  instruments  provide  funding  for  environment-related  projects  and 
 initiatives. Below is a selection of the available opportunities:

  LIFE+

LIFE+ is the EU’s main funding mechanism to ensure the implementation of environmental policies between 
2007-2013. Companies apply directly to the EU for grants.

SMEs  have  been  signifi cant  benefi ciaries  in  previous  LIFE  programmes.  For  instance,  some  €30  million 
were  assigned  in  2003-2004  to  developing  innovative  techniques  in  businesses  through  demonstration 
projects.

  Structural and Cohesion Funds

There are a number of funds allocated by the European Union to support less-developed regions (Structural 
Funds) and to help develop European infrastructure (Cohesion Funds). They account for a large part of total 
EU funding and spending. 

Both  mechanisms,  in  particular  the  Structural  Funds,  allow  for  substantial  investments  in  environmental 
protection. Most of this funding is allocated and distributed by regional and local authorities.

  JEREMIE

Introduced as part of the Cohesion Funds (2007-2013), the Joint European Resources for Micro to Medium 
Enterprises (JEREMIE) programme allows Member States to set up fi nancial instruments for SMEs at regional 
level. Environmental initiatives have been identifi ed as a priority. The European Commission, the European 
Investment Bank and the European Investment Fund together provide the funds.

 Competitiveness and Innovation  Programme (CIP)

The CIP (2007-2013) puts a strong emphasis on SMEs. Some €430 million is allocated for investments in eco-
innovation activities. The Intelligent Energy Europe (IEE) sub-programme includes  €727 million for energy 
effi  ciency and renewable energy projects.

 Seventh Framework Programme for  Research (FP7)

FP7 (2007-2013) has an entire theme under its Co-operation programme dedicated to 
the environment. SMEs are actively encouraged to enter and form consortia to apply for 
FP7 funding.

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21

 
 
Building expertise

Where can SMEs go when they have ques-

tions  about  environmental  legislation 
and the opportunities available for their 
businesses? In collaboration with existing support 
organisations,  the  Commission  is  working  to  es-
tablish a network of experts spread across the EU 
to advise businesses.

Without the luxury of in-house legal or environ-
mental staff , SMEs need to have access to out-
side expertise. The Commission is building up a 
network of environmental experts in business-
support organisations throughout the EU.

These  advisors  can  tell  companies  what  their 
legal  requirements  are  and  what  benefi ts 
they will gain from eff orts to improve sustain-
ability.  They  can  also  help  develop  partner-
ships  between  businesses  and  enable  SMEs 
to  access  support  programmes  and  funding 
opportunities.

They will work proactively with SMEs to explain 
the  existing  or  new  environmental  legislation 
that  aff ects  them,  using  the  most  eff ective 
means, including on-site visits, websites, news-
letters, and seminars, to raise awareness about 
environmental  impacts  and  the  benefi ts  of  a 
proper environmental management system.

Building the network
Work to create the network began in 2007, with 
a  series  of  capacity-building  seminars  around 
Europe.  The  audience  comprised  business-
support  organisations,  such  as  local  business 
associations – whether organised by district or 
sector – or chambers of commerce. 

The  workshops  presented  both  the  legal  re-
quirements and the benefi ts of improved envir-
onmental  performance.  One  training  module 
concentrates  on  how  to  provide  assistance  to 
SMEs  –  a  reactive  approach  –  whilst  a  second 
gives training on a more proactive approach to 
involving SMEs in environment policy beyond 
compliance. The training modules are available 
on the ECAP website.

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Small, Clean and Competitive

B u i l d i n g   e x p e r t i s e

The  events  generated  considerable  interest 
and were well attended by a range of organi-
sations  that  work  with  SMEs.  Feedback  from 
participants stressed the practical nature of the 
information  and  case  studies  used.  Many  also 
appreciated  that  the  event  brought  the  main 
support  organisations  together  for  the  fi rst 
time to start dialogue and build up a network.

A core part of the support will come from the 
new EU-wide business-support service that was 
launched at the start of 2008 – the Enterprise 
Europe  Network  (see  box).  The  network  in-
tegrates  the  services  previously  provided  by 
two  organisations:  the  Euro  Info  Centres  (EIC) 
Network  and  the  Innovation  Relay  Centres 
(IRCs).

EUROPE’S COMPETITIVENESS AND  INNOVATION GATEWAY

Under the slogan ‘business support at your doorstep’, the Enterprise Europe Network (EEN) is the gateway 
to the EU’s massive single market for SMEs across Europe and beyond. 

With  over  600  partner  organisations  and  4000  experts  in  40  countries,  the  EEN  off ers  SMEs  both  local 
knowledge and European expertise. It is a one-stop shop support network for enterprises seeking assistance 
with business and innovation issues in the EU. 

When it comes to the environment, the network provides expert support in such areas as green business 
practice, sustainability, eco-innovation, locating business partners in other countries, complying with EU 
environmental regulations, and pursuing funding opportunities.

The  network  also  works  to  improve  the  relationship  between  the  European  Commission  and  business. 
Network representatives provide the EU executive with regular feedback on European policy, the diffi  culties 
SMEs face operating in the Single Market, and the eff ectiveness of the European programmes. All this helps 
shape EU legislation into something more business-friendly and better able to stimulate future growth and 
competitiveness.

The network is a major component of the EU’s Entrepreneurship and Innovation Programme (EIP), one of 
the three sub-programmes of the 2007-2013 Competitiveness and Innovation Programme (CIP). 

Although the EEN brand name is new, the network itself is not. It merges two highly successful networks – the 
Innovation  Relay  Centre  (IRC)  and  the  Euro  Info  Centres  (EIC)  networks  –  to  provide  broader  geographical 
coverage and a wider range of service in order to fulfi l its ‘no wrong door’ operation motto. This means that 
whatever EU-related support an SME is seeking, it should be able to fi nd it in its local EEN branch.

More information: 
http://www.enterprise-europe-network.ec.europa.eu/

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23

Co m m u n i c a t i o n

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Small, Clean and Competitive

C o m m u n i c a t i o n

Getting the message across
Better 

information  can  help  tackle  the 
 general  lack  of  awareness  among  SMEs 
 concerning  environmental  issues.  So,  ECAP 
is  developing  a  series  of  targeted  information 
tools to improve the situation.

environmental support tools such as environ-
mental  management  systems,  energy-saving 
measures  or  what  fi scal  incentives  might  be 
available  to  them.  In  the  UK,  95%  of  SMEs 
said that they would like more information on 
 environmental matters.

Surveys from around the EU show that there is 
general lack of awareness among SMEs about 
environmental issues, and where knowledge 
does  exist,  it  is  generally  limited  to  concern 
individual  envir onmental 
about  safety  or 
hazards.

Research  from  national  authorities  found 
that  some  70%  of  French  SMEs  admitted 
to  having  little  or  no  information  about  EU 

ECAP aims to improve the situation by making 
information accessible and easy to understand. 
The  programme  website,  available  in  seven 
languages,  is  the  contact  point  and  informa-
tion hub for support networks on environmen-
tal policy and SMEs (see page 27). It acts as a 
portal  to  the  ECAP  helpdesk  which  provides 
information for support organisations.

Guiding SMEs through the environmental wilderness 

SMEs often lack the know-how and expertise to improve their  environmental  perfor mance and to comply 
with environmental legislation. In the UK, the country’s regional environmental regulators team runs the 
NetRegs on-line service (www.netregs.gov.uk). 

The portal provides British enterprises with free guidance to the ins and outs of environmental regulations 
in diff erent parts of the UK and provides tips on how SMEs can reduce their environmental footprint, and 
save money in the process.

The user-friendly guide off ers information by business sector and environmental topic. It also explains key 
EU legislation transposed into national law, such as the recent Registration, Evaluation and Authorisation of 
Chemicals (REACH) Regulation. The site hosts an extensive library of useful links, too.

An area of special attention at present concerns waste in the building sector.  The ‘Site waste – it’s criminal’ 
campaign  encourages  construction  companies  to  learn  more  about  the  importance  and  benefi ts  of  site 
waste-management plans.

25

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As well as providing details of expert contacts 
throughout the EU, the website gives informa-
tion  on  the  implementation  of  existing  and 
forthcoming  environmental  legislation,  avail-
able  environmental  management  tools  and 
funding opportunities. 

It also provides a selection of good practices, 
links to national initiatives and tool kits to help 
SMEs. Further tool kits will be available in the 
future.

A  monthly  ECAP  e-alert  and  newsletter  pro-
duced  three  times  per  year  give  updates  on 
the  latest  developments  in  the  programme 
and issues on SMEs and the environment.

A big plus for the environment 

Since 1994, PBE+ has been working to build a critical mass among SMEs in Brittany (FR) on the environmental 
front by helping them to network and share experience and know-how. It seeks to raise their awareness of 
the environmental impacts of industrial activity. The initiative also promotes environmental management 
systems and cleaner, greener technologies and remediation.

Run by the Brittany Regional Council and other local authorities, this initiative off ers hands-on assistance 
to SMEs to carry out their own environmental self-diagnoses. Support includes free two-day training sessions 
and tailored advice (on environmental legislation, ISO 14001 or clean technologies, etc.). Larger events are 
held regularly to inform SMEs about legislation and technical schemes to prevent industrial pollution.

PBE+ has been a major success. Over 2000 company representatives have taken part in training sessions 
and more than 800 environmental self-diagnoses have been undertaken by SMEs.

http://www.performance-bretagne.net/index.php

26

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Small, Clean and Competitive

C o m m u n i c a t i o n

ON THE WEB 
http://ec.europa.eu/environment/sme

The  dedicated  ECAP  website  contains  the 
information that small and medium-sized en-
terprises (SMEs) need in order to address the 
environmental  impacts  of  their  activities  and 
meet legal requirements. 

The  site  gives  straightforward  information  in 
seven languages on legislation, and tells busi-
nesses how they can take action and where to 
fi nd support or access to expertise.

The website gives details of:

  The ECAP programme and how it works 

 News  and  developments  on  SMEs  and  the 
environment

 Which  areas  of  EU  and  national  environ-
mental legislation are relevant for SMEs and 
where to fi nd more information

 Funding opportunities that exist across the 
EU for businesses to improve their environ-
mental performances

  Case studies of successful actions

 Details  of  ECAP  training  seminars  around 
Europe

 Contact  details  for 
local  environmental 
experts  and  support  organisations  around 
Europe

  On-line tool kits.

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27

 
 
 
 
 
MORE INFORMATION:

There are numerous on-line sources with more information about SMEs and the 
environment. 
The following EU sites may be useful:

The ECAP programme website (available in seven languages):
http://ec.europa.eu/environment/sme

The Enterprise Europe Network:
http://www.enterprise-europe-network.ec.europa.eu

The European Portal for SMEs (available in 21 languages):
http://ec.europa.eu/enterprise/sme

LIFE+ (the Financial Instrument for the Environment):
http://ec.europa.eu/environment/life

Information on SMEs and the Seventh Framework Programme for Research (FP7):
http://ec.europa.eu/research/sme-techweb/index_en.cfm

Eco-innovation and the EU’s Competitiveness and Innovation Programme:
http://ec.europa.eu/environment/etap/ecoinnovation

JEREMIE:
http://www.eif.org/jeremie/

Frequently asked questions on EU environment policies:
http://ec.europa.eu/environment/faqs.htm

ECAP glossary:
http://ec.europa.eu/environment/sme/glossary/glossary_en.htm

Multilingual environmental glossary of the European Environment Agency:
http://glossary.eea.europa.eu/

European Union Network for the Implementation and Enforcement of 
Environmental Law:
http://ec.europa.eu/environment/impel/index.htm

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