Commission staff working document accompanying the communication from the Commission to the Council and the European Parliament - 2007 environment policy review {COM(2008) 409 final}
Date: 2008-07-02
Institutions: European Commission
Subjects: EU environmental policy, biodiversity, climate change, environmental protection, management of resources, pollution control measures, reduction of gas emissions, sustainable development

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 2.7.2008 
SEC(2008) 2150 

COMMISSION STAFF WORKING DOCUMENT 

accompanying the 

COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

2007 Environment Policy Review  

{COM(2008) 409 final} 

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TABLE OF CONTENTS 

Introduction ................................................................................................................................ 4 

Part 1: Achievements, new findings and outlook in the 6th Environment Action Programme 

priority areas................................................................................................................. 5 

Climate change........................................................................................................................... 5 

Nature and biodiversity .............................................................................................................. 8 

Environment and health ........................................................................................................... 11 

Natural resources and waste..................................................................................................... 13 

Better regulation in environment policy................................................................................... 15 

Part 2 - Statistical data.............................................................................................................. 17 

Climate change and energy ...................................................................................................... 18 

Nature and biodiversity ............................................................................................................ 28 

Environment and health ........................................................................................................... 34 

Natural resources and waste..................................................................................................... 37 

Environment and the economy................................................................................................. 40 

Implementation......................................................................................................................... 41 

Indicators "Beyond GDP" ........................................................................................................ 43 

Part 3: Commission summary of environment policy actions in the Member States .............. 47 

AUSTRIA................................................................................................................................. 47 

BELGIUM................................................................................................................................ 50 

BULGARIA ............................................................................................................................. 53 

CYPRUS .................................................................................................................................. 55 

CZECH REPUBLIC ................................................................................................................ 57 

DENMARK.............................................................................................................................. 59 

ESTONIA................................................................................................................................. 62 

FINLAND ................................................................................................................................ 64 

FRANCE .................................................................................................................................. 67 

GERMANY.............................................................................................................................. 70 

GREECE .................................................................................................................................. 73 

HUNGARY.............................................................................................................................. 76 

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IRELAND ................................................................................................................................ 79 

ITALY….................................................................................................................................. 82 

LATVIA ................................................................................................................................... 86 

LITHUANIA............................................................................................................................ 89 

LUXEMBOURG...................................................................................................................... 91 

MALTA.................................................................................................................................... 93 

THE NETHERLANDS ............................................................................................................ 96 

POLAND.................................................................................................................................. 99 

PORTUGAL........................................................................................................................... 102 

ROMANIA............................................................................................................................. 104 

SLOVAKIA ........................................................................................................................... 107 

SLOVENIA............................................................................................................................ 109 

SPAIN… ................................................................................................................................ 111 

SWEDEN ............................................................................................................................... 113 

UNITED KINGDOM............................................................................................................. 116 

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INTRODUCTION 

This Commission Staff Working Paper is an annex to the 2007 Environment Policy Review,1 
and presents evidence on selected EU environment policy issues during 2007. 

It  has  been  prepared  in  three  parts.  Part  1  describes  EU  environment  policy  during  2007.  It 
describes  in  more  detail  the  main  policy  developments  for  the  four  priorities  of  the 
6th Environment Action Programme (6th EAP). It highlights recent findings and indicates the 
main issues that will be important in 2008. It then also examines Better Regulation initiatives, 
which  make  it  simpler  for  business  to  comply  and  easier  for  Member  States  to  implement 
environment policy measures, while enhancing environmental standards. 
Part 2 draws on statistical data relevant to the four priority areas of the 6th EAP, commenting 
on  significant  issues  and  providing  background  for  the  Commission’s  policy  work  during 
2007  and  future  initiatives.  It  also  provides  evidence  relevant  to  discussion  of  the  links 
between  the  environment  and  the  economy  and  progress  on  implementation.  Finally  it 
includes an overview of some selected composite indicators, which were discussed during the 
international conference "Beyond GDP" on 19-20 November 2007. 

Part 3 contains the Commission’s review of environment policy actions in the Member States. 
The  actions  listed  are  by  no  means  exhaustive,  but  rather  present  a  snapshot  of  actions  that 
took  place  around  2007  and  which  are  part  of  the  implementation  of  the  6th  EAP  and  the 
Member  States'  National  Lisbon  Reform  Programmes,  notably  with  respect  to  Integrated 
Guideline 11 on environment policy measures to ensure the sustainable use of resources. The 
information  comes  from  various  sources,  including  Country  pilot  studies  from  December 
2007  on  environment  policy  developments  in  Member  States,  commissioned  by  DG 
Environment. 

More comprehensive information on the environment in Europe can be found in the European 
Environment  Agency’s  webpage2  and  in  the  report  "Europe's  environment.  The  fourth 
assessment."3  Further  information  can  be  retrieved  from  Eurostat’s  report  “Measuring 
progress towards a more sustainable Europe - 2007 monitoring report of the EU sustainable 
development  strategy”,  which  presents  environmental  issues  alongside  social  and  economic 
indicators.4

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COM(2008) 409 final 
www.eea.europa.eu 
http://reports.eea.europa.eu/state_of_environment_report_2007_1/en 
www.ec.europa.eu/eurostat/sustainabledevelopment 

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PART 1: ACHIEVEMENTS, NEW FINDINGS AND OUTLOOK IN THE 6TH 
ENVIRONMENT ACTION PROGRAMME PRIORITY AREAS 

Climate change 

Highlights in 2007 

Climate change  is one  of  the  greatest threats facing  the planet. The  4th assessment report of 
the  Intergovernmental  Panel  on  Climate  Change  (IPCC)  confirmed  that  the  warming  of  the 
climate system is unequivocal. To address the threat, EU Member States agreed at the March 
2007 European Council on an energy and climate change package for a new Energy Policy 
for Europe. It commits the EU to a 30% reduction if there is an international agreement in 
which other industrial countries commit to comparable mitigation efforts as in the EU and - 
even if there is no agreement - to a unilateral reduction in greenhouse gas emissions of at least 
20%  by  2020,  a  target  of  20%  share  of  energy  consumption  from  renewable  sources  and  a 
target  of  10%  for  biofuels  in  transport.  This  package  prepared  the  ground  for  a  major 
breakthrough in the international climate negotiations. The EU achieved its main objective for 
the 13th Conference of the Parties to the United Nations Framework Convention on Climate 
Change (UNFCCC COP13) in December in Bali: it reached agreement on launching intensive 
negotiations on a global and comprehensive agreement for effective global action on climate 
change after 2012, and concluding these negotiations in 2009. The Commission translated the 
package  into  concrete  action  by  adopting  a  Climate  Action  and  Renewable  Energy 
implementation package on 23 January 2008 (see below), aiming to set Europe firmly on the 
path to a low-carbon economy. 

In  2007,  the  Commission  fixed  strict  emission  caps  when  assessing  the  Member  States 
national  plans  for  allocating  CO2  emission  allowances  for  the  2008-2012  trading  period  of 
the EU Emission Trading Scheme (ETS). Allowances will be 12.5% below allocations for 
the first round of the scheme (2005-2007) and 6.8% below the measured emissions for 2005. 
In December, Environment Ministers reached political agreement on including aviation in the 
scheme, starting in 2012. From 2008, also firms from Norway, Iceland, and Liechtenstein will 
be able to participate in the EU ETS. 

CO2  emissions  from  road  transport  have  risen  by  26%  since  1990,  accounting  for  almost  a 
fifth of total emissions in the EU. The February review of the CO2 and cars strategy showed 
that the voluntary commitments of the car industry had brought only limited progress towards 
achieving  the  2012  target  of  120  g/km  CO2  emissions  for  new  cars.  Thus  the  Commission 
proposed  a  legislative  framework  in  December,  providing  manufacturers  with  the  necessary 
incentives,  like  an  excess  emissions  premium  if  the  limit  value  was  not  met.  The  proposed 
revision of the Fuel Quality Directive also includes an obligation for fuel suppliers to reduce 
the greenhouse gas emissions that their fuels cause over their life-cycle. To enable greater use 
of biofuels, a new petrol blend will be established. At the same time, sulphur levels in diesel 
and  gasoil  will  be  cut  to  reduce  dust  particles.  EC  funded  research  activities  under  the  7th 
Research Framework Programme also focus on both short and long term solutions to reduce 
transport impact on climate change, considering the whole transport system and its life cycle 
assessment. 

In 2007, the conference "Towards a post carbon society" identified some major social and 
economic  issues  related  to  climate  change  and  energy  transition,  including  the  long-term 

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behavioural patterns (e.g. in terms of mobility) and the relations between energy consumption 
and land-use. 

The Commission adopted a new Strategic Energy Technology Plan, to help drive down the 
cost  of  existing  low  carbon  and  high  efficiency  technologies  and  to  accelerate  their  market 
take-up.  It  proposed,  inter  alia,  the  launch  of  6  European  Industrial  Initiatives,  bringing 
together the appropriate resources and actors to focus on technology  development  for  wind, 
solar,  bio-energy,  carbon  capture  and  storage,  electricity  grid  and  nuclear  fission  and  to 
initiate a European Energy Research Alliance to enable greater co-operation across Europe. 

Despite  all  these  measures,  a  certain  degree  of  climate  change  can  no  longer  be  avoided. 
Thus, the Green Paper on Adaptation to Climate Change considered various policy actions 
to  adapt  to  the  impacts  early  in  order  to  minimize  economic,  social  and  environmental 
disruptions.  In  that  context,  the  Commission  also  adopted  a  Communication  on  water 
scarcity  and  droughts  that  identified  a  set  of  policy  options  to  address  water  scarcity  and 
droughts and mitigate their impacts. At the heart of the policy options is the need to put the 
right price on water. The "user pays" principle needs to become the rule regardless of where 
the water is taken from. Water savings and water efficiency need to be promoted, given that 
there  is  tremendous  potential  for  water  saving  in  the  European  Union.  The  Environment 
Council in October supported this and the need to put the right price on water. In November, 
the new Floods Directive entered into force: Member States have to draw up flood maps and 
flood management plans for the areas at risk. 

These domestic initiatives underpinned the EU's ambition to play a continuing leading role in 
the international climate change negotiations on a comprehensive post-2012 agreement, 
launched  in  Bali  in  December.  The  EU´s  objective  is  to  reach  an  agreement  on  binding 
absolute greenhouse gas emission reduction targets for developed countries and on enhanced 
contributions  by  developing  countries,  especially  newly  industrialising  countries,  leading  to 
an  emission  pathway  compatible  with  the  EU's  objective  to  limit  the  global  temperature 
increase to 2°C above pre-industrial levels. 

New Findings: 

•  In its Fourth  Assessment Report, the IPCC states that  during the  last 100 years the earth 
has  warmed  by  0.76°C  on  average  with  an  increasing  trend.  The  11  warmest  years  on 
record  have  all  occurred  in  the  last  12  years.  Based  on  scenarios  assuming  no  further 
action, the best estimates of the projected further rise in the global average temperature by 
2100 range from 1.8 to 4.0°C.5 The Panel Report confirmed knowledge of future climate 
impacts and called at the same time for the need to adapt to impacts of climate change and 
to  strengthen  efforts  to  minimise  greenhouse  gas  emissions.  Thus  enhanced  research 
activities will have to address remaining uncertainties in quantifying future climate change 
impacts and the need to enhance and accelerate the transition to low carbon technologies. 

•  In 2005, EU-15 emissions decreased by 0.8% compared to 2004, while EU-15 GDP grew 
by 1.6%. Compared to base year levels, an overall reduction of 2.0% was achieved. EU-27 
emissions saw a similar decrease compared to 2004, and were 11% below the base year in 
2005.  Projections  show  that  the  EU  is  moving  closer  to  achieving  its  Kyoto  target  but 

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The European Union’s objective is to limit  global warming to no more than 2°C above pre-industrial 
levels because the risks of irreversible and possibly catastrophic changes greatly increase beyond this 
threshold. 

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additional  initiatives  need  to  be  adopted  and  implemented  swiftly  to  ensure  success.6 
Provisional  data  show  that  greenhouse  gas  emissions  continued  their  downward  trend  in 
2006. 

Outlook for 2008 

•  In the January package, the Commission put forward proposals for: 

–  an  improved  Emissions  Trading  Scheme  (ETS)  for  the  third  commitment  period  from 
2013  onwards,  covering  more  emissions  and  allowing firms in one Member State to buy 
allowances in any other; 

–  the  effort  sharing  of  emission  reductions  for  sectors  not  covered  by  the  ETS  like  road 

transport, buildings, services and agriculture; 

–  a Directive with legally enforceable targets for increasing the share of renewables in the 

energy mix – the targets reflect each country's individual needs and its potential; 

–  a regulatory framework for Carbon Capture and Geological Storage technologies which 
addresses  the  environmental  integrity  of  the  technique  and  other  issues  relating  to  safe 
deployment. 

•  The package also includes revised Guidelines on State aid for environmental protection 

which, inter alia, modernise rules on climate change and energy. 

•  A White Paper on Adaptation will identify ways to adapt to climate change and examine 
ways to integrate adaptation principles into common policies, such as agriculture, fisheries, 
transport, energy, regional development, research and health, also taking into account the 
international dimension. 

•  By  the  end  of  2008,  a  follow-up  report  on  water  scarcity  and  droughts  will  introduce 
deadlines  for  the  implementation  of  the  measures  identified  in  the  2007  Communication 
and  include  water  management  measures  that  are  the  deemed  necessary  and  considered 
cost-effective in the Commission's assessment. 

•  To  promote  energy  efficiency  and  renewable  energy  in  developing  countries  and 
economies  in  transition,  the  Commission  will  launch  the  Global  Energy  Efficiency  and 
Renewable  Energy  Fund  (GEEREF).  This  public-private  investment  fund  will  provide 
risk  capital  to  regional  funds  that  specialize  in  investing  in  small  and  medium scale 
projects. 

•  In December 2008, the UN Climate conference in Poznan will assess the progress made 
on  the  Bali  Roadmap  and  provide  additional  political  guidance  to  the  post-2012 
negotiations,  taking  into  account  the  results  of  other  high  level  climate  change  meetings 
especially the G8 and the Major Economies Meeting. 

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Nature and biodiversity 

Highlights in 2007 

In 2007, the Commission continued tackling biodiversity loss at home, by pressing ahead with 
the  urgent  implementation  of  the  Biodiversity  Action  Plan,  extension  of  the  Natura  2000 
network of protected areas, and internationally, by integrating sustainability concerns into its 
international agreements. 

The  first  report  on  the  implementation  of  Biodiversity  Action  Plan  showed  some  progress, 
especially in relation to existing legal commitments. It was difficult to demonstrate significant 
progress  in  the  integration  of  biodiversity  into  other  sectoral  policies,  as  new  programmes 
were in the process of establishment. A major step in 2007 was the extension of the Natura 
2000  network  to  the  new  Member  States  by  adopting  an  initial  list  of  Sites  of  Community 
Importance  in  the  Pannonian  biogeographical  region7  and  updating  existing  lists  for  other 
regions.  A  future  key  challenge  will  be  the  extension  of  the  network  to  the  marine 
environment.  Here  the  Commission  issued  Guidelines  for  establishing  Natura  2000  marine 
areas. 

The  Commission  also  presented  an  Integrated  Maritime  Policy  for  the  European  Union, 
including  an  Action  Plan.  The  Council  and  the  European  Parliament  agreed  on  a  Marine 
Strategy  Framework  Directive  which  establishes  a  framework  obliging  Member  States  to 
take  the  necessary  measures  for  achieving  or  maintaining  good  environmental  status  in  the 
marine environment by 2020. 

In  December,  despite  the  efforts  of  the  Presidency  and  strong  support  from  a  majority  of 
Member  States,  the  Council  did  not  reach  a  political  agreement  on  the  Soil  Framework 
Directive on grounds of subsidiarity and possible costs. The proposal is a key element of the 
6th EAP. 

The Commission and the Portuguese Presidency jointly launched an EU initiative on business 
and biodiversity, aiming to introduce biodiversity considerations into corporate governance 
through voluntary agreements. In response to the request of G8+5 Environment Ministers in 
Potsdam,  the  Commission  and  Germany  launched  an  international  review  of  the  economic 
value of biodiversity. 
At  international  level,  a  consensus  agreement  on  ivory  was  reached  at  the  14th  COP  to  the 
Convention  on  International  Trade  in  Endangered  Species  (CITES).  It  provides  for  a  nine-
year moratorium on ivory sales after an agreed one-off sale of government-owned stocks of 
raw ivory. Furthermore the EU proposal to regulate trade in European eels was adopted, while 
the Parties acknowledged that trade in timber and marine species needs further attention. In 
line  with  the  EU  commitments,  the  Commission  adopted  an  action  plan  on  CITES 
enforcement. 

Under  the  Convention  on  Biological  Diversity  (CBD),  negotiations  continued  on 
international  rules  on  access  to  genetic  resources  and  benefit-sharing.  With  a  view  to 

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Pannonian is one of the 9 biogeographical regions of Europe, covering most of Hungary, plus parts of 
Romania. 
the 
http://ec.europa.eu/environment/nature/natura2000/sites_hab/biogeog_regions/maps/biogeo_map_eur27
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implementing  decisions  of  the  CBD  and  Resolutions  of  the  General  Assembly  on  marine 
biodiversity, the Commission presented proposals on combating illegal fishing practices and 
on preventing the destruction of biodiverse deep sea habitats in marine areas beyond national 
jurisdiction. 

The Commission also started formal negotiations towards voluntary partnership agreements 
on Forest Law Enforcement Governance and Trade (FLEGT) with Indonesia, Ghana and 
Cameroon, and continued negotiations with Malaysia. The aim is to gain assurance that forest 
products imported into the EU from signatory countries are verified to be legal. Furthermore, 
the  Commission  continued  its  work  with  the  Member  States  to  develop  FLEGT's 
implementing rules. 

New Findings 

•  The  EEA’s  fourth  pan-European  Assessment8  showed  that  the  EU  target  of  halting 
biodiversity  loss  by  2010  will  not  be  achieved  without  additional  efforts.  More  than  700 
European  species  are  currently  under  threat,  43%  of  European  bird  species  have  an 
unfavourable  conservation  status,  while  the  number  of  invasive  alien  species  in  the  pan-
European region continues to increase. 

•  The first global-scale census of deep ocean ecosystems found some first evidence that the 
health  of  the  deep  sea  and  its  ability  to  function  increases  with  the  diversity  of  species 
living there.9 

Outlook for 2008 

•  The COP-9 to the CBD in Bonn assessed progress towards achieving the global target to 
significantly reduce the rate of biodiversity loss by 2010. With only two years left to 2010, 
COP-9 adopted decisions strengthening implementation of the CBD. Most importantly, it 
adopted criteria for the identification of marine protected areas, including in the high seas, 
and agreed that the production and consumption of biofuels must be sustainable in relation 
to biodiversity. COP-9 also developed a roadmap for the finalisation of negotiations on an 
international  regime  on  access  to  genetic  resources  and  the  fair  and  equitable  sharing  of 
benefits arising from their use. 

•  First results of the review on the economics of biodiversity will be presented to COP-9. 

•  As part of a Biodiversity package, the Commission plans to present a mid-term report on 
the implementation of the Biodiversity Action Plan on progress towards the 2010 target 
at  both  Community  and  Member  State  level  and  a  Communication  on  policy  actions  to 
tackle Invasive Alien Species. 

•  The Commission will update the Community lists of Natura 2000 sites for the Alpine, 

Macaronesian10and Mediterranean biogeographical regions in 2008. 

•  The  Commission  will  present  a  several  proposals  concerning  forests,  including  a 
Communication  on  deforestation,  a  a  Regulation  setting  out  implementing  rules  for  the 

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http://www.eea.europa.eu/pan-european/fourth-assessment/nature-and-biodiversity 
HERMES project http://www.eu-hermes.net 
The Canaries, Madeira and the Azores. 

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FLEGT  Regulation  and  a  proposal  aimed  to  prevent  the  placing  of  illegally  harvested 
timber on the EU market. It is hoped that he first FLEGT agreements will be concluded in 
2008. 

•  The  adoption  of  the  Marine  Strategy  Directive  will  be  followed  by  work  establishing 
European  Marine  Regions  based  on  geographical  and  environmental  criteria,  and 
developing  Marine  Strategies  for  each  Member  States'  marine  waters,  containing 
assessments and clear targets. 

•  In  May,  the  16th  Meeting  of  the  United  Nations  Commission  on  Sustainable 
Development  (CSD  16)  addressed  agriculture,  rural  development,  land,  drought, 
desertification  and  Africa,  and  served  as  a  follow-up  on  water.  When  looking  at  the 
interlinkages of these topics, it also looked at biodiversity loss, water and natural resource 
use in agriculture, the food life-cycle and the importance of sustainable consumption and 
production. 

•  In  line  with  its  Communication  on  an  Integrated  Maritime  Policy  for  the  EU,  the 
Commission will produce an assessment of EU interests in the Arctic, as the basis for a 
possible EU Arctic strategy. Environmental issues will be central to a future strategy. 

•  In line with its Communication on a European Ports Policy, the Commission will develop 
further  guidance  on  the  implementation  of  the  EU  nature  legislation  and  the  Water 
Framework  Directive  in  estuaries  and  coastal  zones,  with  particular  attention  to  port-
related activities and dredging. 

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Environment and health 

Highlights in 2007 

A  clean  and  healthy  environment  is  essential  for  human  well-being.  To  limit  environmental 
threats to human health, the Commission continued in 2007 to take action in various fields, 
including on chemicals, water and air quality. 

The mid-term review of the 2004-2010 Environment & Health Action Plan concluded that 
the  strengthened  cooperation  between  environment  policy,  health  policy  and 
the 
corresponding research fields is one of the major achievements over the last three years. In the 
coming  years,  the  Commission  will  maintain  the  focus  on  integration  of  environment  and 
health concerns into other policies. In response to the review, Environment ministers adopted 
a resolution urging further progress on health-related aspects of environmental issues. 

In  June,  the  new  European  chemicals  legislation  REACH  (Registration,  Evaluation  and 
Authorisation  and  restriction  of  Chemicals)  entered  into  force.  REACH  requires  the 
registration  of  some  30 000  chemical  substances  in  use  today,  in  order  to  identify  risk 
management measures to ensure their safe use. The new EU Chemicals Agency in Helsinki 
will  manage  the  databases  to  operate  the  system,  co-ordinate  the  evaluation  and  make 
information  on  chemicals  publicly  accessible.  To  complement  REACH,  the  Commission 
proposed legislation to align classification, labelling and packaging of chemical substances 
to UN standards. 

The European Community Implementation Plan for the Stockholm Convention on Persistent 
Organic Pollutants (POP) was adopted in March 2007. It takes stock of measures to control 
POPs, assesses their efficiency and sufficiency in meeting the obligations of the Convention 
and identifies needs for possible additional measures. 

Since 2005, consensus has emerged on the urgent need for knowledge of the safety aspects of 
nanomaterials,  which  were  addressed  by  the  2005-2009  Nanotechnologies  Action  Plan.  In 
2007, the first implementation report showed the commitment from all stakeholders to this 
approach. 

In  December  the  Commission  adopted  the  proposal  for  new  legislation  on  industrial 
emissions,  which  tightens  emission  limits  in  certain  industrial  sectors,  introduces  standards 
for environmental inspections and extends the scope to medium sized combustion plants. The 
proposal merges a revised Integrated Pollution Prevention and Control Directive and six other 
sectoral directives (the Large Combustion Plants, Waste Incineration and Solvents Emissions 
Directives and three directives on the production of Titanium Dioxide). Also in December, the 
Council  and  Parliament  reached  agreement  on  the  Directive  on  ambient  air  quality  and 
cleaner air for Europe. The new directive also merges different directives and gives Member 
States  more  flexibility  in  meeting  standards.  Member  States  will  be  required  to  reduce 
exposure  levels  to  small  particles  (PM2.5)  in  urban  areas  by  an  average  of  20%  by  2020 
compared to 2010. 

Earlier in the year, new vehicle emission standards (Euro 5 and 6) were formally adopted 
by Council and Parliament, setting tighter limits on emissions of particles from 2009 and of 
nitrogen  oxides  from  2014.  Euro  5  will  lead  to  the  introduction  of  particle  filters  for  diesel 
cars. The Commission also proposed new emission norms for heavy duty vehicles (Euro VI) 
which - once adopted by Council and Parliament - will lead to cleaner trucks and buses. The 
Commission adopted a Green Paper on urban mobility in September 2007 and launched a 

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public consultation on follow-up actions, which will be presented in an Action Plan on urban 
mobility  in  autumn  2008.  The  Commission  also  submitted  for  public  consultation  guidance 
documents  on  sustainable  urban  transport  plans.  On  public  procurement,  a  Directive  was 
proposed  that  introduces  environmental  aspects  into  procurement  of  vehicles  for  public 
transport services. 

On the water policy side, the Water Information System for Europe (WISE) was launched 
in March; it gathers a wide range of data from across the EU. The first implementation report 
of  the  Water  Framework  Directive  showed  that  Member  States  have  made  significant 
progress but must do more to achieve the objective of good water quality in all water bodies 
by  2015.  Two  related  implementation  reports,  on  the  Urban  Waste  Water  Treatment 
Directive  and  on  the  Nitrates  Directive,  identified  important  shortcomings  and  incomplete 
implementation: only 51% of all treatment plants in the European Union met the standards; an 
increase in nitrate pollution was observed in 36% of groundwater monitoring sites and 14% of 
surface water monitoring sites. The Commission started legal action against several Member 
States for not properly transposing or implementing key water directives. The 2007 bathing 
water  report  however  revealed  that  the  large  majority  of  bathing  sites  across  the  European 
Union met EU hygiene standards in 2006. 

New Findings 

•  Emissions of certain industrial pollutants, such as nitrogen to water bodies, and phosphorus 
and dioxins to the atmosphere, have fallen significantly but others continue to rise. From 
2009  onwards,  a  European  Pollutant  Release  and  Transfer  Register  will  replace  EPER  - 
European Pollutant Emission Register - and cover a wider range of substances and fields of 
activity.11 

•  Living  close  to  high-voltage  power  lines  for  a  long  period  may  increase  the  risk  of 
developing  certain  cancers.  In  particular,  people  who  lived  less  than  300  metres  from  a 
high-voltage power line during early childhood are up to five times more likely to develop 
cancers such as leukaemia and lymphoma.12 

•  The potential for outbreaks of certain diseases, in particular infectious diseases transmitted 
through insects, could increase with climate change. Substantial changes in the distribution 
of some of these disease-transmitting insects (vectors) have already occurred over the last 
decade, as demonstrated by the recent outbreak of Chikungunya (a disease previously only 
occurring  in  Africa  and  South  and  South  East  Asia)  in  Northern  Italy  or  the  spread  of 
bluetongue disease in cattle to Northern Europe.13 

Outlook for 2008 

•  The  Commission  will  present  a  proposal  to  revise  the  National  Emissions  Ceilings 

Directive. 

•  Many ozone depleting substances have been reduced or phased out, but some provisions 
of  the  regulation  on  ozone  depleting  substances  need  to  be  updated  or  repealed  for 
clarification and simplification. 

11 
12 
13 

EPER Review report : http://www.eper.cec.eu.int 
Lowenthal et all. (2007) Internal Medicine Journal 
Patz et al., (2005) Nature, Chretien and Linthicum (2007), The Lancet. 

EN 

12 

   EN 

 
                                                 
•  The revision of the Drinking Water Directive is planned for 2008. Currently, a total of 48 

microbiological and chemical parameters must be monitored and tested regularly. 

•  The  REACH  Regulation  enters  into  operation.  Registration  is  effective  as  of  June  2008 
and pre-registration of phase-in substances will run from June 2008 until December 2008. 

Natural resources and waste 

Highlights in 2007 

Current  patterns  of  consumption  and  production  are  leading  to  the  rapid  depletion  of  some 
natural resources while also causing serious environmental pressures through e.g. waste. The 
Commission  in  2007  developed  a  set  of  strategies  to  promote,  at  home  and  internationally, 
resource efficiency and eco-innovation. It also further refined its waste policies. 

In  response  to  the  request  in  the  renewed  EU  Sustainable  Development  Strategy,  the 
Commission  is  developing  an  Action  Plan  on  Sustainable  Consumption  &  Production 
(SCP). As a first step, various consultation rounds were held in 2007. The need to take action 
was  overwhelmingly  acknowledged,  with  consumption  deemed  the  most  important  area  of 
action. 

The Commission's second report on the implementation of the Environmental Technologies 
Action Plan (ETAP) assesses the progress and sets priorities for the future. 21 Member States 
have submitted national roadmaps which show measures with potential for replication in other 
Member States. The first out of three instruments envisaged under the Competitiveness and 
Innovation Framework Programme for support for eco-innovative small and medium-sized 
enterprises  (SMEs)  was  launched  in  2007.  The  High  Growth  and  Innovative  SME  Facility, 
managed by the European Investment Fund, will facilitate access to finance. € 228 million is 
earmarked  for  eco-innovation  in  2007-13.  In  December,  the  Commission  launched  a  public 
consultation  on  the  different  options  for  an  EU-wide  system  for  the  verification  of  the 
performance and potential impacts of new technologies on the environment. 

Together  with  the  United  Nations  Environment  Programme  (UNEP),  the  Commission 
installed  in  November  the  International  Panel  for  Sustainable  Resource  Management  to 
provide authorative scientific advice to policy makers globally. 

Most  disused  ships  are  currently  being  broken  up  in  Southern  Asia  under  dangerous 
conditions  and  with  serious  risks  of  pollution.  Because  of  rising  concerns  the  Commission 
launched a Green Paper on better ship dismantling. The paper presented a range of options, 
both  at  EU  and  international  level,  such  as  better  enforcement  in  ports  (of  waste  shipment 
legislation),  technical  assistance  and  exemplary  action  on  warships.  The  new  EU  Waste 
Shipment  legislation  applies  since  July  and  aims  to  ensure  that  waste  is  properly  handled 
from the time it is shipped to the time it reaches its destination. The regulation reinforces and 
clarifies  the  existing  legal  framework  for  waste  shipment  within  the  EU  and  with  non-EU 
countries. It also bans the export of hazardous waste or waste for disposal to certain countries. 

Following the first reading by the European Parliament, the Council unanimously adopted in 
December  a  common  position  on  the  Commission  proposal  for  the  Waste  Framework 
Directive that aims to clarify and streamline existing provisions to facilitate the creation of a 
European recycling society. 

EN 

13 

   EN 

 
Because  of  the  implementation  gaps  and  potentially  severe  environmental  impacts  of  the 
Waste  Shipment  Regulation  and  the  Landfill  Directive,  a  number  of  awareness  raising 
events  were  organised  in  2007.  The  Commission  also  started  legal  action  against  several 
Member  States  for  not  properly  implementing  or  transposing  key  waste  directives  like  the 
Landfill, WEEE (Waste Electrical and Electronic Equipment), ROHS (Restriction of the use 
of certain Hazardous Substances) and ELV (End-of-Life Vehicles) Directives. 

New Findings 

•  Recent  studies  have  identified  the  most  cost-effective  methods  of  environmental 
improvement of transport, food and buildings, the three products groups identified in 2006 
as most polluting in a life cycle approach. For passenger cars, the environmental benefits 
are particularly high for engine improvements, weight reduction and a shift to hybrid cars. 
For meat and dairy products, the biggest potentials lie within agricultural production (e.g. 
pig  diets)  but  also  in  better  household  management  to  avoid  food  losses.  For  buildings, 
thermal  insulation  measures  are  shown  to  be  a  major  source  of  environmental 
improvements.14 

•  The process of bringing landfills into line with the requirements of the Landfill Directive is 
not equally advanced in the 10 new Member States. Legal responsibility for dealing with 
illegal  dumping  and  dumpsites  is  mostly  at  the  municipal  level  and  it  is  rarely  enforced 
because of lack of administrative capacity. 15 

Outlook for 2008 

•  The Commission will: 

–  present  Action  Plans  on  Sustainable  Consumption  &  Production  and  on  Sustainable 
Industrial Policy. It will build further on and strengthen existing instruments, including a 
revision  of  the  Eco-label  and  EMAS  schemes,  initiatives  towards  greener  public 
procurement, eco-design, and work with retailers to impact on the supply chain. 

–  revise  the  WEEE  and  RoHS  directives  in  order  to  increase  their  efficiency  and 

effectiveness as well as facilitating implementation and enforcement. 

–  present a legislative proposal for an EU Environmental Technology Verification System. 

–  present an EU strategy on ship dismantling. 

–  strengthen  the  enforcement  of  the  new  waste  shipment  regulation,  in  particular 

regarding inspections and spot checks. 

–  organise  a  Regional  Conference  under  the  Marrakech  Process  on  Sustainable 

Consumption and Production in June. 

14 

15 

Source:  IPTS  -  IMPRO  studies  2007  (environmental  IMprovement  of  PROducts)  as  follow  up  of 
EIPRO studies 2006 (Environmental Impact of PROducts). 
Follow-up  study  on  the  implementation  of  Directive  1999/31/EC  on  the  landfill  of  waste  – 
commissioned by DG Environment, June 2007. 

EN 

14 

   EN 

 
                                                 
–  continue  efforts  and  where  necessary  initiate  legal  action  to  combat  uncontrolled 
dumping of waste and to bring uncontrolled landfills, in particular in the EU-12, up to the 
EU standards. 

•  The  European  Parliament  and  the  Council  will  start  second  reading  of  the  Waste 
Framework Directive in early 2008. The co-decision procedure is planned to be finished 
in 2008. 

Better regulation in environment policy 

Highlights in 2007 

Improving the outcomes of legislation - including the environmental outcomes - was a focus 
of the Commission's Better Regulation work in 2007. Scope exists for greater environmental 
results,  achieved  more  efficiently,  through  better  implementation  or  redesign  of  policy  and 
selection of the best new policy instruments. 

The Commission report on implementation of Community law highlighted the need to pay 
closer  attention  to  this  issue  and  presented  new  tools  and  procedures.  To  adapt  them  to  the 
specificities of environment policy, a Communication on the implementation and enforcement 
of  EU  environment  law  will  be  adopted  in  2008.  In  October,  the  Commission  proposed  an 
Environmental  Compliance  Assistance  Programme  in  order  to  help  SMEs  minimise  the 
environmental impact of their activities and to facilitate compliance. 

As  environmental  crimes  can  have  devastating  effects,  a  proposal  for  a  directive  was 
presented which  will ensure  that  serious  environmental  offences  are  subject  to  criminal 
sanctions across the Member States. Furthermore, EU legislation laying down liability rules 
for damage to the environment came into force. The new directive is specifically based on the 
"polluter  pays  principle"  and  aims  to  ensure  that  environmental  damage  is  prevented  or 
remedied,  and  that  those  who  cause  it  are  held  responsible.  The  Green  Paper  on  market-
based instruments (MBI) launched a public consultation in March, and seeks to stimulate a 
discussion on ways to further promote the use of MBI both at Community and national level. 
The  Beyond  GDP  conference  in  November  -  organised  by  the  Commission,  European 
Parliament, Club of Rome, WWF and OECD - launched the process to complement GDP with 
incorporating  social  and 
more  comprehensive  measures  of  wealth  and  well-being, 
environmental issues. The Commission will present a road map for action in 2008. 

Streamlining  legislation  brings  environmental  and  economic  benefits.  In  the  context  of  the 
simplification  rolling  programme  of  the  Commission,  the  above-mentioned  Commission 
proposal  for  a  new  Industrial  Emissions  Directive  offers  a  clear,  coherent  and  simplified 
legal  framework  and  should  lead  to  reduced  administrative  costs.  Another  Commission 
Decision  adopted  in  2007  will  streamline  monitoring  and  reporting  and  resolve  some 
interpretation problems in the Emission Trading Scheme. It includes reduced requirements 
for  low-emitting  installations.  In  addition,  the  Commission  started  a  project  to  streamline 
inter-linked  monitoring  and  reporting  requirements  of  EU  legislation  on  air  pollution  and 
climate change. 

To  further  strengthen  Better  Regulation  principles  in  environment  policy  making,  ensuring 
that  all  new  policy  initiatives  are  assessed  according  to  their  economic,  social  and 
environmental  impact,  the  Commission  strengthened  its  impact  assessment  system.  In 

EN 

15 

   EN 

 
2007  around  100  impact  assessments  accompanying  significant  policy  proposals  were 
scrutinised by the Impact Assessment Board; 15 were on the environment. 

Outlook for 2008 

The Commission will present: 

–  a  review  of  the  2001  Recommendation  on  minimum  criteria  for  environmental 
inspections  which  will  widen  its  scope,  develop  planning  criteria  for  environmental 
inspections and establish a reporting system to provide comparable information; 

–  a  Communication  on  the  Development  of  an  Integrated  Strategy  on  Disaster 

Prevention; 

–  an implementation plan for a European Shared Environment Information System and a 
legal proposal to modernise the information requirements of environmental legislation; 

–  the results of an exercise identifying any unnecessary administrative burdens across the 

EU from five pieces of environmental legislation chosen as most significant; 

for  simplifying 

In  the  context  of  the  Better  Regulation’s  agenda,  the  Commission’s  efforts  will  also  be 
intensified 
forthcoming 
simplification initiatives in environmental legislation include the revision of the legislation on 
the placing of biocidal products on the market as well as the revision of the WEEE and RoHS 
directive. 

regulatory  environment.  Examples  of 

the 

EN 

16 

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PART 2 - STATISTICAL DATA 

This  part  highlights  selected  key  indicators  on  the  environment  and  environment  policy, 
including the four priority areas of the 6th EAP. The indicators have mainly been chosen from 
the  EU  Sustainable  Development  Indicators  to  monitor  the  EU  Sustainable  Development 
Strategy,16  the  EU  Structural  Indicators  used  for  reporting  for  the  Lisbon  process,17and  the 
EEA’s  Core  Set  of  Indicators,18  which  provide  a  comprehensive  basis  for  assessment  of 
progress against environment policy priorities. 

Wherever  possible  the  information  provided  describes  the  full  circumstance  of  the 
environmental issue – covering all links in the causal chain: 

–  showing the state of the environment, illustrating what to preserve or regain, 

–  highlighting  aspects  of  the  pressures  exerted  by  society  and  the  economy  on  the  state  of 

the environment, 

–  informing about underlying social and economic driving forces behind the pressures, 

–  reporting what action has been taken as a response to mitigate these pressures or driving 

forces, 

–  other indicators show the current or projected performance of Member States or the eco-

efficiency of their economies. 

At  the  end  of  this  section,  a  number  of  indices  are  presented  that  are  discussed  as 
complementary ways to measure progress, wealth, and the well-being of nations. Such indices 
formed part of the debate at the international conference "Beyond GDP" that is mentioned in 
the Environment Policy Review Communication. 

16 

17 
18 

http://ec.europa.eu/eurostat/sustainabledevelopment 
http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1073,46587259&_dad=portal&_schema=PORTA
L&p_product_code=KS-77-07-115 
http://ec.europa.eu/eurostat/structuralindicators 
http://themes.eea.europa.eu/IMS/CSI 

EN 

17 

   EN 

 
                                                 
Climate change and energy 

State indicator: Global air temperature change19(°C, as a temperature change compared to 
the mean 1850-1899) 

1.0

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0.0

-0.1

-0.2

-0.3

-0.4

-0.5

-0.6

-0.7

-0.8

-0.9

-1.0

)

C
 o
(
9
9
8
1
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0
5
8
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l

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t
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p
m
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1
8
5
0

1
8
5
5

1
8
6
0

1
8
6
5

1
8
7
0

1
8
7
5

1
8
8
0

1
8
8
5

1
8
9
0

1
8
9
5

1
9
0
0

1
9
0
5

1
9
1
0

1
9
1
5

1
9
2
0

1
9
2
5

1
9
3
0

1
9
3
5

1
9
4
0

1
9
4
5

1
9
5
0

1
9
5
5

1
9
6
0

1
9
6
5

1
9
7
0

1
9
7
5

1
9
8
0

1
9
8
5

1
9
9
0

1
9
9
5

2
0
0
0

2
0
0
5

Data  source:  European  Environment  Agency,  based  on  HadCRU3  dataset  from  Climate  Research  Unit, 
University of East Anglia. 

"Warming of the climate system is unequivocal, as is evident from observations of increases 
in global average air and ocean temperatures, widespread melting of snow and ice, and rising 
global average sea level".20 

19 

20 

Global annual mean temperature deviations, 1850-2007. The source of the original data is the Climatic 
Research Unit of the University of East Anglia. The global mean annual temperature deviations are in 
the source in relation to the base period 1961-1990. The annual deviations shown in the chart have been 
adjusted  to  be relative  to  the period  1850-1899  to better monitor  the  EU objective not  to  exceed 2°C 
above  pre-industrial  values.  Over  Europe  average  annual  temperatures  during  the  real  pre-industrial 
period (1750-1799) were very similar to those during 1850-99 
Intergovernmental Panel on Climate Change's Fourth Assessment (Synthesis) 

EN 

18 

   EN 

 
 
 
 
 
 
 
 
 
 
                                                 
2007 is the eighth warmest year on record since 1850, exceeded only by 1998, 2005, 2003, 
2002,  2004,  2006  and  200121.  Moreover,  for  the  northern  hemisphere  alone,  2007  is  the 
second warmest recorded, while for the southern hemisphere it ranks ninth warmest.22 

The EU has set an objective not to exceed 2°C above pre-industrial levels. 

The  graph,  which  indicates  the  combined  global  land  and  marine  surface  temperatures 
recorded  from  1850  to  2007,  shows  an  accelerating  increase  in  temperature  during  the  20th 
century. The global (land and ocean) temperature increase from 1850-1899 to 2007 is 0.74°C 
for  the  world,  and  Europe23has  warmed  more  than  the  global  average.  The  increase  for  the 
European land area has been 1.22°C, while for the European land and ocean area it has been 
0.98°C. 

Twelve  of  the  thirteen  warmest  years  in  the  series  have  occurred  in  the  last  thirteen  years 
(1995-2007),  in  particular  the  period  2001-2007  is  0.21  °C  warmer  than  the  1991-2000 
decade  (the  1990s  being  the  warmest  complete  decade  in  the  series).  Scientific  analysis, 
which confirms that the second half of the 20th century was the warmest phase during at least 
the last 1300 years in the Northern hemisphere, attributes the warming of the climate system 
to the accumulation of carbon dioxide and other greenhouse gases in the atmosphere. 

The  global  average  temperature  is  expected  to  further  increase  between  1.1°C  and  6.4°C 
during the 21st century, depending on the scenario, with a best estimate range from 1.8°C to 
4°C  for  the  world  and  from  1°C  to  5.5°C  for  Europe.  The  forecasts  indicate  the  greatest 
warming will happen over Eastern Europe and Scandinavia in winter, and over south-western 
and  Mediterranean  Europe  in  summer.  Moreover,  it  is  very  likely  that  hot  extremes,  heat 
waves, and heavy precipitation events will continue to become more frequent and cold events 
less frequent overall in Europe. 

21 
22 
23 

Years are put in descending order of temperature 
Met Office Hadley Centre and UEA Climatic Research Unit 
Europe is defined as the area between 35 o to 70o Northern latitude, -25 o to 30 o Eastern longitude, plus 
Turkey (=35 o to 40 o North, 30 o to 45 o East) 

EN 

19 

   EN 

 
                                                 
Pressure  indicator:  Total  Kyoto  greenhouse  gas  emissions  (CO2  equivalents)  as  a 
percentage change of Kyoto base year emissions, with Kyoto Protocol / Burden-sharing 
agreement targets 

2003

2004

2005

Target 2008-2012

GLOBAL

EU15

NMS

)
r
a
e
y

e
s
a
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(

e
g
n
a
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g
a
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n
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p

70

50

30

10

-10

-30

-50

-70

7
2
U
E

5
1
U
E

S
U

P
J

U
L

E
D

K
D

T
A

K
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T
E I
B

L
N

I

R F
F

E
S

E

I

S
E

L
E

T
P

G
B

Z
C

E
E

T
L

V
L

I

O S
R

K
S

U
H

L
P

Y
C

T
M

Data source: European Environment Agency, European Topic Centre on Air and Climate Change 

The  EU-15  Kyoto  target  is  an  8%  reduction  in  greenhouse  gas  emissions  compared  to  base 
year  levels  (mostly  1990)  by  2008-2012;  all  EU-15  Member  States  have  individual  targets 
under  the  burden-sharing  agreement,  while  most  new  Member  States  (besides  Cyprus  and 
Malta)  have  individual  targets  under  the  Kyoto  protocol.  The  graph  shows  greenhouse  gas 
emissions relative to the base years and includes the MS target to show the distance to target. 

In 2005 emission levels for both EU-15 and EU-27 were lower compared to 2004, when they 
had increased compared to the previous year. Moreover in 2005, EU-15 emissions decreased 
by  2%  against  the  base  year,  showing  that  major  efforts  are  still  needed  to  meet  the  Kyoto 
target of 8% reduction compared to base year levels. During the reported period 2003-2005 
greenhouse  gas  emissions  decreased  for  the  EU-15  and  EU-27,  in  particular  by  more  than 
13% in Denmark and Finland, showing a large improvement on previous years. However, in 
the same period emissions increased in many Member States, in particular by more than 10% 
in  Luxembourg,  Lithuania  and  Malta.  Provisional  data  show  that  greenhouse  gas  emissions 
continued their downward trend in 2006 in EU-27. 

Currently,  three  Member  States  out  of  the  EU-15  (Germany,  Sweden  and  the  United 
Kingdom)  are  projected  to  be  on  track  to  achieve  their  targets  by  2010  using  only  existing 
domestic  policies  and  measures.24In  addition,  8  Member  States  are  projected  to  reach  their 
targets  once  the  effect  of  the  Kyoto  mechanisms,  carbon  sinks  and  additional  domestic 
policies and measures, that are already being discussed, are accounted for. According to this 
analysis, Denmark, Italy, and Spain appear not to be able to achieve their Kyoto target.25All 

24 

25 

Communication  from  the  Commission  on  Progress  towards  achieving  the  Kyoto  objectives, 
COM(2007) 757 final 
However, it should be noted that this analysis does not yet fully include the potential effect of the recent 
Commission decisions on the National Allocation Plans on 2008-2012 emissions. Furthermore, it does 
not  include  the  effect  of  supplementary  actions  that  most  of  these  Member  States  have  recently 
identified  or  are  in  the  process  of  identifying  in  order  to  reach  their  Kyoto  target.  Such  measures, 
however, must be introduced swiftly to be effective. 

EN 

20 

   EN 

 
 
 
 
 
                                                 
new  Member  States,  except  Slovenia,  are  projected  to  meet  or  even  over-comply  with  their 
Kyoto  targets  using  only  existing  domestic  policies  and  measures.  Slovenia  projects  that  it 
will  meet  its  Kyoto  target  with  planned  additional  policies  and  measures,  the  use  of  Kyoto 
mechanisms and carbon sinks. 

EN 

21 

   EN 

 
Response indicator: Electricity produced from renewable energy sources (percentage of 
all electricity produced) 

2004

2005

2006

Target 2010

e
g
a
t
n
e
c
r
e
p

100

90

80

70

60

50

40

30

20

10

0

7
2
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E

5
1
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T
A

E
B

G
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Y
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Z
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E
D

K
D

E
E

L
E

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S F
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R
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E S
S

K
S

K
U

Data source: Eurostat. 2006 data are provisional 

The EU has an agreed target to produce 21% of all electricity from renewable energy sources 
by  2010.  In  2005,  14%  of  electricity  in  the  EU-27  was  produced  from  renewable  energy 
sources. In 2006, Austria reached a share of more than 56%, followed by Sweden with 48%, 
while  12  Member  States  still  produce  less  then  10%  of  their  electricity  from  renewable 
sources. 

In 2005, there was no significant increase to the previous year for EU-27. Provisional data for 
2006 indicate that Greece and Ireland showed the most remarkable growth, compared to 2005, 
while for Latvia, Sweden and Romania a significant drop was reported. 

Most of the renewable electricity in 2005 is generated from hydropower (almost 66%), while 
the rest comes mainly from biomass (about 17%) and wind (about 15%). 

On the basis of 2005 data and national policy initiatives, Denmark, Germany and Hungary are 
on  track  to  meet  the  2010  target,  while  six  other  countries  (Finland,  Ireland,  Luxembourg, 
Spain,  Sweden  and  the  Netherlands)  will  probably  reach  their  2010  targets.  However,  for 
Belgium, Greece and Portugal strong additional efforts are needed in order to reach their 2010 
targets, while eight other countries are far from their commitments: Austria, Cyprus, Estonia, 
France, Italy, Latvia, Malta and Slovak Republic.26 

26 

Green  Paper  follow-up  action.  Report  on  progress  in  renewable  electricity,  COM(2006)  849  final  of 
10.1.2007 

EN 

22 

   EN 

 
 
                                                 
Response  indicator:  Combined  heat  and  power  generation  (percentage  of  gross 
electricity generation) 

2002

2004

2005

e
g
a
t
n
e
c
r
e
p

100

90

80

70

60

50

40

30

20

10

0

7
2
U
E

5
1
U
E

T
A

E
B

G
B

Y
C

Z
C

E
D

K
D

E
E

L
E

I

S F
E

R
F

U
H

T
M

E

I

T

I

T
L

U
L

V
L

L
N

L
P

T
P

O
R

I

E S
S

K
S

K
U

Data source: Eurostat. EU27 data in 2002 refers to EU25. Data for Cyprus is 0.3%, while for Malta is 0. 

Combined  heat  and  power  is  on  the  rise  in  the  EU.  The  share  of  electricity  stemming  from 
power plants that produce electricity and usable heat at the same time increased from 10.5% 
in 2004 to 11.1% in 2005, i.e. an increase of nearly 6%. The highest increases were reported 
for  Germany  and  Lithuania  (35%  and  33%  respectively).  Furthermore,  Finland,  Italy  and 
Slovenia showed a growth rate of more than 10%. On the other hand, in Ireland, Luxembourg 
and Sweden the share decreased at a rate of more than 5%. 

The level of usage of Combined Heat and Power (CHP) differs noticeably amongst Member 
States. While Denmark produces more than 50% of its electricity this way, Cyprus, Greece, 
France, Malta and Ireland use this technology for only 5% or less of its production. 

Combined heat and power improves the efficiency of the energy production by recovering the 
excess heat that is lost in normal electricity production. When electricity is produced without 
heat recovery, some two thirds of the primary energy contained in the fuel (e.g. coal, natural 
gas, biomass and nuclear fuel) is lost. The waste heat can be considered as pollution, e.g. as it 
increases the temperature of rivers, which is a threat to biodiversity in warm periods. 

EN 

23 

   EN 

 
 
Efficiency indicator: Energy intensity (kilogram oil equivalent used per €1000 GDP)  

P
D
G
o
r
u
E
0
0
0
1
r
e
p
t
n
e
a
v
u
q
e

l

i

l
i

o
g
k

2003

2004

2005

2000

1800

1600

1400

1200

1000

800

600

400

200

0

7
2
U
E

5
1
U
E

S
U

P
J

T
A

E
B

G
B

Y
C

Z
C

E
D

K
D

E
E

L
E

I

S F
E

R
F

U
H

T
E I

I

T
L

U
L

V
L

T
M

L
N

L
P

T
P

O
R

I

E S
S

K
S

K
U

Data source: Eurostat 

Energy intensity is a measure of the energy efficiency of the economy as a whole. The figures 
show  the  amount  of  energy  used  to  produce  €1000  of  GDP.  Decreasing  energy  intensity  is 
one  of  the  indispensable  responses  to  climate  change,  especially  as  many  options  are 
profitable in business terms. 

Most countries with very high energy intensity showed a continuous improvement during the 
three-year  report  period  (Bulgaria,  Czech  Republic,  Estonia,  Lithuania,  Latvia,  Poland, 
Romania  and  Slovakia).  After  a  decrease  from  2003  to  2004,  only  Hungary  showed  an 
increase  from  2004  to  2005.  Also  the  whole  EU-27  showed  an  improvement  in  terms  of 
energy intensity from 2004 to 2005. During the period 2003-2005 energy intensity decreased 
by  2.6%  per  year  in  the  EU-27.  Among  the  EU-15,  Finland  and  Ireland  showed  the  most 
significant improvement, while Portugal and Italy slightly increased their energy intensity, so 
losing ground on the way to higher energy efficiency. 

Worldwide and within the EU, energy intensity varies enormously. The EU as a whole uses 
roughly  30%  less  energy  per  euro  of  GDP  than  the  US,  but  still  75%  more  than  Japan. 
Denmark is the country that is performing the best, even overtaking Japan in 2005. Austria, 
Ireland and Germany have an energy intensity about 30% lower than the EU average. 

In  2007,  17  Member  States  fixed  energy  saving  targets:2712  Members  States  (Austria, 
Bulgaria, Czech Republic, Denmark, Estonia, Finland, Germany, Ireland, Malta, Netherlands, 
Poland and United Kingdom) adopted a saving target in line with the minimum requirement 
of the Directive: "an overall national  indicative savings target of 9%,  to be  achieved by the 
end of 2016" (the period 2008-2016), while 5 Member States have adopted a target that goes 

27 

Requirements of the Directive 2006/32/EC on energy end-use efficiency and energy services 

EN 

24 

   EN 

 
 
 
 
 
 
 
 
                                                 
beyond the minimum indicative target (Cyprus: 10%; Lithuania: 11%; Italy: 9.6%; Romania: 
13,5% and Spain: 11%).28 

28 

Communication  on  a  First  Assessment  of  National  Energy  Efficiency  Action  Plans  as  required  by 
Directive 2006/32/EC on Energy End-use Efficiency and Energy Services, Moving forward together on 
energy efficiency, COM(2008) 11 final 

EN 

25 

   EN 

 
                                                 
Driving force indicator: Final energy consumption by transport 

l

s
t
n
e
a
v
u
q
e

i

l
i

o

f
o

s
n
o
t

s
n
o

i
l
l
i

m

400

350

300

250

200

150

100

50

0

rail transport

inland
navigation

road transport

air transport

1998

1999

2000

2001

2002

2003

2004

2005

Data source: Eurostat 

In  2005,  greenhouse  gas  emissions  from  transport  accounted  for  21%  of  total  EU-15 
emissions, as energy for transport comes mainly from fossil fuels. Final energy consumption 
for transport in the EU-25 reached a new peak in 2005, amounting to 362 million tonnes oil 
equivalents. It increased by 10% between 1998 and 2005, and there is no sign of reduction as 
transport growth offsets efficiency gains due to technological vehicle development. 

Road transport is the biggest energy consumer, followed by aviation, which increased at the 
end of the report period to reach 14% of all energy used for transport. 

EN 

26 

   EN 

 
 
 
 
 
 
Driving force indicator: Spent fuel from nuclear power plants  

)

M
H

t
(

U
E
n

i

l

s
t
n
a
p
r
e
w
o
p
r
a
e
c
u
n
m
o
r
f

l

l

s
e
u
f

t
n
e
p
s

2004

2005

2006

3500

3000

2500

2000

1500

1000

500

0

U
E

E
B

G
B

Z
C

E
D

I

S F
E

R
F

U
H

T
L

L
N

O
R

I

E S
S

K
S

K
U

Data source: OECD Nuclear Energy Data, Nuclear Energy Agency. Data for BG, LT, RO and SI are not available; 2006 data 
for BE, FI, FR and UK are provisional.  

Nuclear energy represents  roughly thirty per cent of the EU's present electricity production. 
Nuclear energy is one of the biggest low-carbon energy sources in EU and its contribution to 
global  warming  and  air  pollution  is  less  than  those  of  the  fossil  fuels.  However,  the  use  of 
nuclear fuels entails environmental impacts and risks related to radioactive substances (mostly 
heavy metals) along the fuel production chain. 

The amount of nuclear waste produced annually remains fairly stable over the years reported, 
although there are exceptions. While in Belgium and Sweden the amount increased over the 
years 2004 to 2006, it decreased in Germany, Hungary and the United Kingdom.29 

29 

The vast majority of highly radioactive waste consists of spent fuel and spent fuel reprocessing wastes.  

EN 

27 

   EN 

 
 
 
 
 
 
 
 
 
 
                                                 
Nature and biodiversity 

State indicator: Common birds 

120

100

80

60

40

20

)
0
0
1
=
0
8
9
1
(

x
e
d
n

i

l

n
o
i
t
a
u
p
o
P

Common farmland birds (33)

All common birds (123)

0
1980

1985

1990

1995

2000

2005

Data source: EBCC/RSPB/BirdLife/Statistics Netherlands 

Bird populations are well known, widespread, mobile, they tend to be at (or near) the top of 
the  food  chain,  have  large  ranges  and  are  responsive  to  environmental  change.  For  these 
reasons they are considered good proxies for biodiversity and the integrity of ecosystems. 

The EU aims to halt the loss of biological diversity by 2010. During the last 25 years reported, 
the common birds index30 
shows a negative trend, indicating a reduction by 15% overall in 
2005 compared to 1980. 

Common  farmland  birds  showed  the  most  severe  decline  of  all  the  broad  categories 
monitored:  on  average,  a  decline  by  44%  over  the  last  25  years,  mainly  due  to  current 
agricultural practices and in particular intensive agriculture. 

30 

The  Common  birds  index  is  based  on  data  from  the  European  Bird  Census  Council  (EBCC, 
http://www.ebcc.info),  the  Pan-European  Common  Bird  Monitoring  scheme  (PECBM),  BirdLife 
International and Statistics Netherlands. The methodology has recently improved and the index covers 
123  species of  common  birds,  among which 33  species  of  common  farmland  birds  and  27  species of 
common forest birds, from 18 countries (Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, 
France,  Germany,  Hungary,  Ireland,  Italy,  Latvia,  the  Netherlands,  Poland,  Portugal,  Spain,  Sweden, 
United Kingdom). The list of species is available at: http://www.ebcc.info/index.php?ID=340. 

EN 

28 

   EN 

 
 
 
 
                                                 
Pressure indicator: Landscape fragmentation in 200631 

Source: European Environment Agency, based on Teleatlas 2006 - (areas of high fragmentation are bright; areas 
of high connectivity are dark). Data are not available for all Member States. 

The map shows the fragmentation of ecosystems and habitats by transport infrastructure and 
settlements  for  the  year  2006.  Regions  with  a  low  level  of  fragmentation  are  marked  by  a 
darker  colour,  while  a  high  level  of  fragmentation  is  indicated  by  light  colour.  The  highest 
level of fragmentation is reported for large agglomerations. Biodiversity conservation depends 
inter alia on the integrity of habitats and ecosystems, and is therefore negatively affected by 
the fragmentation of territory, mainly due to the expansion of transport infrastructure. 

31 

The  map  shows  the  Effective  Meshsize  (MEFF),  a  geo-statistical  measure,  which  converts  the 
probability  that  randomly  selected  points  in  an  area  are  connected  into  the  size  of  an  unfragmented 
patch,  measured  in  km2.  The  smaller  the  meshsize,  the  higher  the  landscape  fragmentation  and  vice 
versa. MEFF actually measures landscape "connectivity" that is the inverse of fragmentation. 

EN 

29 

   EN 

 
 
 
 
                                                 
Driving force indicator: Freight transport (tkm) 

2004

2005

2006

m
k
t
n
o

i
l
l
i

m

500

450

400

350

300

250

200

150

100

50

0

T
A

E
B

G
B

Y
C

Z
C

E
D

K
D

E
E

L
E

I

S F
E

R
F

U
H

E

I

T

I

T
L

U
L

V
L

T
M

L
N

L
P

T
P

O
R

I

E S
S

K
S

K
U

Data  source:  Eurostat.  Data  include  transport  by  road,  rail  and  inland  waterways.  Data  for  Malta  were  not 
available; 2006 figures are preliminary. 

Freight transport in the EU has continuously increased in the recent years. From 2004 to 2006 
it increased in EU-27 by 7.3%, mainly due to road transport (plus 8%) and rail (plus 6.2%), 
while  the  amount  of  goods  transported  by  inland  waterways  increased  by  only  1.4%.  This 
increasing  amount  of  transported  goods  is  one  important  driving  force  behind  the  need  to 
extend transport infrastructure, which is in most cases detrimental for nature and biodiversity. 

Germany, Italy and Spain are the countries with the highest levels of freight transport and at 
the same time increased it constantly during the period reported. 

From  2004  to  2006  the  most  significant  increase  in  freight  transport  was  recorded  in  the 
territory  of  Hungary  and  Romania  (more  than  30%),  followed  by  Lithuania  and  Slovenia: 
about 27-29 %. On the contrary, Denmark and Luxembourg showed a decrease of more than 
8%. 

EN 

30 

   EN 

 
 
 
Response indicator: Area occupied by organic farming (percentage of organic farming in 
Utilised Agricultural Area)32 

2004

2005

2006

A
A
U
n

i

F
O

f

o
e
r
a
h
s
e
g
a
n
e
c
r
e
p

t

12%

10%

8%

6%

4%

2%

0%

7
2
U
E

5
1
U
E

T
A

E
B

G
B

Y
C

Z
C

E
D

K
D

E
E

L
E

I

S F
E

R
F

U
H

E

I

T

I

T
L

U
L

V
L

T
M

L
N

L
P

T
P

O
R

I

E S
S

K
S

K
U

Data  source:  Eurostat  and  Institute  of  Rural  Sciences,  University  of  Wales,  Aberystwyth.  In  2004  Malta  had  1  ha  of  area 
occupied by organic farming. Eurostat estimates for Lithuania (2004), Latvia (2006) and Slovakia (2004, 2005, 2006). 

Organic  farming  provides  important  environmental  benefits  compared  to  conventional 
agriculture.  These  benefits  include  a  reduction  of  nutrient  and  pesticide  leaching,  lower 
energy  inputs  and  conservation  of  soil  resources  and  biodiversity.  The  area  under  organic 
farming is therefore inter alia an indicator of farmland biodiversity protection. 

The  area  under  organic  farming  in  2006  covered  about  6.8  million  ha  in  the  EU-27,  i.e. 
around 3.8% of total utilised agricultural area (UAA). The share of organic farming in utilised 
agricultural area varies considerably between and within Member States. In 2006 Austria had 
the highest share of organic area - around 11% of total UAA, followed by Latvia with 10.3%. 
Italy, with 9%, accounts for nearly 17% of the total organic area in the EU-27. 

In  the  period  2004-2006,  the  share  of  organic  farming  in  EU-25  increased  by  only  0.5 
percentage  points  (pp)  (from  3.3%  to  3.8%),  which  is  lower  than  the  increases  in  previous 
years.  Some  countries  showed  a  large  increase,  e.g.  Latvia  increased  the  share  of  organic 
farming by 8.5 pp (from 1.8% to 10.3%) and Slovakia by 3.9 pp, while others show losses, 
e.g. Finland with -0.8 pp, followed by Denmark and United Kingdom (-0.5 pp). 

Organic  farming  represents  only  a  minority  of  EU  agriculture,  which  is  mainly  based  on 
conventional practices, so there is room for extensive future development. 

32 

Farming 
Regulation (EEC) No 2092/91. 

is  only  considered 

to  be  organic  at  EU-level 

if 

it  complies  with  Council 

EN 

31 

   EN 

 
 
 
 
 
 
 
                                                 
Response indicator: Area under agri-environmental commitment (percentage of Utilised 
Agricultural Area) 

2001

2005

A
A
U
n

i

E
A

f
o

e
r
a
h
s

e
g
a
t
n
e
c
r
e
P

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

T
A

E
B

G
B

Y
C

Z
C

E
D

K
D

E
E

L
E

I

S F
E

R
F

U
H

T
E I

I

T
L

U
L

V
L

T
M

L
N

L
P

T
P

O
R

I

E S
S

K
S

K
U

Data source: European Commission, DG for Agriculture and Rural Development. Data not available for AT, BG, 
EE, FI, HU, LU, NL, RO, SE. 2005 figure for FR refers to 2004. 

Agri-environment  support  is  currently  the  only  compulsory  scheme  for  the  integration  of 
environmental goals into the Common Agricultural Policy: they are a key tool for achieving 
environmental  objectives,  such  as  those  set  out  in  the  EU  biodiversity  action  plan  for 
agriculture,  in  the  nitrates  directive  and  under  the  Kyoto  Protocol.  Member  States  must 
include  agri-environmental  measures  in  their  rural  development  programme,  anyway 
participation  by  farmers  or  other  land  managers  to  these  is  voluntary:  support  is  granted  to 
farmers  if  they  commit  themselves  for  a  period  of  at  least  five  years  to  use  agricultural 
production methods designed to protect the environment or maintain landscape features which 
go beyond conventional good farming practise. 

In 2005 the share of utilised agricultural area for that agri-environmental support is paid was 
very different across Member States. France, Germany, Slovenia and Ireland have more than 
40% of agricultural area under agri-environmental commitment, while Lithuania, Poland and 
Cyprus have less than 5%. One reason might be that the scheme started for the new Member 
States only recently. 

There is a concern that the distribution of area under agri-environmental commitment across 
EU-15 Member States does not target sufficiently area of potential environmental concerns. 

EN 

32 

   EN 

 
 
 
 
 
 
 
Response indicator: Sufficiency of protected areas33 

2005

2006

2007

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

K
D

L
N

T

I

I

E F
B

E
D

L
E

E
S

U
L

S
E

K
U

T
M

R
F

V
L

T
A

T
P

E

I

U
H

I

E S
E

K
S

T
L

Z
C

Y
C

L
P

Data source: European Environment Agency, European Topic Centre on Biological Diversity. Some Member States did 
not provide a formal proposal for designated areas in 2005. 2007 data refers to the situation on December 2007. 

This  indicator  shows  the  state  and  quality  of  implementation  of  the  Habitats  Directive,34  in 
particular the fulfilment of the minimum standards required by the Directive. 

Denmark and the Netherlands were the first to fully comply with the minimum standards of 
the  Habitats  Directive.  In  total  13  Member  States  have  complied  or  are  close  to  complying 
with these standards by the end of 2007. Among the new Member States, Malta and Latvia 
have  reached  about  90%  of  the  minimum  standards.  However,  Poland  and  Cyprus  are  far 
from  complying  with  the  Habitats  Directive,  having  achieved  less  than  25%  of  minimum 
standards. 

Main changes between 2005 and 2006 were due to proposals made by the 10 new Member 
States  and  to  new  proposals  made  by  the  EU-15.  As  in  2007  there  were  no  important  new 
proposals,  the  indicator  was  stable  compared  to  2006.  In  2008  new  proposals  are  expected 
from the 12 new Member States with first proposals from Romania and Bulgaria. 

33 

34 

State of progress by Member State in reaching sufficiency for the Habitats Directive Annex I habitats 
and Annex II species (percentage) 
The aim of the Habitats Directive (Directive 92/43/EEC) is the conservation of natural habitats and of 
wild  fauna  and  flora,  through  the  creation  of  a  Europe-wide  network  of  special  conservation  areas, 
Natura 2000. 

EN 

33 

   EN 

 
 
                                                 
Environment and health 

State indicator: Urban population exposure to air pollution by particles (µg PM10/m³)35 

³

/

m
g
µ

2003

2004

2005

60

50

40

30

20

10

0

T
A

E
B

Z
C

E
D

E
E

L
E

I

S F
E

R
F

T
E I

I

L
N

L
P

T
P

I

E S
S

K
S

K
U

5
2
U
E

Data  source:  European  Commission,  DG  Environment,  Mandatory  reporting  by  Member  States  under  Exchange  of 
Information Decision 1997/101/EC and Directive 2002/3/EC. 

Exposure to particulate matter causes serious health risks. To portray these risks the indicator 
shows the annual mean urban background concentration of PM10 weighted by the population 
exposed  to  this  kind  of  pollution.  There  are  significant  differences  between  EU  Member 
States.  Ireland  and  Finland  show  figures  less  the  15  µg/m³,  while  10  Member  States  record 
pollution levels above 30 µg/m³: Belgium, Czech Republic, Greece, Spain, Italy, Netherlands, 
Poland, Portugal, Slovenia and Slovakia. 

2005 data for EU-25 showed a light improvement compared with 2003. However, comparison 
with 2004 indicates a worsening situation in EU and most Member States. In particular there 
is a clear deterioration of air quality in Greece, Italy and Slovakia, while Belgium, Germany, 
the Netherlands, Slovenia and Spain show sign of improvement. 

Traffic is considered to bear most responsibility for worsening air quality in 2005: over half of 
the  PM10  exceedances  (and  at  least  of  a  fifth  of  ozone  exceedances)  are  caused  by  local 
traffic.36 

35 

36 

Population weighted annual mean concentration of particulate  matter (PM10: particulate  matter with a 
diameter  smaller  than  10  µm)  at  urban  background  locations  in  agglomerations.  To  ensure 
comparability  only  data  from  measurement  stations  operating  in  all  three  years  is  used.  This 
requirement limits the coverage to 18 Member States. 
2005 Annual Member States reporting on ambient air quality assessment, EEA January 2008 

EN 

34 

   EN 

 
 
 
                                                 
State indicator: Urban population exposure to air pollution by ozone37 

2003

2004

2005

15000

12000

9000

6000

3000

y
a
d
*
³

m
/
g
µ
:
5
3
O
M
O
S

0

5
2
U
E

T
A

E
B

Z
C

E
D

K
D

E
E

L
E

I

S F
E

T
R I
F

L
N

L
P

T
P

I

E S
S

K
S

K
U

Source:  European  Commission,  DG  Environment,  Mandatory  reporting  by  Member  States  under  Exchange  of  Information 
Decision 1997/101/EC and Directive 2002/3/EC 

High  concentrations  of  ground-level  ozone  cause  important  risks  to  human  health:  not  only 
peak  concentrations  during  the  summer,  but  also  the  continuous  exposure  to  lower  level 
concentration  has  a  significant  detrimental  impact  on  our  health.  The  ozone  indicator 
measures  combined  risks,  including  from  low  concentrations,  with  any  figure  above  zero 
indicating a risk to health. 

Ozone concentrations differ a lot among Member States,  as they depend on geographic and 
climatic  conditions,  local  air  emissions  and  transboundary  contributions.  Greece,  Italy  and 
Slovakia had the highest values in 2005. 

While the heat wave in 2003 boosted ozone concentrations in most Member States, they fell 
in 2004. Recent data, however, show again a worsening trend in EU. In particular, in 2005, 
they have increased in Slovakia, Poland and Italy by more than 20% compared to 2004 levels. 

37 

Population  weighted  annual  mean  concentration  of  ozone  (SOMO35:  Sum  of  Means  Over  35  ppb 
ozone)  at  urban  background  locations  in  agglomerations.  To  ensure  comparability  only  data  from 
measurement  stations  operating  in  all  three  years  is  used.  This  requirement  limits  the  coverage  to  17 
Member States.  

EN 

35 

   EN 

 
 
 
 
                                                 
Pressure indicator: Production of toxic chemicals (million tonnes), by toxicity class38 

EU-15

s
e
n
n
o

t

n
o

i
l
l
i

m

250

200

150

100

50

0

EU-25

250

200

150

100

50

0

CMR - chemicals

Chronic toxic
chemicals

Very toxic chemicals

Toxic chemicals

Harmful chemicals

1995 1996

1997 1998

1999 2000

2001 2002

2003 2004

2005 2006

2004

2005

2006

Source: Eurostat 

In  2006  the  EU-25  produced  207  million  tonnes  of  toxic  industrial  chemicals,  which 
represents  about  60%  of  total  chemicals  production.  The  toxic  chemicals  covered  by  this 
indicator  are  divided  into  five  toxicity  classes.  The  most  dangerous  ones  are  the  CMR 
chemicals  (carcinogenic,  mutagenic  and  reprotoxic),  followed  by  chronic  toxic  chemicals, 
very toxic chemicals, toxic chemicals and harmful chemicals. The three most toxic classes of 
chemicals represent 40% of total production of toxic chemicals. 

This data set, covering the EU-15 and, from 2004 also the EU-25, shows that between 1995 
and 2006 the production of toxic chemicals in the EU-15 increased by 19% (i.e. around 1.7% 
annual increase on average), and in particular it does not show any reduction of the most toxic 
chemicals.  It  also  shows  that  in  the  EU-15  the  production  of  toxic  chemicals  increased  by 
4.5% during the last five years reported (2002-2006), while it has declined slightly in 2006. 

The  relatively  high  growth  of  CMR  chemicals  (+18%  during  1995-2006,  i.e.  +1.6%  annual 
change  on  average)  within  the  group  of  toxic  chemicals  represents  a  worrying  trend  if 
continued. REACH, which is based on a life cycle approach, will aim at maximum reduction 
of the production of toxic chemicals. 

38 

The classes are derived from the Risk Phrases assigned to the individual substances in Annex 6 of the 
Dangerous  Substance  Directive  (Directive  67/548/EEC  as  last  amended  in  2001).  The  substances 
making part of this index comprise a wide range of uses: from intermediates - used for the production of 
also  non-toxic  chemicals,  products  and  articles  (with  a  potential  human  exposure  limited  to  workers 
during  their  production  and  subsequent  synthesis,  and  to  the  environment  through  potential  releases 
during processing or transportation) - to household chemicals intended for consumer use. 

EN 

36 

   EN 

 
 
 
                                                 
Natural resources and waste 

State indicator: Fish catches from stocks outside safe biological limits 

2000

2001

2002

2003

2004

2005

2006

100

90

80

70

60

%

50

40

30

20

10

0

Total

Pelagic
e.g.
Herring
Sardine
Horse mackerel
Blue Whiting

Benthic
e.g
Prawns
Flatfish
Anglerfish

Demersal
e.g.
Cod
Haddock
Hake
Other roundfish

Industrial
e.g.
Sand eel
Norway pout
Sprat

Data source: European Commission, DG Fish, International Council for the Exploration of the Sea, Eurostat 

This  indicator  links  the  issues  of  nature  and  biodiversity  with  the  sustainable  use  of  natural 
resources. It shows the percentage of fish landings which originate from fish stocks managed 
under EU responsibility considered to be over-exploited. In 2006, 21% of fish catches came 
from  unsustainably  managed  sources.  The  figure  had  doubled  from  the  previous  year  and 
again  reached  the  levels  of  2003  and  2004.  Especially  for  fish  that  live  in  or  close  to  the 
seabed  (benthic  and  demersal  stocks)  the  critical  situation  -  42  %  and  50%  of  catches  from 
over-exploited stocks - has not significantly improved over the years reported. While before 
2003  no  stock  of  industrial  fish  had  been  outside  safe  biological  limits,  since  then  the  rate 
oscillates between 20 and over 40 %. 

EN 

37 

   EN 

 
 
Pressure indicator: Municipal waste generated (kg per person) 

2004

2005

2006

n
o
s
r
e
p
r
e
p
g
k

900

800

700

600

500

400

300

200

100

0

7
2
U
E

5
1
U
E

Data source: Eurostat 

T
A

E
B

G
B

Y
C

Z
C

E
D

K
D

E
E

L
E

I

S F
E

R
F

U
H

T
E I

I

T
L

U
L

V
L

T
M

L
N

L
P

T
P

O
R

I

E S
S

K
S

K
U

Waste generation  and  management are strongly linked to the way we use natural  resources. 
While excessive waste generation can be seen as a symptom of inefficient use of resources, 
recovering materials and energy embedded in waste can help to use resources in a better way. 

The  EU  aims  at  reducing  the  overall  environmental  impacts  associated  with  the  use  of 
resources, by decreasing the amount of waste generated and by increasing the share of waste 
which  is  recycled  and  recovered,  i.e.  re-entering  the  economic  productive  cycle.  The  EU 
target  to  reduce  municipal  waste  generation  to  300  kg/capita  by  the  year  2000  was  not 
achieved. No new quantitative targets have been set. 

EU-wide  statistics  on  waste  treatment  are  available  only  for  municipal  waste39,  which 
represents about 14% of total waste produced. In 2006 EU-27 produced 517 kg of municipal 
waste per person, while EU-15 produced on average 563 kg of municipal waste per person. In 
total in 2006, 255 millions tonnes of municipal waste were generated in EU-27, 41% of which 
were land-filled and 19% were incinerated. 

There  are  big  differences  among  Member  States,  Ireland  producing  804  kg/capita  of 
municipal  waste,  followed  by  Cyprus  and  Denmark  with  more  than  730  kg/capita.  Poland 
produced only 259 kg/capita of municipal waste (50% of the EU-27 average), and Slovakia 
and Czech Republic about 300 kg/capita. 

The  generation  of  municipal  waste  per  capita  in  Western  European  countries  has  stabilized, 
even  if  at  very  high  levels.  Some  countries  showed  a  constant  increase  of  about  10%  from 
2004  to  2006,  i.e.  Romania  and  Slovakia,  while  other  countries  decreased  the  amount  of 

39 

Municipal waste consists of waste collected by or on behalf of municipal authorities. The bulk of this 
waste  stream  is  from  households,  though  similar  wastes  from  sources  such  as  commerce,  offices  and 
public institutions are included. 

EN 

38 

   EN 

 
 
 
 
 
 
                                                 
municipal  waste/capita  by  4%  or  more  during  2004-2006,  i.e.  Bulgaria  and  Spain.  The  big 
increase for Latvia in 2006 is due to an improved reporting system. 

Response indicator: Recycling of packaging waste (percentage) 

2003

2004

2005

100

90

80

70

60

%

50

40

30

20

10

0

7
2
U
E

5
1
U
E

T
A

E
B

G
B

Y
C

Z
C

E
D

K
D

E
E

L
E

I

S F
E

R
F

U
H

E

I

T

I

T
L

U
L

V
L

L
N

L
P

T
P

O
R

I

E S
S

K
S

K
U

Source:  European  Commission,  DG  Environment,  Mandatory  reporting  by  Member  States  under  Commission  Decisions 
97/138/EC  and  2005/270/EC;  EU  data  for  2004  refers  to  EU25;  Slovakia  has  not  sent  data  for  2005;  Malta  has  not 
reported any data. 

Recycling  helps  to  manage  natural  resources  more  responsibly:  on  the  one  hand  it  saves 
material  from  being  put  in  landfills  or  incinerators,  on  the  other  hand,  by  replacing  virgin 
materials,  recycling  can  reduce  environmental  impacts.  Packaging  waste  is  roughly  5%  of 
total waste generation. 

In 2005, 55% of packaging waste was recycled in the EU-27, thus already reaching the 2008 
target. In  particular 73.5% of packaging waste in paper and board was recycled, while only 
24.8% of plastic packaging waste was recycled. Different performances of individual Member 
States suggest further potential for improvements: Belgium and Germany continue to be the 
countries  which  perform  best  with  more  than  68%  of  recycling,  while  a  few  countries 
(Cyprus, Romania and Poland) still recycle less than 30% of their packaging waste. 

Not only levels but also trends are different for the 2003-2005  period: most Member States 
increasing their recycling rate, in particular Slovenia by 11 percentage points (pp) (from 34% 
to 45%) while others show a decline, in particular Cyprus by 11 pp and Sweden by 12 pp. 

There  is  a  general  increase  per  capita  in  quantities  of  packaging  being  put  on  the  market, 
which is not in line with the objective of the Directive on Packaging and Packaging Waste, 
which aims at preventing the production of packaging waste. 

EN 

39 

   EN 

 
 
 
 
Environment and the economy 

Response indicator: share of environmental taxes in total tax revenue 

2003 - 2004 - 2005

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

tax on labour

other

env. taxes

T
A

E
B

G
B

Y
C

Z
C

E
D

K
D

E
E

L
E

I

S F
E

R
F

U
H

E

I

T

I

T
L

U
L

V
L

T
M

L
N

L
P

T
P

O
R

I

E S
S

K
S

K
U

7
2
U
E

Data source: European Commission, Eurostat and DG Taxation and Customs Union40 

Environmental taxes are an efficient market-based instrument to achieve environment policy 
objectives. In 2005,  the  EU-27  share  of environmental taxes in total tax revenue was 6.6%. 
There are big differences in the use of environmental taxes among Member States: the share 
of  environmental  taxes  in  total  tax  revenue  varies  from  less  then  6%  in  Belgium,  France, 
Spain and Sweden, to over 10 % in Denmark and the Netherlands. Compared with revenues 
from taxes on labour the share of environmental taxes is low. 

During  the  period  2003-2005,  the  total  for  the  EU-27  shows  a  decrease  in  the  share  of 
environmental taxes, from 6.9% to 6.6%. First data for 2006 show that the downward trend 
continues.  Between  Member  States,  the  trends  are  very  different:  Estonia  has  increased  the 
share by 1 percentage point (pp) (from 6.1% to 7.1%), Denmark by 0.9 pp and Luxembourg 
and the Netherlands by 0.6 pp, while Cyprus and Romania have decreased their share by 1.5 
pp and Malta by 1 pp. 

40 

Taxation trends in the European Union. Data for the EU Member States and Norway. 2007  

EN 

40 

   EN 

 
 
                                                 
Implementation 

Performance  indicator:  Infringements  of  EU  environmental  legislation  (as  of  31 
December 2007) 

0

10

20

30

40

50

60

70

80

Number of cases

RO

BG

HU

SI

NL

SK

CY

FI

LV

DK

LT

SE

CZ

AT

EE

DE

PL

LU

BE

EL

MT

PT

FR

UK

IE

ES

IT

Impact

Water

Air

Nature

Waste

Miscellaneous

Information

Chemicals

Liability

GMO's

Source:  European  Commission,  DG  Environment  (Impact  =  Environmental  Impact  Assessment  and  Strategic  Impact 
Assessment) 

EN 

41 

   EN 

 
 
At the end of 2007 (31 December), there were 479 open infringement cases41concerning EU 
environmental  legislation  as  against  420  at  the  end  of  2006.  In  total,  around  22%  of  all 
infringements cases of EU legislation relate to the environment. 

There is a wide variety of reasons for this. A majority of cases concern bad application of EU 
environmental law, but there are also cases concerning the lack of transposition and improper 
transposition  of  environmental  directives.  In  this  respect  there  is  now  more  proactive  and 
systematic  checking  of  the  content  of  national  transposition  measures  by  the  European 
Commission.  This  is  one  of  the  reasons  for  the  increase  in  the  number  of  infringements  in 
2007. 

At  the  end  of  2007,  77  cases  concerned  possible  non-implementation  of  European  Court  of 
Justice judgements (at the end of 2006 they were 66). 

Of all Member States, Italy is the country with the highest number of ongoing infringement 
cases (60), and has by far the highest number of ongoing infringement cases related to waste 
legislation (13). Spain follows with 42 open infringements. Among EU-15, the Netherlands is 
the country with the lowest number of open infringements. The number of infringements in 
the  Member  States  that  joined  the  EU  in  2004  experienced  a  significant  increase  in  2007 
(+82%  compared  to  2006).  Malta  has  the  highest  number  of  infringements  (26)  within  this 
group.  Bulgaria  and  Romania  are  currently  the  Member  States  with  the  lowest  number  of 
infringement cases, possibly due to their recent adhesion (in 2007). 

A quarter of the infringements open at the end of 2007 concern nature protection legislation 
(i.e.  121),  other  important  sectors  being  waste  (93),  air  (83),  water  (74),  and  environmental 
impact assessment (57). 

41 

This means that the Commission sent an official letter of formal notice to the Member State. 

EN 

42 

   EN 

 
                                                 
Indicators "Beyond GDP" 

"Measuring  progress,  true  wealth,  and  the  well-being  of  nations"  was  the  subtitle  of  the 
international  conference  "Beyond  GDP"  in  November  2007.42  Its  objectives  included 
clarifying which indices are most appropriate to measure progress, and how these can best be 
integrated into the decision-making process and taken up by public debate. The starting point 
was  the  assumption  that  these  indices  should  be  as  clear  and  appealing  as  GDP  but  more 
inclusive than GDP - to incorporate social and environmental issues. This sub-section presents 
a  few  selected  indices  –  developed  by  international  organisations,  research  or  civil  society 
organisations  –  that  illustrate  the  wide  range  of  statistical  tools  that  were  discussed  at  the 
conference. 

Human Development Index 

The  Human  Development  Index  (HDI)  was  developed  to  measure  progress  in  developing 
countries beyond purely economic figures, such as GDP. Since 1993, it has been used in the 
UNDP's Human Development Reports to compare the development of nations world-wide. A 
long and healthy life, knowledge, and a decent standard of living are considered key elements 
of  progress  or  development.  Therefore,  the  index  combines  data  on  life  expectancy,  adult 
literacy,  school  enrolment,  and  GDP.  A  value  of  more  then  0.8  is  considered  "high  human 
development". All EU Member States pass this benchmark. 

)
5
0
0
2
(
x
e
d
n

I

l

t
n
e
m
p
o
e
v
e
D
n
a
m
u
H

1

0.9

0.8

0.7

0.6

0.5

0.4

0.3

E

I

E
S

L
N

I

R F
F

S
E

K
D

T
A

K
U

E
B

T
U I
L

E
D

I

L S
E

Y
C

T
P

Z
C

T
M

U
H

L
P

K
S

T
L

E
E

V
L

G
B

O
R

Data source: UNDP 

Globally, in 2005 Iceland scored highest (0.968). At the other end of the scale, there are a few 
developing  countries  with  a  HDI  near  0.3.  At  EU  level,  Ireland  comes  first,  followed  by 
Sweden and the Netherlands, while Bulgaria and Romania have the lowest HDI amongst EU 
countries. The majority of Member States have a HDI of more than 0.9. 

42 

Full  information  on  the  conference,  including  speeches  and  video  archive,  is  available  via 
www.beyond-gdp.eu. 

EN 

43 

   EN 

 
 
 
 
 
                                                 
Genuine savings / adjusted net saving 

This  indicator  focuses  on  the  wealth  of  nations,  which  can  only  be  increased  by  savings. 
While  the  standard  savings  from  the  System  of  National  Accounts  show  only  changes  in 
"physical capital", (i.e. man-made assets like machinery and infrastructure), "genuine savings" 
strive also to include changes in the natural, environmental and human capital. So far, only a 
few component variables, besides the standard net savings, can be factored in. Expenditure on 
education is added, while depletion of sub-soil assets (like iron ore and coal) and forests, and 
the damage caused by some pollutants, is subtracted. The World Bank publishes these figures 
for most countries, in percentage of GNI (Gross National Income). One main finding is that 
some  countries  (outside  the  EU)  have  actually  become  poorer  while  at  the  same  time 
increasing their GDP. This is caused by a failure to compensate for the depletion of natural 
resources by either reconstituting their natural capital or investing in human capital. 

)
4
0
0
2
(

I

N
G

f
o
%
s
a

s
g
n
i
v
a
s

e
n

i

u
n
e
g

25

20

15

10

5

0

E

I

E
S

U
L

I

S

T
A

K
D

I

F

Z
C

S
E

R
F

L
E

L
N

E
B

E
D

T

I

L
P

E
E

K
U

T
L

U
H

O
R

K
S

G
B

T
P

S
U

P
J

Data source: World Bank 

Genuine savings rates in the EU range from 23% of GNI in Ireland to 2.3% in Portugal. Also 
main  competitors,  such  as  Japan  or  the  USA,  have  quite  different  genuine  savings  rates.  A 
look at the underlying data shows e.g. that the countries with a high level of genuine savings 
have  normally  also  high  net  standard  savings;  however,  Denmark  compensates  for  low  net 
standard  savings  with  very  high  investments  in  education,  while  Portugal's  above  average 
investment  in  education  do  not  outweigh  the  low  net  standard  savings;  depletion  of  natural 
resources is most significant in Romania and Estonia; and damage to the environment is most 
significant in Bulgaria, Poland, Estonia and Greece. 

EN 

44 

   EN 

 
 
 
 
 
 
 
 
Ecological footprint 

This approach tries to capture one critical aspect of environmental sustainability: the use and 
potential  over-exploitation  of  biological  resources,  such  as  forests  and  fishing  grounds, 
grassland  and  cropland.  The  ecological  footprint  adds  up  the  hectares  of  land  and  sea  area 
needed to produce the goods consumed in a country. Also the area needed to cope with waste 
and  pollution  is  added.  In  this  way,  the  footprint  estimates  societies'  demand  on  nature.  To 
make  the  various  land  and  sea  areas  comparable  the  unit  of  measurement  is  a  standardised 
"global hectare" (gha). 

)
3
0
0
2
(
a
t
i
p
a
c
r
e
p
)
a
h
g
(
s
r
a
t
c
e
h

l

a
b
o
g

l

10

9

8

7

6

5

4

3

2

1

0

O
R

V
L

G
B

K
S

I

L S
P

U
H

T

I

T
P

L
N

T
L

E
D

T
A

Z
C

L
E

E

I

S
E

R
F

K
U

K
D

E
S

I

E F
E

P
J

S
U

U
L
+
E
B

Data source: Global Footprint Network/WWF 

For EU Member States, the data vary widely: from under 3 gha/capita for Romania and Latvia 
to over 6 gha/capita for Finland, Estonia and Sweden. Also the figures for Japan and the USA 
differ  by  a  factor  of  2.  Different  levels  of  production  and  consumption,  but  also  different 
structures of production and consumption cause these significant differences. 

In  addition  to  the  comparison  between  countries,  the  ecological  footprint  can  be  compared 
with the available land and sea area, the so called bio-capacity. For the EU-27 the footprint is 
4.7 gha/capita, while the available bio-capacity within the EU-27 is 2.2 gha/capita. Globally 
there  are  1.8  gha/capita  available,  while  the  overall  global  footprint  is  2.2  gha/capita.  The 
usual  interpretation  of  this  data  is  that  humanity’s  demand  on  nature  is  now  larger  then  the 
planet's carrying capacity. 

EN 

45 

   EN 

 
 
 
 
 
 
 
Life satisfaction 

This indicator shows the degree to which the citizens of a country are satisfied with their life. 
It  is  based  on  surveys  asking  people  about  their  individual  perception  of  well-being.  The 
graph below shows the average for each country. 

)
5
0
0
2
-
5
9
9
1
(
n
o
i
t
c
a
f
s
i
t
a
s
e
f
i
l

f
o
e
e
r
g
e
d

10

9

8

7

6

5

4

3

2

1

0

DK AT FI SE IE LU MT NL BE DE UK CY IT ES SI FR CZ EL PT PL SK EE RO LV LT BG

US JP

Data source: World database of happiness, Erasmus University Rotterdam 

In the EU-27, the Danes, Austrians, Finns, and Swedes are most satisfied with their life, while 
people  living  in  the  Baltic  states,  Romania  and  Bulgaria  are  the  least  happy.  Research  is 
looking  further  into  different  aspects  of  life  satisfaction  and  the  determinants  of  perceived 
well-being. 

EN 

46 

   EN 

 
 
 
 
 
 
PART  3:  COMMISSION  SUMMARY  OF  ENVIRONMENT  POLICY 

ACTIONS IN THE MEMBER STATES 

AUSTRIA 

HIGHLIGHTS 2007 

Meeting  the  Kyoto  commitments  and,  more  broadly,  fighting  climate  change  have  become 
key priorities  of the  newly  installed  government. Austria faces a big gap between its Kyoto 
target and projections and needs to apply additional policies to meet the target. The National 
Climate  Strategy  updated  in  March  could  be  seen  as  a  first  important  step  in  this  area.  In 
summer  2007,  two  research  and  innovation  centred  initiatives  followed:  the  Climate  and 
Energy Fund and the Energy of the Future research programme. Another important legislative 
project, the reform of the Eco-electricity act started in autumn 2007. 

Climate change 

Austria's target is to reduce greenhouse gas emissions by 13% compared to the base year, but 
in 2005 emissions were 18,1% higher than the base year level. According to projections43for 
2010,  with  existing  policy  measures,  use  of  Kyoto  mechanisms  and  carbon  sinks  Austria 
would  fall  short  of  its  Kyoto  target  by  17.9%.  However,  Austria  is  expected  to  reach  the 
Kyoto  target  if  all  planned  policy  measures  are  applied  strictly.  Therefore,  the  country  will 
have to step up its efforts in order to get back within reach of its Kyoto target. 

•  In  March  the  federal  government  adopted  the  revised  National  Climate  Strategy,  which 
seeks to put Austria back on track to reach its Kyoto 2008-2012 commitments. The focus 
of  the  renewed  strategy  is  on  measures  designed  to  encourage  more  sustainable  energy 
production and use as well as more sustainable transport modes. Scientific innovation and 
quick adaptation of new technologies are moved to the centre of the strategy. 

•  The  Austrian  eco-electricity  law  "Ökostromgesetz"  was  amended  in  April  2007;  another 
revision  is  being  prepared.  The  goal  is  the  continued  expansion  of  the  market  share  of 
renewable  electricity  by  improving  the  framework  conditions  for  producers.  At  the  same 
time, tariffs for feeding eco-electricity into the main grid will be revised. In Austria about 
56.6%  (2006  provisional  data)  of  all  electricity  is  produced  from  renewable  energy 
sources, which is the highest share in the EU. Nevertheless it is far from reaching its 2010 
target of 78.1%. 

•  In  the  area  of  transport  a  new  plan  called  "Bahnpaket  Umwelt"  (railways  environmental 
package)  aims  at  increasing  rail  usage  by  15% (passenger) and 10% (freight) in the next 
five years thanks to the introduction of new rail traffic control technologies together with 
the new infrastructure. 

43 

2010 projections for greenhouse gas emission come from the Communication from the Commission on 
Progress towards achieving the Kyoto objectives, COM (2007) 757. 

EN 

47 

   EN 

 
                                                 
Nature and biodiversity 

Austria  is  integrating  nature  concerns  into  agricultural  production,  by  increasing  organic 
farming. It has by far the highest proportion of area occupied by organic farming (as a share 
of total agricultural area), i.e. 11.1% in 2006 (10.5% in 2004) against an EU average of 3.8%. 

•  In  2007,  the  European  Court  of  Justice  ruled  that  Austria  had  failed  to  transpose  the  EU 
Habitats Directive and the Birds Directive adequately. Furthermore the list of Natura 2000 
sites in Austria is still incomplete under both Directives. 

•  Austria  continued  its  efforts  to  integrate  nature  conservation  into  other  policies,  for 
example into civil and flood protection, and to implement the Water Framework Directive. 
Its  long  experience  of  river  environmental  management  was  used  to  prepare  the  TEN 
(Trans-European Network) project for the maintenance of the Danube east of Vienna. 

Environment and health 

•  In order to reduce the level of airborne particulate matter, a system of financial incentives 
and  disincentives  to  encourage  the  uptake  of  particle  filters  in  diesel  passenger  cars  was 
extended by the Austrian parliament for another year. 

•  In  June,  the  "Austrian  Children  Environment  Health  Action  Plan"  was  presented  to  the 
public.  The  aim  is  a  health-promoting  environment  and  the  stronger  consideration  of 
children's needs in all sectors and policies. The first steps to implement the plan in Austria 
have already been made, for instance the programme "Mobility management for schools" 
aimed  at  promoting  environmentally  friendly  and  physically  active  way  of  going  to  and 
from school. 

•  The  first  European  Commission  report  on  the  implementation  of  the  Water  Framework 
Directive  showed  that  Austria  has  made  good  progress  in  implementing  the  Directive. 
Austria presented a good analysis of the pressures and impacts affecting the environment 
and  a  comprehensive  development  of  national  methods  for  the  assessment  of  ecological 
status. 

Natural resources and waste 

In  2006,  Austria  on  average  produced  617  kg  of  municipal waste per person against an EU 
average  of  517  kg/per  person.  Only  59  kg/person  (9.6%)  was  landfilled  and  181  kg/capita 
(30%)  was  incinerated,  which  results  in  377  kg/capita  (61%)  being  treated  by  other  means 
including recycling and composting. 

•  In July, Austria adopted an amended version of waste management law, which transposes 
recent Community legislation and introduces stricter conditions for companies operating in 
the waste management sector. 

•  A newly published White Paper on waste avoidance and recycling in Austria defines key 
principles and policy goals and assesses how the current limitations can be overcome. In 
Austria over 60% of packaging waste is recycled, which is well above the EU average. 

•  A  national  action  plan  for  green  public  procurement  is  being  drafted.  It  will  put  forward 

procurement quotas for eco-friendly products. 

EN 

48 

   EN 

 
Use of market-based instruments 

•  In July, Austria increased fuel tax rates (by 3 cents/l for petrol and 5 cents/l for diesel). The 
additional revenue, expected to be € 370 million per year, will be spent on climate change 
mitigation  measures.  Austria  is  also  considering  a  further  rise  in  its  distance-based  road 
charges. 

Environmental technologies 

•  The Climate and Energy Fund was set up in 2007 and the Energy of the Future research 
programme  will  support  eco-innovation  and  the  development  of  new  technologies. 
Financial support provided by both funds is expected to increase the share of renewables in 
total energy consumption to 45% and to boost energy efficiency by 20% by 2020. 

OUTLOOK FOR 2008 

•  As  constantly  growing  transit  lorry  traffic  features  high  on  the  public  agenda,  there  is 
current discussion on drastically increasing the existing road charges for lorries to provide 
stronger  incentives  for  a  shift  of  freight  transport  to  rail.  In  order  to  achieve  ambient  air 
quality standards in the Inn valley a sectoral ban for lorries is to be gradually imposed as 
from 1 May 2008, with an alternative rail option provided. 

•  An amendment of the law regulating passenger car registration tax is to enter into force on 
1  July  2008.  The  tax  for  cars  with  CO2  emissions  below  120  g/km  and  for  alternatively 
fuelled  cars  will  be  significantly  reduced.  For  cars  with  high  CO2  emissions  the  tax  will 
increase. 

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BELGIUM 

HIGHLIGHTS IN 2007 

Following  the  parliamentary  elections  in  June  an  interim  government  was  installed  only  in 
December. This resulted in a period of low legislative activity at the federal level. The agenda 
was  dominated  by  the  transposition  of  recent  EU  Directives.  Environment  policy  was  less 
affected by the federal situation, as most environmental competencies are the responsibility of 
the three regions. 

During the past year a strong policy focus has been on climate change, transport, energy and 
environment and health. These topics received significant public attention. The issues ranged 
from  the  saturation  of  the  Belgian  road  network  and  the  implications  on  air  pollution  (fine 
particles, smog alerts, etc.) to the threat of an emerging energy shortage. 

Climate change 

Belgium,  where  greenhouse  gas  emissions  in  2005  were  2%  less  compared  to  base  year 
levels, is currently performing relatively well considering the distance between the projections 
for 2010 and the Kyoto target: projected over-delivery of 0.9% for 2010 with existing policy 
measures, use of Kyoto mechanisms and carbon sinks. However, in 2006, only 3.9% of gross 
electricity  consumption  in  Belgium  came  from  renewable  sources  as  compared  to  an  EU 
average  of  14%  (in  2005).  At  205.7  kg  oil  equivalent/€1000  GDP,  Belgium  had  an  energy 
intensity ratio in 2005 comparable to the EU average. 

•  A new federal law came into force to promote environmentally friendly cars. A rebate is 
granted when purchasing a car emitting less than 115 gram of CO2 per kilometre. Another 
federal  law  introduced  tax  reductions  for  building,  buying  or  renovating  a  low  energy 
house. Also in 2007, the first petrol stations supplying bio fuels became operational. 

•  The Walloon  government adopted an Air Climate Plan,  which includes indicative targets 
for  renewable  energy  and  reduction  of  energy  consumption.  Instruments  include  green 
certificates  and  rebates  for  installing  solar  panels,  which  are  expected  to  contribute 
significantly to the increase of renewable electricity. 

Nature and biodiversity 

•  Belgium  has  undertaken  many  initiatives  to  meet  the  2010  biodiversity  target,  including 
the  designation  of  Natura  2000  sites  and  the  current  establishment  of  marine  protected 
areas,  which  will  cover  7%  of  the  Belgian  North  Sea  area.  Objectives  regarding  the 
protection  of  ecosystems  have  been  integrated  into  the  Flemish  Environment  and  Nature 
Policy  Plans  as  well  as  into  legislation  based  on  Natura  2000.  In  2007  the  Natura  2000 
network in Belgium consists of 234 Special Protection Areas (9.7% of the total land area) 
under the Birds Directive and is largely complete, and 280 Sites of Community Importance 
(10% of the total land area) under the Habitats Directive which is still incomplete. 

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Environment and health 

•  The  urban  population  in  Belgium  is  highly  exposed  to  air  pollution  by  particles,  though 

2005 data show a slight improvement compared to the previous year. 

•  In  December,  several  Belgian  authorities  took  measures  to  limit  fine  dust  and  particle 
pollution  when  emission  levels  peaked  beyond  thresholds.  In  Flanders  speed  limits  of 
90 km were imposed and actively enforced, while the Walloon government limited car use 
for  several  days  in  the  Charleroi  area.  The  Brussels  region  combined  its  integrated  air 
abatement/climate change plan with a short term action plan addressing high air pollution 
events  occurring  mainly  during  the  winter  months.  When  concentrations  of  fine  particles 
exceed a certain threshold the plan is activated. Speed limits are reduced in the city and on 
the surrounding motorways, while a driving ban can be imposed in the Brussels region in 
exceptional cases. 

•  Since January 2007 all restaurants in Belgium are smoke free, and the implementation of 
this ban has been actively enforced. This is not the case for bars that sell drinks and snacks. 

Natural resources and waste 

•  Pressures on surface water by households and industry are decreasing, but water quality in 
Belgium remains substandard and much needs to be done to achieve the objectives of the 
Water  Framework  Directive  in  2015.  Belgium  is  also  facing  a  problem  of  polluted 
sediment in its waterways. 

•  Belgium  ranks  among  the  top  EU  Member  States  in  terms  of  separate  collection  and 
recycling of waste. In 2005 the share of recycling of packaging waste was almost 77%, far 
above  the  EU  average  of  55%.  In  2006  on  average  every  person  produced  475  kg  of 
municipal  waste  (EU  average  being  517  kg/per  person),  of  which  only  24  kg  were 
landfilled and 155 kg incinerated, thus most went to recycling collection systems. 

•  The Flemish government approved in December a new Waste Implementation plan for the 
period 2008-2012 concerning prevention, selection, recycling and disposal of waste from 
households. Further efforts will be made to optimise the selective collection and recycling 
and  to  expand  the  capacity  of  final  treatment  infrastructure;  the  plan  includes  specific 
attention for a life-cycle approach of products and materials. 

Better regulation 

•  In  December,  the  Flemish  parliament  adopted  a  decree  that  will  lead  to  more  efficient 
enforcement  and  sanctioning  of  environmental  violations.  Important  elements  are  the 
development  of  a  municipal  system  for  administrative  fines,  better  coordination  between 
the  different  authoritative  levels,  and  more  financial  support  for  enforcement  at  the  local 
level. 

Use of market-based instruments 

Belgium is making little use of environmental taxes compared to other EU countries: in 2005 
the share of environmental tax (in total tax revenue) was 5.2% against an EU average of 6.6%. 

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OUTLOOK FOR 2008 

•  In  2008  overall  debates  on  constitutional  reform  will  continue  in  Belgium.  Environment 
policy  is  expected  to  be  included  in  the  debates,  and  the  're-federalisation'  of  certain 
aspects  can  not  be  excluded.  Particular  focus  is  on  noise  reduction  in  the  light  of  the 
fragmented  competences  regarding  the  enforcement  of  noise  abatement  policies  around 
Brussels Airport. 

•  More measures to reduce greenhouse gas emissions are expected at all government levels, 

with increasing attention being paid to the promotion of wind and solar energy. 

•  The Flemish Environment Policy Plan has been updated for the period 2008-2010. It was 
adjusted  to  the  new  international  developments  and  to  the  conclusions  of  recent 
environmental  reports.  Progress  on  the  new  Environment  Policy  Plan  should  be  made  in 
2008. 

•  The  Flemish  government  has  plans  to  introduce  a  ‘smart’  kilometre  levy  for  trucks  that 
could be related to distance travelled, place, time and environmental characteristics of the 
vehicle. In 2008 the Benelux governments will discuss the different ways of doing this in a 
Benelux context. 

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BULGARIA 

HIGHLIGHTS IN 2007 

Bulgaria  joined  the  EU  in  January  2007.  Transposing  the  Community  legislation  and 
preparing  the  institutional  framework  for  the  implementation  of  a  broad  range  of  new  tasks 
dominated the environment policy agenda. Operational Programmes for 2007–2013 have been 
elaborated  for  implementation  of  the  EU  Structural  and  Cohesion  Funds.  They  will  provide 
financial  support  for  investment  projects,  inter  alia,  in  energy  efficiency,  renewable  energy 
production,  waste  management,  urban  waste  water  treatment,  biodiversity,  and  transport 
infrastructure. 

Climate change 

Bulgaria has agreed to reduce its greenhouse gas emissions during the 2008-2012 period by 
8% below the 1988 level. It will meet the target even with accelerating economic activity – 
greenhouse  gas  emissions  in  2005  were  69.8  million  tonnes  CO2  eq.  or  47.2%  lower  than 
1988.  Bulgaria  had  the  highest  energy  intensity  in  the  EU  in  2005  (1582  kg  oil 
equivalent/€1000 GDP), although with a continuously decreasing tendency from 1994 to 2005 
(minus 28%). The main reason for the high energy intensity is that its industry is very energy 
intensive. 

With  11.2%  of  gross  electricity  consumption  from  renewable  energy  sources  in  2006, 
Bulgaria  has  already  surpassed  its  11%  target  for  2010.  Since  1994  there  has  been  a 
continuous increase in generation mainly from biomass and hydropower. 

•  About  €205  million  of  EU  Structural  funds  have  been  earmarked  for  promoting  energy-

saving technologies and renewable energy sources, mostly for industrial companies. 

•  The European Commission in 2007 assessed the National Allocation Plan for greenhouse 
gas emissions in 2008-2012 and substantially cut the proposed number of emission permits 
to be allocated by 37% to 42.3 million tonnes CO2 eq. per year. Bulgaria filed a lawsuit on 
the  Commission  Decision  to  the  European  Court  of  Justice.  This  does  not  affect  the 
obligation to implement the National Allocation Plan in conformity with the Commission 
Decision. 

•  A feed-in renewables support law was introduced, according to which the national power 
grid  operator  and  regional  power  distribution  companies  will  be  obliged  to  connect  into 
their networks new hydro, wind, or biomass-fired power stations. 

Nature and biodiversity 

Due to its diverse climatic and geological conditions Bulgaria has a rich variety of flora and 
fauna.  The  Natura  2000  network  includes  114  Special  Protection  Areas  (13.4%  of  the  land 
area) and 228 Sites of Community Importance (26.5% of the land area). 

•  However,  most  protected  areas  are  in  the  higher  mountain  areas,  whereas  protection  of 
forest and river ecosystems in the plain regions and coastal areas needs to be improved. By 
area,  half  of  the  proposed  Natura  2000  sites  were  submitted  for  reassessment  by 
the European Commission with a significant delay due to substantial economic interest. In 

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July  the  European  Commission  warned  Bulgaria  about  breaching  the  Habitats  and  Birds 
Directives. 

•  When considering organic farming as a tool for integrating nature protection concerns into 
the  agricultural  sector,  Bulgaria  is  not  performing  well.  In  2006  only  0.1%  of  its  total 
agricultural area was occupied by organic farming, against an EU average of 3.8%. 

Natural resources and waste 

Waste management is one of the most serious environmental problems in Bulgaria. Landfills 
are the prevailing method for waste handling. The amount of municipal waste has decreased 
significantly: 446 kg per capita of municipal waste was collected in 2006 compared to 693 kg 
per capita in 1995. 80% of municipal waste was landfilled in 2006 (twice the EU average). In 
2005 31% of packaging waste was recycled, against an EU average of 55%. 

•  In October, the European Commission opened an infringement case regarding inadequate 
waste  infrastructure  in  Sofia.  The  lack  of  a  system  for  the  recovery  and  disposal  of 
municipal  waste,  the  lack  or  inadequacy  of  temporary  storage  sites,  and  pre-treatment  of 
the waste are the most serious problems. 

•  €1 284  million  have  been  earmarked  for  the  construction  of  regional  waste  management 
systems,  pre-treatment,  recycling  centres,  landfill  gas  recovery  installations,  landfill 
reconstructions, and urban waste water treatment plants for the period 2007-2013. 

Use of market-based instruments 

Environmental  tax  revenues  as  a  share  of  total  tax  revenues  amounted  to  8.7%  in  2005, 
significantly above the EU average (6.6%). 

•  The Act on Limitation of the Harmful Impact of Waste introduces charges on products that 

generate large amounts of waste or hazardous waste. 

OUTLOOK FOR 2008 

•  The first draft of the new National Waste Management Programme is expected to be ready 
by  the  middle  of  2008.  It  will  set  out  a  long-term  strategy  for  sustainable  waste 
management. 

•  The  National  Sustainable  Development  Strategy  will  be  finalised  by  the  Council  for 

Sustainable Development. 

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CYPRUS 

HIGHLIGHTS IN 2007 

Cyprus  has  drafted  its  first  national  Sustainable  Development  Strategy,  in  line  with  the  EU 
Sustainable  Development  Strategy.  It  plans  measures  in  areas  where  existing  practices  are 
unsustainable, such as energy, transport, tourism, agriculture, natural resources management 
and  waste  management.  A  National  Energy  Policy  Strategy  has  been  adopted  and  several 
actions are under way to combat the air pollution caused mainly by transport in large towns, 
noise and quality of water. 

Climate change 

Over  the  period  1990-2005,  greenhouse  gas  emissions  in  Cyprus  increased  by  63.7%, 
reaching  9.9  Mt  CO2  eq  in  2005.  Cyprus  has  no  legally  binding  emission  limitation 
commitments under the Kyoto protocol, but as a Member State, it is bound by the obligations 
set  in  the  Emissions  Trading  Directive.  The  European  Commission  in  2007  assessed  the 
National Allocation Plan for greenhouse gas emissions in 2008-2012 and substantially cut the 
proposed number of emission permits to be allocated: the annual allocation is 5.5 Mt of CO2 
allowances, which is 23% less than Cyprus had proposed. 

•  In terms of electricity generation, Cyprus makes no use of renewable energy sources, and 

in 2005 made very little use of combined heat and power generation. 

•  In 2007, the National Energy Policy was adopted. Its overall aim is to promote renewable 
energy  sources  (particularly  wind  and  solar),  promote  energy  efficiency  schemes  and 
introduce  natural  gas  into  the  energy  mix.  Cyprus  was  also  implementing  the  Energy 
Saving  Plan,  adopted  in  2006.  Measures  include  subsidies  for  hybrid  cars,  a  zero  excise 
duty  on  biofuels  and  the  promotion  of  energy  savings  through  investment  in  public 
buildings. 

Nature and biodiversity 

In  2006  the  share  of  organic  farming  (as  a  share  of  total  agricultural  area)  was  only  1.3%, 
compared to the 3.8% EU average. 

•  Under  the  Birds  and  the  Habitats  Directives,  Cyprus  has  classified  7  Special  Protection 
Areas  (SPA)  and  designated  36  sites  of  Community  Importance  (SCI),  5  of  which  are 
marine areas. However, Cyprus is far from complying with the Habitats Directive, having 
reached only 25% of the minimum standards. In June, the European Commission opened 
infringement  procedures  against  Cyprus  for  insufficient  classification  of  SPAs  under  the 
Birds Directive. The country also breached Community law by allowing spring hunting of 
Turtle Doves; however, it has rectified the situation and the legal case has been resolved. 

•  The  government  is  currently  preparing  management  plans  for  26  sites  included  in  the 
Natura  2000  network,  co-funded  from  EU  Funds  (from  the  LIFE-Nature  and  from  the 
Transition Facility Programme). 

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Environment and health 

•  A National Action Plan on Environment and Children’s Health 2007-2010 was approved. 
The plan, based on the EU action plan and other international commitments, is  based on 
the principles of precaution, prevention and integration. 

•  The  government  started  to  develop  a  system  for  monitoring  ambient  air  quality  all  over 

Cyprus. 

Natural resources and waste 

•  The quantity of municipal waste generated has been constantly growing: between 2000 and 
2006 it increased by 9.5%. In 2006 Cyprus produced 745 kg of municipal waste per capita 
against an EU average of 517 kg/per capita, most of which (652 kg, i.e. 87% of total) was 
landfilled.  Despite  the  fact  that  recycling  has  also  been  steadily  increasing,  in  2005  only 
11.5%  of  municipal  waste  was  collected  for  recycling.  Moreover,  for  recycling  of 
packaging  waste,  Cyprus  also  has  the  lowest  share  in  the  EU:  11%  (EU  average  being 
55%). Full implementation of the Landfill Directive is planned for 2010. 

•  Water supply in Cyprus is a major issue. Water abstraction has increased continuously with 
agriculture and tourism accounting for almost three quarters of the total. Inadequate rainfall 
in  the  past  few  years  has  further  reduced  available  water  resources.  The  government’s 
plans  to permit the  construction  of  14 more  golf  courses  on  the  island  are  expected  to 
generate  the  need  for  more  water  for  irrigation,  which  will  inevitably  lead  to  more 
desalination plants. 

•  On the positive side, the first European Commission report on the implementation of the 
Water  Framework  Directive  (to  achieve  good  water  quality  in  all  water  bodies  by  2015) 
showed that overall there is a real commitment to implement the Directive in time. Efforts 
are being made to develop river basin management. 

Use of market-based instruments 

Environmental tax revenues as a share of total tax revenues was 10% in  2005, significantly 
above the EU average (6.6%). 

OUTLOOK FOR 2008 

•  The implementation of the Rural Development Plan for 2007-2013 will introduce further 
environmental support schemes, such as conversion to organic farming, the conservation of 
rare livestock breeds and crop varieties, and farming practices adapted to the management 
of natural species and land. 

•  The National Biomass Action Plan of Cyprus is expected to be finalised by early 2008. The 

National Action Plan for Combating Desertification is due to be ready by that time. 

•  As the Environmental Noise Evaluation and Mapping has been completed, specific actions 

plans to combat noise are expected to be submitted. 

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CZECH REPUBLIC 

HIGHLIGHTS IN 2007 

The  new  government  submitted  several  important  legislative  proposals  on  the  environment. 
They  include  a  draft  act  on  Prevention  of  Ecological  Damages  (transposing  the  relevant 
directive) and a draft amendment of the Act on Environmental Impact Assessment (to solve 
the EU law infringement case). 

Since November, Regulatory Impact Assessments - including the environmental dimension - 
are mandatory for all new legislation. The amended legislation now provides for public access 
and the right to comment on legislative proposals, which had been almost impossible in the 
past. 

At the end of 2006, an agreement was concluded between the company Hyundai, the central 
and  regional  authorities,  CzechInvest  agency  and  NGOs,  concerning  remediation  of  and 
compensation for environmental damage caused by the new Hyundai factory in Nošovice. 

A number of Operational Programmes co-funded from the EU Structural and Cohesion Funds 
for  2007-2013  were  approved  in  2007.  Environmental  priorities  include  improvement  of 
water management  and  reduction  of  flood risks, reduction  of emissions,  energy savings and 
increasing the use of renewable energy sources and waste management. 

Climate change 

The  Czech  Republic  is  currently  well  on  track  to  meet  the  Kyoto  target  for  greenhouse  gas 
emissions (the target is 8% reduction). Emissions in 2005 were 25.8% lower than in 1990 and 
they  are  expected  to  be  some  21%  below  the  Kyoto  target  in  2010.  The  Czech  Republic 
completed in 2007 its national programme to abate climate change impacts. 

•  The European Commission in 2007 assessed the National Allocation Plan for greenhouse 
gas emissions in 2008-2012 and substantially cut the proposed number of emission permits 
to  be  allocated  by  15%  to  86.8  million  tonnes  CO2  eq.  per  year.  In  June,  the  Czech 
Republic  filed  a  lawsuit  on  the  Commission  Decision  to  the  European  Court  of  Justice. 
This  does  not  affect  the  obligation  to  implement  the  National  Allocation  Plan  in 
conformity with the Commission Decision. 

•  The  Czech  Republic  adopted  legislation  introducing  a  minimal  share  of  bio-fuels  into 
gasoline  and  natural  gas  (amendment  to  the  Air  Protection  Act).  In  June,  the  National 
Emissions Reduction Programme was also approved by the government. 

•  A group of members of parliament submitted a draft act on production of heat energy from 

renewable sources of energy, but it was rejected by the parliament. 

Nature and biodiversity 

In 2006, 7.2% of total agricultural area was used for organic farming which is well above the 
4% EU-10 and 3.8% EU-27 averages. 

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•  The European Commission in 2007 initiated an infringement procedure on non-sufficient 
designation of Special Protection Areas for birdlife (SPA) as two important bird areas have 
not been designated. The Czech Republic is far from reaching full implementation of the 
Habitats Directive, having reached less than 60% of the minimum standards. 

•  The  national  inventory  of  Sites  of  Community  Interest  (SCI)  was  submitted  to  the 
European Commission. In autumn, the Commission adopted EU lists of SCIs for the two 
bio-geographical  regions  in  the  Czech  territory,  the  Continental  and  Pannonian  regions. 
However, the designation of SCIs for the Czech Republic is still insufficient. 

•  The government prepared a draft amendment of the Nature and Landscape Protection Act. 
The Act aims to harmonize the existing legislation with the Birds and Habitats Directives 
establishing the Natura 2000 network. 

Natural resources and waste 

•  The  Czech  Republic  is  the  EU  country  which  produces  one  of  the  lowest  amounts  of 
municipal  waste  per  capita:  296  kg/per  capita  in  2006  against  an  EU  average  of  517. 
However, most of this (234 kg, i.e. 80%) is landfilled. 

•  In the spring, the government announced its intention to establish a deposit system on PET 

bottles. 

•  After  months  of  discussions  between  experts,  NGOs  and  ministries,  August  saw  the 
conclusion  of  the  negotiations  for  the  proposal  of  National  Forestry  Plan  for  2007-2013 
laying down principles for sustainable forest management and protection of biodiversity. 

Use of market-based instruments  

•  The  government  in  January  adopted  the  principles  and  timetable  of  an  ecological  tax 
reform.  Its  implementation  will  be  in  three  phases.  The  first  phase  has  introduced 
minimum  taxation  for  coal,  electricity  and  natural  gas  to  transpose  the  Energy  Taxation 
Directive. More detailed proposals for the remaining two phases are to be adopted by the 
government. 

OUTLOOK FOR 2008 

•  Legislative plans for 2008 include an amendment to the Spatial Planning and Building Act, 
establishing  a  deposit  system  of  PET  bottles,  and  a  law  related  to  Environmental  Impact 
Assessment. 

•  The revised National Sustainable Development Strategy is expected to be adopted by the 
government following the consultation procedure which has already taken place, including 
in regions. 

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DENMARK 

HIGHLIGHTS IN 2007 

Early in 2007, the reform of the municipalities came into effect. The reform has transformed 
14 counties and 275 municipalities into 98 larger municipalities and five regions. The reform 
has brought administrative changes, giving the new regions responsibilities for planning, soil 
pollution  and  raw  materials,  while  municipalities  will  be  responsible  for  most  other  issues 
subject to guidelines from the state level. River basin management and nature protection are 
important areas which have become the responsibility of municipalities. 

A  draft  new  national  strategy  for  sustainable  development  was  published  in  June  by  the 
government. Important priority areas are climate change and the need to decouple economic 
growth from growth in environmental pressure. In March 2007, the government's offer to host 
the Conference for parties to the UN Framework Convention on Climate Change in 2009 was 
confirmed. 

After  the  November  elections,  the  existing  coalition  remained  in  power,  but  with  a  narrow 
margin.  Climate change  was  one  of  the topics debated during the election campaigns. After 
the elections the Ministry of Environment was split into the Ministry of Climate and Energy 
and the Ministry of Environment. 

Climate change 

Under the EU burden sharing agreement, Denmark has committed itself to a greenhouse gas 
emission reduction target of 21 % for the period 2008-12. Even though emissions have been 
reduced  substantially  (-7.8%  in  2005  compared  to  the  base  year),  Denmark  is  currently 
showing a gap of 2 % between 2010 projections and the Kyoto target. 

In  2005  the  consumption  of  renewable  energy  accounted  for  17%  of  gross  energy 
consumption.  In  terms  of  electricity  production,  in  2005,  28%  came  from  renewables  (on 
track  to  reach  the  2010  target  of  29%),  while  52%  came  from  combined  heat  and  power 
generation (by far the highest share in EU). In terms of energy efficiency, Denmark had the 
lowest energy intensity ratio in the EU at 114 kg oil equivalent/€1000 GDP in 2005. 

•  The  government  in  January  proposed  the  Energy  Strategy  2025  with  plans  to  reduce  the 
use of fossil fuels by at least 15% in 2025 (compared to 2007) and to prevent increases in 
energy consumption. Also in this package, renewable energy must account for at least 30% 
of the energy consumption by 2025. 

•  In  September  the  government  launched  the  national  strategy  for  adapting  to  climate 
change.  It  analyses  the  vulnerability  to  climate  change  in  the  next  10  years,  and  also 
suggests  means of tackling the effects in different sectors. The Strategy was approved in 
early 2008. 

Nature and biodiversity 

•  The law on national parks was passed in May, and in June the Thy district was launched as 
the  first  national  park  in  Denmark.  The  areas  of  Skjern  Å,  Mols  Bjerge,  Kongernes 
Nordsjælland and Waden Sea are candidates for future national parks. 

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•  Under the Natura 2000 network, Denmark has largely completed the designation of Special 
Protection Areas under the Birds Directive, covering 5.9% of the total land area. In spite of 
the establishment of 254 Sites of Community Interest under the Habitats Directive (7.4% 
of the land area), implementation was still incomplete in 2007. 

Environment and health 

•  The  government  passed a law in January opening the  possibility  of introducing so-called 
environmental  zones  in  larger  towns  where  restrictions  can  be  introduced  to  limit 
emissions of particles, especially from heavy duty diesel trucks and busses. 

•  To tackle the problems caused by pollution from fire-wood burning stoves, the government 

started an information campaign in 2007 targeting households. 

•  The  first  European  Commission  report  on  implementation  of  the  Water  Framework 
Directive  showed  that  Denmark  is  significantly  behind  in  implementing  the  Directive. 
More efforts are needed in the near future. 

Natural resources and waste 

In 2006, Denmark on average produced 737 kg of municipal waste per person against an EU 
average of 517 kg/per person, most of which was incinerated (405 kg/per capita or 55%) and a 
minority landfilled (37 kg/per capita or 5%). 

•  In order to tackle the overexploitation of fish stocks in Denmark, the Danish Ministry for 
Fisheries put a ban on the landing of Norway pout in 2007. However, the ban will be lifted 
again in 2008. 

•  In  June,  the  parliament  agreed  on  a  reorganisation  of  the  waste  management  sector.  The 
key elements are stronger competition and flexibility in the recycling area, more efficient 
incineration and disposal sector, simpler administration and innovation. 

Use of market-based instruments 

Denmark has the highest share of environmental tax revenues as a share of total tax revenues, 
namely 11.6% in 2005, significantly above the EU average (6.6%). 

•  In June, the government changed the taxes on cars in order to give more incentive for car 
owners to buy fuel efficient cars. According to estimates the change of taxes would reduce 
emissions by approximately 175 000 tonnes of CO2 annually. 

•  The government  also set aside €40.3 million for tax reductions  for new diesel cars using 

particle filters in 2006 - 2009. 

Environmental technologies 

•  The 2007 budget included a package aimed at the development and use of environmental 
technologies. It relates to the Action Plan for the Promotion of Environmentally Efficient 
Technology  which  was  published  in  July.  The  plan  contains  measures  within  innovation 
partnerships, research, export promotion, information and a thematic focus on climate and 
energy technology, agriculture, water, and health. 

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OUTLOOK FOR 2008 

•  The government  will propose a law  requiring 5.75 % biofuels in transport fuels  in  2010. 

This law responds to the Biofuels Directive. 

•  The  Action  Plan  for  the  Aquatic  Environment  III  will  be  evaluated  in  2008,  and  the 
government will decide whether the reduction of nitrogen and phosphorous discharge from 
agriculture is sufficient. The evaluation will also include the environmental consequences 
of the EU agricultural reform. 

•  Based  on  the  agreement  in  2007,  the  government  intends  to  submit  a  bill  for  re-

organisation of the waste sector. 

•  The new Sustainable Development Strategy is to be published in early 2008. 

•  A national agreement on renewed targets and  support schemes  for renewable energy and 

energy efficiency is expected in 2008. 

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ESTONIA 

HIGHLIGHTS 2007 

In 2007 several important policy developments took shape. In February, the parliament passed 
the  resolution  on  the  Estonian  Environmental  Strategy  until  2030  and  the  government 
approved the Environmental Action Plan for 2007-2013. The estimated implementation costs 
of  the  Action  Plan  amount  to  about  €6.7  billion  until  2013.  In  January,  the  parliament 
approved  the  Transport  Development  Plan  for  2007-2013  which  focuses  on  the  traffic 
management and coordination system, enhancing the competitiveness of public transport, and 
promoting light traffic. 

Climate change 

In 2005 greenhouse gas emissions were 20.7 million tonnes CO2 eq. or 52% less than in the 
base year. According to the projections for 2010 Estonia would easily meet its Kyoto target of 
8%  reduction.  The  use  of  renewable  energy  is  still  modest.  Renewable  energy  sources 
accounted for 1.4% of gross electricity consumption in 2006, still a long way from the 5.1% 
target in 2010. Estonia has a fairly high energy intensity at 967 kg oil equivalent per €1000 
GDP in 2005, even though it has been halved over the past ten years. 

•  The government approved a Development Plan on the Use of Biomass and Bio-energy for 
2007-2013  to  reduce  Estonia’s  dependence  on  fossil  fuels  and  decrease  pressure  on  the 
environment. Financing for investment in bio-energy production will be provided through 
the Rural Development Plan 2007-2013. 

•  The  national  energy  technology  programme  promotes  technologies  related  to  local 
renewable energy sources and the development of oil shale technologies. The programme 
will support product development, applied studies and fundamental studies. 

•  The European Commission in 2007 assessed the National Allocation Plan for greenhouse 
gas emissions in 2008-2012 and substantially cut the proposed number of emission permits 
to be allocated by 48% to 12.7 million tonnes CO2 eq. per year. Estonia filed a lawsuit on 
the  Commission  Decision  to  the  European  Court  of  Justice.  This  does  not  affect  the 
obligation to implement the National Allocation Plan in conformity with the Commission 
Decision. 

Nature and biodiversity 

In 2007 the Natura 2000 network in Estonia consisted of 67 Special Protection Areas (13.1% 
of the total land area) related to the Birds Directive and is still incomplete, and 497 Sites of 
Community Importance (16.5% of the total land area) under the Habitats Directive currently 
being evaluated. 

•  The  government  is  preparing  a  Nature  Conservation  Development  Plan  which  comprises 

the period until 2035. 

•  In 2006 organic  farming represented 8.7%  of agricultural area, more than double the EU 

average. Estonia has increased its share of organic farming considerably since 2004. 

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Natural resources and waste 

The volume of municipal waste has increased from 368 kg per capita in 1995 to 466 kg per 
capita in 2006, but remains below the EU average. Between 2000 and 2006 the proportion of 
landfilled  municipal  waste  was  reduced  from  100%  to  60%  of  the  total  volume,  but  a 
considerable amount is still disposed of unsorted. 

•  The Environment Action Plan 2007–2013 includes measures to reduce waste generation by 
implementing the best available waste handling technology, improving the state of surface 
and ground water, improving resource efficiency and balancing the use of forests. 

•  The  revision  of  the  National  Waste  Management  Plan  has  started.  The  closure  of  non-
conforming landfills and the further development of regional waste handling facilities and 
a waste handling system for biodegradable waste will be supported. 

Use of market-based instruments 

In 2005 the share of environmental taxation (compared to total tax revenue) was 7%, slightly 
more than the EU average, and is steadily increasing (it was 6% in 2003). 

•  The  excise  duty  rates  on  motor  fuels  will  be  increased  at  the  beginning  of  2008.  Excise 
duty on petrol will increase 25% and on diesel 34.5%. From January 2008 excise duty will 
be introduced on electricity. Even though for natural gas the EU minimum rate of excise 
duty is obligatory only from 2014, the rates on natural gas used for commercial purposes 
will  be  increased  from  2008  already  to  match  the  minimum  rate.  Also  from  2008  the 
exemption from excise duty on shale derived fuel oil will be abolished. 

Environmental technologies 

•  Approximately €15 million have been allocated to promote the development of innovative 
environmental  technologies  as  part  of  the  operational  programme  co-financed  by  the  EU 
Structural and Cohesion Funds 2007-2013. 

OUTLOOK FOR 2008 

•  The government plans to update the Fuel and Energy Sector Development Plan to promote 
the  production  of  renewable  energy  and  support  the  transition  towards  distributed 
production. 

•  Preparations will start on a new Forestry Development Plan for 2020 in order to improve 

sustainable forest management. 

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FINLAND 

HIGHLIGHTS IN 2007 

The general election resulted in a change of government in 2007. A new coalition consisting 
of the Centre Party, the Conservatives and two smaller parties - the Greens and the Swedish 
People's Party won the elections. In 2007 the most significant environment policy initiatives 
dealt with climate change  and  biodiversity. New plans and strategies were approved for the 
transport and energy sectors to reduce greenhouse gas emissions. A comprehensive new waste 
plan  was  also  launched  this  year  that  includes  actions  to  prevent  waste  generation.  A  new 
comprehensive biodiversity action plan was published specifying more than a hundred various 
measures across sectors. 

Climate change 

In 2005 greenhouse gas emissions were 69.3 million tonnes CO2 eq. or 2.6% less than in the 
base year. According to projections for 2010, Finland would meet its Kyoto target to stabilise 
the greenhouse gas emissions at the base year level with a 2% over-delivery only if additional 
measures  are  put  in  place.  With  existing  policy  measures,  use  of  Kyoto  mechanisms  and 
carbon sinks there would be a significant shortfall of about 15.4%. 

Finland  continues  to  refine  its  energy  policies,  enhancing  the  competitiveness  of  renewable 
energy sources. With 26.9% of gross electricity consumption from renewable energy sources 
in 2005, it is nearing its 31.5% renewable electricity target for 2010. In 2005 combined heat 
and power generation accounted for 39% of gross electricity production (about 3 times the EU 
average).  The  energy  intensity  per  capita  is  241.5  kg  oil  equivalent/€1000  GDP,  which  is 
slightly above the EU average. Some of the factors behind the higher energy intensity are the 
cold climate, long distances for transport and an energy-intensive industry. 

•  A  new  transport  strategy,  Transport  2030,  was  launched  in  March.  It  includes  a 
comprehensive  policy  to  reduce  the  greenhouse  gas  emissions  and  improve  daily  travel 
conditions and to boost the competitiveness of business logistics. 

•  The  National  Energy  Efficiency  Action  Plan  was  submitted  to  the  EU  in  June,  and  sets 

strategy to achieve the 9% savings target for 2008-2017. 

•  Finland is progressing with the implementation of its 2005 National Strategy for adaptation 

to climate change.  

•  Subsidies  and  energy  tax  exemptions  support  investment  in  renewable  energy  sources. 
Additional  support  in  the  form  of  feed-in  tariffs  based  on  purchase  obligations  or  green 
certificates is being considered for onshore wind power. 

Nature and biodiversity 

Newly  approved  proposals  for  the  Natura  2000  network  include  1 715  Sites  of  Community 
Importance covering 12.7% of the land area and 467 Special Protection Areas covering 7.5% 
of the land area. The network is incomplete but with recent significant progress. 

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In  2006  the  share  of  organic  farming  was  6.4%  of  agricultural  area,  above  the  EU  average. 
But it has registered a significant decrease since 2004. 

•  A  new  national  action  plan  for  the  conservation  and  sustainable  use  of  biodiversity  until 
2016 has been published after a wide-ranging evaluation of the previous plan that covered 
1997-2005. More than hundred actions have been defined across all government sectors. In 
the environmental sphere special attention has been given to safeguarding national habitats 
and  species  in  the  forests  of  Southern  Finland,  which  are  widely  used  for  commercial 
forestry.  Natural  wetland  habitats  will  be  restored  in  areas  used  for  forestry  and  peat 
extraction,  and  artificial  wetlands  will  be  created  in  farmland  to  boost  biodiversity  and 
reduce nutrient runoff. 

•  Finland's first national landscape conservation area under the Nature Conservation Act was 
established in June. Its goal is to preserve Skärlandet's natural and cultural landscapes in 
the inner archipelago area of the Gulf of Finland. 

•  New  methods  of  safeguarding  biodiversity  have  been  developed  in  connection  with  the 
Southern Finland Forest Biodiversity Programme. The first phase of the programme, which 
is  built  on  forest  conservation  methods  based  on  voluntary  participation  by  landowners, 
includes natural values trading, competitive bidding and co-operation networks. 

Environment and health 

•  The  first  European  Commission  report  on  the  implementation  of  the  Water  Framework 
Directive showed that Finland is significantly behind in implementing the Directive. More 
efforts are needed in the near future. 

Natural resources and waste 

The amount of municipal waste generated in Finland in 2006 was 488 kg per capita, against 
an  EU  average  of  517.  However,  most  of  this  (286  kg,  58,6%)  was  landfilled,  42  kg  per 
person  (8.6%)  was  incinerated,  and  33%  of  municipal  waste  was  treated  by  other  means 
including composting and recycling.  

•  The  proposal  for  a  new  national  waste  plan  was  launched  in  January.  It  describes  waste 
management  policy  and  goals  until  2016.  The  plan  contains  a  separate  action  plan  for 
preventing the generation of waste. According to estimates, implementation of the action 
plan will reduce the amount of municipal waste by 1% each year. 

•  At  the  Helsinki  Commission's  annual  meeting  in  March,  Finland's  initiative  to  forbid 
vessels from discharging sewage into the Baltic Sea did not succeed. Finland proposed a 
new initiative to take the issue further. According to the proposal the discharge of sewage 
into the Baltic Sea should be included in the action plan for protecting the Baltic Sea. 

Use of market-based instruments 

Environmental taxes represented 6.9% of total revenues from taxes and social contributions in 
2005. Due to the relatively heavy vehicle taxation, the share of transport taxes is higher than 
the EU average; that of energy taxes is lower. 

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•  Planned  tax  cuts  on  industrial  electricity  use  will  reduce  the  level  of  energy  taxation 
further.  Oil  waste  duty,  which  is  collected  on  lubricants  and  lubrication  products,  was 
raised  in  early  2007  by  5.75  cents/kg  (previously  4.2  cents/kg).  Electricity  tax  for 
household  consumers  and  taxation  on  coal  will  also  be  increased.  A  possible  increase  in 
waste tax is being investigated, as well as the introduction of pricing models for transport 
based on actual use and the testing of smart toll systems. 

OUTLOOK FOR 2008  

•  A  new  energy  conservation  programme  for  goods  transport  and  logistics  for  the  period 
2008−2016  is  being  prepared  by  the  government.  The  programme  will  link  energy 
conservation  in  goods  transport  with  purchase  contracts  in  transport  services,  training  in 
economic driving, and implementation of R&D knowledge. 

•  The  government  will  prepare  a  new  strategy  on  Energy  and  Climate  change,  and  have  a 

political debate in the parliament in the spring of 2008 for approval. 

•  Green  public  procurement  procedures  will  be  implemented  in  all  ministries  in  2008  to 

ensure that suppliers are complying with a set of environmental standards. 

•  A  new  wide-ranging  action  plan  designed  to  promote  biodiversity  in  the  forests  of 
Southern  Finland  will  be  launched  with  the  aim  of  halting  the  ongoing  decline  in  forest 
species  and  habitats.  The  measures  are  designed  to  improve  the  network  of  protected 
forests  and  to  enhance  the  forestry  practices  applied  in  commercially  managed  forests  to 
the benefit of biodiversity. 

•  The  government  plans  to  increase  proceeds  from  environmental  taxes  by  €300  million 
during  the  four-year  term.  For  this  purpose,  waste  tax,  light  fuel  oil,  petrol,  diesel  oil, 
electricity tax for domestic consumers, and coal tax would be investigated. 

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FRANCE 

HIGHLIGHTS 2007 

In  order  to  show  its  commitment  to  incorporate  sustainable  development  into  all  relevant 
policies,  the  newly  elected  government  created  the  Ministry  of  Ecology,  Sustainable 
Development and Town and Country Planning (MEDAD). MEDAD addresses policy issues 
related  to  housing,  transport,  energy  and  ecology,  thus  acknowledging  the  cross-sectoral 
nature of environmental policies, and giving the new ministry a wider policy scope. 

A major consultation process – Grenelle de l'environnement – was launched in the summer of 
2007  and  was  aimed  at  creating  a  broad  consensus  on  environmental  policies  in  France.  It 
assembled  representatives  of  civil  society,  major  stakeholders  and  representatives  of  the 
government, with the goal of elaborating a plan for sustainable development in France. The 
Grenelle de l'environnement culminated in December with over 30 initiatives being launched. 

Climate change 

Even though 2005 emissions were 1.9% below 1990, France, according to recent projections, 
will  only  meet  its  Kyoto  target  of  stabilising  emissions  at  the  1990  level  if  additional 
measures are put in place. 

In  2006  12.4%  of  gross  electricity  consumption  came  from  renewable  sources.  However, 
progress towards the 21% target for 2010 has been slow. In terms of energy efficiency, France 
had  an  energy  intensity  ratio  at  185  kg  oil  equivalent/€1000  GDP  in  2005,  close  to  the  EU 
average. 

•  A  new  initiative  called  "Domestic  Projects"  was  introduced  to  allow  economic  actors 
previously not covered by the Emissions Trading System (ETS) - only 30% of actors are 
covered - to claim financial rewards for initiatives that reduce greenhouse gas emissions. It 
will do this by making a broader range of the economy part of a market mechanism geared 
towards reducing greenhouse gas emissions. 

•  In  order  to  strengthen  and  update  the  Climate  Plan  adopted  in  2004,  new  measures  were 
implemented in 2007. Specifically construction and transport sectors were given increased 
regulatory  attention  since  they  are  two  of  the  main  CO2  emitters.  More  stringent  energy 
efficiency  requirements  for  new  and  existing  buildings  are  an  important  new  impetus  in 
energy and climate change policy developments. In the transport sector, policies on biofuel 
incentives, energy labelling for cars, alternative transport development, and public funding 
for  private  sector  transportation  initiatives  all  form  part  of  the  core  strategy  to  address 
climate change in the transport sector. 

•  Since  January,  the  Savings  Account  for  Industrial  Development  was  replaced  by  a  new 
Savings  Account  for  Sustainable  Development.  Banks  will  have  to  use  the  collected 
amounts on these accounts partially (2% in 2008; 5% in 2009; 10% in 2010) for financing 
energy saving  works in buildings. To attract investors, interest on this account is exempt 
from taxes. 

•  France  also  prepared  in  2007  its  National  Strategy  for  adaptation  to  Climate  Change, 

following a consultation with a wide range of affected sectors and stakeholders. 

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Nature and biodiversity 

Although the Natura 2000 network is still incomplete, there has been significant progress in 
benchmarks  for  designating  Special  Protected  Areas  (SPA)  and  Sites  of  Community 
Importance (SCI). 371 SPAs (representing 7.8% of France’s land area) and 1 334 SCIs (8.5% 
of national land area) were established by the end of 2007. Natura 2000 does not include the 
overseas territories. 

•  France  has  overseas  regions  located  on  four  continents  and  in  three  oceans,  which  are 
home to an exceptional biodiversity. They have as a whole more species than metropolitan 
France  in  every  group.  Overseas  regions  host  3 450  endemic  plant  species  and  380 
endemic  vertebrate  species.  New  national  reserves  have  increased  the  percentage  of  land 
under  protection.  Among  them  are  the  National  Amazonian  Reserve  of  Guyana,  the 
National  Reserve  of  the  Reunion  Island  and  the  Austral  Lands  Reserve,  the  largest  in 
France. 

•  A  new  measure  allows  owners  of  remarkable  natural  spaces  to  deduct  the  maintenance 

costs from the calculation of land tax. 

Environment and health 

•  After  years  of  debate,  the  Law  on  Water  and  the  Aquatic  Environment  was  adopted  in 
December 2006. It aims to improve water management and introduces measures to achieve 
good surface water status by 2015 as required by the Water Framework Directive. The law 
introduces measures such as tax credits for rainwater collection systems and allows local 
government to levy a tax to improve water quality. 

Natural Resources and waste 

553 kg per capita of municipal waste was generated in France in 2006. 192 kg per capita or 
almost 35% of the waste was sent to landfills and 183 kg per capita (33%) was incinerated, 
the  rest  of  178  kg  per  capita  (32%)  was  treated  by  other  means  including  recycling  and 
composting. 

•  In  the  spring  of  2007,  France  was  condemned  by  the  European  Court  of  Justice  for 
breaching EU rules on waste and waste landfills, more specifically concerning the presence 
of illegal landfills. 

•  The  French  government  has  adopted  a  national  green  public  procurement  action  plan  for 
the period 2007-2009. Among the objectives is a plan to reduce carbon dioxide emissions 
from  administrative  buildings  and  vehicles  by  10%  by  2008.  The  aim  is  to  make  France 
one of Europe's best performing states in green procurement. 

Use of market-based instruments 

•  For  expenses  related  to  the  implementation  of  rainwater  recovery  systems,  a  credit  on 
income taxes of 25% of total expenses can be claimed by private individuals from January 
2007 to December 2009. 

•  A  tax  on  coal  consumption  has  been  put  in  place  and  concerns  different  industries.  The 

revenue will be used for implementation of the Climate Plan. 

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•  Municipalities are allowed to fully or partially exempt buildings from land tax for 5 years 

if the latter fulfil energy efficient benchmarks. 

OUTLOOK FOR 2008 

•  Four  policy  thrusts  will  guide  environment  and  sustainable  development  policy  in  2008. 
Environmental protection is the first priority on the agenda for 2008. Secondly, investment 
in research and development in the aviation industry will contribute to reducing emissions 
and  pollution  in  general.  Thirdly,  promotion  of  alternative  transport  modes,  especially 
railways for both freight and passengers, will contribute to reaching stated environmental 
goals. Finally road and rail infrastructure maintenance are the fourth policy thrust that will 
define MEDAD’s priorities for 2008. 

•  Some  ideas  proposed  in  Grenelle  de  l'environnement,  including  a  new  tax  on  motor 
vehicles 
the  development  of  a  new 
environmental indicator (such as a "Green GDP"), have not been included in the calendar 
for legislative scrutiny in 2008, meaning they will not go before parliament before 2009. 

linked  with  environmental  performance  or 

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GERMANY 

HIGHLIGHTS IN 2007 

Due  to  its  Presidency  of  the  EU  Council  and  the  G8,  Germany's  policy  agenda  was  at  the 
centre of international attention during the first half of 2007. In both fora, Germany promoted 
more ambitious climate change policies. The country is currently well placed to do so since it 
is on track to meet its commitment under the Kyoto Protocol, growth of renewables has been 
rapid and ambitious energy efficiency targets have been set. 

The  government  presented  domestic  policy  initiatives  to  underpin  its  claim  to  leadership  in 
these  areas.  The  Integrated  Energy  and  Climate  Programme  is  the  key  element.  Fourteen 
legislative acts have been implemented as part of a comprehensive programme. 

A ruling of the Federal Administrative Court established a right to effective protection from 
excessive levels of particulates, putting additional pressure to tackle the problem of air quality 
on municipalities. 

Climate change 

In 2005 greenhouse gas emissions were one billion tonnes CO2 eq. which is 18.7% lower than 
in  the  base  year.  According  to  recent  analysis,  Germany  –  together  with  Sweden  and  the 
United  Kingdom  –  is  currently  projected  to  be  on  track  to  achieve  their  targets  using  only 
existing domestic policies and measures. 

In 2006 12% of gross electricity consumption came from renewable sources, and Germany is 
well  on  track  to  reach  the  target  of  12.5%  in  2010.  The  energy  intensity  ratio  is  157  kg  oil 
equivalent/€1000 GDP in 2005, below the EU average. 

•  The Allocation Act 2012 creates the framework for the launch of auctioning and regulates 
the  allocation  of  emission  allowances.  The  allocation  to  energy  installations  will  be 
switched to a benchmarking system that rewards efficient installations. Around one-tenth 
of total allowances, i.e. 40 million allowances per year, will be sold. 

•  In August the federal government adopted the Integrated Energy and Climate Programme. 
It  contains  29  measures  designed  to  reduce  greenhouse  gas  emissions  by  40%  in  2020 
compared to 1990. A comprehensive implementation package was adopted in December. 
14  legislative  acts  were  implemented  by  end  2007.  The  key  elements  are:  increasing 
energy  efficiency,  expansion  of  renewable  energies,  and  more  climate  protection  in 
transport sector. 

•  As  part  of  the  action  package  Germany  aims  to  double  the  share  of  combined  heat  and 
power plants by 2020. Energy saving in buildings would deliver 30% reduction in energy 
consumption by 2009 and an additional 30% by 2012 with financing for the modernisation 
of  energy  systems  of  more  than  €1.4  billion  a  year.  More  ambitious  standards  will  be 
introduced for nitrogen oxide emissions from new power plants. 

•  Existing  instruments  such  as  the  Renewable  Energy  Sources  Act  or  the  incentive 
programme for renewables remain in place, subject to review to reinforce their economic 
efficiency. Offshore wind energy use will be expanded. The Renewable Energies Heat Act 

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would increase the share of renewable energies in the heat sector from the current 6% to 
14%  in  2020.  Homeowners  will  be  obliged  to  use  renewables  in  new  buildings.  €350 
million  have  been  committed  in  2008  and  €500  million  from  2009  for  support 
programmes. 

Nature and biodiversity 

The Natura 2000 network includes 4 617 Sites of Community Importance (9.9% of the land 
area) under the Habitats Directive and 568 Special Protection Areas (8.9% of the land area) 
under  the  Birds  Directive.  Although  the  Natura  2000  network  is  still  incomplete,  there  has 
been recent significant progress in implementing the Directives. 

•  The  National  Strategy  for  Biological  Diversity  adopted  in  November  seeks  to  better 

integrate biodiversity protection into environmental law. 

Environment and health 

Germany  has  by  far  the  highest  level  of  freight  transport  (including  road,  rail  and  inland 
waterways) in the EU: in 2006 this represented 20% of all freight transport in the EU-27. In 
2006 freight transport increased by 6.7% compared to 2005. 

•  A  labelling  system  was  established  putting  light  vehicles  and  lorries  into  four  different 
groups  according  to  their  emission  levels  with  the  aim  of  lowering  particulate  matter 
concentrations in urban areas. It entered into force in March and provides the basis for low 
emission zones that can only be accessed by vehicles meeting a certain emission standard. 
The  first  low  emission  zones  in  Berlin,  Hannover  and  Cologne  will  take  effect  from 
January 2008. 

•  In a lawsuit brought against the City of Munich, the Federal Administrative Court ruled in 
September that a resident of an area with excessive concentrations of airborne particulates 
had an immediate claim to protection. The verdict will force German municipalities to take 
action to bring particulate matter levels below the EU limits. 

Natural resources and waste 

The recycling rate of packaging waste was 68% in 2005, which is one of the highest rates of 
the  EU.  However,  it  is  one  of  the  few  countries  which  show  a  negative  trend  in  the  recent 
years reported. 

In 2006 Germany on average produced 566 kg of municipal waste per capita, of these 32% 
was  incinerated  (179  kg/per  capita)  and  a  minority  landfilled  (4  kg/per  capita,  or  less  than 
1%), thus most went to the recycling collection system. 

•  The Packaging Waste Ordinance was amended in September by the federal government. It 
seeks to secure the availability and functioning of residential collection of sales packaging 
for recycling and fostering competition between the providers of services. 

Environmental technologies 

•  Total financing for research into sustainable development in the current legislative term is 
approximately  €1.2  billion.  In  2007,  €255  million  were  allocated  to  the  Climate  Action 
Programme and around €150 million to a programme for energy research. 

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Use of market-based instruments 

•  As  part  of  the  action  package  for  implementing  the  Integrated  Energy  and  Climate 
Programme, a revised motor vehicle tax and motorway toll rates apply to heavy vehicles 
since  September.  They  take  into  account  the  impact  of  the  vehicles  on  the  environment. 
The  federal  government  introduced  financial  incentives  for  buying  new  low-emission 
heavy lorries. 

OUTLOOK FOR 2008 

•  The reform of Germany's federal system of 2006 provided the opportunity to consolidate 
key  areas  of  environmental  regulation  into  a  single  statute  book  “Umweltgesetzbuch.”  It 
should  contribute  to  a  more  coherent  approach  in  environmental  protection  and  simplify 
the adoption of new EU legislation. It will enter into force by the end of 2008. 

•  For  the  budget  year  2008  a  total  of  €2.6  billion  (including  up  to  €400  million  from 
auctioning  emissions  allowances)  will  be  available  from  the  federal  budget  for  climate 
protection – more than double the 2007 budget. 

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GREECE 

HIGHLIGHTS IN 2007 

The natural environment and biodiversity in Greece have been severely hit by fires, those of 
July and August 2007 being of dramatic proportions. Fires in Peloponnese, Attica and Euboea 
burnt  a  total  of  around  275 000  hectares,  of  which  more  than  30 000  ha  Natura  2000  sites. 
Species, such as  Abies  cephalonica the Greek fir, and important habitat  types  and protected 
species populations were heavily affected. 

Greece  continues  efforts  to  meet  its  commitments  with  regard  to  greenhouse  gas  emissions. 
The country is preparing additional measures which would allow Greece to reach the Kyoto 
target. 
the Packaging 
Waste Directive and the adoption of the national plan for the management of hazardous waste. 
Nevertheless, high number of illegal dumps is still an issue. 

by transposing 

on  waste 

legislation 

It  made 

progress 

The  government  has  concentrated  its  efforts  on  transposition  of  EU  Directives.  However, 
monitoring  and  enforcement  is  still  weak,  in  spite  of  the  efforts  to  establish  a  competent 
Environment Inspectorate, which is still experiencing staffing and financing problems. 

Climate change 

Under  the  Kyoto  Protocol  and  EU  burden  sharing  agreement,  Greece  is  committed  to 
restricting  the  growth  of  greenhouse  gas  emissions  to  25%  for  the  period  2008-2012 
compared to the base year. In 2005, emissions were 25.4% above base year levels. According 
to  projections,  Greece  will  achieve  the  Kyoto  target  only  if  additional  measures  are 
implemented. These include further penetration of natural gas, energy savings in industry and 
buildings, structural changes in agriculture and chemical industry and emissions reduction in 
transport and waste management. 

Renewable  energy  contributed  to  about  12%  of  electricity  consumption  in  2006,  slightly 
below  the  EU  average.  In  2005  the  contribution  of  combined  heat  and  power  generation  is 
limited to only 1.7%, far short of the EU average of 11%. 

•  The Greek authorities submitted to the European Commission the 2nd National Allocation 
Plan for emissions trading for the period 2008-2012. The European Commission asked for 
further reductions of emissions by 8.5%. 

Nature and biodiversity 

•  A National Strategy for Biodiversity is being drawn up to support an integrated approach 
to biodiversity conservation. An assessment of the conservation status of the habitat types 
and species of Community Interest took place in the context of the Habitats Directive. 

•  The Natura 2000 network includes 151 Special Protection Areas (SPA) for implementation 
of the Birds Directive (10% of the land area) and 239 Sites of Community Importance for 
the Habitats Directive (16.4% of the land area). The network is however still incomplete. 
The  October  2007  ruling  of  the  European  Court  of  Justice  pointed  to  the  insufficient 
designation  of  SPAs  in  Greece,  specifically  because  45  areas  of  importance  for  the 

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conservation of birds, representing 60% of the  overall area of importance, have not been 
classified as SPAs. 

Environment and health 

•  The  disastrous  fires  during  the  summer  had  significant  effects  on  the  quality  of  the 
underground  water  which  supplies  many  villages  with  drinking  water.  The  fires  have 
exacerbated  already  existing  problem  of  high  air  pollution  by  causing  further  increase  of 
particulates  in  the  atmosphere  resulting  in  numerous  admissions  to  hospitals  due  to 
respiratory problems. In the long term, the loss of a large part of Attica forest is creating 
more  difficult  conditions  regarding  the  quality  of  the  atmosphere  and  raises  concerns  for 
the impacts on human health. 

•  Some of Greece’s most important water resources are suffering from pollution. In 2007, it 
became  clear  that  the  Asopos  River  in  central  Greece,  which  supplies  10 000  local 
residents with drinking water, has alarmingly high levels of chromium, lead and nitrate – 
all  potentially  carcinogenic.  Legal  proceedings  have  been  launched  by  the  government 
against 13 manufacturers for dumping unprocessed wastewater into the river. 

•  Transposition  of  the  Water  Framework  Directive  is  complete. However,  implementation 
steps  like  the  environmental  analysis,  due  in  2004,  or  the  setting  up  of  the  monitoring 
networks, due in 2007, have not been achieved. Greece is seriously lagging behind and the 
European Commission demanded more effort to this area. 

•  Air  quality  in  urban  areas  is  a  major  problem:  in  2005  Greece  had  the  highest  ozone 
concentrations  and  the  second  highest  concentrations  of  particulates,  and  data  show  a 
deterioration compared to 2004. 

Natural resources and waste 

•  In  March,  the  national  plan  for  the  management  of  hazardous  waste  was  adopted,  which 
means  completion  of  the  institutional  framework  for  hazardous  waste  management. 
However,  the  European  Commission  decided  to  take  legal  action  against  Greece,  as  the 
management plan adopted for hazardous waste is not sufficiently precise and the inventory 
of  hazardous  waste  is  not  yet  definitive  for  all  categories.  The  transposition  of  the 
Directive  on  packaging  and  packaging  waste  has  led  to  stricter  targets  for  recycling  and 
reuse. The recycling rate of packaging waste was 41.8% in 2005 (below the EU average of 
55%). The European Commission's 2007 Assessments of National Reform Programmes for 
Growth  and  Jobs  asked  Greece  to  focus  on  protecting  the  environment  by  prioritising 
effective solid and water waste management and curbing greenhouse gas emissions. 

•  The  European  Commission  in  2007  approved  the  Environment  and  Sustainable 
Development  Programme  under  the EU  Structural  and  Cohesion  Funds  for  2007-2013. 
Priorities include investment in solid waste management, rational use of water resources, 
modern waste water facilities, protection of natural resources and the efficient tackling of 
environmental risks. The total budget for this programme is € 2.25 billion. 

•  Municipal  waste  generated  was  443  kg  per  person  in  2006,  this  is  74  kg  below  the  EU 
average. Most of this, 87%, was landfilled (above the EU average of 41%) and the rest was 
recycled  -  the  ratio  which  should  be  reversed.  Furthermore,  Greece  has  committed  to 
eliminating all illegal waste dumping sites by the end of 2008. 

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Use of market-based instruments 

•  New  measures  to  internalise  external  environmental  costs  include  exemptions  from 
circulation  taxes for  hybrid  cars,  and  financial  incentives  for  the  development  of 
photovoltaics and wind energy. 

Environmental technologies 

•  The  government  launched  two  funding  schemes  to  promote  environmental  management 

systems in enterprises, especially SMEs. 

•  180 organisations from the fields of research, technology and industry received funds from 
the  Greek  government  in  2007  amounting  to  €  9.8  million  for  the  adoption  of 
environmental technologies by industry. 

OUTLOOK FOR 2008 

•  The  Greek  government  is  preparing  a  National  Zoning  Plan,  which  aims  to  promote  a 
rational economic and housing development in the country, and to protect the environment. 

•  The government plans to set up Thematic Strategies for coastal and rural areas and launch 
a Biodiversity Action Plan to set up a national framework for biodiversity monitoring, as 
well as to carry out specific actions for threatened species and habitats and the restoration 
of  the  affected  by  the  wild  fires  areas.  These  actions  will  be  partially  funded  by  the  EU 
Structural and Cohesion Funds. 

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HUNGARY 

HIGHLIGHTS IN 2007 

The parliament adopted the National Sustainable Development Strategy, which also includes 
the  establishment  of  a  Sustainable  Development  Council.  The  new  law  on  electrical  energy 
adopted in June provides a supportive legal framework for electricity generation from renewable 
energy sources, including the revision of a feed-in tariff support scheme. Also a climate change 
law  was  adopted  in  June,  and  the  government  started  preparations  for  a  National  Climate 
Change Strategy for 2008-2025. 

The  European  Commission  approved  a  number  of  Operational  Programmes  co-funded  from 
the  EU  Structural  and  Cohesion  Funds  for  2007-2013.  Environmental  priorities  include 
sustainable  urban  development,  water  management  and  increased  use  of  renewable  energy 
sources. 

Climate change 

Hungary  reduced  greenhouse  gas  emissions  by  34.5%  between  the  base  year  and  2005. 
According to projections, the Kyoto target will be overachieved by 22.5% in 2010. 

In 2006 3.7% of electricity was produced from renewable resources, thus reaching the 2010 
target of 3.6%, but it had decreased compared to the previous year. 

•  Hungary adopted a climate change law in June. On the basis of its provisions, Hungary is 

preparing a National Climate Change Strategy for the period 2008-2025. 

•  The  government  prepared 

the  strategy  Energy  Policy  for  Hungary  2007-2020. 
Sustainability  of  energy  production  and  energy  efficiency  are  key  objectives  of  the 
strategy, together with security of supply and improving the competitiveness of the sector. 

•  The new electricity law adopted by the parliament provides a supportive legal framework 
for  electricity  generation  from  renewable  energy  sources.  It  maintains  and  develops  the 
feed-in tariff support scheme, and initiates an analysis of the possible future introduction of 
the green certificate system. In addition, the Strategy for increasing the use of renewable 
energies in Hungary 2007-2020 has been prepared. 

•  The European Commission in 2007 assessed the National Allocation Plan for greenhouse 
gas  emissions  in  2008-2012  and  cut  the  proposed  number  of  emission  permits  to  be 
allocated by 12% to 26.9 million tonnes CO2 eq. per year. Hungary filed a lawsuit on the 
Commission Decision to the European Court of Justice. This does not affect the obligation 
to implement the National Allocation Plan in conformity with the Commission Decision. 

Nature and biodiversity 

•  Nature protection in 2007 focused on management of Natura 2000 sites, design of nature 
and  landscape  protection,  elaboration  and  execution  of  species  conservation  plan,  and 
habitat  rehabilitation.  The  Natura  2000  network  in  Hungary  comprises  467  Sites  of 
Community Interest (SCI) covering 15% of the territory and 55 Special Protection Areas 

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(SPA)  for  birds,  which  cover  14.5%  of  the  territory.  However,  the  network  of  SPAs  is 
considered incomplete, and the SCI are being evaluated. 

Environment and health 

•  Strategic  noise  maps  of  Budapest  and  major roads  and  railways  have  been  completed.  A 
government  decree  has  been  put  in  place  on  protection  from  noise  and  mechanical 
vibrations outside the working environment. 

•  The  European  Regional  Development  Fund  supported  the  development  of  an  air  quality 
monitoring  system  and  data  communications  system.  Since  August,  daily  values  Air 
Quality Index are accessible via the website. 

•  The government in  2007  launched  the Programme "Hungary on Bicycles" which aims at 

promoting bicycle use and the development of bicycle infrastructure. 

Natural resources and waste 

•  The  Development  Strategy  for  Municipal  Solid  Waste  Management  2007-2016  has  been 
prepared,  including  a  system  for  economic  instruments  on  waste  management  to  reduce 
waste quantity. In order to eliminate illegal dumping, the government has started a series of 
steps called "Green Commando", carried out by the environment authorities, the police, the 
civic guard, local governments and traffic authorities. 

•  In  2006  Hungary  produced  on  average  468  kg  per  person  of  municipal  waste,  slightly 
below the EU average. Most of this, 80%, was landfilled (above the EU average of 41%), 
8% was incinerated and the rest was recycled or composted. 

•  The  European  Commission  in  2007  approved  a  number  of  Operational  Programmes  for 
Hungary under the Structural and Cohesion Funds for 2007-2013. Priorities of the Energy 
and  Environment  Operational  Programme  include:  sustainable  urban  development  (waste 
management,  waste  water  treatment,  drinking  water),  management  of  waters  (flood 
protection,  complex  river  catchment  development,  river  basin  management  plans)  and 
increased  use  of  renewable  energy  sources.  The  total  budget  for  this  programme  is 
€4.18 billion. 

Use of market-based instruments 

Hungary’s environmental tax revenues account for 7.4% of total tax revenues, slightly above 
the EU average. Most of this comes from energy taxes, the rest are taxes on transport. 

Implementation 

Among the 10 Member States that joined the EU in 2004, Hungary has the lowest number (6) 
of infringements of EU environmental legislation as of 31 December 2007. 

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OUTLOOK FOR 2008 

•  The  National  Environmental  Programme  for  the  period  starting  from  2009  will  be 

prepared. 

•  A  National  Climate  Change  Strategy  will  be  launched  in  2008  after  approval  by  the 

government and the parliament. 

•  The Green Investment Scheme supporting renewable energy and energy efficiency projects 

is to be introduced. 

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IRELAND 

HIGHLIGHTS IN 2007 

A general election in May resulted in a coalition government involving the Green Party. The 
coalition agreement includes an environmentally focused set of priorities. 

The government published an energy white paper in March outlining a sustainable future for 
energy.  Later  in  the  year,  a  framework  for  biofuels  was  published  along  with  an  energy 
efficiency  strategy.  The  €3  billion  Rural  Environmental  Protection  Scheme  has  been 
launched. 

Climate change 

In  2005  greenhouse  gas  emissions  were  69.9  million  tonnes  CO2  eq.,  an  increase  of  25.4% 
compared  to  the  base  year.  According  to  projections  for  2010  Ireland  should  have  a  slight 
over-delivery  on  its  Kyoto  target  of  stabilizing  emissions  at  13%  over  the  base  year  level 
taking  into  account  the  effect  of  existing  measures,  Kyoto  mechanisms  and  carbon  sinks. 
Ireland’s energy intensity has been falling since 1990. Ireland energy intensity is among the 
lowest in the EU, being 144 kg oil equivalent/€1000 GDP in 2005. 

In 2006 8.5% of gross electricity consumption came from renewable sources, and Ireland is 
well  placed  to  reach  the  target  of  13.2%  in  2010.  In  2005  its  share  of  combined  heat  and 
power (as a share of total electricity generation) is very low, 2.4%, while the EU average is 
11%. 

•  The National Climate Change Strategy was revised in 2007 to impose further measures to 
ensure  that  the  Kyoto  targets  will  be  met.  The  Carbon  Fund  Act  was  passed  to  pave  the 
way for the use of Kyoto Protocol flexible mechanisms. 

•  In March the government published an energy white paper, which set several new targets, 
including an ambition of at least 500MW of installed ocean energy capacity by 2020 along 
with further investment into solar energy. Renewables must account for 15% of electricity 
by 2010. 

•  The Building Energy Rating System was introduced. It will cover all new non-residential 
buildings as well as all housing offered for rent or sale.  New national building standards 
will require new housing to have 40% lower heat energy demand. 

•  In October, a draft National Energy Efficiency Action Plan was published with details on 
further  progress  towards  reducing  energy  demand.  Significant  energy  efficiency  targets 
have  been  set  with  30%  savings  in  energy  across  the  electricity,  transport  and  heating 
sectors by 2020 and 33% for the public sector. 

Nature and biodiversity 

•  The Natura 2000 network includes 413 Sites of Community Importance (10.2% of the land 
area) and 131 Special Protection Areas (2.9% of the land area) but it is still incomplete. In 
December, the European Court of Justice ruled that Ireland's network of Special Protection 

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Areas (among the smallest in the EU) needed to be enlarged and the measures to protect it 
improved. 

•  In August the €3 billion Rural Environmental Protection Scheme was launched to protect 
rural  landscape,  increase  biodiversity  and  improve  water  quality.  The  scheme  sets  out 
initiatives until 2013 and encourages farmers to reduce the use of fertilisers and to lower 
greenhouse gas emissions. 

Environment and health 

•  New  regulations  regarding  emissions  of  volatile  organic  compounds  covering  paints, 
varnishes  and  vehicle  refinishing  products  were  adopted.  All  products  covered  by  the 
Regulations must be labelled to indicate volatile organic compound content. 

•  The  first  European  Commission  report  on  implementation  of  the  Water  Framework 
Directive  (WFD)  showed  that  Ireland  is  setting  up  a  well  organised  process  towards  the 
development  of  the  first  river  basin  management  plans  in  2009,  which  is  the  most 
important milestone in WFD implementation. 

•  In the first half of 2007, one of Ireland's largest public water supplies, serving the city of 
Galway,  was  contaminated  with  Cryptosporidium,  a  human  pathogen  found  in  drinking 
water  sources  contaminated  with  human  and  animal  wastes.  This  further  confirmed  the 
existence  of  drinking  water  problems  in  Ireland  resulting  from  a  combination  of  source 
pollution and inadequate treatment. 

Natural resources and waste 

Between  1995  and  2006  municipal  waste  generation  increased  significantly  to  804  kg  per 
capita in 2006, the highest in the EU. Almost 60% from municipal waste is landfilled. 

•  Ireland’s new government committed itself to the establishment of new waste management 
targets like the objective that 10% of waste (or less) be consigned to landfill. At the present 
time, no date has been set for this target. 

Use of market-based instruments 

As  a  percentage  of  total  taxation  Ireland’s  environmental  tax  revenues  are  7.4%  of  total 
revenues, somewhat above the EU average. About half of revenue comes from transport tax 
and the rest is levied on energy. 

OUTLOOK FOR 2008 

•  As  part  of  the  National  Climate  Change  Strategy,  the  government  will  publish  a 
Comprehensive Demand Side Management Plan, which will propose that  greater  priority 
should be given to sustained cost-effective demand reduction initiatives for residential and 
business sectors. 

•  Financial  incentives  will  be  offered  to  households  from  2008  to  upgrade  the  energy 

efficiency of older housing stock. 

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•  Building facilities managers will have an additional tool to assess energy consumption with 
the introduction of the Building Energy Rating for new non-residential buildings for sale or 
rent from July 2008 and for existing buildings from January 2009. 

•  Sustainable  Travel  and  Transport  Action  Plan  will  be  published  in  2008.  It  will  set  out 
detailed plans for enhancing the energy efficiency and wider sustainability of the transport 
sector. 

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ITALY 

HIGHLIGHTS 2007 

The  Italian  Sustainable  Development  Strategy  and  efforts  to  promote  renewable  energy  and 
energy  efficiency  show  the  interest  of  the  government  in  environment  policy.  However, 
difficulties  related  to  the  transfer  of  competencies  between  national  and  regional  level 
continue to complicate and delay the application of legislation. 

One  of  the  most  important  events  of  the  year  has  been  the  National  Climate  Change 
Conference  in  September,  which  has  put  forward  different  priorities  including  the 
strengthening energy saving incentives and the development of an early warning system for 
natural disasters. 

The waste crisis in Naples and the surrounding region of Campania demonstrated the urgent 
need to adopt measures and a more strategic planning approach to waste management. 

Climate change 

With greenhouse gas emissions of 582.2 million tonnes CO2 eq. in 2005 or 12.1% more than 
in 1990, Italy currently is a long way short of its Kyoto target. Italy has committed itself to a 
decrease  of  6.5%  in  emissions  in  2008-2012  compared  to  1990.  The  recent  projections 
indicate that it will fall short of the target by 12.7% if additional policies are not implemented. 
Particular concerns relate to the growth of electricity consumption and the large gap between 
the  share  of  electricity  from  renewable  sources  (14.5%  of  gross  electricity  consumption  for 
2006)  and  the  2010  target  of  25%.  In  terms  of  energy  efficiency  Italy  was  close  to  the  EU 
average, with energy intensity at 190.7 kg oil equivalent/€1000 GDP in 2005. 

•  Energy efficiency has been given an increased attention with energy saving targets set for 
the  period  2005-2009.  A  new  mechanism  called  Energy  Efficiency  Securities  or  "white 
certificates" is being introduced. 

•  The  Finance  Act  gave  particular  attention  to  the  building  sector  introducing  fiscal 
incentives up to 55% of the cost of reducing energy loss in buildings, promoting wider use 
of  renewable  energy  such  as  installation  of  solar  panels  for  hot  water  production  and 
photovoltaic technologies. 

•  €200 million per year have been channelled into measures promoting co-generation, use of 
renewable  energy  source  for  electricity  or  heat,  substitution  of  industrial  electric  motors 
with  high  efficiency  motors,  phasing  out  nitrogen  dioxide  from  industrial  processes  and 
R&D pilot projects on new low emissions energy sources. 

Nature and biodiversity 

Most  recent  data  show  that  in  2006,  organic  farming  represented  9%  of  agricultural  area  in 
Italy which is the third highest from all Member States, and around 17% of the total organic 
area in the EU. 

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•  Soil  erosion  continues  to  be  an  important  issue  (30%  of  coastal  areas  affected).  Illegal 
construction  continues  to  grow.  According  to  some  estimates,  140 000  illegal  building 
were built in 2001–2005 and legalised through special ad hoc legislation. 

•  As part of the Natura 2000 network there were 589 Special Protection Areas (13.6% of the 
land area) and 2 283 Sites of Community Importance (14.2% of the land area) at the end of 
2007  -  both  evaluated  by  the  European  Commission  as  incomplete  but  with  recent 
significant progress. 

Environment and health 

•  Italy is still facing an important water pollution threat, especially in certain river basins due 
to  inadequate  waste  water  treatment.  Transposition  and  implementation  of  the  Water 
Framework  Directive  is  still  incomplete.  The  European  Commission  has  sent  a  final 
warning that Italy will face renewed court action and possible fines if the country does not 
fully transpose EU environmental laws in line with the judgement of the European Court of 
Justice of 2006. 

•  Italy has serious air pollution in urban areas: in 2005 it had the highest concentrations of 
particulates and the second highest concentrations of ozone, in the EU. In 2007, there were 
several  Italian  cities  whose  pollution  levels  were  particularly  high,  e.g.  in  Turin 
concentrations exceeded maximum levels during 190 days. 

•  With  regard  to  environmental  damage  regulation,  a  joint  plan  by  the  Ministry  of 
Environment and the Ministry of Economics was formulated in January. The plan aims to 
reassign the sums paid by companies to the state in compensation for damages inflicted on 
the environment to a general budget supporting environmental priorities. 

Natural resources and waste 

140 million tonnes of waste were produced in 2005, of which 22.5% were municipal waste, 
40%  industrial  waste  (9%  hazardous  waste)  and  the  remaining  37%  construction  waste. 
Municipal waste had increased in 2006 reaching 548 kg per capita a year, 52% was landfilled 
and 12% incinerated. Water consumption per capita is still higher than the EU average (730 
m3 against the EU average of 530 m³) due to the inefficient distribution network. 

•  The waste crisis in Naples and the surrounding region of Campania resulted in more than 
100 000  tones  of  refuse  accumulating  in  the  streets.  It  demonstrated  the  urgent  need  to 
adopt  measures  and  a  more  strategic  planning  approach  to  waste  management.  The 
European Commission launched new infringement proceedings in June when the scale of 
the problem in Campania became clear. 

•  Italy  has  been  repeatedly  censured  by  the  European  Court  of  Justice  for  failing  to 
implement  EU  waste  rules,  most  recently  in  December.  Earlier  in  the  year,  Italy  was 
condemned by the Court for the presence of thousands of illegal landfills in its territory. 

•  In  2007  the  tax  on  municipal  waste  was  replaced  with  a  fee  based  on  the  polluter  pays 

principle. 

Implementation 

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Italy has the highest number of ongoing infringements of EU environmental legislation: 60 as 
of 31 December 2007. Most of these relate to nature protection and waste legislation. 

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Better regulation 

•  In  November,  the  government  approved  a  draft  law  on  environmental  accountability;  if 
this becomes  law,  it  will  oblige  local,  regional  and  national  governments  to  set  up  and 
adopt an accountability system to be presented in parallel to the public budgets. 

OUTLOOK FOR 2008 

•  Following the recent political crisis that led to the resignation of the Prodi government in 
January 2008, it is difficult to ascertain what the environment policy  priorities will be in 
2008  and  which  of  the  measures  planned  by  the  outgoing  government  will  be  actually 
implemented. However, it can be expected that many of the priorities and plans, described 
below, will still be on the political agenda. 

•  The  plans  for  2008  introduce  further  incentive  measures  to  support  renewable  energy 

sources and energy efficiency of buildings and household appliances. 

•  The severe shortcomings of Italy's waste management system are a political priority to be 
addressed in 2008. This also means stepping up the fight against the so called "ecomafia." 
In  2007,  a  specific  division  was  created  within  the  Carabinieri  police  corps,  tasked  with 
identification  and  persecution  of  environmental  crimes.  It  is  planned  to  continue  and 
extend these operations in 2008. 

•  Full  implementation  of  the  EU  Energy  Performance  of  Buildings  Directive,  with  its 
obligations in terms of use of renewables in new and existing building, is planned for 2008. 

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LATVIA 

HIGHLIGHTS 2007 

The  National  Strategic  Reference  Framework  2007-2013  and  Operational  Programmes  co-
financed by the EU Structural and Cohesion Funds were approved in 2007. They will provide 
funding  for  investment  in  water,  waste  water  and  waste  management  infrastructure, 
conservation  of  biodiversity,  rehabilitation  of  contaminated  sites,  energy  efficiency  and 
promotion  of  renewable  energy.  €920  million  or  20%  of  the  EU  Structural  and  Cohesion 
Funds have been allocated to these measures. 

Climate change 

According to the most recent data, greenhouse gas emissions were 10.9 million tonnes CO2 
eq. in 2005, a decrease of 58% compared to the base year. Energy intensity was 644.8 kg oil 
equivalent/€1000 GDP in 2005 (above the EU average). 

The share of renewables in gross electricity consumption was 37.7 % in 2006, down 10.7% 
from the previous year. The target for 2010 is 49.3%. Among the new Member States, Latvia 
had the highest share of electricity generation from combined heat and power in 2005, with 
more than 30%. The EU average is about 11%. 

•  The  European  Commission  assessed  the  National  Allocation  Plan  for  greenhouse  gas 
emissions in 2008-2012 and substantially cut the proposed number of emission permits to 
be allocated by 55% to 3.43 million tonnes CO2 eq. per year. Latvia filed a lawsuit on the 
Commission Decision to the European Court of Justice. This does not affect the obligation 
to implement the National Allocation Plan in conformity with the Commission Decision. 

•  The  Regulation  on  Electricity  Production  from  Renewable  Energy  Resources  was 
approved  in  July  to  facilitate  electricity  production  from  renewables.  It  sets  criteria  for 
producers of renewable electricity, procedures for tenders on renewable electricity and the 
share for each of the renewable electricity source to be achieved by 2010. It also describes 
the  measures  to  facilitate  electricity  production  from  biomass:  financial  support  for  the 
production of biomass and for investment in biomass co-generation plants. 

•  The  Law  on  Energy  Certification  for  Buildings  was  approved  by  the  government,  and 
submitted to the parliament. The aim is to implement energy certification for the existing 
and new buildings. 

•  The government relies on EU Structural and Cohesion Funds as the main financial sources 
for  supporting  the  use  of  renewable  energy  resources,  cogeneration  plants  and  energy 
efficiency.  Approximately  €157  million  of  these  Funds  will  be  allocated  to  the  energy 
sector and increasing energy efficiency in the 2007-2013 period. 

•  The  government  adopted  a  programme  on  biogas  production  and  use.  The  programme 
includes measures such as developing an information system on biogas resources, R&D on 
biogas technologies and pilot projects in biogas production. Currently biogas co-generation 
stations  have  a  capacity  of  7.8  MW  and  produce  approximately  one  percent  of  the  total 
electricity  produced  from  renewable  sources.  Under  the  programme,  biogas  production 
would increase four times by 2011. 

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Nature and biodiversity 

98  Special  Protection  Areas  (9.7%  of  the  total  land  area)  and  331  Sites  of  Community 
Importance (11% of the total land area) are part of Natura 2000 network. State financing for 
nature conservation was €5.8 million in 2007. The network of Special Protection Areas is not 
yet complete, and of Sites of Community Interest is being evaluated. 

Organic farming in 2006 represented 10.3% of agricultural area in Latvia, which is the second 
highest  from  all  Member  States.  It  also  showed  the  most  important  increase  compared  to 
2004, among Member States. 

Environment and Health 

•  In  July,  the  government  adopted  amendments  to  the  Law  on  Chemical  Substances  and 
Chemical Products in order to comply with the European Chemicals legislation (REACH). 
It will prevent duplication of specific norms concerning the management of chemicals. 

Natural resources and waste 

Municipal waste generation has grown rapidly from 270 to 411 kg per capita between 2000 
and  2006  (mainly  due  to  an  improved  reporting  system  since  2006).  The  share  of  the 
municipal waste landfilled decreased from 93% to 71% in the same period, with less than 1% 
going to incineration. 

•  Regional waste management plans have been approved by the government. They foresee 
the introduction of separated waste management systems, investment in waste management 
technologies, closure and re-generation of landfills. 

Better regulation 

•  Amendments  have  been  made  to  the  permitting  procedure  under  the  Integrated  Pollution 
Prevention  and  Control  Directive  to  clarify  permit  requirements  (reduce  the  amount  of 
information  requested)  therefore  reducing  the  administrative  burden  and  improving 
environmental effectiveness. 

•  A  new  regulation  on  environmental  liability  was  passed  to  hold  polluters  responsible  for 
their actions thus transposing the Environmental Liability Directive. .It should ensure that 
in the future environmental damage is prevented or remedied, and that those who cause it 
are held responsible. 

Use of market-based instruments 

In 2005 environmental taxes represented 9.2% of total tax revenues (EU average was 6.6%), 
energy related taxes being 7.7% of total tax revenue, the highest share in the EU. 

•  The  government  submitted  a  proposal  for  a  new  extra  tax  on  plastic  bags,  in  order  to 

reduce consumption. 

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OUTLOOK FOR 2008 

•  The  government  will  prepare  the  new  Environment  Policy  Strategy  2009–2015.  The 
Strategy  will  include  targets  and  measures  to  tackle  environmental  problems  during  the 
next seven years. 

•  The government plans to prepare and adopt the Strategy for Environmental Monitoring in 

the first half of 2008. 

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LITHUANIA 

HIGHLIGHTS 2007 

One  of  the  most  significant  developments  has  been  the  adoption  of  a  new  Strategic  Action 
Plan for the Environment 2007-2009. The planned measures would facilitate the reduction of 
water, soil and air pollution. 

A new comprehensive National Energy Strategy defining the main targets and measures until 
2025 was approved in January. 

Environment and sustainable development is one of the five priorities for EU Structural and 
Cohesion Funds assistance during the period 2007-2013. Main activities include developing 
water  supply  and  waste  water  treatment  systems,  creating  modern  waste  management 
systems,  improving  air  quality,  increasing  the  efficiency  of  energy  generation  and 
consumption and the use of renewable energy resources. 

Climate change 

In 2005 greenhouse gas emissions were 22.6 million tonnes CO2 eq. or 53.1% less than in the 
base year. According to the projections for 2010 Lithuania would easily meet its Kyoto target 
of 8% reduction in greenhouse gas emissions despite the growth in emissions over the recent 
years. 

Energy  intensity  is  high  at  949  kg  oil  equivalent/€1000  GDP.  Renewable  energy  sources 
accounted for 3.9% of gross electricity consumption in 2005 and the target is 7% for 2010. 

•  A  new  programme  for  apartment  buildings  will  increase  energy  efficiency  significantly 
and reduce expenditure on heating by approximately 30 % on average. 390 projects have 
been  prepared  for  an  amount  of  approximately  €70  million,  and  150  projects  have  been 
already completed. 

•  The  new  National  Energy  Strategy  includes  developing  storage  capacities  of  petroleum 
products,  oil  and  gas,  connection  of  electricity  networks  with  the  Scandinavian  countries 
and  Poland,  increasing  the  share  of  renewable  energy  resources  and  improving  energy 
efficiency.  Lithuania  is  facing  challenges  with  the  planned  decommissioning  of  the 
Ignalina power plant in 2009 that has been generating 75-88% of its electricity since 1993 
and intends to replace it before 2015. 

•  With the installation of the planned wind and biomass power plants, renewable sources are 

expected to reach the target by 2010. 

•  The European Commission in 2007 assessed the National Allocation Plan for greenhouse 
gas emissions in 2008-2012 and substantially cut the proposed number of emission permits 
to be allocated by 47% to 8.8 million tonnes CO2 eq. per year. Lithuania filed a lawsuit on 
the  Commission  Decision  to  the  European  Court  of  Justice.  This  does  not  affect  the 
obligation to implement the National Allocation Plan in conformity with the Commission 
Decision. 

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Nature and biodiversity 

As part of the Natura 2000 network there were 77 Special Protection Areas and 267 Sites of 
Community Importance covering respectively 8.1% and 9.9% of the land area by the end of 
2007.  Progress  in  establishing  the  Special  Protection  Areas  is  not  yet  complete  while 
requirements under the Habitats Directive have only been met by 60%. 

•  The Biodiversity Conservation and Protected Areas Planning and Management Programme 
for  2007-2013  was  adopted  by  the  government  to  promote  conservation  measures  for 
species  and  habitats,  including  protection  of  endangered  species  and  habitats,  control  of 
invasive species, inventory of habitats and creation of a habitats monitoring system. 

Environment and health 

•  The  launch  of  newly  built  and  reconstructed  waste  water  cleaning  plants,  waste  water 
collection  and  drinking  water  supply  networks  in  the  main  cities  is  expected  to  result  in 
cleaner water bodies and improved quality of drinking water for many households. 

Natural resources and waste 

•  In 2006 an average of 390 kg of municipal waste per capita was produced, below the EU 
average, but showing a steady increase compared to previous years. The share of landfilled 
waste  was  more  than  90%  ;  the  EU  average  is  about  40%.  In  2005  32,5%  of  packaging 
waste was recycled (EU average is 55%). Significant efforts need to be undertaken in order 
to change the situation and allow the country to comply with the targets of the Packaging 
Directive,  the  Landfill  Directive  and  the  requirements  of  the  revised  Waste  Framework 
Directive. 

•  A National Strategic Waste Management  Plan  prepared  by  the  government  in  September 
contains priorities and measures for 2007-2013. An important issue is the development of a 
household waste management system, where landfills posing an environmental risk will be 
replaced by modern regional waste management centres. 

OUTLOOK FOR 2008 

•  Further  implementation  of  the  National  Strategic  Waste  Management  plan  will  be 
important  in  2008.  Main  activities  are  waste  prevention  and  recycling,  control  and 
monitoring  of  compliance  with  waste  management  requirements,  improving  legal 
framework,  and  strengthening  the  administrative  competencies  of  waste  managers  and 
control institutions. 

•  The  Baltic  Energy  Strategy  will  be  approved  at  the  next  meeting  of  the  heads  of 
governments of Latvia, Estonia and Lithuania in spring 2008. The main focuses will be the 
integration of the supply systems of electricity and natural gas into the EU energy market 
and increasing production of renewable and local energy. 

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LUXEMBOURG 

HIGHLIGHTS 2007 

Climate change and energy have been at the heart of the public debate during 2007, mainly 
because  of  implementation  of  the  2006  Plan  on  the  reduction  of  CO2  emissions.  Two 
initiatives  targeted  the  transport  sector:  a  progressive  rise  in  excise  taxes  on  road  fuels  and 
increased  taxes  on  vehicles  emitting  higher  levels  of  CO2.  The  2007  National  Plan  for 
Protection of Nature also drew attention to biodiversity issues. 

Climate change 

Under  the  Community  burden-sharing  agreement  Luxembourg  has  an  ambitious  goal  for 
greenhouse gas emissions: a reduction of 28% for the period 2008–2012 compared to 1990. In 
2005, emissions were  12.7  million tonnes CO2 eq. or 0.4% more  than 1990.  Projections  for 
2010  indicate  that  the  gap  to  achieving  the  Kyoto  target  will  be  2.7%  unless  additional 
policies are implemented. 

In 2006 3.5% of gross electricity consumption in Luxembourg came from renewable sources 
and  Luxembourg  is  well  placed  to  achieve  the  target  of  producing  5.7%  of  electricity 
consumption  from  renewable  sources  in  2010.  Energy  intensity  was  189.9  kg  oil 
equivalent/€1000 GDP in 2005, slightly below the EU average. 

•  Besides  the  above  mentioned  transport  measures,  the  government  also  announced  other 
initiatives in the Action Plan on Reduction of CO2 emissions, including awareness raising 
on  how  to  save  energy  and  the  reinforcement  of  existing  subsidies  for  renewable  energy 
and  energy  saving  measures  in  the  housing  sector,  Legislation  on  thermal  insulation  has 
come  into  force  introducing  more  ambitious  energy  performance  standards  for  new 
buildings. 

Nature and biodiversity 

As part of Natura 2000 network there were 12 Special Protection Areas (5.4% of total land 
area) and 48 Sites of Community Importance (15.4% of total land area) by the end of 2007. 
Progress in establishing the Special Protection Areas is largely complete, but the network of 
Sites of Community Importance is still incomplete. 

•  In  May  the  first  National  Plan  for  the  Protection  of  Nature  was  adopted  for  2007–2011. 
The plan establishes two goals: halting biodiversity loss by 2010 and protecting landscapes 
and eco-system processes. It also sets seven specific targets and 41 measures related to the 
targets,  of  which  15  are  considered  high  priority.  The  specific  targets  are,  for  example, 
designation and appropriate management of protected zones, updating legal instruments on 
planning,  scientific  monitoring  of  the  efficiency  of  nature  protection  policies,  and 
promoting scientific research on biodiversity and nature conservation. 

Environment and health 

•  The number of water courses considered extremely polluted fell significantly from 7.2% in 
2003 to 1.9% in 2005. Nevertheless, there are still 15.6% of watercourses which present a 
high level of pollution and 40.3% which present a moderate level of pollution. In order to 

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achieve  the  2015  goal  of  the  Water  Framework  Directive,  the  government  approved  the 
framework law on water that created an integrated approach to environmental protection of 
water. 

Natural resources and waste 

Between 1995 and 2006, the amount of municipal waste rose from 592 kg per capita to 702 
kg, one of the highest in the EU. Of this, 38% was incinerated, 19% are landfilled and the rest 
(more than 40%) treated by other means such as recycling or composting. 63% of packaging 
waste was recycled in 2005, which is above the EU average. 

Implementation 

At the end of 2007, 40% of infringements of EU environmental legislation (i.e. 8 out of 20) 
related to air legislation. 

OUTLOOK FOR 2008 

•  According  to  the  Draft  Budget  the  priority  in  environmental  policies  will  be  the  further 
implementation of the National Plan for reducing CO2 emissions, including a database on 
low energy products, efforts on energy labelling, monitoring and evaluation on greenhouse 
gas emissions. 

•  A  Climate  Forum  will  take  place  in  May.  It  will  evaluate  the  measures  taken  to  reduce 

greenhouse gas emissions. 

•  A  new  National  Plan  for  Sustainable  Development  will  be  prepared  in  2008  by  a  cross-

departmental committee on sustainable development. 

•  There will be implementation of the National Plan of Protection of Nature, adopted in May 

2007. 

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MALTA 

HIGHLIGHTS 2007 

Malta's  economic  growth  is  driven  by  energy-dependent  sectors  such  as  air  transport  and 
tourism.  Economic  growth  remains  tightly  coupled  to  energy  consumption.  Environment 
policy in Malta is largely focused on the measures that also create benefits for tourism sector 
such  as  marine  environmental  protection  schemes  and  initiatives  to  improve  waste 
management. 

In  2007  a  park  and  ride  scheme  and  a  controlled  vehicle  access  scheme  was  introduced  in 
Valletta  to  reduce  urban  congestion  and  cut  air  and  noise  pollution.  The  government  has 
continued  to  work  on  regenerating  old  landfills  and  improving  the  waste  management 
infrastructure. 

Climate change 

Greenhouse  gas  emissions  have  continued  to  rise  in  recent  years  and  reached  3.4  million 
tonnes CO2 eq. in 2005, an increase of 6.1% compared to 2004. Under its existing policies, 
emissions are projected to more than double between the base year and 2010. Malta does not 
have  a  greenhouse  gas  emissions  reduction  target  under  the  Kyoto  Protocol  at  present.  The 
market  penetration  of  renewable  energies  is  minor.  Energy  intensity  at  269.9  kg  oil 
equivalent/€1000 GDP in 2005 is higher than the EU average and following decreases in the 
late 1990s it has begun to rise again. 

•  Most climate related action in 2007 addressed energy consumption with subsidies for more 
efficient household appliances and renewables (e.g. adoption of photovoltaic technologies). 
The  possibility  of  an  offshore  wind  farm  and  a  connection  to  the  European  energy 
networks to buy renewable-sourced electricity is currently being investigated. It would also 
serve to diversify the energy mix. 

Nature and biodiversity 

•  Malta  remains  the  only  Member  State  to  permit  the  hunting  of  birds  during  their  spring 
migration. In 2006, the European Commission started legal proceedings against Malta on 
the  basis  that  this  was  in  breach  of  its  obligations  of  the  Birds  Directive.  The  case  is 
expected to be heard by the Court in 2008, with the European Commission requesting an 
injunction  from  the  Court  should  Malta  once  again  adopt  legislation  permitting  spring 
hunting. 

•  At present Malta seems unlikely to meet its target of halting the decline in biodiversity by 
2010. As part of Natura 2000 network by the end of 2007 Malta has proposed 12 Special 
Protection  Areas  (SPA)  and  27  Sites  of  Community  Importance  (SCI)  covering 
respectively  4.5%  and  12.6%  of  its  area.  The  present  coverage  of  SPAs  in  particular  is 
insufficient  and  the  European  Commission  has  launched  legal  proceedings  to  require 
further sites to be designated. 

•  St.  Georges  Bay  has  become  the  first  beach  in  Malta  to  obtain  the  Blue  Flag  status  for 
meeting international standards for environmental management. The Maltese government 

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has embarked on a policy of creating new beaches to reduce tourism pressure during peak 
months and improving management practices. 

Natural resources and waste 

•  Demand  on  Malta’s  supply  of  water  is  particularly  high  in  the  summer  months  when 
freshwater reserves are at their scarcest. The country’s deteriorating groundwater leads to 
increased  use  of  desalination,  eight  times  more  energy-intensive  than  extraction  from 
groundwater. Efforts to better regulate groundwater extraction remain hampered by a large 
proportion of the groundwater being privately owned. 

•  Malta has continued to develop its waste management infrastructure and two out of three 
planned  waste  water  treatment  plants  should  be  operational  by  the  end  of  2007.  Several 
waste treatment plants have been undergoing renovation in 2007, and one will incorporate 
a digestion facility to process biodegradable waste. 

•  In 2006 on average 652 kg of municipal waste per capita were produced, way above the 
EU  average.  Malta  performs  badly  in  terms  of  municipal  waste  recycling:  86%  were 
landfilled  (more  than  double  of  EU  average)  with  only  13%  recycled  or  composted. 
Significant  efforts  need  to  be  undertaken  in  order  to  change  the  situation  and  allow  the 
country to comply with the targets of the Packaging Directive, the Landfill Directive and 
the requirements of the revised Waste Framework Directive. 

•  Malta has never reported data on the recycling rate of packaging waste, and the European 
Commission  has  launched  an  infringement  procedure  for  not  respecting  this  mandatory 
reporting. 

Better regulation 

•  Malta  has  established  a  Better  Regulation  Unit  to  monitor  and  address  administrative 
burdens on businesses. Measures to improve efficiency may eventually translate into lower 
resource demand and reduced environmental impact. 

Use of market-based instruments 

In 2005 environmental taxes represented 10% of total tax revenues. Environmental taxes on 
transport  were  5.5%  of  total  tax  revenues,  the  highest  share  in  EU  countries  (EU  average 
1.5%). 

•  A  1%  excise  duty  discrimination  in  favour  of  biofuels  has  led  to  a  fourfold  increase  in 

sales, even though it still accounts for less than one percent of transport fuel. 

•  A  fixed  feed-in  tariff  has  been  introduced  on  low  power  photovoltaic  installations  and 

VAT on solar systems has been reduced from 15% to 5%. 

Implementation 

At the end of 2007, Malta had the highest number of infringements within the New Member 
States (who joined the EU in 2004) and almost 50%  of  infringements of EU environmental 
legislation (12 out of 26) related to air legislation. 

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OUTLOOK FOR 2008 

The  budget  for  2008  places  an  increasing  emphasis  on  the  environment  with  almost  €200 
million  being  allocated  towards  renewable  energy  and  energy  efficient  buildings  as  well  as 
plans  for  incentive  schemes  to  encourage  industry  to  adopt  environmentally-friendly 
technologies. 

The Green Public Procurement Plan is awaiting approval from the government. 

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THE NETHERLANDS 

HIGHLIGHTS 2007 

As  in  many  other  Member  States,  environment  policy  in  the  Netherlands  in  2007  focused 
especially  on  energy  and  climate  change.  Activities  in  this  area  included  a  new  National 
Climate  Strategy  for  Adaptation,  a  national  plan  "Clean  and  Efficient"  for  steering  the 
economy  towards  greater  energy  sustainability  and  lower  emissions  and  spatial  planning 
programmes such as "Space for the River" which integrates climate adaptation and mitigation 
policies into spatial planning. 

Climate Change 

In 2005 greenhouse gas emissions were 212.1 million tonnes CO2 eq., a 1.1% decrease since 
the base year. Projections for 2010 indicate that the Netherlands will achieve the Kyoto target 
with a 4.1% over-delivery. 

The Netherlands had an energy intensity of 196 kg oil equivalent/€1000 GDP in 2005, which 
is  around  the  EU  average.  In  2006  almost  8%  of  gross  electricity  consumption  came  from 
renewable  sources,  while  the  target  is  9%  for  2010.  In  2005  almost  30%  of  electricity  was 
generated from combined heat and power, among the highest levels in EU. 

•  The  government  has  adopted  a  plan  "Clean  and  Efficient"  to  reduce  greenhouse  gas 
emissions, increase energy efficiency and increase the use of renewable forms of energy. 
The targets are to reduce emissions by 30% compared to 1990 levels by 2020, increase the 
rate  of  energy  saving  from  1%  to  2%  per  annum  and  to  increase  the  proportion  of 
sustainable energy to 20% of total energy use by 2020. 

•  The  government  awarded  an  additional  €12.6  million  for  energy  saving  projects,  and 
agreed  to  invest  an  additional  €43  million  in  the  transition  to  cleaner  household  energy. 
The  financing  will  be  used  partly  for  research  on  projects  aimed  at  testing  new  energy 
technology. 

•  The  subsidies  previously  available  for  investors  in  renewable  energy  will  be  reinstated 
under strict conditions. The subsidies will depend on the wholesale price of electricity and 
will  be  limited  in  size.  In  2007,  the  Netherlands  presented  its  national  programme  on 
climate adaptation and spatial planning, including internal administrative arrangements for 
implementing this strategy. 

Nature and biodiversity 

The Natura 2000 network included 77 Special Protection Areas and 142 Sites of Community 
Importance by the end of 2007. The progress in establishing these areas is largely complete. 
The  Netherlands  has  been  the  first  to  comply  with  the  minimum  standards  of  the  Habitats 
Directive. 

•  The government has continued to purchase more land for nature development in 2007 and 

encouraged regional initiatives to promote nature and biodiversity plans. 

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Environment and health 

•  The  government  decided  to  allocate  €300  million  to  improveme  of  air  quality  through 
transport-related measures such as compulsory filters and catalytic converters in the period 
up to 2010. Concrete measures are expected in 2008. 

•  Air quality is a major problem in urban areas although concentrations of particulate matter 

and ozone have shown a decrease in recent years. 

Natural resources and waste 

From the 625 kg/per capita of municipal waste produced in 2006, 34% were incinerated and 
only  2%  were  landfilled,  the  rest  being  treated  by  other  means  such  as  recycling  or 
composting. 

•  The  National  Waste  Management  Plan  was  updated.  It  contains  a  policy  framework  and 
sector plans, and includes minimum requirements for the processing of waste products. 

•  On the basis of a new regulation subsidies can be requested for projects aimed at tackling 

waste with a budget of €16.4 million. 

Environmental technologies 

•  The  government  has  decided  to  reserve  €50  million  until  2011  for  research  aimed  at 
making the Netherlands "climate proof", so it can adjust to variations in climate in such a 
way that leaves no unplanned side-effects. During the next five years various government 
agencies  and  a  broad  research  team  from  five  institutions  will  develop  the  necessary 
knowledge. 

•  Additional  loans  are  supplied  to  investment  funds  providing  financing  to  start-up 
companies  in  clean  energy  technology  and  in  tests  with  cleaner  buses  in  the  public 
transport. 

•  €60 million have been earmarked for a European invitation to tender for development of 

CO2 underground carbon capture technology. 

Implementation 

At the end of 2007, the Netherlands had 8 EU environmental legislation infringement cases, 
thus being the country with the smallest number among the EU-15. 

OUTLOOK FOR 2008 

•  The  government  is  expected  to  introduce  specific  legislation  for  implementation  of  the 

national "Clean and Efficient" plan. 

•  The  government  has  agreed  to  develop  a  framework  to  stimulate  sustainable  energy 

production. 

•  Detailed  plans  for  improving  the  health  quality  of  the  housing  stock  that  can 

simultaneously generate energy efficiency are due to be revealed in 2008. 

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•  Research  is  ongoing  into  a  feasible  toll  system  for  driving  linked  to  the  number  of 

kilometres. 

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POLAND 

HIGHLIGHTS 2007 

The early elections in October 2007 and consecutive change of government prevented some 
environmental  laws  and  strategies  from  being  adopted  by  parliament.  This  concerns  in 
particular the updated National Environment Policy 2007-2013, a major strategic document. 

The European Commission in late 2007 approved a number of Operational Programmes co-
financed  by  the  EU  Structural  and  Cohesion  Funds  for  2007-2013.  Priorities  of  the 
"Infrastructure  and  Environment  Operational  Programme"  include  water,  sewage  and  waste 
management  infrastructure  and  energy  efficiency.  The  total  budget  of  this  programme  is  € 
37.6 billion, the biggest ever operational programme in the whole of the European Union. 

Climate change 

Greenhouse gas emissions in Poland decreased by 32% in the period between the base year 
1988 and 2005. This means that emissions were considerably lower than the threshold set in 
the  Kyoto  Protocol  (6%  reduction).  Although  emissions  will  grow  to  some  extent,  the 
projections suggest that by 2010 Poland will have emissions 28% below the base year. 

In 2006 almost 3% of gross electricity consumption came from renewable sources, which is 
still  far  short  of  the  2010  target  5.7%.  Energy  intensity  was  584.7  kg  oil  equivalent/€1000 
GDP in 2005, far above the EU average. 

•  In  July  2007  the  amended  Energy  Act  introduced  significant  changes  into  the  system 
supporting  co-generation.  Furthermore,  based  on  the  Energy  Act  the  so-called  'red 
certificates' were introduced for energy originating from co-generation. 

•  The European Commission in 2007 assessed the National Allocation Plan for greenhouse 
gas  emissions  in  2008-2012  and  cut  the  proposed  number  of  emission  permits  to  be 
allocated by 27% to 208.5 million tonnes CO2 eq. per year. Poland filed a lawsuit on the 
Commission Decision to the European Court of Justice. This does not affect the obligation 
to implement the National Allocation Plan in conformity with the Commission Decision. 

•  The  Act  on  the  monitoring  system  and  control  of  liquid  fuel  quality  and  the  Act  on  bio-
components and liquid biofuels are in force since 1 January 2007. Both legal instruments 
are essential for the functioning of the market for bio-components and liquid biofuels. 

Nature and biodiversity 

•  Efforts of the Ministry of Environment were focused on completing the list of Natura 2000 
sites,  including  a  complex  stocktaking  of  the  areas  considered  important  for  the  Polish 
environment. The Natura 2000 network comprises 362 Sites of Community Interest (SCI) 
covering  9.1% of the land area and 124 Special Protection Areas (SPA) for birds, which 
cover 16.1% of land area. But the network of SPAs is considered as incomplete, the SCI is 
being evaluated. Poland is very far from reaching the minimum standards of the Habitats 
Directive,  having  reached  only  17%  of  its  target  (the  minimum  value  among  Member 
States). 

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•  The European Commission filed a lawsuit against Poland to the European Court of Justice 
over the construction of the Augustow and Wasilkow road bypasses. The construction of 
the two roads could damage important nature areas like primeval woodland and a unique 
wetland  system  considered  to  be  of  exceptional  European  value  by  scientists.  Following 
the lawsuit, work on the two bypasses has been suspended. 

•  The  government  adopted  the  National  Action  Plan  for  Organic  Food  and  Farming  in 

Poland 2007-2013 together with the National Rural Development Plan 2007-2013. 

Environment and health 

Air quality is an increasing problem in urban areas: concentrations of particulate matter and 
ozone in 2005 were very high and they had increased significantly compared to 2004. Among 
the new Member States, Poland is the country with the highest levels of freight transport in 
2006. 

Natural resources and waste 

In 2006 Poland produced 259 kg/capita of municipal waste, the lowest amount in EU (50% of 
EU average). More than 90% were landfilled. Poland recycled 29.5% of its packaging waste 
in 2005, far below the EU average of 55%. Significant efforts need to be undertaken in order 
to  change  the  situation  and  allow  the  country  to  comply  with  the  targets  of  the  Packaging 
Directive,  the  Landfill  Directive  and  the  requirements  of  the  revised  Waste  Framework 
Directive. 

•  In November 2006 the government adopted the renewed National Waste Management Plan 
till 2010. It specifies the competencies of local and regional authorities in this field more 
precisely. 

Environmental technologies 

•  The Implementation Programme for the National Environmental Technologies Action Plan 
for  2007-2009  was  adopted  in  February.  Priority  thematic  areas  for  environmental 
technologies include protection of water resources, the air protection and the mitigation of 
global  climate  change,  sustainable  production  and  consumption,  including  integrated 
product policy and soil protection research. 

OUTLOOK FOR 2008 

•  The  Energy  Efficiency  Act  is  scheduled  to  be  adopted  in  May  2008,  in  line  with  the 
provisions  of  the  Energy  Performance  Directive.  The  Act  sets  out  the  obligatory  'white 
certificates'  mechanism,  by  which  energy  companies  involved  in  electricity,  natural  gas 
and heat sales to end users may obtain, extinguish or trade certain numbers of certificates 
of energy-saving actions. 

•  In  December  2008  the  next  Conference  of  the  Parties  of  the  United  Nations  Framework 
Convention  on  Climate  Change  will  take  place  in  Poznań.  Like  the  Bali  conference,  the 
Poznań  event  is  expected  to  raise  public  debate  about  climate  change  after  the  US 
Presidential elections. 

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•  A  green  public  procurement  guide  for  contracting  authorities  is  expected  to  be  issued  in 

2008. 

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PORTUGAL 

HIGHLIGHTS 2007 

The environmental priorities for the Portuguese Presidency during the 2nd half of 2007 were 
climate change, water scarcity and drought, and biodiversity. Portugal led the EU delegation 
at the global climate talks in Bali, and hosted a major stakeholders conference with the aim of 
linking  business  with  biodiversity  issues.  The  Portuguese  Presidency  also  successfully 
concluded negotiations on the important air quality and marine strategy directives. 

Also in 2007, the National Climate Change Plan and the National Plan for Allocation of CO2 
emission allowances were completed.The Carbon Fund, with a budget over €354 million for 
investing in Kyoto Protocol Clean Development Mechanism projects, was put in place. 

Climate change 

Portugal has a target not to exceed the greenhouse gas emissions by more than 27% for the 
period  2008–2012  compared  to  the  base  year.  In  2005  emissions  were  85.5  million  tonnes 
CO2  eq.  or  an  increase  of  40.4%.  Projections  for  2010  indicate  that  it  will  fall  short  of 
achieving the Kyoto target unless additional policies are implemented. 

In  2005,  16%  of  gross  electricity  consumption  came  from  renewable  sources,  which  is  an 
important drop compared to 2004 (24%) and 2003 (36%), due to low hydropower production. 
Strong  additional  efforts  will  be  necessary  to  achieve  the  target  of  producing  39%  of 
electricity  consumption  from  renewable  sources  in  2010.  At  241.4  kg  oil  equivalent/€1000 
GDP energy intensity was slightly above the EU average in 2005. 

•  The main pillars of the Portuguese strategy are the National Climate Change Plan approved 
in 2006 that introduced an action plan for all sectors, the National Plan for Allocation of 
CO2 emission allowances approved in 2007, and the Carbon Fund established in 2006. 

•  The  government  unveiled  a  new  and  ambitious  package  of  climate  and  energy  measures 
aimed  at  reducing  greenhouse  gas  emissions  through  an  increase  in  renewable  energy 
production.  The  national  target  for  energy  from renewable  sources  has  been  increased  to 
45%  of  gross  energy  consumption  by  2010.  Calls  for  tenders  were  launched  for  the 
construction of new plants. 

Nature and biodiversity 

As  part  of  Natura  2000  network  there  were  50  Special  Protection  Areas  (10.1%  of  the  land 
area) and 94 Sites of Community Importance (17.4% of the land area) by the end of 2007, but 
the network is not yet complete. 

•  A  number  of  initiatives  aimed  at  restructuring  the  policy  for  conservation  of  nature  and 
biodiversity  wer  developed  in  recent  years.  The  most  important  measure  is  the 
transformation  of  the  Institute  for  Conservation  of  Nature  and  biodiversity,  including 
streamlining of the proceedings and assigning the Institute a more proactive role. 

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Environment and health 

•  The initiatives adopted in 2007 relate to the enforcement of legislation regarding the newly 
approved  Water  Law,  the  new  Strategy  on  the  Treatment  of  Water  Supply  and  Waste 
Water for 2007-2013, and the new General Noise Scheme, which introduces a new noise 
indicator and noise limits. 

•  Air pollution is an important problem in urban areas, and the situation worsened slightly in 
2005 compared to 2004, in terms of the concentrations of particulates matter and ozone. 

Natural resources and waste 

In  2006,  435  kg/per  capita  of  municipal  waste  were  generated  in  Portugal,  against  an  EU 
average of 517. Of this, 63% were landfilled and 22 % were incinerated. 

•  A new Strategic Plan for solid urban  waste was approved for the  period  2007-2016. The 
plan aims at a substantial improvement in the treatment and selective collection of waste. It 
reinforces  the  role  of  the  national  Institute  for  the  Regulation  of  Water  and  Waste 
responsible for this area. 

•  In  parallel,  and  to  coincide  with  the  operational  start  of  the  co-incineration  of  dangerous 
wastes  by  two  cement  plants  and  the  creation  of  the  new  Integral  Centres  for  the 
recuperation, revalorisation and elimination of hazardous waste, the government has sped 
up all the necessary procedures to effectively set up these new Centres. 

Use of market-based instruments 

•  In  2007,  promotion  of  the  biofuels  market  was  established  through  an  increase  in  the  oil 
and energy products tax and biofuels exemptions from this tax. The additional tax revenues 
will be transferred to the Carbon Fund. 

•  Motor  vehicle  tax  was  reformed  to  promote  energy  efficient  vehicles.  Since  July  the 
taxable base has included on average a 70% component related to the engine capacity and a 
30%  environmental  component  related  to  CO2  emissions.  From  January  2008  the 
percentages were altered to 30% and 60%, respectively. 

OUTLOOK FOR 2008 

•  The national programme for the prevention of solid urban waste is planned for approval in 
2008. It will complement the new Strategic Plan for Solid Urban Waste and addresses the 
need  for  preventive  measures  such  as  awareness  raising  and  a  new  taxation  system 
reflecting the expenses of managing solid urban waste. 

•  A  working  group  has  started  work  on  the  draft  of  a  new  strategy  for  the  integral 
management  of  Portugal’s  shoreline.  The  new  strategy  will  be  publicly  discussed  and 
approved at the end of 2008 or the beginning of 2009. 

•  Legal  implementation  of  the  National  Strategy  for  the  Conservation  of  Nature  and 
Biodiversity  will be  completed and new agreements between stakeholders will  be  sought 
for searching further funds for protected areas. 

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ROMANIA 

HIGHLIGHTS 2007 

Romania joined the European Union in January 2007. Transposing the acquis and preparing 
the institutional framework for the implementation of a broad range of new tasks dominated 
the environment policy agenda. 

A  new  energy  law  and  the  Energy  Strategy  of  Romania  for  2007-2020  were  adopted.  They 
promote  the  use  of  renewable  energy.  The  government  started  to  revise  and  update  the 
National  Strategy  and  Action  Plan  on  Climate  Change.  The  strategy  will  cover  the  period 
2008-2012 with a perspective to 2020. 

The  European  Commission  in  2007  adopted  a  number  of  Operational  Programmes  co-
financed from the EU Structural and Cohesion Funds for 2007-2013. Environmental priorities 
include  water  and  waste  water  systems,  integrated  waste  management  systems  and 
rehabilitation  of  contaminated  sites,  restoration  of  urban  heating  systems,  management 
systems  for  nature  protection,  infrastructure  for  natural  risk  prevention.  The  total  budget  of 
the programme for environment is € 5.6 billion. 

Climate change 

According  to  greenhouse  gas  emission  projections,  Romania  will  meet  its  Kyoto  Protocol 
commitments  even  with  strong  economic  development.  Romania  is  required  to  decrease  its 
greenhouse gas emission by 8% as compared to the 1989 level, while by 2005 emissions were 
reduced by 45.6 % mainly due to the economic transition. 

The energy intensity of Romania in 2005 was 1 165 kg oil equivalent/€1000 GDP, which is 
more  than  five  times  the  EU  average  and  second  highest  in  the  EU.  Therefore  improving 
energy efficiency is an important objective. According to the government, around 80% of the 
initiatives  from  the  National  Action  Plan  on  Climate  Change  for  the  period  2005-2007  are 
implemented.  The  revision  of  the  National  Strategy  and  Action  Plan  on  Climate  Change 
started in 2007 and will be finalised in the first half of 2008. In 2006, 31.4% of electricity was 
produced from  renewable energy sources, close to the 2010 target; about 26% of  electricity 
came from combined heat and power in 2005. 

•  A new energy law was adopted. The law promotes the use of new and renewable energy 
sources  and  gives  the  possibility  to  the  government  to  approve  support  schemes  for 
promoting electricity generation from renewable sources. 

•  The Energy Strategy of Romania  for 2007-2020 was adopted  in November.  The planned 
objectives include increasing the share of electricity from renewable sources from 31% in 
2006 to 33% in 2010, 35% in 2015 and 38% in 2020, producing energy through efficient 
co-generation and promoting end-use energy efficiency. 

•  The biofuel target for 2010 is 5.75%. A phase-in timetable was adopted in order to place 

on the market blends of biofuels and conventional fuels. 

•  The European Commission in 2007 assessed the National Allocation Plan for greenhouse 
gas emissions in 2008-2012 and substantially cut the proposed number of emission permits 

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to be allocated by 21% to 75.9 million tonnes CO2 eq. per year. Romania filed a lawsuit on 
the  Commission  Decision  to  the  European  Court  of  Justice.  This  does  not  affect  the 
obligation to implement the National Allocation Plan in conformity with the Commission 
Decision. 

Nature and biodiversity 

•  Its rich biodiversity is one of the most important natural assets of Romania. Concerning the 
Natura 2000 conservation network, Sites of Community Importance (SCI) cover 11 % of 
its land area, and Special Protected Areas (SPA)16 %. The European Commission however 
opened  an  infringement  case  due  to  delays  in  designating  SPAs.  Romania  sent  a  revised 
list to the European Commission in December. 

•  The  government  initiated  a  project  for  the  organisation  and  establishment  of  a  National 
Agency  for  Protected  Natural  Areas  and  Conservation  of  Biodiversity.  The  Agency  will 
address  conflicts  of  interest  between  nature  conservation  and  infrastructural  development 
projects. 

Natural resources and waste 

•  Waste management needs signifant improvement in Romania. The average recycling rate 
for packaging waste was 23% in 2005, less than half of the EU average. Romania has set 
up a deposit-refund scheme to implement the Packaging Directive in order to decrease the 
amount of waste. 

•  In  2006  385  kg  per  capita  of  municipal  waste  (a  large  part  of  which  is  biowaste)  were 
generated  (less  than  EU  average),  the  vast  majority  of  which  (85%)  were  landfilled. 
Significant  efforts  need  to  be  undertaken  in  order  to  change  the  situation  and  allow  the 
country to comply with the targets of the Packaging Directive, the Landfill Directive and 
the requirements of the revised Waste Framework Directive. 

•  Investment  projects  in  the  field  of  drinking  water,  sewage  and  waste  disposal  are  under 
preparation,  co-funded  by  EU  Structural  and  Cohesion  Funds .  The  focus  is  on drinking 
water and  waste water  treatment  plants and networks, in particular in municipalities with 
less than 100 000 inhabitants. Similar investments are also covered by the National Rural 
Development Programme in rural municipalities. 

Use of market-based instruments 

Environmental taxes as a share of total revenues from taxes and social contributions amounted 
to 7.4% in 2005, which is slightly above the EU average. 

•  In  2007,  Romania  set  up  a  deposit-refund  scheme  to  implement  the  EU  directives  on 

packaging waste in order to decrease the amount of packaging waste. 

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OUTLOOK FOR 2008 

•  The  government  plans  to  finalise  the  revision  of  the  National  Sustainable  Development 
Strategy,  as  well  as  the  monitoring  system  for  its  implementation.  The  current  strategy 
dates back to 1999 and needs to be updated. 

•  On  water  policy,  government  plans  include  the  finalisation  of  river  basin  management 
plans,  initiatives  to  reduce  Black  Sea  coastal  erosion  and  measures  to  improve  civil 
protection by reducing the risk of floods, drought and extreme weather events. 

•  The updated National Strategy on Climate Change is expected to be adopted 

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SLOVAKIA 

HIGHLIGHTS 2007 

Environment  policy  in  Slovakia  has  an  increasing  focus  on  climate  change  and  energy.  In 
2007 the government approved an action plan on energy efficiency for the period 2008-2010. 
It  also  approved  a  strategy  of  increased  use  of  renewable  sources  of  energy,  which  aims  to 
boost the amount of energy produced from renewable sources. 

In December the European Commission adopted a Decision on proposed amendments to the 
Slovak  national  plan  for  allocating  carbon  dioxide  emission  allowances  for  the  2008-2012 
trading period of the EU Emissions Trading Scheme. 

Climate change 

In  2005  greenhouse  gas  emissions  were  33.6%  below  the  base  year  level,  so  the  Slovak 
Republic is currently well on track to meet the Kyoto target for greenhouse gas emissions. By 
2010,  its  emissions  are  expected  to  be  some  12%  below  the  Kyoto  target,  and  15%  when 
additional policy measures are taken into account. In 2006 16.6% of electricity was produced 
from renewable energy sources. In 2005 energy intensity was 868.6 kg oil equivalent/€1000 
GDP, more than four times the EU average, and has steadily decreased in recent years. 

•  In  October  the  government  approved  an  action  plan  on  energy  efficiency  for  the  period 
2008-2010,  according  to  which  Slovakia  should  achieve  savings  in  final  energy 
consumption of 3% by 2010. 

•  The European Commission in December adopted a Decision on the proposed amendments 
to the Slovakian national plan for allocating carbon dioxide (CO2) emission allowances for 
the  2008-2012  trading  period  of  the  EU  Emissions  Trading  Scheme.  This  Decision 
constituted  the  finalisation  of  the  Commission's  assessment  of  amendments.  The  cleared 
annual allocation for Slovakia for 2008-2012 is now fixed at 32.6 million CO2, allowances, 
which  is  20%  below  the  amount  requested  by  the  Slovak  government.  Slovakia  initially 
filed a lawsuit on the Commission Decision to the European Court of Justice but withdrew 
it in January 2008. 

•  The  strategy  of  increased  use  of  renewable  sources  of  energy  was  approved  by  the 
government  in  April.  It  aims  to  boost  the  amount  of  energy  produced  from  renewable 
sources,  which  was  at  6.7%  of  total  energy  consumption  in  2005.  In  line  with  this,  the 
Ministry  of  Economy  has  prepared  a  programme  for  greater  use  of  biomass  and  solar 
power in households. 

Nature and biodiversity 

In  2006  Slovakia  had  6.4%  of  used  agricultural  land  under  organic  farming,  and  a  sizeable 
increase compared to the 2.5% of 2004. 

•  The government approved in June the National Forest Programme. 

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•  Slovakia in June adopted a Law on Protection of and Trade in Endangered Species of Wild 
Fauna  and  Flora  (CITES),  which  changes  and  complements  domestic  law  and  will  be 
implemented from January 2008. 

•  The European Commission opened an infringement case on non-sufficient designation of 
Special Protection Areas for birds (SPA). Out of 38 areas to be protected according to the 
Birds  Directive,  in  line  with  the  government  proposal  of  2003,  only  5  have  so  far  been 
protected,  and  the  government  indicates  that  additional  15-16  SPAs  are  to  be  designated 
soon. 

•  In May the Ministry of Environment announced the new zoning of the Tatra National Park. 
The  originally  assigned  A-zone,  in  which  no  economic  activity  could  take  place,  was 
reduced by 3500 ha which also included areas protected under Natura 2000. 

Environment and health 

•  Bad  air  quality  is  a  major  concern  in  urban  areas  as  population  is  exposed  to  high 

concentrations of particulates and ozone. 

Natural resources and waste 

In  2006  around  300  kg/capita  of  municipal  waste  were  generated  in  Slovakia,  among  the 
lowest amount in the EU. Of this about 78% was landfilled and 12 % was incinerated. 

Better regulation 

•  The government presented an 'Agenda of Better Regulation in the Slovak Republic' in July, 
according  to  which  new  legislative  proposals  should  be  accompanied  by  a  Regulatory 
Impact Assessment, including an environmental impact assessment. 

Use of market-based instruments 

•  In  accordance  with  the  Eurovignette  Regulation  Slovakia  in  2009  will  introduce  a  tax 
based on distance driven, while taking into account the environmental performance of the 
vehicle and the number of axles. 

OUTLOOK FOR 2008 

•  Legislation on environmental burdens from the past (i.e. contaminated industrial land and 
old  agricultural  supplies  of  pesticides)  is  expected  in  the  second  quarter  of  2008.  The 
Slovak  Environment  Agency  is  preparing  an  inventory  and  building  a  corresponding 
information system on the environmental burdens in the country, which will be linked to 
the  environment  information  system  in  the  Slovak  Republic.  The  work  is  expected  to  be 
finalised by the end of 2008. 

•  Slovakia  plans  in  the  period  2007-2013  to  build  180  anti-flood  installations  with  a  total 

cost of €250 million, including in the Bratislava and Devin area in 2008-2009. 

•  The government is expected to adopt the third National Environment Action Plan and an 

Action Plan of the National Forest Programme. 

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SLOVENIA 

HIGHLIGHTS 2007 

Environment  policy  measures  for  2007–2013  are  outlined  in  the  Operational  Programme  of 
Environmental  and  Transport  Infrastructure  Development  co-financed  by  the  EU  Structural 
and  Cohesion  Funds.  Significant  investments  are  planned  on  energy  efficiency,  renewables 
and  railway  infrastructure.  Measures  to  maintain  biodiversity  are  included  in  the  Rural 
Development Programme for 2007-2013. 

Climate change 

Under the Kyoto Protocol, Slovenia has taken measures to reduce greenhouse gas emissions 
by  8%  in  the  period  2008-2012  compared  to  1986  levels.  In  2005  however  emissions  were 
0.4%  above  the  1986  level.  Most  recent  projections  indicate  that  with  existing  measures 
greenhouse gas emissions are likely to exceed the Kyoto target by 3.5%; however, the country 
would meet its commitments with planned additional policies and measures. 

With  an  energy  intensity  of  320  kg  oil  equivalent/€1000  GDP,  Slovenia  was  above  the  EU 
average in 2005. Slovenia has a relatively high share (24.4 % in 2006) of renewable energy 
sources  in  its  gross  electricity  consumption.  However,  high  annual  electricity  demand  is 
overshadowing  the  modest  increases  of  recent  years.  National  budget  allocations  for 
investment grants and feed-in tariffs put Slovenia in a good position to reach its 2010 target of 
33.6%. 

•  Slovenia  adopted 

the  Operational  Programme  of  Environmental  and  Transport 
Infrastructure Development for the period 2007-2013. Priorities include energy efficiency, 
energy production from renewable sources and co-generation. 

•  A  joint  declaration  was  issued  with  Germany  and  Spain  on  a  renewable  energy  feed-in 

system to promote electricity production from renewable energy sources. 

Nature and biodiversity 

Slovenia is the Member State with the largest share of Natura 2000 areas proposed under the 
Habitats and Birds Directive, or 35.5% of total land area. The Natura 2000 network comprises 
27 Special Protection Areas (SPA) and 259 Sites of Community Importance (SCI). However, 
the network of SPAs is not yet complete and SCIs are being evaluated. 

Natural resources and waste 

432 kg per capita of municipal waste was generated in Slovenia in 2006, a decrease from 596 
kg in 1995. 362 kg per capita or almost 84% of the waste was sent to landfills. 

•  The  main  objectives  of  waste  management  policy  are  to  increase  material  and  energy 
recovery and reduce greenhouse gas emissions from organic wastes. The implementation 
of  investment  intensive  projects  such  as  regional  waste  management  will  continue  to  be 
supported with EU funds. 

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•  In February, the Maribor Declaration on sustainable management of the Drava River basin 
was adopted. It intends to establish integrated cross border management of the basin area. 

•  The Rural Development Programme for 2007-2013 includes significant sustainable natural 
resource management measures such as improving the economic value of forests and the 
quality of agricultural production. 

Environment and health 

Slovenia has the highest per capita NOx emissions from transport of all Member States. High 
concentrations  of  particulates  and  ozone  are  a  severe  problem  in  almost  all  parts  of  the 
country. However air quality plans are not yet in place in any major Slovenian city. 

•  In January the government adopted a revised programme on national emission ceilings for 

atmospheric pollutants. 

Environmental technologies 

•  Environmental  investments  are  financed  by  the  Environmental  Fund.  Legal  amendments 
are  under  way  to  allow  the  Fund  to  make  high  risk  investments  in  companies  for  the 
development and marketing of environmental technologies to a level of approximately €21 
million. 

Use of market-based instruments 

•  Total environmental taxes as a share of total revenues from taxes and social contributions 

amounted to 8.2% in 2005, above the EU average. 

•  The government decided to establish a working group on environmental reform of public 
finances. It would aim at an integrated and balanced system of gradual reduction of fiscal 
burdens  on  labour  and  capital  transactions,  and  a  parallel  increase  in  the  use  of 
environmental goods (soil, water, air, energy, raw materials, etc.). 

OUTLOOK FOR 2008 

•  Climate change and biodiversity will be Slovenia's top environment priorities under its EU 

presidency in the first half of 2008. 

•  New  support  schemes  will  be  introduced  for  energy  production  from  renewable  energy 

sources. 

•  A national strategy on education for sustainable development is expected to be adopted in 

2008. 

•  A  Motor  Vehicles  Tax  Act  is  under  preparation  whereby  the  tax  burden  applicable  to 

motor vehicles will be made dependent on CO2 emissions. 

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SPAIN 

HIGHLIGHTS 2007 

Of  all  Member  States,  Spain  faces  the  biggest  gap  between  its  Kyoto  target  and  emissions 
projections.  Even  with  additional  policies,  the  country  expects  to  miss  the  target  by  14%. 
Some  important  measures  to  combat  climate  change  took  place  in  2007.  In  October,  the 
National Council for Climate Change approved the National Strategy for Climate Change and 
in  parallel  the  National  Plan  of  Urgent  Measures.  This  plan  includes  198  measures  and  75 
indicators to monitor progress. 

Spain  has  devoted  efforts  to  plan,  develop  and  approve  the  legislative  framework  for 
environment  policy.  The  Law  on  Environmental  Responsibility  was  approved  by  the 
parliament in October. It affects some 5 000 industrial sites, 30 000 transport companies and 
more than 1 million farms. Also in 2007, the Air Quality Strategy, the Law on Environmental 
Responsibility and the Law on Natural Heritage and Biodiversity Framework were adopted. 

Climate change 

Greenhouse  gas  emissions  increased  by  52.3%  between  the  base  year  and  2005.  Spain 
currently shows a sizeable gap between 2010 projections and its Kyoto target. Even with all 
additional policy measures, use of Kyoto mechanisms and carbon sinks, Spain is projected to 
miss  the  Kyoto  emissions  target  by  14.2%.  Spain  will  need  to  identify  further  emission 
reduction policies and measures. 

•  In  October,  the  National  Council  for  Climate  change  -  involving  all  Spanish  regional 
governments  -  approved  both  the  National  Strategy  for  Climate  Change  and  the  Plan  of 
Urgent  Measures.  The  Plan  aims  at  achieving  the  objective  of  a  27.1  Mt  CO2/year 
reduction in the period 2008-2012, which is, at present, still very far from being reached. 

•  Furthermore, the Spanish National Adaptation Plan to Climate Change has been prepared 

in end 2007 and it is currently under discussion. 

•  Other  initiatives  launched  in  2007  aim  at  stimulating  energy  efficiency,  and  promoting 
cogeneration and offshore wind energy projects. In 2005 Spain produced 15% of electricity 
from renewable sources and plans to increase this share to 29% in 2010. 

•  The new "Hydrocarbons Law" introduced criteria for compulsory introduction of biofuels 

(1.9% in 2008, 3.5% in 2009 and 5.83% in 2010), in line with the Biofuel Directive. 

Nature and biodiversity 

•  By  the  end  of  2007,  23.4%  of  Spain's  land  area  was  designated  as  Site  of  Community 
Importance under the Habitats Directive, and 19.1% as Special Protection Area under the 
Birds Directive. However, the Natura 2000 conservation network is still incomplete. 

•  In June, the European Court of Justice ruled that Spain needed to further classify as SPAs 
territories of adequate size in the regions of Andalusia, the Balearics, and the Canaries, and 
territories  of  sufficient  number  in  the  regions  of  Andalusia,  the  Balearics,  the  Canaries, 
Castilla-La Mancha, Catalonia, Galicia and Valencia. 

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Environment and health 

•  In  2007,  efforts  were  made  on  the  urban  environment  strategy,  with  focus  on  health 

problems related to air, and water quality and other environmental factors. 

•  The Spanish Air Quality Strategy was approved by the government in February. Its aim is 
to  guarantee  the  effective  implementation  in  Spain  of  the  EU  Thematic  Strategy  on  Air 
Quality. Measures in the strategy include updating the legislative framework, strengthening 
administrative  instruments,  developing  investment  programmes  and  public  information 
about air quality. Following the adoption of the Strategy, the cabinet drafted an Air Quality 
and Atmospheric Protection Law, which was sent to the parliament. 

Natural resources and waste 

Spain produced 583 kg of municipal waste per capita in 2006, 13 % above the EU-average but 
this  is  11 %  less  than  in  2001.  289  kg/capita  (50 %)  went  to  landfill  and  only  41  kg/capita 
(7%) was incinerated, the rest was treated by other means. 

•  Water  management  and  sustainable  use  is  a  key  issue.  The  main  aim  in  2007  was  to 
properly  implement  the  Water  Framework  Directive,  with  strong  attention  on  improving 
the irrigation systems. A  law adopted  in 2007 imposed stricter control on exploitation of 
water resources and particularly addressed the new construction areas. 

Environmental technologies 

•  The National Plan for Scientific Research, Development and Technology Innovation 2008-
2011  approved  in  July  puts  particular  emphasis  on  research  into  clean  energy  and 
renewable energy sources. 

Implementation 

Spain  had  42  ongoing  cases  of  infringement  of  EU  environmental  legislation  as  of  31 
December 2007, most of these relating to nature protection legislation and water legislation. 

OUTLOOK FOR 2008 

•  While a legislative framework and the main environmental strategies had been adopted in 
2007  or  before,  the  focus  in  2008  should  be  on  their  implementation.  This  includes  full 
application of the National Strategy for Climate Change and the Plan of Urgent Measures, 
application of the Renewable Energies Plan, the Air Quality Strategy and other measures. 

•  One  outstanding  area  is  coast  management,  where  the  situation  is  difficult  due  to 

overdevelopment. A law is planned. 

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SWEDEN 

HIGHLIGHTS 2007 

Some  changes  in  the  environment  policy  objectives  were  expected  since  a  new  government 
came into power  in  September  2006. The government emphasised  two areas of  importance: 
climate change and the marine environment, particularly pollution of the Baltic Sea. A range 
of new initiatives was launched aimed in particular at emissions from road traffic and more 
generally the use of fossil energy. 

New measures have been introduced to prevent eutrophication in the Baltic Sea and Sweden 
has promoted stricter regulations for all countries along the Baltic Sea confirming its role as 
the driving force in this area. 

Climate change 

Sweden  is  on  track  to  meet  its  EU  burden  sharing  commitment  to  maximum  increase  its 
greenhouse  gas  emissions  by  4%  compared  to  the  base  year.  According  to  projections, 
Sweden  will  achieve  its  target,  using  only  existing  domestic  policies  and  measures. 
Greenhouse gas emissions were at 67 million tonnes CO2 eq. in 2005 or a 7.4% decrease. 

Electricity generated from renewable energy sources accounted for 48.2% of gross electricity 
consumption  in  Sweden  in  2006.  The  target  for  Sweden  is  60%  of  gross  electricity 
consumption  by  2010.  Renewable  energy  produced  from  biowaste,  solid  biomass,  off-shore 
wind  and  solar  energy  have  shown  significant  growth  in  recent  years.  Energy  intensity  was 
204 kg oil equivalent/€1000 GDP in 2005, slightly below the EU average. 

•  The government has announced that it will start a process of setting a new long-term target 
without committing to the 25% target of decrease in emissions in 2020 compared to 1990 
introduced by the former government. 

•  In April, the government introduced a measure to support expanding wind power industry. 
30  million  Swedish  crones  (€3.3  million)  are  allocated  annually  for  two  years  to  help 
municipalities and investors identifying optimal locations in terms of wind potential. 

Nature and biodiversity 

Under  the  Natura  2000  network  530  sites  have  been  designated  as  Special  Protection  Area 
(6.2% of the land area) and 3 971 Sites of Community Importance (13.7% of the land area) by 
the  end  of  2007.  The  process  is  not  yet  complete,  but  there  has  been  significant  progress 
recently. 

•  Efforts to develop regional landscape strategies, a national action programme to conserve 
the genetic variation of wild plants and animals, and a national strategy and action plan to 
establish a system to manage  the introduction and release  of  alien  species and genotypes 
were under way in 2007. 

Environment and health 

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•  In  order  to  limit  air  pollution  caused  by  traffic,  incentives  to  purchase  diesel  cars  with 
particle  filters  have  been  in  effect  since  April  (the  green  car  premium).  An  individual 
buying a new green car between April 2007 and December 2009 will receive a premium of 
10 000  Swedish  crones  or  €940.  The  government  has  allocated  about  €27  million  to  the 
green car premium. 

•  From August a congestion tax was introduced in Stockholm to reduce congestion on roads, 
and for environmental reasons. For the first five years "green cars" are exempted from the 
tax. 

•  The  first  European  Commission  report  on  the  implementation  of  the  Water  Framework 
Directive showed that Sweden is significantly behind in implementing the Directive. More 
efforts are needed in the near future. 

Natural resources and waste 

In 2006, 497 kg/per capita of municipal waste were produced, around the EU average. Of this, 
47% was incinerated, 5% was landfilled and the rest recycled or composted. 

•  Pollution  of  the  Baltic  Sea  and  the  Skagerak  Sea  is  one  of  the  priority  areas  within 
environment  policy,  especially  over-fertilisation,  over-fishing  and  spills  of  hazardous 
substances. Some initiatives in this area begun in 2007 while others will be launched in the 
years to come. 

•  In  order  to  cope  with  the  growing  challenge of  eutrophication  in  the  Baltic  Sea,  Sweden 
notified a proposal for a national ban on phosphates in laundry detergents for private use to 
the EU Commission. 

•  The  government  adopted  an  action  plan  to  increase  the  environmental  requirements  in 
public  procurement  in  March  and  added  financing  to  support  public  institutions  in 
specifying environmental requirements. 

Environmental technologies 

According  to  two  surveys  by  the  Swedish  Environmental  Technology  Council,  Swedish 
environmental technology companies are at the forefront in the areas of renewable energy and 
water  and  waste  water  treatment.  The  most  recent  figures  show  an  11%  increase  in  the 
sector’s  turnover  between  2005  and  2006  amounting  to  about  €10.4  billion.  The  exports 
increased  by  almost  20%,  to  €2.7  billion  in  2006.  Between  2003  and  2006  the  exports  of 
cleantech companies increased by 75%, turnover by 36% and employment by 13%. 

Use of market-based instruments 

In 2005 environmental taxes represented 5.7% of total tax revenue, mostly related to energy. 

OUTLOOK FOR 2008 

•  The government will strengthen climate efforts with an upcoming Budget Bill allocating a 
further  one  billion  Swedish  crones  (€100  million)  for  2008-2010  to  climate  research, 
energy  efficiency  measures,  pilot  and  demonstration  projects  for  second-generation 

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biofuels,  network  for  wind  power,  sustainable  yield  of  bioenergy  in  agriculture  and 
forestry, climate investments in other countries, and a programme for sustainable cities. 

•  The  government  has  proposed  a  climate  tax  package  comprising  a  total  of  more  than  3 
billion Swedish crones (€322 million) in higher energy and climate taxes in the Budget Bill 
for  2008.  Carbon  dioxide  tax  will  be  raised  to  a  total  of  SEK  1.01  (€0.11)/kg  carbon 
dioxide.  For  consumers,  this  will  mean  a  total  cost  increase  of  SEK  0.29  (€0.03)/litre 
petrol. 

•  Further  implementation  of  the  Natura  2000  network  continues  and  new  marine  Natura 

2000 sites are expected to be proposed. 

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UNITED KINGDOM 

HIGHLIGHTS 2007 

The UK government was very active on energy and environment policy in 2007. A Climate 
Change Bill was published in November with targets for reductions in CO2 emissions by 2020 
and 2050. The Energy White Paper was released in May 2007 and sets out the government’s 
international  and  domestic  energy  strategy  to  address  the  long-term  energy  challenges  and 
deliver four energy policy goals: to cut CO2 emissions by 60% by 2050, with real progress by 
2020; to maintain the reliability of energy supplies; to promote competitive markets in the UK 
and beyond; to ensure that every home is adequately and affordably heated. 

An Air Quality Strategy was announced with the overall aim of improving health through the 
adoption of emissions standards. 

The government launched a new Waste Strategy for England. The objectives of the strategy 
include  decoupling  waste  growth  from  economic  growth  and  more  emphasis  on  waste 
prevention and re-use. 

Climate change 

Greenhouse gas emissions were 657.4 million tonnes CO2 eq. in 2005 or 15.7% less than in 
the base year. The UK is on course to meet its Kyoto target of 12.5% emission reduction and 
is – together with Sweden and Germany - one of the three Member States that should achieve 
it, using only existing domestic policies and measures. Energy intensity has been falling and 
was  202.6  kg  oil  equivalent/€1000  GDP  in  2005,  slightly  lower  than  the  EU  average. 
Renewables accounted for 4.6 of gross electricity consumption in 2006; more measures might 
be necessary to reach the 10% target in 2010. 

•  A  Climate  Change  Bill  proposed  to  establish  a  26-32%  reduction  in  CO2  emissions  by 
2020  against  the  1990  level  and  at  least  a  60%  reduction  by  2050.  An  independent 
Committee  on  Climate  Change  will  advise  government  on  an  'optimal  trajectory'  to  the 
2050 target in the form of rolling three-to-five year carbon budgets. 

•  Energy  efficiency  gains  in  the  residential  sector  have  been  aided  by  changes  to  Building 

Regulations covering the efficiency of boilers and thermal performance of windows. 

Nature and biodiversity 

The Natura 2000 network includes 265 Special Protection Areas (6.2% of total area) and 616 
Sites of Community Importance (6.8% of total area) but is not yet complete. The Department 
of Environment, Food and Rural Affairs published a series of biodiversity indicators, which 
highlight  the  areas  of  key  concern.  These  include  farmland  species,  which  have  suffered  a 
45% decline since 1970, with bird populations particularly affected. 

Environment and health 

•  The  UK  is  meeting  its  targets  to  reduce  air  pollutants  across  99%  of  the  country's  area. 
However, the targets will probably be missed in three of the nine key pollutants: particles, 

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ozone and nitrogen dioxide. In 2007, the UK reported also one air quality zone exceeding 
(daily) limit value for protection of human health for sulphur dioxide. 

•  An  Air  Quality  Strategy  was  published  in  July  with  the  overall  aim  of  improving  health 
through the adoption of new and more stringent European emissions standards to improve 
air quality. 

•  The government has set up a Beacon Scheme which recognises local authority excellence 
in managing air quality. 120 individual authority action plans had been submitted by July. 

Natural resources and waste 

The UK produced 588 kg municipal waste per capita in 2006, this is 13.7% more than the EU 
average. 353 kg per capita (60%) were landfilled, 55 kg (9.3%) were incinerated and the rest 
was treated by other means, including recycling and composting. 

•  The government launched a new Waste Strategy for England. According to estimates, the 
strategy  will  save  9.3  million  tonnes  CO2  eq.  per  year  compared  to  2006.  The  policies 
described  in  the  strategy  include  information  campaigns,  investment  in  waste  collection, 
and the use of public procurement to accelerate the development of less resource intensive 
products. 

•  The standard rate of tax on landfill will increase by €11 per year from 2008 to 2010. There 
will be consultation on removing the ban on local authorities from introducing household 
financial incentives for waste reduction and recycling. 

Better regulation 

•  19 government departments have published simplification plans that would lead to private 
and  third  sector  administrative  savings  of  over  €2.8  billion  by  2010.  The  Department  of 
Environment,  Food  and  Rural  Affairs  aims  to  save  €220  million  or  some  5.5%  of  its 
current resource budget. 

Use of market-based instruments 

•  The  economic  instrument  that  has  delivered  the  largest  emission  reductions  from 
businesses is the Climate Change Levy, a tax on the use of energy in industry, commerce 
and the public sector, which has been in force since 2001. 

•  UK  energy  and  environment  policy  now  places  a  much  greater  emphasis  on  traded 

instruments to promote technology development such as the Renewables Obligation. 

•  In 2005 the share of environmental taxes over total taxation revenue was 6.7%, around the 

EU average. This has steadily decreased since 2000. 

Environmental technologies 

•  The  Energy  Technologies  Institute  has  raised  over  €420  million  of  private  funds  in 
addition  to  the  government’s  commitment  of  €765  million  over  ten  years  and  has 
announced a competition to design and build a project demonstrating Carbon Capture and 
Storage. 

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•  The Market Transformation Programme has helped bring energy efficiency products to the 

market by working with regulators, advisory groups, business and government. 

•  In  England  the  Business  Resource  Efficiency  and  Waste  programme  has  the  aim  of 
reducing waste from business and returns some of the tax receipts to help improve resource 
efficiency and waste management. 

OUTLOOK FOR 2008 

•  The government submitted the Climate Change Bill to parliament in November 2007 and it 
is expected that this will be approved by mid-2008. The government also intends to submit 
the  Energy  Bill  to  implement  the  legislative  aspects  of  the  Energy  White  Paper  with  the 
aim of having these in place by summer 2008. 

•  Subject to consultation, some elements of the Waste Strategy announced in 2007 will be 
implemented  in  2008.  Local  governments  will  work  with  retailers  to  implement  a 
programme to reduce the use of plastic bags by 25% by the end of 2008. 

•  A  report  is  expected  in  spring  2008  on  progress  towards  improving  the  environmental 

performance of products across their life-cycle. 

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