Communication from the Commission to the Council and the European Parliament 2007 - Environment policy review {SEC(2008)2150}
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 
COM(2008) 409 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

2007 Environment Policy Review 

{SEC(2008)2150}

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Introduction 

The  year  2007  marked  a  turning  point  in  EU  environment  policy.  The  main  commitments 
under  the  6th  Environment  Action  Programme  2002-2012  (6th  EAP)  have  been  delivered  as 
demonstrated  by  its  mid-term  review  and  we  must  now  further  strengthen  our  efforts  on 
implementation. 

Environment  issues  are  now  firmly  at  the  top  of  the  political  agenda,  and  command  the 
attention  of  decision-makers,  the  media  and  the  public.  80  %  of  EU  citizens  find  the 
environment  important  for  the  quality  of  their  life.  A  good  example  is  climate  change, 
particularly since the endorsement of the energy and climate change package in March 2007 
by  European  Heads  of  State  and  Government.  Instruments  have  been  fine-tuned  where 
possible  under  the  Better  Regulation  exercise.  Externally,  the  EU  has  kept  the  lead  on 
environmental  issues,  backed  up  by  solid  achievements  at  home  and  by  good  bilateral  and 
multilateral  relations  with  key  partners.  In  global  negotiations  it  has  secured  significant 
advances in several areas, notably on climate in the Bali conference. 

We need, however, to prepare for the major challenges ahead: defining a long-term strategic 
vision  for  sustainable  consumption  and  production,  adaptation  to  the  inevitable  climatic 
changes, and the protection of biodiversity. We should take advantage of the relatively light 
legislative  calendar  in  2008  and  2009  to  advance  now  on  these  issues.  At  the  international 
level,  we  face  demanding  negotiations  to  secure future  international  agreements  on  climate, 
and to preserve and manage biodiversity. 

A number of decisive steps were taken in 2007 

The policy framework is now in place 

First and foremost, the energy and climate change package endorsed by the European Council 
in 2007 firmly set Europe on the path to a low-carbon economy. 

The  EU  committed  to  a  30%  reduction  in  greenhouse  gas  emissions  provided  there  is  an 
international agreement. But even if there is no agreement it promises a unilateral reduction of 
at least 20% by 2020. It set targets of 20% for energy from renewable sources and 10% for 
biofuels  in  transport.  In  January  2008,  the  Commission  translated  the  commitments  into 
concrete  action  by  adopting  a  Climate  Action  and  Renewable  Energy  implementation 
package. This included proposals for (a) an improved Emissions Trading Scheme (ETS), (b) 
sharing the effort in non ETS-sectors like road transport, buildings, services and agriculture, 
(c)  a  Directive  with  legally  enforceable  targets  for  renewable  energy  including  a  set  of 
sustainability  criteria  for  biofuels,  (d)  new  Community  guidelines  on  state  aid  for 
environmental protection and (e) a regulatory framework to ensure that Carbon Capture and 
Geological  Storage  technologies  are  used  safely.  As  the  increased  production  of  biofuels  is 
one of the causes of recent food price rises around the world, the Commission will monitor 
the  environmental  and  social  impacts  of  the  policy  and,  if  appropriate,  propose  corrective 
action. 

In  other  policy  areas  too,  the  Commission  has  delivered  almost  all  its  main  commitments 
under the 6th EAP. All seven of the thematic strategies (air, waste prevention and recycling, 
marine  environment,  soil,  pesticides,  natural  resources  and  urban  environment)  have  been 

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presented to the co-legislator. Accompanying legislative proposals have been adopted or are 
being examined by Council and Parliament. 

Other major initiatives were also launched. The Commission presented a proposal for a new 
Industrial Emissions Directive, which merges and revises the Integrated Pollution Prevention 
and Control Directive and six other sectoral directives. This tightens emission limits in certain 
sectors, sets standards for environmental inspections and extends the scope to medium-sized 
combustion  plants.  The  long  awaited  REACH  -  Registration,  Evaluation,  Authorisation  and 
restriction of Chemicals – regulation, reforming the way we deal with chemicals, was adopted 
and  the  European  Chemicals  Agency  started  operating.  Also  the  Environmental  Liability 
Directive  came  into  force.  These  key  pieces  of  legislation  form  the  basis  for  sustainable 
industry in Europe. 

On resource management, agreement was reached on a Marine Strategy Framework Directive, 
whereby Member States have to do what is necessary to achieve good environmental status in 
the marine environment by 2020. A new waste shipment law applies since July, including a 
ban on exports of hazardous waste to developing countries. 

However, progress was not uniform in all sectors. For instance, the Commission regrets that 
the  Council  did  not  reach  a  political  agreement  on  the  proposal  for  a  Soil  Framework 
Directive. 

The mid-term review of the 6th EAP confirmed the main priorities of the Programme - climate 
change,  nature  and  biodiversity,  environment  and  health,  and  natural  resources  and  waste  - 
and  took  stock  of  progress.  It  noted  that  the  EU  is  not  yet  on  the  path  towards  sustainable 
development; its policies - if fully implemented - will only yield results over time as pressures 
on  the  environment  continue  to  grow;  further  efforts  are  needed.  This  assessment,  as  far  as 
climate and energy are concerned, was also confirmed in the progress report on the renewed 
Lisbon Strategy for Growth and Jobs. 

New financial instruments set in motion 

The  financial  instruments  for  environment  policy  under  the  current  multiannual  financial 
framework  became  operational  in  2007:  LIFE+,  agreed  in  March  2007  by  the  Council  and 
Parliament  with  a  budget  of  €  2 143  milli on  for  2007-13,  will  provide  funding  for  all  four 
priority areas of the 6th EAP, 50% of the funds being earmarked for nature and biodiversity. 

The  first  out  of  three  instruments  envisaged  under  the  Competitiveness  and  Innovation 
Framework  Programme  for  support  to  eco-innovative  small  and  medium-sized  enterprises 
(SMEs) was launched in 2007. € 228 million is  earmarked for eco-innovation in 2007-13. 

The  Commission  also  launched  the  Thematic  programme  on  environment  and  sustainable 
management of natural resources, including energy, with an initial € 889 million budget for 
2007-13, to address the environmental dimension of development and other external policies 
and to promote the EU's environment and energy policies abroad. In 2007, € 74 million has 
been earmarked to environmental projects. Support for environmental policy is also provided 
through external financial instruments that became operational in 2007, i.e. the Development 
Cooperation  Instrument,  the  European  Neighbourhood  and  Partnership  Instrument  and  the 
Instrument for Pre-Accession Assistance. 

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The  Civil  Protection  Financial  Instrument  adopted  by  the  Council  in  2007  with  a  budget  of 
€189.8  million  for  2007-13,  will  provide  funding  for  all  EU  activities  in  the  field  of  civil 
protection. 

Better regulation now central to environmental policy-making 

Whenever possible and opportune, efforts to simplify legislation have continued. For instance, 
the  Commission's  proposal  for  a  new  Industrial  Emissions  Directive  offers  a  clearer  and 
coherent  legal  framework  for  industry  and  should  cut  administrative  costs.  Another 
Commission  Decision  adopted  in  2007  will  clarify  ETS  monitoring  and  reduce  reporting 
requirements for low-emitting installations. 

The  Commission  also  presented  a  Green  Paper  on  market-based  instruments  to  stimulate  a 
discussion  on  ways  to  further  promote  their  use  at  Community  and  national  level,  as  they 
often are the most cost-effective way of meeting environmental objectives. 

Better regulation requires a sound knowledge base for assessing the driving forces, pressures, 
state and impacts on the environment. With the entry into force of the INSPIRE Directive the 
EU  has  taken  a  major  step  forward  in  assuring  that  relevant  spatial  data  can  be  found, 
accessed and shared. 

The Commission continues to conduct impact assessments of all its major policy proposals. 
2007  was  the  first  full  year  of  operation  of  the  Impact  Assessment  Board  which  scrutinises 
these assessments. 

More integration of environment into other policies 

Further integration reflects the growing consensus that the fight against climate change needs 
to  be  factored  into  most  policy  areas.  Indeed,  the  4th  assessment  report  of  the 
Intergovernmental  Panel  on  Climate  Change  confirmed  that  the  warming  of  the  climate 
system is unequivocal and that impacts may be severe, requiring action in many policy areas. 
Partly  to  address  this  issue,  there  was  progress  on  integrating  environment  into  transport. 
This is one of the most difficult issues in the fight against climate change and other pollution. 
In  2007  the  Commission  proposed  a  legislative  framework  to  achieve  the  2012  target  of  120 
g/km CO2 emissions for new cars while new standards (Euro 5 and 6) setting tighter limits on 
emissions of particles and nitrogen oxides were formally adopted by Council and Parliament. 
The Commission also proposed new emission norms for heavy duty vehicles (Euro VI) which 
- once adopted - will bring cleaner trucks and buses. The proposed revision of the Fuel Quality 
Directive will cut sulphur levels and reduce pollutant emissions as well as the greenhouse gas 
intensity  of  fuels  on  a  lifecycle  basis.  The  Directive  on  ambient  air  quality  and  cleaner  air, 
adopted  in  April  2008,  will  reduce  exposure  to  small  particles  (PM2.5)  in  urban  areas.  The 
Commission also adopted a Green Paper on urban mobility and launched a public consultation 
on follow-up actions, which will be presented in an Action Plan on urban mobility in autumn 
2008.  Further,  it  proposed  a  Directive  to  introduce  environmental  aspects  into  public 
procurement of vehicles. 

Integration also progressed in other fields. 

Agriculture: While the Common Agricultural Policy (CAP) includes a series of instruments 
contributing  to  the  protection  of  the  environment  and  nature  conservation  (e.g.  decoupling, 
cross-compliance,  agri-environment  and  Natura  2000  payments),  in  2007  the  Commission 

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approved 57 of the 94 rural development programmes for the period 2007-13, corresponding 
to a budget of €68 billion. Nearly  half of this budget will go to measures for "Improving the 
environment and the countryside". 

Cohesion policy: The Commission by end 2007 adopted almost all Operational Programmes 
of the Member States, earmarking € 347 b illion for 2007-13. Around 28% of these funds are 
planned  for  investment  in  environmentally  related  projects  and  infrastructure,  mainly  for 
sustainable transport (around € 34 billion) and wa ter (around €22 billion), besides that i.a. for 
renewable  energies  and  energy  efficiency,  waste  management,  risk  prevention,  nature 
protection and clean technologies. 

Development: The Commission continued to build progressively sustainability concerns into 
its development cooperation agreements both by  focusing on specific environmental themes 
and by integrating environment across all development cooperation activities. 

Health:  The  Mid-term  review  of  the  Action  Plan  on  Environment  &  Health  2004-2010 
the 
demonstrated 
corresponding research fields has been strengthened. 

that  cooperation  between  environment  policy,  health  policy  and 

Industrial  policy:  The  Commission  announced  in  the  Mid-term  Review  of  the  Industrial 
Policy  its  intention  to  promote  the  opportunities  that  environmental  challenges,  if  properly 
managed,  represent  for  European  firms.  It  will  back  this  up  by  actions  on  sustainable 
industrial policy, consumption and production. 

Research:  The  Commission  continued  to  integrate  environmental  sustainability  in  its 
Research Programmes.  In the 7th  Framework  Programme  for  2007-13,  the  Environment  and 
Energy  themes  (with  budgets  of  €1 890  millio n  and  €2 350  million)  support  environment 
policy  development  and  implementation,  including  research  on  energy  and  climate  change 
issues. 

Trade: The Commission actively pursued the inclusion of sustainable development chapters 
in the regional and bilateral free trade and association agreements it is negotiating in different 
parts of the world. Work on this is partly guided by the trade-related Sustainable Development 
Impact Assessments that the Commission does before concluding free trade agreements. 

EU international leadership on environment policies confirmed 

Domestic  environment  policy  initiatives  underpin  the  EU's  efforts  to  promote  high 
environmental  standards  worldwide.  International  negotiations  on  climate  change  in  2007 
culminated  in  the  decision  in  Bali  to  work  intensively  towards  a  comprehensive  global 
agreement for effective action after 2012 and to conclude negotiations in 2009. The EU´s aim 
is  to  reach  an  agreement  on  binding  absolute  emission  reduction  targets  for  developed 
countries  and  on  enhanced  contributions  by  developing  countries,  especially  newly 
industrialising countries. 

Progress was also made in other fields. The 14th Conference of the Parties to the Convention 
on  International  Trade  in  Endangered  Species  agreed  on  a  nine-year  moratorium  on  ivory 
sales after a one-off sale of government-owned stocks of raw ivory. To guarantee the legality 
of forest products imported into the EU from signatory countries, the Commission launched 
formal  negotiations  towards  voluntary  partnership  agreements  on  Forest  Law  Enforcement 
Governance and Trade with Indonesia, Ghana and Cameroon, and continued negotiations with 
Malaysia.  Together  with  UNEP,  the  Commission  established  the  International  Panel  for 
Sustainable  Resource  Management  to  provide  authoritative  scientific  advice  on  resource 

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management  to  policy-makers  globally.  The  Commission  also  continued  discussions  with 
candidate  countries  and  potential  candidates  to  support  their  gradual  alignment  with  EU 
standards  and  to  prepare  for  future  accession  negotiations.  Dialogue  and  cooperation  on 
environmental 
the  European 
issues  were  enhanced  with  partner  countries  within 
Neighbourhood Policy and the EU-Russia Strategic Partnership. 

EU environment policy has increased legitimacy 

The latest Eurobarometer survey on the attitudes of European citizens carried out at the end of 
2007 confirms the popular support EU environment policy enjoys. In virtually every Member 
State, respondents prefer decisions about protecting the environment to be made jointly within 
the  EU  (67%)  rather  than  at  national  level.  They  see  harmonised  European  legislation  as 
necessary  (82%),  believe  that  the  EU  should  extend  assistance  to  non-EU  countries  to  help 
them  improve  their  environmental  standards  (80%)  and  would  accept  that  the  EU  allocates 
more money to environmental protection even at the expense of other areas (78%). 

The new Treaty of Lisbon signed in December 2007 reinforces the EU's capacity for action. It 
explicitly introduces climate change into EU environment policy and recognizes that the EU 
has a leading  role to play in fighting  it on  the international scene. It also provides a clearer 
legal basis for EU action on energy and civil protection, stressing solidarity between Member 
States. 

But to face global challenges in 2008 and after, new impetus is needed… 

Despite these advances we cannot relax our efforts; firstly because advances will materialise 
only  if  fully  implemented,  and  secondly  because  the  challenges  ahead  of  us  call  for  even 
stronger  action.  This  was  highlighted  in  the  first  progress  report  of  the  EU's  Sustainable 
Development Strategy. 

Further strengthening implementation 

While  the  policy  framework  and  most  measures  are  in  place,  implementation  of  EU 
environment  legislation  by  Member  States  is  often slow or incomplete. At the end of 2007, 
there were 479 open infringement cases - 22% of the EU-total - concerning EU environment 
legislation. A majority of cases concern bad application of EU environment law, but there are 
also cases concerning lack of transposition or improper transposition of directives. 

The Commission continued to take action to improve implementation, following a twin-track 
approach of both support measures and sanctions. It has put forward cross-cutting proposals 
including  better  information,  help  with  problem-solving,  increased  transparency  and  more 
efficient  management  of  infringements  cases.  Awareness  raising  events  were  organised  on 
different  issues  across  Member  States,  notably  on  the  Waste  Shipment  Regulation  and  the 
Landfill  Directive  because  of  the  large  implementation  gaps  and  the  potentially  severe 
environmental impacts. The Commission proposed an Environmental Compliance Assistance 
Programme  in  order  to  help  small  and  medium-sized  enterprises  through  training,  technical 
advice and strengthening support networks. 

The  Commission  also  started  legal  action  against  several  Member  States  for  not  properly 
implementing  or  transposing  key  environment  legislation.  In  addition,  a  proposal  for  a 
directive was presented, which aims to ensure that serious environmental offences are subject 
to criminal sanctions across the Member States. 

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In 2008 the Commission will step up its efforts to support Member States and their authorities 
on implementation through better information exchange, guidance and training. EU external 
assistance  programmes  will  continue  to  provide  financial  and  technical  support  to  partner 
countries  to  help  them  align  their  environment  policy  with  the  EU  acquis,  particularly  the 
candidate countries and potential candidates. The Commission has also decided to present a 
Communication  to  outline  the  means  that  we  can  use  to  prevent  breaches  of  environmental 
law and to set out criteria for identifying infringement cases which need most immediate and 
intensive  Commission  legal  action.  It  will  further  review  the  2001  Recommendation  on 
minimum criteria for environmental inspections. 

Finally, an integrated communication campaign will be launched mid-2008 to raise awareness 
among stakeholders and the general public and to ensure maximum support to all key policies 
and initiatives. 

Continued effort to simplify and improve policies and instruments 

As environment policy and its integration into other policy areas are becoming increasingly 
important  we  must  work  continuously  to  maximise  its  efficiency,  cost-effectiveness  and 
transparency. The Commission will thus continue to apply Better Regulation principles here. 

To this end the Directive on Waste Electrical and Electronic Equipment and the Directive on 
the  Restriction  of  the  use  of  certain  Hazardous  Substances  in  electrical  and  electronic 
equipment will be revised in 2008. The Regulation on substances that deplete the ozone layer 
will  be  updated  and  simplified.  The  Ecolabel  and  EMAS  (Environmental  Management  and 
Auditing System) schemes  will  be  revised  to improve  procedures  and  reduce administrative 
burdens  for  participating  companies.  The  Commission  and  the  European  Environment 
Agency  (EEA)  have  jointly  developed  the  Water  Information  System  for  Europe  (WISE) 
which should cover all reporting under water directives by 2010. The Commission will also 
further  develop  the  Shared  Environmental  Information  System  (SEIS),  and  strengthen  the 
GMES (Global Monitoring for Environment and Security) programme. 

Reports  on  the  Environmental  Impact  Assessment  and  Strategic  Environmental  Assessment 
Directives show that the greatest scope for improving efficiency lies with Member States. The 
Commission  is  preparing  guidance  to  resolve  outstanding  interpretation  issues  and  increase 
consistency of application. 

The key challenges ahead 

Sustainability 

The current world economy is not sustainable. We are already causing environmental damage 
and resource depletion. As we become materially richer, we tend to place greater demands on 
our own environment and that of our trading partners. Meanwhile, the growing populations of 
the  newly  industrialising  countries  will  soon  be  reaching  the  same  levels  of  resource 
consumption as we currently have in the EU. 

The  global  economy  of  the  future  will  have  to  be  cleaner,  leaner  and  smarter.  The  regions 
who meet this challenge first will be the economies which benefit, rather than suffer, from the 
change, gaining economic and political influence. 

In  2008,  the  Commission  will  present  an  Action  Plan  on  Sustainable  Consumption  and 
Production and Sustainable Industrial Policy. Its overall objective is to identify and overcome 

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barriers to sustainable production and consumption that have either not been addressed yet or 
can be overcome by strengthening and better co-ordinating existing policies. It will extend the 
scope  of  the  Directive  on  the  eco-design  of  energy  using  products,  strengthen  product 
labelling and harmonise incentives for better products and smarter consumption. It will revise 
the EMAS and Eco-label schemes, promote green public procurement, and include work with 
retailers  to  impact  on  the  supply  chain.  Within  the  Lead  Market  Initiative,  it  will  develop 
measures  to  create  favourable  framework  conditions  for  specific  environmental  industries. 
The  adoption  of  the  Waste  Framework  Directive,  expected  in  2008,  will  help  create  a 
European recycling society. 

To build successful policy, we need the right measurements, and here GDP has its weaknesses 
as  an  indicator  of  progress.  The  Beyond  GDP  conference  in  2007  launched  the  process  to 
complement GDP with more comprehensive measures of wealth and well-being that include a 
social  and  environmental  dimension.  The  Commission  will  outline  in  a  communication  in 
2008 how it intends to push these ideas forward. 

Adaptation to climate change 

It is now clear that climate change will be one of the biggest challenges for humanity in the 
next  100  years.  And  to  deal  with  it,  policy-makers  will  have  to  address  two  distinct  –  but 
fundamentally linked – issues. 

The first is to limit temperature increases so that catastrophic climate changes can be avoided. 
With the adoption of the climate change packages in 2007 and early 2008, and the launch of 
the post-Kyoto negotiations, we are addressing this. The EU is pressing hard for a new global 
climate change agreement that will deliver ambitious emissions cuts, including in aviation and 
maritime transport. In the run-up to the UN Climate conference in Poznan in December 2008, 
the Commission will continue to work on the main building blocks of a future agreement as 
identified in the Bali Action Plan. The conference is expected to provide additional political 
guidance  to  the  post-2012  negotiations,  taking  into  account  the  results  of  other  high  level 
climate change meetings. 

But  even  if  the  world  stopped  emitting  greenhouse  gases  tomorrow,  the  climate  would  still 
continue to change for many decades to come. So we need to adapt too in order to manage the 
unavoidable. Adaptation means finding ways to use water more efficiently, to develop crops 
that can tolerate drought, to ensure that the frail and elderly are properly looked after during 
heat waves, but also to set aside land corridors, to help plant and animal species migrating and 
to strengthen coastal flood defences. 

Following  on  from  the  2007  Green  Paper  on  Adaptation  and  the  Communication  on  Water 
Scarcity and Droughts – which made the right price on water and water efficiency central to 
policy options – the Commission will present a White Paper on Adaptation. This will 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. 

Given  growing  concerns  about  the  impact  of  climate  change  on  population  movements, 
especially in the developing countries, the Commission will also build up the knowledge on 
this  nexus.  It  will  consider  the  need  for  concrete  orientations  in  the  context  of  the  EU 
migration and development agenda. 

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Protection of biodiversity 

The loss of biodiversity is a global threat that is just as serious as climate change and needs to 
be  tackled  with  the  same  urgency.  In  one  crucial  way  it  is  more  worrying  since  there  is  no 
way to reverse extinction. Conservation of biodiversity is our life insurance for the future. The 
9th  Conference  of  the  Parties  to  the  Convention  on  Biological  Diversity  (CBD)  in  Bonn  in 
May 2008, assessed progress made towards implementing the CBD decisions and achieving 
its target to significantly reduce the rate of biodiversity loss by 2010. With only two years left 
to 2010, it adopted decisions to boost global, regional and national implementation. To further 
underscore the importance of the issue, the Commission together with Germany presented the 
first results of the economic valuation of biodiversity and eco-system services as well as the 
costs of inaction. 

At home, additional efforts will be needed to achieve the EU target of halting biodiversity loss 
by 2010. The EEA’s fourth pan-European Assessment showed that more than 700 European 
species  are  currently  under  threat,  while  the  number  of  invasive  alien  species  in  the  pan-
European region continues to increase. In 2008, the Commission will step up implementation 
efforts  for  the  Biodiversity  Action  Plan,  work  further  on  the  extension  of  the  Natura  2000 
conservation  network  including  to  marine  areas  and  present  a  set  of  forest  proposals  to 
combat  illegal  logging  and  deforestation.  Following  the  adoption  of  the  Marine  Strategy 
Directive,  further  work  will  be  done  on  the  establishment  of  European  Marine  Regions  and 
the development of Marine Strategies with clear targets. 

Conclusion 

Environment  policy  increasingly  cuts  across  all  policy  areas  and  contributes  to  shaping  our 
future.  It  is  a  driver  of  structural  change.  This  implies  new  responsibilities,  risks  and 
opportunities. 

There  are  plentiful  economic  opportunities:  the  potential  for  eco-industries  is  huge  and 
Europe should take advantage - and even drive the development - of booming global markets. 
Socially, there are close links between a sound environment and social equity and cohesion. 
On the other hand, some sectors and groups may temporarily be more affected than others. An 
increasing  part  of  the  overall  policy  package  will  be  to  take  these  potential  impacts  into 
account, and try to mitigate them. 

Environment  policy  increasingly  has  to  integrate  economic  and  social  dimensions  and  also 
has to be integrated into sectoral policies to reach its intended objectives. We must be aware 
of  its  possible  consequences  in  other  policy  areas,  become  more  cost-effective  and  promote 
synergies whenever possible. Integration is the key to a sustainable future. 

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