6 FINANCIAL INSTRUMENT FOR THE ENVIRONMENT
(LIFE)
(a)
(25039)
14716/03
COM(03) 667
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Draft Regulation amending Regulation (EC) No. 1655/2000 concerning the Financial Instrument for the Environment (LIFE).
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(b)
(25041)
14732/03
COM(03) 668
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Commission Report: Mid-term review of Regulation (EC) No. 1655/2000.
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| Legal base | (a) Article 175(1) EC; co-decision; QMV
(b) —
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| Documents originated | 5 November 2003
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| Deposited in Parliament |
15 November 2003 |
| Department | Environment, Food and Rural Affairs
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| Basis of consideration |
EMs of 27 November 2003 |
| Previous Committee Report |
None |
| To be discussed in Council
| See paragraph 6.7 below |
| Committee's assessment | Politically important
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| Committee's decision | (Both) Cleared
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Background
6.1 The LIFE[13]
programme was first set up in 1992, and ran initially until 31
December 1995. It was subsequently extended until the end of
1999, and, by virtue of Council Regulation (EC) No. 1655/2000,[14]
the current phase runs until the end of 2004. In the light of
the report which it was required to produce on the third phase
of the Programme (document (b)), the Commission has proposed (document
(a)) that the Programme should be extended for a further two years,
until 31 December 2006.
The current documents
6.2 The objective of the Programme is to provide financial
support for environmentally beneficial projects, and so to contribute
to the implementation and development of Community environmental
policy. It has three elements:
- protection of natural habitats and endangered species (LIFE
Nature);
- innovative environmental demonstration projects
(LIFE Environment); and
- technical assistance projects in non-EC countries
(other than the candidate countries) which border the Mediterranean
and Baltic Seas, and which have signed association agreements
with the Community (LIFE-Third Country).
6.3 47% of the budget allocation for the
Programme is devoted to each of the first two elements, and the
remaining 6% to the third.
6.4 The Commission's report points out that,
since 1992, 2,192 projects have been co-financed, at a total cost
of some €1.23
billion, and it notes that those under LIFE-Nature were concerned
principally with species and habitats designated under Natura
2000; that those under LIFE-Environment were allocated relatively
uniformly under a range of broad topic headings (such as urban
planning, clean technologies, waste and products); with those
under LIFE-Third Country falling largely into three groups (pollution,
biodiversity, and waste). It also records that an independent
evaluation of the Programme as a whole found evidence that it
contributed to the implementation of policy (though less so to
its development), and was managed effectively. It also suggested:
- that LIFE-Nature should continue
to have a significant role in driving the implementation of Natura
2000;
- that there is only limited evidence that LIFE-Environment
is supporting preparatory actions, but good evidence that it has
demonstrated a variety of clean technologies in key areas;
- that LIFE-Third Country projects are contributing
significantly to developing environmental capacity in third countries.
6.5 The Commission therefore concludes that
LIFE is a useful instrument which should be continued; that improvements
in the organisation and management of the Programme should be
maintained and continued; and that LIFE should be fully exploited
within the scope of the Community's Sixth Environmental Action
Programme. It also says that the dissemination of results should
be improved.
6.6 The Commission has accordingly proposed
in document (a) that the existing phase of the Programme should
be extended for a further two years, until 31 December 2006, so
as to bridge the gap between the ending of the existing phase
and the introduction of new Community financial perspectives after
2006. It is proposing a budget of €317
million, which it says is broadly consistent with previous levels
of expenditure,[15] having
regard to enlargement, but it has made this subject to two main
amendments. The first is that the LIFE-Environment guidelines
should be revised to link them clearly to the priorities in the
Sixth Environmental Action Programme, and ensure complementarity
with the Research, Structural Fund and Rural Development Programmes,
and the other is the need to align fully the funding mechanisms
in the Regulation with the new Financial Regulation.[16]
It also recognises the need to improve dissemination and monitoring
by increasing the proportion of the budget devoted to accompanying
measures from 5% to 6%.
The Government's view
6.7 In his Explanatory Memoranda of 27 November
2003, the Parliamentary Under-Secretary of State (Farming, Foods
and Sustainable Energy) at the Department for Environment, Food
and Rural Affairs (Lord Whitty) says that the Government broadly
welcomes the proposed extension to the Programme, as well as the
amendments aimed at improving its efficiency and relevance. In
particular, he points out that LIFE is the only dedicated financial
instrument for the support and development of Community environmental
policy, and that the integration of environmental and sustainable
development considerations into other policy areas is central
to government policy. He also notes that, since the first LIFE
Regulation in 1992, the UK has benefited from the funding of many
innovative demonstration projects under LIFE-Environment, together
with important nature conservation projects under LIFE-Nature,
and in 2002 it received 11% of the total budget available for
these two areas.
6.8 As regards timing, the Minister says
that consideration of the proposed extension began in the European
Parliament on 27 November, and that an informal discussion is
currently scheduled at the Environment Council on 22 December.
Thereafter, the timetable is unclear at present.
Conclusion
6.9 It appears that the LIFE Programme
has made a useful contribution to environmental activities both
in the UK and more widely within the Community, and, in clearing
these documents, we are drawing the attention of the House to
the Government's support for the proposal that the Programme should
at this stage be extended for a further two years.
13 After the French title (L'Instrument Financiere
pour L'Environnement). Back
14
OJ No. L.192, 28.7.00, p.1. Back
15
The previous budget, covering four years, was €640 million. Back
16
Council Regulation No. 1605/2002. Back
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