Select Committee on European Scrutiny Twelfth Report


13 Environmental Technologies Action Plan

(25333)

5864/04

COM(04) 38

Commission Communication: Stimulating Technologies for Sustainable Development: An Environmental Technologies Action Plan for the European Union

Legal base
Document originated28 January 2004
Deposited in Parliament6 February 2004
DepartmentEnvironment, Food and Rural Affairs
Basis of considerationEM of 26 February 2004
Previous Committee ReportNone
To be discussed in CouncilNo date set
Committee's assessmentPolitically important
Committee's decisionCleared

Background

13.1 According to the Commission, sustainable development is one of the Community's core objectives, in addition to which the European Council has recognised that environmental technologies can play a key role in creating the necessary synergies between environmental protection and economic growth. The Commission has therefore put forward in this Communication an Environmental Technologies Action Plan (ETAP), which would aim to remove any obstacles to realising the full potential of such technologies, to ensure that the Community takes a leading role over the coming years in developing and applying them, and to mobilise support for these objectives.

The current document

13.2 In introducing the proposed Action Plan, the Commission highlights a number of general factors which it regards as important, and which it says underpin the Plan. These include the diverse nature of environmental technologies, and hence their potential use in a wide range of economic sectors; the existence of many potentially significant, but currently under-used, technologies; the role which targeted and effective incentives can play; the extent to which investment in environmental technologies can be helped by reducing uncertainty about future market developments; and the importance of building on the experience and commitment of different stakeholders, and of optimising the use of different policy instruments. The Commission also notes that some of the measures needed may take time to affect investment decisions, and that it is therefore necessary to take action if there is to be a significant impact in the medium to longer term.

13.3 The actions proposed in the Plan itself fall into the following three main areas, and, in each of these, the Commission suggests a number of priorities.

GETTING FROM RESEARCH TO MARKETS

13.4 Priority actions would include:

  • increasing and focussing research, demonstration and dissemination, and improving co-ordination of relevant programmes, through the linking of research and demonstration funding;
  • establishing technology platforms, which would bring together all interested stakeholders to develop and promote a specific technology or solve particular issues; and
  • establishing European networks of technology testing, performance verification and standardisation, so as to increase the confidence of purchasers in new technologies.

The Commission also suggests that other potential actions could include developing a Community catalogue of existing directories and databases on environmental technologies, and ensuring that new and revised standards are performance-related.

IMPROVING MARKET CONDITIONS

13.5 The Commission places emphasis on:

  • developing and agreeing performance targets for key products, processes and services (such as emissions standards for cars, or energy efficiency standards for refrigerators);
  • mobilising financial instruments, such as loans, guarantee mechanisms and venture capital, so as to share the risks of investing in environmental technologies;
  • reviewing guidelines on state aids to see whether these inhibit investment in environmental technologies;
  • reviewing environmentally harmful subsidies which may distort prices and hence act as a barrier to investment in the technologies concerned;
  • encouraging the public procurement of environmental technologies, which the Commission suggests is a powerful economic driver to their further uptake;
  • raising business and consumer awareness, which the Commission regards as crucial in creating a framework conducive to the investment needed; and
  • providing targeted training.

13.6 The Commission also identifies a range of other possible actions under this heading. These include public-private partnerships, the promotion of new business niches, financial instruments for renewables and energy-efficiency technologies, measures to support eco-industries, the promotion of socially and environmentally responsible investment, the dissemination of good practices among financial institutions, the identification of opportunities to integrate environmental technologies when capital stock is replaced, a review of the operational criteria of the Structural Funds, encouraging the systematic internalisation of costs through market-based instruments, the promotion of life-cycle costing, and the investigation of technology procurement.

ACTING GLOBALLY

13.7 The Commission says that investment in environmental technologies has the potential not only to increase employment and economic growth within the Community, but to promote sustainable development at the global level, addressing detrimental social and environmental impacts. It suggests that the priority here should be to promote responsible investment in and use of environmental technologies in developing countries and countries in economic transition, and that these steps could be supplemented by responsible investment and trade.

13.8 The Commission proposes to review the Action Plan every two years, and to set up a European Panel on Environmental Technologies to oversee its implementation. It would also use the so-called Open Method of Coordination to exchange best practice, develop indicators, and establish guidelines and timetables.

The Government's view

13.9 In his Explanatory Memorandum of 26 February 2004, the Minister of State (Environment and Agri-Environment) at the Department for Environment, Food and Rural Affairs (Mr Elliot Morley) says that environmental technologies are a priority for the Government as they have the potential to improve the environment, whilst also helping to modernise the economy, infrastructure, and production and consumption patterns. In view of this, the Government supports the proposed Plan, believing that there is a need for the Community to explore ways in which environmental technologies can be more effectively encouraged, and more widely and rapidly employed, and that the clear framework of objectives and actions set out in the Plan should help to achieve this.

13.10 However, the Minister also points out that the policy implications of the wide range of measures proposed cannot be fully appraised at this early stage, and that work is in hand to identify key priority areas for the UK and to identify where Government action would be most effective. He adds that the Government will work closely with the Commission and other Member States to ensure that implementation of the Action Plan is rapid, effective and proportionate, and says that Regulatory Impact Assessments will be carried out in the light of any regulatory measures proposed.

Conclusion

13.11 Since the present document seeks simply to set out a framework for any further initiatives in this area, we are clearing it. However, in view of the importance placed by the European Council on the use of environmental technologies to create the synergies between environmental protection and economic growth needed to meet the Community's sustainable development objectives, we think it right to draw the Communication to the attention of the House.


 
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