Select Committee on European Scrutiny Twelfth Report


9 Sustainable development strategy

(26380)

6433/05

COM(05) 37

Commission Communication "The 2005 review of the EU Sustainable Development Strategy: Initial Stocktaking and Future Orientations"
+ ADD 1

SEC(05) 225

Commission Staff Working Document: The 2005 Review of the EU Sustainable Development Strategy - Stocktaking of Progress

Legal base
Document originated9 February 2005
Deposited in Parliament18 February 2005
DepartmentEnvironment, Food and Rural Affairs
Basis of considerationEM of 4 March 2005
Previous Committee ReportNone, but see footnotes
To be discussed in CouncilSee paras 8.16 and 8.17 below
Committee's assessmentPolitically important
Committee's decisionCleared

Background

9.1 According to the Commission, sustainable development is a fundamental objective under the Treaty; it underpins all Community policies, actions and strategies and requires economic, environmental and social policies to be designed and implemented in a mutually reinforcing way. The Community first set out its commitment to sustainable development in June 2001 at the Gothenburg European Council, which adopted the EU Sustainable Development Strategy (SDS). This was followed by a Commission Communication[8] in 2002, which focussed on the external dimension of sustainable development, and was endorsed by the European Council in Barcelona ahead of the World Summit on Sustainable Development (WSSD) held in Johannesburg that year. These texts together form the basis of the comprehensive EU Sustainable Development Strategy, and, since there is an undertaking that the Commission will review the Strategy at the start of each term in office, the new Commission intends to do this in the course of 2005. This document represents the first step in that process, and will be followed by a further Communication later in the year.

The current document

9.2 The Commission says that, in addition to this obligation to review the Strategy, the need for a review has been underlined by a number of other developments. These include:

  • the worsening of unsustainable trends, notably the growing pressure on natural resources, biodiversity and the climate, as well as persistent inequality and poverty and the increasing economic and social challenges posed by an ageing population;
  • Europe's economic underperformance, coupled with new competitive pressures triggered by continued globalisation and the emergence of newly industrialised countries;
  • the need for new international commitments[9] with the potential to contribute to global sustainable development to be matched by increased efforts at implementation;
  • the heightened sense of vulnerability created by new security threats, such as terrorism, natural crises and health scares, and the growing awareness of the need to take action against organised crime, corruption and racism; and
  • the enlargement of the European Union to 25 Member States.

Main components of the Strategy

9.3 The Commission identifies four main components of the Strategy. First, it sets out a broad vision of what is sustainable, emphasizing that, ultimately, the economic, social and environmental dimensions of sustainability must go hand-in-hand and mutually reinforce one another: understanding the importance of, and the interrelationships between, these three elements is therefore crucial. The second (and, in the Commission's view, arguably the most ambitious) part of the Strategy seeks to improve the way in which policies are made, focussing on greater coherence and increasing awareness of possible trade-offs between conflicting objectives: according to the Commission, this implies careful examination of their full effects, and that Community policy makers should take into account the global context and actively promote consistency between internal and external policies. Thirdly, the Strategy addresses a limited number of trends which the Commission regards as clearly not sustainable, such as climate change and energy use; threats to public health; poverty and social exclusion; ageing societies; management of natural resources; and land use and transport. Finally, the global dimension deals with various international goals, and focuses on the priority objectives identified in the Community's contribution to the WSSD (harnessing globalisation, trade for sustainable development, fighting poverty, social development, sustainable management of natural and environmental resources, improving the coherence of Community policies, better governance at all levels, and financing sustainable development).

Progress to date

9.4 The Commission says that, whilst some progress has been made and immediate results cannot be expected, it is clear that much remains to be done, there being few signs that most of the threats to sustainable development have been reversed. It then highlights a number of areas where important developments have taken place, in terms of changing the way policies are made and dealing with unsustainable trends.

9.5 On the first count, the Commission says that, since 2001, the aim has been to make policies more coherent and to create the right conditions to promote sustainable development, with the central objective of integrating a number of horizontal Treaty principles into all Community policies. This has been accompanied by the introduction of a new Impact Assessment mechanism in 2003, designed to make the trade-offs between competing goals more explicit; developing the open method of coordination as a means of promoting the exchange of good practice, and putting pressure on Member States to adopt a more strategic and integrated approach; and ensuring that market prices reflect the true costs of economic activities to society, thereby encouraging changes in production and consumption patterns (though the Commission observes that decision-making is still sometimes difficult in areas such as taxation because of the unanimity requirement in the Council). It also highlights the importance of investing in science and technology so as to optimise energy use, waste and safety, and of communicating and mobilising citizens and business.

9.6 As regards unsustainable trends, the Commission points out that the European Climate Change Programme (ECCP) has been a key measure against climate change in Europe, and that the Community has also continued to play a leading role in promoting the ratification of the Kyoto Protocol and in implementing the commitments made at the WSSD, but that much remains to be done. It also says that:

  • threats to public health have continued to increase since 2001, particularly in relation to obesity and HIV, and that in general health problems have been increased by greater contact and global mobility, with bioterrorism being another new element;
  • poverty and social exclusion represent a growing problem, particularly in some of the new Member States and in certain population sub-groups (such as the unemployed, single parents, disabled people and ethnic minorities): also, whilst increasing life expectancy is a major achievement, Europe's ageing society raises issues which need to be addressed, given that neither migration nor a rapid increase in birth rates can avert a sharp rise in the proportion of older people over the next two decades;
  • with the projected growth in world population, and the threat to biodiversity and to resources such as fresh water, the management of natural resources is important, as is the need to encourage a shift from road transport to alternatives with lower environmental impacts, and the part which infrastructure charging can play in influencing transport demand, together with improvements in vehicle and fuel technology; and
  • globalisation is the new context in which sustainable development has to be achieved, but that the gains are too often unevenly spread, and that the Community should support a coherent and integrated approach in organisations such as the World Trade Organisation (WTO), where the integration of the developing world into the global economy through the Doha Development Agenda (DDA) is seen as essential: it also believes that this process can be aided by better governance at global level, which — together with adequate financing — it sees as a critical factor in reaching the Millennium Development Goals.

Responding to the challenges

9.7 The remainder of the Communication examines the following ways in which the Community can respond to these challenges.

Reaffirming the basic principles of the Sustainable Development Strategy

9.8 In addition to highlighting the complementarity between this and the Lisbon Strategy, the Commission suggests that the review will confirm the three-dimensional nature of sustainable development as the cornerstone of the strategy, in that economic growth, social inclusion and environmental protection must necessarily go hand-in-hand, both in Europe and in other parts of the world. It adds that the review will also take into account the Community's contribution to global sustainable development in two ways, namely by addressing the international aspects of the unsustainable trends addressed by the Strategy, and by integrating into it the external policies which contribute to global sustainable development.

Reaffirming the new approach to policy making and policy coherence

9.9 The Commission says that the review will reinforce the "new approach to policy making" as the central means of placing sustainable development at the core of Community policy-making. In particular, the future Strategy will give a further boost to the different components of the Community's better regulation agenda, including impact assessment, stakeholder consultation and regulatory simplification. In addition, sustainability impact assessment studies will continue to be applied to major trade agreements. Other aspects of this new approach include the open method of coordination, the continued promotion of the use of market-based instruments to reflect the true costs to society of resource use and its environmental impact, and the importance of investments in science and technology.

Maintaining a focus on key unsustainable trends and exploring the linkages between these in greater detail

9.10 The Commission says that the review will maintain the Strategy's focus on the main trends which pose a threat to sustainable development, many of which can be tackled only through continued action over a long period, involving major structural changes (though it points out that this should not be an excuse for inaction in the short run). It adds that the review will include a thorough assessment of the unsustainable trends in the current strategy with a view to identifying objectives and necessary actions for the years to come, and that the priority areas identified in 2001 should also be brought into line with the international commitments made by the Community at the WSSD, as well as other related multilateral agreements and commitments it has undertaken. The review will also pay greater attention to identifying inter-relationships between the selected unsustainable trends, where it will seek to maximize positive synergies and reduce trade-offs.

Setting objectives, targets and milestones

9.11 The Commission recalls that the approach taken in the 2001 Strategy was to define medium-term headline objectives relating to each of the unsustainable trends and to identify a number of measures intended to address these. It believes that the current review will confirm the need for clearer objectives, targets and related deadlines as a way of giving focus to action in priority areas and enabling progress to be measured. It says that, although the trends represent long-term problems needing long-term solutions, the only way to ascertain that society is moving in the right direction is by setting clear intermediate targets and measuring progress.

9.12 The revised strategy will therefore present new headline objectives for each of the unsustainable trends and set the intermediate milestones allowing the Community to monitor progress. The operational objectives and action plans will be identified within the relevant internal and external sectoral policies, which will also be the main vehicles for implementing and monitoring policy initiatives.

Ensuring effective monitoring

9.13 The Commission suggests that the decision in Gothenburg to ensure yearly monitoring of the strategy at the Spring European Councils has fallen short of expectations, and says that a reinforced reporting system will be developed in the review, focussing on the short and medium-term delivery of the Strategy's objectives, and combining and simplifying as far as possible current reports on sustainable development issues. The institutional responsibilities (particularly the roles of the European Council and the European Parliament) in the monitoring process will also be made clearer.

9.14 Monitoring will take place in particular on the basis of sustainable development indicators developed by the Commission. These will draw on, among other things, the various indicators developed within the sectoral policy processes and the synthesis already made from these in the set of structural indicators which have monitored progress towards the targets set as part of the Lisbon reform agenda. More effort will also be put into developing future models, forecasts and further gathering of scientific data to help effective monitoring.

Strengthen ownership and improve co-operation with public and private actors at all levels

9.15 The Commission says that further action is needed to raise awareness, and to mobilise and involve stakeholders at all levels. It must be clear who is responsible for what action at a given point in time, and who will bear the costs. To this end, the Commission will explore how to create effective partnerships with industry, trade unions, non-governmental organisations and consumer interests, particularly with a view to discussing ways of helping to curb the unsustainable trends identified by the review. It adds that more consistency will be sought between Community, global, national, regional and local initiatives to promote sustainable development, and that possible actions should include identifying common priorities under each of the headline objectives; starting a process of mutual learning with Member States and/or regions; and setting up mechanisms for the permanent exchange of information on best practice. It also says that the Community will need to step up its efforts to stimulate further action in other parts of the world, including the developing world. The Commission will therefore strive to develop the dialogue on sustainable development objectives with partners outside the Community, notably administrations and civil society in third countries, as well as international organisations and NGOs focussed on global issues.

9.16 The Commission says that it has invited the European Council, the Council, the European Parliament, Member States, regional authorities and all parts of civil society to comment on these proposed orientations for the strategy, and that the stakeholder forum organised by the European Economic and Social Committee on 14-15 April 2005 will provide an initial opportunity for discussion. The Commission will then present a proposal for a revised Sustainable Development Strategy later this year.

The Government's view

9.17 In his Explanatory Memorandum of 4 March 2005, the Minister of State (Environment and Agri-Environment) at the Department for Environment, Food and Rural Affairs (Mr Elliot Morley) says that the Communication does not have any direct regulatory impacts, though it does outline policies which are likely to form the basis of proposals later in the year. He adds that the Environment Council on 10 March was expected to provide a reaction as part of its preparation for the Spring European Council.

Conclusion

9.18 As the Commission points out, sustainable development has become an increasingly significant aspect of Community policies, and this document therefore has an intrinsic importance, in so far as it suggests ways in which the current strategy might be developed in the future. However, we note that it essentially comprises the first step in the review process, and that it will be followed by a further Communication later in the year. In the circumstances, we think it would be sufficient at this stage simply to draw this to the attention of the House, and to return to the subject when that further Communication is available. We are therefore clearing the present document.


8   (23325) 6524/02; see HC 152-xxiv (2001-02), para 13 (17 April 2002). Back

9   Such as the WTO Doha Development Agenda, the Johannesburg plan of implementation decided at the WSSD, the Monterrey commitments on financing for development, and the Millennium Development Goals. Back


 
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