3 Financial Instrument for the Environment
(LIFE)
| (26004)
13071/04
COM(04) 621
+ ADD1
| Draft Regulation concerning the Financial Instrument for the Environment (LIFE)
Commission Staff Working Document on a draft Regulation concerning the Financial Instrument for the Environment (LIFE)
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| Legal base | Article 175(1)EC; co-decision; QMV
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| Department | Environment, Food and Rural Affairs
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| Basis of consideration | Minister's letters of 16 and 20 November 2004
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| Previous Committee Report | HC 42-xxxiv (2003-04), para 6 (27 October 2004)
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| To be discussed in Council | 2 December 2005
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| Committee's assessment | Politically important
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| Committee's decision | Not cleared (but see para 3.6)
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Background
3.1 The Commission's Environment Directorate runs a number of
programmes, one of which —
the Financial Instrument for the Environment (LIFE) —
currently has three strands (Environment, Nature and Third Countries).
The current Regulation runs until the end of 2006, and, in September
2004, the Commission put forward this proposal, which would establish
a new Financial Instrument for the Environment (LIFE+) for the
period 1 January 2007 to 31 December 2013.
3.2 As our predecessors noted in their Report of
27 October 2004, the new Programme would have two components —
Implementation and Governance (which will receive 75-80% of the
proposed financial allocation) and Information and Communication
(which will receive the remaining 20-25% allocation) — and
would be established on a multi-annual basis, with detailed annual
programmes open to public and private bodies, including national,
regional and local authorities and non-governmental organisations.
To that extent, it would continue the basic objectives and scope
of the present LIFE Programme, but there would be two important
differences. First, many of the activities under LIFE Environment
will in future be integrated into the Community's competitiveness
framework programme, whilst activities under LIFE Third Countries
will be funded under the external assistance instrument. Likewise,
although LIFE+ would continue to be applicable to certain actions
related to Natura 2000, it is proposed that active management
of the Natura 2000 sites should in future be eligible for co-funding
from structural and rural funds. Secondly, many of the Environment
Directorate's current programmes[7]
would in future be merged within the single LIFE+ instrument.
3.3 Our predecessors also noted that the UK broadly
agreed with the general objectives of LIFE+, but were concerned
to ensure that actions eligible under this measure could not be
funded under other Community financial instruments; that criticisms
of the present programme should be addressed, including its concentration
on the implementation (as opposed to the development) of policy;
that there should be an improvement in the dissemination of results;
and that effective means of monitoring and evaluating value for
money should be incorporated. In view of this, and the relationship
between the proposed level of funding and the discussions on the
Community's budgetary ceiling under the new Financial Perspectives,
they decided to hold the document under scrutiny, pending further
clarification on these points.
Minister's letters of 17 and 20 November 2005
3.4 We have now received letters of 17 and 20 November
2005 from the Minister of State (Environment and Agri-Environment)
at the Department for Environment, Food and Rural Affairs (Mr
Elliot Morley), indicating that the UK Presidency is hoping to
secure a partial political agreement on the text of the proposal,
but not the budgetary provision at the Environment Council on
2 December —
an approach he says has been welcomed by Member States as a constructive
way to make progress. In particular, he points out that the key
elements of the proposal, on which the Government had previously
expressed concern, have now been addressed, notably:
- it has been drafted to ensure
that there is no overlap between measures funded under LIFE+ and
related instruments. Specifically, the Presidency proposal states
that the "Regulation shall not finance measures which fall
within the eligibility criteria of,
or receive assistance for the same purpose from, other Community
financial instruments, including the European Regional Development
Fund, the European Social Fund, the Cohesion Fund, the European
Agricultural Fund for Rural Development, the Competitiveness and
Innovation Framework Programme, the European Fisheries Fund and
the seventh Research Framework Programme".
- it now places emphasis on policy development
— for example, a specific objective is to "contribute
to the development and demonstration of innovative policy approaches".
- it foresees activities and resources being allocated
for dissemination through meetings, seminars, and workshops, and
through the development of networks and computer systems.
- the Commission would be required to ensure regular
monitoring of activities funded through LIFE+ and to evaluate
the contribution LIFE+ makes to developing, updating and implementing
Community environmental legislation.
3.5 In the light of these developments, the Minister
has asked us to clear the content of the proposal, on the basis
that the Government will present it for further scrutiny once
the new Financial Perspectives have been agreed, and a budget
for LIFE+ has been set.
Conclusion
3.6 As our predecessors have noted, LIFE+ is a
longstanding programme, which has operated with UK support in
an important area of Community policy. Consequently, its extension
for a further period does not give rise to any major points of
principle, and, on the basis of the explanation which the Minister
has now given, we see no reason why he should not agree to the
text now before the Council, subject to the proviso that formal
scrutiny clearance of the document will have to await further
information on the budget.
7 Notably the Sustainable Urban Development Programme;
the NGO Programme; and the Forest Focus Programme. Back
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