1.
Executive summary
Article 6 of the Treaty establishing the European Community, as amended by
the Amsterdam Treaty, states that “Environmental
protection requirements must be integrated into the definition and
implementation of the Community policies and activities… in particular with
a view to promoting sustainable development”. To this end, the
elements of an EC strategy formulated in this document aim to strengthen the
inter-linkages and mutually supportive nature of the spheres of sustainable
development with a main emphasis on environmental sustainability.
Developing
countries themselves have primary responsibility for identifying and
responding to environmental issues and for integrating environmental
considerations into their policies. EC economic and development co-operation
should support developing countries’ efforts to protect their own
environment and the shared global environment. In this regard, increased
dialogue with partner countries on environmental issues is of particular
importance.
All EC policies
should be coherent in relation to third countries and the impacts, including
environmental impacts, of EC policies on developing countries should be
analysed. In the pursuit of sustainable economic and social development
through structural reforms, EC co-operation policies and developing countries
should give special attention to environmental management capacity and public
environmental regulatory and monitoring functions. In the context of
integration of developing countries into the world economy, the EC should seek
to fully integrate environmental and sustainable development considerations
into the next World Trade Organisation (WTO) round. Private sector development
should also take environmental considerations into account. Furthermore, the
both positive and negative linkages between poverty and environment should be
acknowledged in the campaign against poverty.
The EC and the
developing countries are parties to a wide range of environmental agreements
and processes. The EC should support the efforts of developing countries to
participate effectively in the negotiations, to implement their obligations
through identifying country specific priorities, and to develop appropriate
policies and measures with respect to existing and emerging environmental
agreements. In this regard, the Commission is putting particular emphasis on
the major UN Environmental Conventions on climate, biodiversity and
desertification, and the role which developing countries can play in these
global environmental issues.
Although of great
significance, EC funding to specifically environmental purposes remains
relatively modest compared to the overall flows of EC aid. Therefore,
integration of environmental considerations into the use of all EC aid and
into the programming and project cycle must be continued and strengthened. In
this regard, the revised guidelines on environmental integration are of
particular importance, as is the capacity of existing Commission staff to
integrate environmental aspects, and partner countries’ capacity to assume
more tasks and responsibilities. The environmental performance of EC aid will
continue to be assessed through regular evaluations and use of indicators.
The are many
opportunities and options for further integration of environmental aspects
into EC economic and development co-operation. The challenge is to ensure
in a credible and transparent way that they are fully developed and that
the integration process is advancing at a strong pace. Key factors for success
are:
·
a strong political commitment to the integration process;
·
strengthening of the institutional arrangements; and
·
sound management of the overall quality of the environment
integration process.
2.
Background
The EC Treaty, as amended by the Amsterdam Treaty, states that
“Environmental protection requirements
must be integrated into the definition and implementation of the Community
policies and activities… in particular with a view to promoting sustainable
development”.
The Treaty also sets promotion of sustainable development as a central objective
of EC development co-operation.
Further legal basis for integrating environment and sustainable development
into EC economic and development co-operation is provided by the Lomé Convention
and the regulations on co-operation with different groups of developing countries
(see Annex I). The overall long-term objective with respect to the environment
has been defined within the framework of the OECD Development Assistance Committee
(DAC) Strategy 'Shaping the 21st Century'. It has been agreed to
work towards the reversal of negative environmental trends by 2015.
The Cardiff European Council in June 1998 made commitments
with respect to the integration of environment and sustainable development
into EC policies and invited all relevant formations of the Council to
establish their own integration strategies. In December 1998, the Vienna
European Council invited the Development Council, along with other formations
of the Council, to further develop this work.
In this context, the Commission prepared an information paper
“Progress in integrating sustainable development into EC development and economic
co-operation with particular reference to the environment”. On the basis of
an earlier evaluation
the paper identified areas for further improvements and served as a basis
for the May 1999 Development Council conclusions. The Council conclusions
call on the Commission “…to prepare,
in consultation with the Member States, elements of a comprehensive strategy,
including a timetable for further measures, an analysis of resources and a
set of indicators for the Development Council in November 1999.”
Developing countries have primary responsibility for
identifying and responding to environmental issues which are of relevance to
them and for integrating environmental considerations into their policies. In
this context, all countries have committed themselves at the Special Session
of the UN General Assembly in 1997 ('Rio plus 5') to prepare national
strategies for sustainable development by 2002. EC economic and development
co-operation should support developing countries’ efforts to protect their
own environment and the shared global environment. In this regard, increased
dialogue with partner countries on environmental issues is of particular
importance.
The elements of a strategy formulated in this document aim
to strengthen the inter-linkages and mutually supportive nature of the four
characteristics economically efficient, politically democratic and pluralistic,
socially equitable and environmentally sound of sustainable development.
All these dimensions are equally important for achieving sustainable development.
Here, the main emphasis is placed on environmental sustainability and further
strengthening the integration of environmental considerations into EC economic
and development co-operation.
The document discusses the importance of ensuring that EC
policies are coherent in relation to third countries and in chapter four looks
at the challenges and opportunities to integrate environmental considerations
into EC co-operation policies aimed at reaching the objectives of the
Amsterdam Treaty. Chapter five discusses how EC co-operation policies can help
developing countries to reach the objectives of the multi-lateral
environmental agreements and processes. Allocation of financial resources and
integration of environment into the programming and project cycle are the
topics of chapter six. Finally, chapter seven estimates the human and
institutional resources available to the Commission, proposes strategies for
capacity building and continued learning, and identifies indicators to be used
in order to assess progress made in the environment integration process.
3.
Increased policy coherence in promoting sustainable development
In order to systematically promote sustainable development,
coherence should be ensured between economic and development co-operation
policies and other EU and Community policies. Trade, industrial, agriculture
and fisheries policies are of particular importance. Other relevant policies
include the Common Foreign and Security Policy, migration, economic and
monetary, consumer, research and technology development and environment
policies. Environmental issues are of relevance also to the concept “Linking
Relief, Rehabilitation and Development”, the policy implications of which
are currently being developed by Commission services.
Thus
far the analyses of EU and EC policy coherence and the impacts on developing
countries have not been systematic. It would be useful if the Council and the
European Parliament continued their discussions on the issue and provide
further guidance on how to address it. Discussions on policy coherence between
the relevant specific formations of the Council should be considered.
Estimating impacts of these policies on developing countries
can be difficult, in particular since effects differ significantly from country
to country. Studies have been carried out on environmental impacts of trade
policies on certain developing countries.
Although the results of such studies are often mixed, they are extremely important
as a basis for more informed choices for policy design and implementation.
They can also be used to design country or region specific programmes and
projects to counteract the identified negative impacts. Therefore, such studies
should be continued, in particular in order to identify economic implications
of environmental issues.
The EC Treaty requires that the Community shall take account
of the development co-operation objectives in the policies that are likely
to affect developing countries.
It should be ensured that developing country considerations are systematically
included in the review of Commission proposals to the Council and to Parliament,
in particular in the most relevant policy areas identified above. In terms
of EC economic and development co-operation policies, the new structure of
the Commission should provide further opportunities for improved policy coherence.
Developing
countries should have opportunities to express their views on EC policy coherence.
For instance, the Lomé Convention states that where the Community intends
to take a measure that might affect the interests of the ACP States, it shall
inform them in good time. Where necessary, a request for information may also
be made by the ACP states.
The possibility of using this procedure more frequently and of inserting same
kind of procedures in the agreements with the other groups of developing countries
should be looked into. Relevant fora should also be used to discuss policy
coherence with major groups of the developing country societies.
An
important opportunity to improve overall EU policy coherence in terms of
environment and sustainable development is presented by the currently ongoing
process of preparing strategies on environment integration by the different
formations of the Council. In accordance with the EC Treaty, the possible
effects of these strategies on developing countries should be taken into
account in the overall integration process (e.g. when the Helsinki Summit
assesses overall progress) and in particular in the implementation of the
various sectoral strategies.
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Commission
strategy:
The discussions on how to
ensure policy coherence in relation to developing countries will be
continued in co-operation with the Council and with the European
Parliament, with the aim of obtaining further guidance on possible ways
to address the issue.
Studies on the economic and
environmental implications of EC policies on developing countries will
be continued.
The
possibility of inserting procedures into the agreements with the partner
countries for formally informing them on measures affecting their
sustainable development and of using the existing procedure in the Lomé
Convention more frequently will be looked into.
Relevant
fora will be actively used to discuss policy coherence with major groups
of developing country societies.
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4.
The Amsterdam Treaty: Challenges for the Integration of environment
into Economic and development co-operation policies
4.1.
Sustainable economic and social development
Sustainable
long-term economic development is compatible with the objective to improve
environmental quality. In order to pursue sustainable development
effectively, countries need to take environmental sustainability into account
in the formulation of economic and social policies.
Many countries adopt drastic measures in the form of
structural adjustment in this process. Research results indicate that
Structural Adjustment and sectoral policies can have positive as well as
negative effects on the environment through changes in relative prices with
subsequent substitution effects and changes in production, and through changes
in the regulatory and institutional framework. Whether these effects turn out
positive or negative often depends on the state of the economy before the
introduction of the adjustment programme, and to what extent mitigating
measures have been and are being taken. Potential negative impacts include:
·
Increased economic activity can lead to higher consumption of
renewable and non-renewable resources, which can be accompanied by
environmental effects caused by growing levels of pollution and waste and by
unsustainable natural resource management practices;
·
Liberalisation can lead to increased exploitation of natural
resources which may imply risks for environmental degradation;
·
Budgetary cutbacks affect the institutional framework. The often
already limited allocations for expenditures in the field of environmental
monitoring and law enforcement and public awareness and education can be
reduced, and even if no cuts are made in staffing, less public funds are often
made available for environment related activities.
There is a continued need to integrate environmental concerns
into structural adjustment policies with the long-term objective of attaining
sustainable economic growth without environmental degradation. As structural
adjustment programmes are likely to have environmental effects, the risks and
opportunities of each proposed programme with respect to the environment need
to be carefully assessed as a part of the preparatory studies. Such an
assessment can also provide an indication for necessary changes in the overall
approach to environmental policies in order to make them more effective and
cost-efficient. Moreover, Public Expenditure Reviews and Public Sector Reforms
are important entry points for strengthening the environmental regulatory
functions of Governments. Pilot activities will include the preparation of
such assessments for Structural Adjustment Programmes.
Other EC development co-operation policies are also highly
relevant in terms of sustainable development of developing countries. The
extent to which it is possible and relevant to integrate environmental
considerations into different policies varies. Some of these EC policies have
already a fully integrated approach to sustainable development and most
policies do identify the importance of environmental considerations for the
successful design and implementation of activities (Annex II). In addition, in
some policy areas sectoral guidelines have been prepared and strategic studies
on environment and sustainable development have been carried out to guide
practical implementation.
However, in many cases the analysis could have been more
systematic and reflected more in the policy recommendations, especially in the
policies where the links to environment are mostly indirect. A more reliable
analysis would allow to make suggestions for better integration of the
environmental dimension and to point out gaps in the policy framework. To this
end, an in-depth policy analysis will be included in the next comprehensive
evaluation of environmental performance of EC co-operation programmes to be
initiated in 2000. In addition, more in-depth discussions on integration of
environment into sectoral co-operation policies should be initiated within the
Community, taking into account the experiences gained by the EU Member States.
Particular emphasis will be placed on sector-wide reform programmes, which are
important opportunities for strengthening the integration of environmental
issues into the various economic and social sectors in the partner countries.
In many cases the effects
and costs of environmental degradation have to be borne by future generations
or by disadvantaged groups of society. Governments have special
responsibilities with regard to ensuring sustainable management of the
environment and equitable allocation of benefits and costs of environmental
protection measures. Developing countries’ own efforts, together with
private investment as well as more efficient pricing and cost recovery (with
an emphasis on the Polluter Pays Principle) will be critical for long term
success. Development co-operation should focus on supporting long term
measures which:
(1)
Promote enabling activities for and increase environment management
capacity of both public and private sector in developing countries;
(2)
Facilitate both regulatory and market-based approaches (such as taxes,
voluntary agreements and phasing out of harmful subsidies) to natural
resources management and environmental protection; and
(3)
Promote environmental awareness and training and develop EU -
developing countries environmental Research and Technology Development
networks and joint research activities.
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Commission
strategy:
As part of the preparation of
structural adjustment and sector-wide reform programmes environmental
issues should be systematically integrated through appropriate policies.
Within the framework of public sector reform, special attention should
be given to strengthening the public environmental regulatory and
monitoring functions.
An in-depth policy analysis of environment
integration into sectoral development co-operation policies of the
Community will be included in the next comprehensive evaluation of
environmental performance of EC aid to be initiated in 2000.
Integration of environmental considerations to all
EC development co-operation policies should be promoted through sector
specific discussions within the Community taking into account the
experiences of the EU Member States.
Development
co-operation should focus on measures which (i) promote enabling
activities for and increase environment management capacity of public
and private sector; (ii) facilitate regulatory and market-based
approaches to natural resources management and environmental protection;
and (iii) promote environmental awareness and training and develop
environmental Research and Technology Development networks and joint
research activities.
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4.2.
Integration of developing countries into the world economy
and private sector development
Integration of developing countries into the world economy
can be achieved in particular through trade and regional economic integration,
facilitated by the development of the private sector and by domestic and
foreign investment.
Trade and environment should play a mutually supportive role
in favour of sustainable development. The EC should seek to establish fair
conditions for production and competition in the globalised markets and to
balance trade and risks for the environment. The Community has made clear
that
negotiations in this area should take full account of the needs of developing
countries and the objective of sustainable development.
Accordingly, the Community seeks the inclusion of a trade and environment
component in the next WTO Round.
The objectives in this regard are:
(1)
Greater legal clarity on the relationship between WTO
rules and trade measures taken pursuant to Multilateral Environmental
Agreements (MEAs). Consensus should be sought on the accommodation within WTO
rules of trade measures taken pursuant to MEAs and on the types of
multilateral agreements which constitute MEAs.
(2)
A clarification of the relationship between WTO rules and
Non-Product Related Process and Production Methods requirements and, in
particular, of the WTO-compatibility of eco-labelling schemes.
(3)
A clarification of the relationship between multilateral trade rules and
core environmental principles, notably the precautionary principle. It is
necessary to maintain the right of WTO Members to take precautionary action to
protect human health, safety and the environment while at the same time
avoiding unjustified or disproportionate restrictions.
The Round should reach a
clear understanding that, subject to the necessary safeguards, there is scope
within WTO rules to use market based, non-discriminatory, non-protectionist
instruments to achieve environmental objectives and to allow consumers to make
informed choices. These objectives should be pursued without prejudice to
European trade interests and environmental legislation, or to the legitimate
interests of developing countries. In order to prepare for the negotiations, the EC
has initiated an environment and sustainability review of the Round and other
WTO Members intend to undertake similar studies.
Another trade and environment issue of great interest to many developing
countries is the issue of intellectual property rights (Trade Related
Intellectual Property Rights TRIPS). It would be useful to consider the
relationship between the WTO TRIPS Agreement and the intellectual property
rights related provisions of the UN Convention on Biological Diversity. The
Commission will address the capacity of developing countries to identify and
seek their legitimate rights in relation to the intellectual property rights
provisions of the Biodiversity Convention in the biodiversity action plan
currently under preparation (see also section 5).
The trade related objectives of EC co-operation policies are
pursued through formal trade arrangements, as in the Lomé Convention, with
co-operation partners and through trade promotion schemes. A concrete example
of how environment is currently taken into account in trade agreements is in
Protocol 10 to the Lomé IV Convention. It represents the first formal
agreement at international level acknowledging the need for the development of
forest-certification systems for trade in tropical wood, based on criteria and
indicators harmonised at international level.
Furthermore, the Generalised System of Preferences (GSP) includes
the possibility to give additional preferential treatment to countries that
respect minimum social and environmental standards. Opportunities should be
identified to use this arrangement, which is fully compatible with WTO rules,
more frequently.
Negative impacts on relative preferences
for trading partners under the GSP scheme as well as Lomé and other regional
agreements should be avoided. This is one of the elements to be taken into
account in the negotiations in order to avoid any unacceptable reduction of
margins of preferences in key sectors of developing countries. One implication
of the results of the negotiations could be the need to increase current GSP
preferences, including those under the environmental and social incentive
components.
Any tariff initiatives of the next WTO round must take into
account the particular concerns of the least developed countries. The
Community has proposed an up front commitment from all developed countries to
implement, no later than the end of the Round, duty free access for
essentially all products from least developed countries.
The increasing globalisation and the consequent need for
developing countries to improve their competitiveness in order to integrate
successfully in the world economy increase the need for private sector
development. Private sector development demands a stable macro-economic
framework and a well functioning framework of policies and institutions,
including the ones designed to ensure protection of the environment and
sustainable use of natural resources.
For these reasons, support for the development of the private
sector is a key area of the development co-operation policy of the European
Union. In its efforts to improve the competitiveness of the private sector in
the developing countries, the EC should pay particular attention to the
integration of environmental considerations into private sector operations.
This could include promotion of environmental management systems,
environmental auditing and reporting and adherence to internationally agreed
codes of conduct. Privatisation of provision of environmental services (for
example waste management, sanitation and wastewater treatment) could also
improve economic and environmental efficiency. Furthermore, internationally
operating companies have experience in introducing and implementing
environmental management systems and cleaner production and technologies. EC
industrial and economic co-operation policies should seek to promote such
positive role of international companies and to disseminate good practises.
In terms of international investment, developing countries
have traditionally been mostly in the role of host countries. Investment flows
between developing countries have also been growing but remain relatively
modest and unevenly spread. The position of the Community is that there is a
need to establish a multilateral framework of rules governing international
investment addressing the issue of access to investment opportunities and of
non-discrimination, protection of investment, and stable and transparent
business climate. In order to be conducive to sustainable development, the
framework of rules should preserve the ability of host countries to regulate,
in a transparent and non-discriminatory manner, the activity of the investors
(whether foreign or domestic) on their respective territory for the
achievement of legitimate policy objectives. This aspect is of particular
importance for developing countries. In this respect, traditional provisions
on special and differential treatment (e.g. exemptions and exceptions, or
longer transitional periods) for developing countries may no longer suffice.
Rather, the dimension of environment and sustainable development should be
built into the rules themselves. in a manner that allows all countries to
implement and apply them.
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Commission
strategy:
The EC should seek to fully
integrate environmental and sustainable development considerations into
the next WTO round. In particular, the objectives stated in the
Commission Communication “The EC Approach to the WTO Millennium
Round” should be pursued, taking into account the legitimate needs of
developing countries.
The Community should support capacity building
for trade negotiators from developing countries to be fully aware of
potential environmental implications of trade measures. The capacity of
developing countries to identify and seek their legitimate rights in
relation to the intellectual property rights provisions of the
Convention on Biological Diversity will be addressed in the biodiversity
action plan currently under preparation.
Opportunities to make more
extensive use of the possibility of giving preferential treatment to
products that have been produced in an environmentally sustainable way,
provided for by the existing provisions of the Generalised System of
Preferences (GSP), should be identified.
Future negotiations on tariffs should seek to avoid any unacceptable reduction
of margins of preferences in key sectors of developing countries. If
margins are reduced, possibilities for compensation through increasing
current GSP preferences, including those under the environmental and
social incentive components, should be considered.
Policies and programmes for
support of private sector development should take environmental
considerations fully into account. Privatisation and support for the
development of the private sector should be accompanied by strengthening
the public environmental regulatory and monitoring functions. Provision
of environmental services by the private sector will be promoted.
Negotiations on multilateral
rules on international investment should take account of the needs of
developing countries and have a built in environmental and sustainable
development dimension. The rules should adequately preserve the ability
of host countries to regulate, in a transparent and non-discriminatory
manner, the activity of the investors on their respective territory for
the achievement of legitimate policy objectives.
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4.3.
Campaign against poverty
The relationship between poverty and environment is highly
complex and has both positive and negative inter-relationships. In order to
explore more systematically these important issues, the Commission actively
participates with other donors in two major initiatives.
In 1998, UNDP and the Commission have launched an initiative
on Poverty and Environment. A technical review concludes that many promising
policy approaches exist that foster the positive inter-relationships, i.e.
promoting poverty alleviation through the improvement of the environment or
vice versa. The results of this review will also contribute to
a better understanding of policies potentially leading to undesirable trade-offs
between poverty reduction and environmental enhancement. The lessons from
this systematic screening exercise were shared and discussed in September
1999 by a Forum of Ministers jointly chaired by the Commission and UNDP. This
forum will continue its discussions and exchange of experiences in order to
feed the results into the on-going co-operation programme, the annual meeting
of the UN Commission on Sustainable Development and events related to the
major UN Conferences.
Within the framework of the Development Assistance Committee
(DAC) the Commission is an active member of the DAC Poverty Network and is
co-chairing the Working Group on Policy Coherence. This working group will focus its work on the coherence of
food security, trade and debt policies with development co-operation, but it
is hoped to also undertake work on environmental policy, building on the
previous study.
An Action Plan on Capacity Building for Poverty Reduction is
currently under preparation by the European Commission within the post-Lomé
negotiation process. The objective should be to ensure that in the policy
dialogue with the partner countries and the design of co-operation programmes
and projects opportunities for strengthening positive linkages between poverty
and environment are more systematically acknowledged.
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Commission
strategy:
The linkages between poverty
and environment should be more systematically acknowledged in the policy
dialogue with the partner countries and in the design of co-operation
programmes and projects, in particular through the Action Plan on
Capacity Building for Poverty Reduction under preparation.
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5.
Implementation of obligations of multi-lateral environment agreements
and processes
The European Community is party to 37 environmental
Conventions, Protocols and Amendments and has signed another 15 (the most
relevant agreement and protocols are listed in Annex III). In addition, there
are other types of agreement with major effects on natural resources and the
environment, such as the ones establishing Regional Fisheries Organisations
and the UN Convention on the Law of the Sea, as well as ongoing negotiations
on new environmental agreements. Similarly,
developing countries are parties to a wide range of environmental agreements
and processes.
Encouraging developing country participation in such
agreements and processes and their implementation should be addressed in the
policy dialogue and programming with partner countries. The most important
measures include identifying country specific priorities and addressing them
within the framework of comprehensive national strategies for sustainable
development. Other activities should include capacity building for designing
and implementing policies and measures, and for training, monitoring and
reporting on progress, and collaboration on research and technology
development. Linked to this is the need for the Community to identify
opportunities to strengthen capacity of developing countries to negotiate
emerging environment agreements, to participate fully in relevant
international fora (for example the United Nations Environment Programme and
the United Nations Commission on Sustainable Development), as well as to
prepare their negotiating positions within like-minded groups, for instance
the Alliance of Small Island States.
The Commission puts an emphasis on supporting the developing
countries’ efforts to respond to global environmental issues and to
implement the major UN Environmental Conventions on climate, biodiversity and
desertification. The requirements of these Conventions are also mainstreamed
into EC economic and development policies as well as in several other sectoral
policies and programmes through the elaboration of implementation strategy
papers, in particular:
·
The Commission Working Document “EC economic and development
co-operation: responding to the new challenges of climate change” and the
forthcoming Council Conclusions on this issue;
·
A Biodiversity Action Plan under preparation for EC development
co-operation as a part of the overall EC Biodiversity Action Plan (based on
the EC Biodiversity Strategy launched in 1998).
·
The Commission Staff Working Paper on “The European
Community’s Policies, Programmes, Financial Instruments and Projects
Relating to Combating Desertification in Developing Countries and EU Member
States”, which is now being revised for the fourth Conference of the Parties
to the UN Convention to Combat Desertification to be held in 2000.
It should be kept in mind that, although of central
importance, these global issues and Conventions form only part of a much wider
range of environmental issues and agreements requiring adequate attention and
resources from the Community and the partner countries. In addition, new
obligations might enter into force, i.e. binding commitments of developing
country parties under the Montreal Protocol. Moreover, new MEAs are constantly
under negotiation and being completed, such as the ones on chemical management
and the possible negotiations on a global instrument on forests.
The EU promotes as high a level of environment integration as
possible. Therefore, the EU should use its full weight in all aspects of
international environmental negotiations. For instance, opportunities to
better co-ordinate EU objectives in relation to the operation of the various
international funds, including those designed to implement MEAs, should be
fully explored.
Commission
strategy:
The efforts of developing
countries to implement the obligations of international environmental
agreements and processes will be supported through identifying country
specific priorities and addressing them within the framework of national
strategies for sustainable development and through development of
policies and measures related to specific environmental agreements and
processes. Particular emphasis will be given to the role of developing
countries in the protection of the global environment.
Opportunities for setting up procedures which
enable developing countries to better participate in international
negotiations and other processes should be looked into in close
co-operation with developing countries and other aid donors.
The requirements of the major
UN Environment Conventions will continue to be mainstreamed into EC
economic and development policies through specific strategies and action
plans.
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6.
Integration of environment into the programming and project cycle
6.1.
Allocation of financial resources towards environmental programmes
Funds committed and disbursed to ACP and ALA-MED countries
for primarily environmental projects or for environmental components of other
projects were 8.5% (€ 1,339 million) of total funds committed between 1990
and 1995.
The share of funds allocated to environmental projects differed considerably
between regions. Whereas in the ALA region 15% of funds from the financial
and technical budget lines were committed (thus meeting the 10% target of
the ALA Regulation), only 5% of MED Budget Lines
and 3% of EDF VII funds were committed to distinctly environmental projects.
A review of EC financial contributions towards the environment in ACP and
ALA-MED countries during years 1996 - 1999 is currently under way.
Under the Phare Programme, commitments to environment and
energy programmes over the period 1990-98 amount to € 570 million,
representing 7.3% of the total Phare Programme. From the Tacis Programme, €
347 million were allocated to nuclear safety and environment during 1995 to
1997 of which environment represented approximately € 67 million.
Environmental programmes have also been initiated under the OBNOVA Regulation
for the republics of the former Yugoslavia.
Priority environment themes for funding are stated in the Lomé
Convention, the Barcelona Declaration
and the Short and Medium Term Priority Environmental Action Plan (SMAP), the
Commission Communication “Europe-Asia Co-operation Strategy in the Field of
Environment”, and the relevant Regulations.
For ACP-ALA-MED, the environment themes receiving most funding during 1990
to 1995 were land resources, tropical forests, urban environment, institutional strengthening,
biodiversity, marine resources and technology transfer. Furthermore, research
actions taken under the Fifth Framework Programme for Research and Technology
Development on global environmental issues (for example the Key Action ‘Global
Change and Biodiversity’) and more specifically the ‘Confirming the International
Role of Community Research’ programme are relevant.
Developing countries themselves have the key role in tackling
environmental problems but also for allocating resources according to their
own priorities. The EC must put more emphasis into the dialogue with our
partner countries in order to raise the importance of environmental issues in
their political agendas. EC funding for specific environmental purposes
remains modest compared to the overall flows of EC aid (more detailed figures
are presented in Annex IV). The main part of environmental funding will
continue to come from the main geographical financing instruments as part of
regular co-operation activities. Therefore, it is of central importance to
continue integrating environmental considerations into all EC aid instruments
and to ensure that the environmental impacts are assessed.
A strategically important Budget Line is ‘Environment in
Developing Countries’, which is a specific instrument to implement pilot
activities and strategic studies. It can be used to flexibly respond to
up-coming environmental issues. Capacity building efforts specifically
targeted on environmental issues and integration of environment and
sustainable development into social and economic policies must be stepped up.
The focus on a small number of priority themes will be continued for improved
efficiency and dissemination of results. In particular, the results and
lessons learned will be used in connection with the overall evaluation of
environmental performance of EC aid.
There is still a need to improve accounting of environmental
expenditures and make it more easily comparable between regions and with the
environmental expenditure of EU Member States’ economic and development
co-operation. One step in that direction would be an introduction of the OECD
DAC marker system for accounting contributions towards international
environment agreements. However, the allocation of environmental funding to
different regions, countries or themes does not necessarily reflect the
magnitude of environmental problems. Other factors can include limited
political commitment and weak administrative and management capacities in host
countries leading to relatively low demand for environmental projects. These
issues can best be addressed in the policy dialogue with partner countries.
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Commission
strategy:
Dialogue with partner countries
on environmental issues will be strengthened and the integration of
environmental considerations into all EC aid financing instruments
continued in order to successfully tackle global environmental issues,
priority environment themes of the regional co-operation agreements and
region and country specific priorities.
Capacity building efforts
specifically targeted at environmental issues and integration of
environment and sustainable development into social and economic
policies will be stepped up. In the case of strategic funding
instruments the focus on a small number of priority themes will be
continued and the results and lessons learned used in connection with
the overall evaluation of environmental performance of EC aid.
A more uniform system for
accounting environmental expenditures will be developed with the aim of
making it more easily comparable between regions and with the
environmental expenditure of EU Member States’ economic and
development co-operation. The OECD DAC marker system for accounting
contributions towards international environment agreements will be
introduced.
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6.2.
Integration into country and regional strategies and programming
Programming is the initial planning process for a group of
co-operation activities in a broad context through a dialogue with relevant
stakeholders in the partner country or region.
Therefore, the programming phase is an appropriate opportunity to ensure that
co-operation activities fit into national or regional strategies for sustainable
development.
At the 1997
Earth Summit + 5 all countries committed themselves to prepare national strategies
for sustainable development by 2002. In the DAC all bilateral donors have
committed themselves to helping developing countries to have such strategies
under implementation by 2005 in order to start reversing environmental degradation
trends by 2015.
Sustainable development strategies are country specific, participatory processes
aimed at ensuring that existing policies and their implementation take environmental
considerations into account and combine them with socio-economic development
objectives. The strategies can provide a framework for integrated, comprehensive
and coherent approaches that are owned by the developing countries themselves
and that at the same time provide a framework in which all partners can work
coherently. A set of guidelines for donors on how best to support such strategies
is under preparation by the DAC Task Force on national strategies for sustainable
development co-chaired by the United Kingdom and the Commission. The Commission
will continue to support the development and implementation of national strategies
for sustainable development and will make appropriate use of the DAC guidelines.
Major
projects and programmes at the regional level are likely to have cross-border
environmental effects. In such cases emphasis should be placed on
complementarity between national and regional indicative programmes in order
to avoid overlaps or gaps. Furthermore, certain regional groupings, for
instance the Small Island Developing States (SIDS), might be faced with
similar environmental problems, which can be addressed in a more
cost-effective way through regional co-operation or other forms of South-South
co-operation.
As regards
the Community's relations with central Europe, environment is a special priority,
reflecting the application of the ten countries to accede to the European
Union. In this pre-accession context, the candidate countries are required
to incorporate rapidly the environmental ‘acquis communautaire’ into their
national laws.
Country
Strategy Papers and Regional Strategy Papers as currently developed for ACP,
ALA and MED countries aim at improving the coherence of EC development
co-operation policies towards these countries. At present, the programming exercise is being harmonised
and the same environmental integration procedures should be used for all
regions at the different stages of programming. A manual with revised
guidelines for the integration of environmental aspects in policies and
programming is currently under preparation. Environment integration during
programming serves two objectives:
·
to identify and avoid harmful direct and indirect environmental
impacts of co-operation programmes which can undermine sustainability and
counteract achieving the development co-operation objectives,
·
to recognise and realise opportunities for enhancing
environmental conditions, thereby bringing additional benefits to development
and economic activities and advancing environmental issues that are a priority
for the EC.
Under the revised guidelines, this will be achieved in a three
step approach. In the first instance a Country Environmental Profile
and relevant external performance indicators (such as those described in section
8.3) should serve as an input to the country strategy document. The second
step is the systematic assessment on the basis of the Environmental Profile
of the risks and opportunities of the proposed programme.
Thirdly, the overall quality of the integration of environmental aspects at
this stage can be improved through Quality Support Groups. Promising experiences
with such an arrangement have been gained for the ACP co-operation. By following
these steps, assessment of environmental impacts during programme preparation
and implementation is simplified, and programmes are more likely to contribute
to sustainable development. It will also reduce the need to evaluate alternatives
during formulation of individual projects. A further step would be the inclusion
of a short environment chapter in each country report.
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Commission
strategy:
Policy
coherence and environmental issues will be part of each country
dialogue. In its co-operation activities the Commission will continue to
support the preparation and implementation of national strategies for
sustainable development and will make appropriate use of the DAC
guidelines for their elaboration.
In
regional programmes, solutions for trans-boundary environmental problems
should be identified, with emphasis on complementarity between national
and regional indicative programmes.
The Commission will adopt the
revised guidelines on the integration of environmental aspects into
country dialogues and into programming of economic and development
co-operation.
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6.3.
Programme and project identification, implementation, and monitoring
and evaluation
The success and sustainability of a development programme or
project is influenced directly by the way it interacts with and depends on
environmental resources. This therefore needs to be considered during project
preparation (identification and formulation) and implementation, so that any
environmental problems that could hamper the achievement of the objectives,
cause delays, or result in unexpected costs are foreseen and prevented. A
preliminary exercise is environmental screening of all projects in order to
determine to what extent further environmental action is needed. For those
projects that require further action, the Environmental Impact Assessment
(EIA) addresses the integration of environmental concerns throughout the
project cycle.
Environment assessment procedures for programmes and projects
are already mandatory in EC economic and development co-operation. However,
there is further room for strengthening them. The revised guidelines will take
account of changes of the EC approach to economic and development
co-operation, particularly the increased number of sector-wide support
programmes for which the tool of Strategic Environment Assessments will be
included. As mentioned before, Quality Support Groups could also ensure the
overall quality of the integration of environmental aspects into project
preparation. For projects that require specific environmental action, scrutiny
of the responsible unit should be a mandatory part of the approval process.
Project and programme evaluation reports are presently disseminated
internally and to the public for consultation
on a systematic basis, such as by theme or geographical area. Their findings
should be incorporated into future projects and programmes in order to improve
project and programme standards. In addition, providing information on Strategic
Environment Assessments and Environment Impact Assessments and their results
through an electronic database will facilitate public consultations. Learning
and improving through comparison, standardised access to relevant information
and increased transparency and accountability should be promoted.
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Commission
strategy:
The revised manual and
guidelines on integrating environmental concerns into economic and
development co-operation will be used for all co-operation projects, and
related training will be provided to all staff dealing with these
matters. Projects requiring environmental action need prior scrutiny
from the responsible unit.
There will be systematic follow
up of the results of co-operation activities through a regular
evaluation of the environmental performance of EC aid. In addition,
sectoral evaluations of groups of projects will be carried out.
A common database for all
Commission economic and development co-operation activities is under
development. This will make environment-related information, SEAs and
EIAs easily retrievable through the internet. Creating a “lessons
learned” page on the Commission web site will be considered as a way
of promoting learning.
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7.
Advancing and evaluating the Integration process
7.1.
General overview of human resources
The European Commission staff dealing with environmental
issues related to economic and development co-operation is spread in several
Directorate-Generals. This wide spread facilitates integration of
environmental issues into the policies and programmes of each
Directorate-General (DG). Figure 1 illustrates this broad concept.
In order to achieve effective integration, such a concept requires effective
networking between the core groups, i.e. those who work full or part-time on
questions related to environment in economic and development co-operation, and
the other staff of the Commission. Across Directorate-Generals this is
achieved through Inter-Service groups (e.g. Integration correspondents, Core
Group Environment and Development) and within a single Directorate-General
through task teams. In total, 24 and 38 officials work full-time or part-time,
respectively, spread over seven Directorate-Generals and Services are dealing
with environment in the field of economic and development co-operation.
Their work covers international environmental negotiations,
EC environment policy formulation and implementation, preparation of guidance,
monitoring of environment assessments, as well as preparation and monitoring
of environmental projects. Some of the tasks are also supported through
external consultants. In the developing countries, Community financed
environmental projects are prepared and implemented by external technical
assistance. The Commission maintains a supervisory function through
headquarters and an extensive network of EC Delegations in developing
countries.
With respect to the adequacy of staffing levels, the 'Evaluation
on the Environmental Performance of EC Programmes in Developing Countries'
(1997) came to the conclusion that staff resources in the ALA-MED and ACP
regions in relation to commitment levels were considerably lower in comparison
to other major donors.
The problem of limited staff resources, in particular for environmental issues,
should be carefully looked at given the tight overall spending targets on
personnel as agreed by the EU Member States in the Agenda 2000. Furthermore,
efforts need to concentrate on strengthening the capacity of Commission Services
and partner country administrations to improve the environmental performance
of EC aid. The following avenues exist within the current mandate of the environmental
units:
·
capacity building in the partner countries so that they can
assume more responsibilities when it comes to the environmentally sound
implementation of co-operation programmes,
·
increase the capacity of existing staff to integrate
environmental aspects adequately into the economic and development
co-operation programme (see next section),
·
streamline internal procedures to take environmental issues
systematically into account and to share the tasks among a larger number of
staff,
·
establish a simple system in order to continuously monitor and
to improve the quality of the output,
·
identify additional options to outsource certain activities.
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Commission
strategy:
The capacity of existing staff to integrate environmental
aspects into the economic and development co-operation programmes will
be increased through training, better networking of environmental staff
and streamlining of internal procedures.
The quality of the output is assessed through overall,
sectoral and project specific evaluations of the environmental
performance of EC aid. Outsourcing options will be fully exploited.
Co-operation activities will aim to build partner
countries’ capacity to assume more responsibilities in environmentally
sound implementation of co-operation programmes.
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7.2.
In-house capacity building, training and knowledge sharing
As already mentioned in the previous section, capacity building
and training is one of the major strategic activities in order to further
integrate environment and sustainable development into economic and development
co-operation policies. Therefore, the Commission services started in 1999
a series of two-day training courses.
These modules will be tested in 1999 and 2000 in headquarters but also in
Delegations in the ACP and ALA-MED regions. Afterwards regular environment
training should be extended to cover all co-operation areas. In addition,
training should be made compulsory for all geographical desk officers and
thematic staff with a priority for those dealing with environmentally sensitive
programmes and projects.
As a first step into this direction, a comprehensive training
needs assessment will be undertaken in 2000 in order to quantify the number
of staff which will require further environmental training and to determine
the environmental subjects which should be covered. This needs assessment
will also include the identification of potential opportunities for the integration
of an environmental component into other existing training courses.
At the same time, clear objectives and indicators in order to measure the
success of such training should be established.
Besides formal training, networking on these issues is very
important. This applies in particular for the development co-operation of the
European Union, which offers a large diversity of experiences. In the partner
countries where environmental expertise is most thinly spread, a more
systematic exchange of views among Member States on environmental issues in
would be beneficial.
Information dissemination has been greatly facilitated
through the rapid expansion of telecommunications and the internet in
developed and developing countries. The creation of the Commission webpage by
the end of 1999 on 'Environment and Development Co-operation' will provide
easy access to key documents and sites.
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Commission
strategy:
Environmental training courses
will be developed further and gradually extended to cover all
co-operation areas.
A comprehensive training needs
assessment will be carried out in 2000. Objectives and indicators to
measure the success of training will be established.
On the basis of the needs
assessment, possibilities to make training compulsory for geographical
and sectoral policy desk officers dealing with environmentally sensitive
programmes and projects will be looked into.
Opportunities for better
networking between the EC and Member States, in particular in the
Delegations, as well as for a more structured provision of information
should be considered in co-operation with Member States.
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7.3.
Evaluating performance of the environmental integration
Overall environmental performance of EC aid will be evaluated
regularly. The next comprehensive assessment will be initiated in the year
2000 and completed in 2001. The evaluation will assess progress in implementing
the recommendations of the previous evaluation from 1997 and the environmental
performance of EC aid during 1995-2000. Such an evaluation will have to assess
the overall performance from an external and an internal angle.
The external angle will look more generally at country- or
region-specific environmental indicators in order to identify the magnitude
and direction of environmental trends. A DAC Working Group on sustainable
development is developing such indicators (Annex V). These general indicators
will be used to adjust and focus EC co-operation programmes and policies as
required and included in relevant reports. They can be used to assess global
trends and progress of an individual country towards sustainable development
objectives and to guide regional and country planning and programming. Since
the DAC indicators only include a few core indicators for each sphere of sustainable
development, other sets of indicators
and sources of data will also have to be used in order to get a more precise
picture of development trends in the country or region in question.
There is often a lack of internationally comparable data in
the field of environment for developing countries. This hinders their policy
making and meeting the reporting requirements of multilateral environmental
agreements. A co-ordinated effort of assistance to build capacity in
environmental statistics in developing countries needs to be pursued by the EC
and Member States and with partners in the DAC and in the World Bank and the
United Nations System.
In addition to assessing progress at the global level and in
the developing countries, there is a need to assess internal progress in
integrating environment and sustainable development into EC economic and
development co-operation. The set of objectives, specific actions for the
period 2000 to 2002, and related indicators presented in Annex VI will be used
to this effect.
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Commission
strategy:
The environmental performance
of Community economic and development co-operation programmes will be
independently evaluated in 2001.
Core indicators used by the
OECD DAC to monitor trends at a global level will be used to adjust and
focus EC co-operation programmes and policies where necessary. They will
also be used to assess progress of individual countries towards
sustainable development objectives, to guide regional and country
planning and programming and project management, and for evaluation
purposes.
Statistics on environmental
trends will be made available on the internet, and developing countries
will be assisted in capacity building in the area of environmental
statistics.
A set of objectives and
indicators will be used and developed further in order to monitor
progress on the integration of environmental issues into EC aid
programmes.
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8.
Conclusions
Developing countries have primary responsibility for
identifying and responding to environmental issues which are of their concern
and for integrating environmental considerations into their policies. Their
national strategies for sustainable development will play a key role in this
context. The previous chapters clearly indicate many opportunities and options
on how EC policies should support their efforts and how to further integrate
environmental aspects into EC economic and development co-operation. A number
of these opportunities and options for environmental integration were already
identified in earlier internal documents. The main challenge, therefore, is to
ensure in a credible and transparent way that they are fully developed
and that the integration process is advancing at a strong pace. Three basic
elements are of crucial importance in this respect:
