Combined Impact Assessment and Ex Ante Evaluation of the Review of the LIFE+ Regulation

495 Pages·2011·7.01 MB·English

by  Simrana Clayton

Combined Impact Assessment and Ex Ante
Evaluation of the Review of the LIFE+
Regulation: Options Development
Options Report
Volume 1: Options Development
June 2011

OptOption
Combined Impact Assessment and Ex
Ante Evaluation of the Review of the
LIFE+ Regulation: Options Development
Options Report
Volume 1: Options Development

A report submitted by GHK Consulting
in association with
Arcadis, IEEP and Milieu
Date: 17 June 2011
Job Number 8300
James Medhurst
GHK
GHK Consulting Ltd
67 Clerkenwell Road
London EC1R 5BL
T [phone]
F [phone]
[email protected]
www.ghkint.com
F [phone]
[email protected]
www.ghkint.com
Combined Impact Assessment and Ex Ante Evaluation of the Review of the LIFE+
Regulation: Options Development

Document control
Document Title Combined Impact Assessment and Ex-ante Evaluation of the Review of the LIFE+
Regulation: Options Development – FINAL REPORT
Job number 8300
Prepared by James Medhurst, Charlotte Slater, Mavourneen Pieterse (GHK), Mike Van
Acoleyen (ARCADIS), Tony Zamparutti (Milieu), Sonia Gantioler (IEEP)
Checked by Checked by Simrana Clayton
Date 17th June 2011

Options Development Report - FINAL i
Combined Impact Assessment and Ex Ante Evaluation of the Review of the LIFE+
Regulation: Options Development

Contents
1 Purpose and outline approach to the assessment .............................................. 1
1.1 Purpose and requirements of the assessment ........................................................................ 1
1.2 Method of approach ................................................................................................................. 2
1.3 Structure of the report – Volume 1 ........................................................................................... 5
2 The European Union has a strong policy interest and legal right
(obligation) to secure environmental protection .............................................. 6
2.1 The EU right to act ................................................................................................................... 6
2.2 Strategic EU policy frameworks ............................................................................................... 9
2.3 The budgetary framework for a specific financial instrument for the environment ................ 12
2.4 General rationale for an EU financial instrument for the environment ................................... 15
3 Problem definition ............................................................................................ 17
3.1 Environmental problems and institutional drivers .................................................................. 17
4 Scale of the environmental problem ............................................................... 24
4.1 Approach to the assessment ................................................................................................. 24
4.2 The scale of environmental problems in the EU .................................................................... 25
4.3 The scale of environmental problems outside the EU ........................................................... 29
4.4 Summary of the scale of EU environmental problems ........................................................... 37
5 The drivers of environmental problems .......................................................... 39
5.1 Weaknesses in policy implementation and development ...................................................... 39
5.2 Weaknesses in synergies and with the integration of the environment ................................. 44
5.3 Inadequate levels of awareness and sharing of information.................................................. 47
5.4 Inadequate support for finding new solutions to environmental problems ............................. 48
6 The policy rationale and EU added value for a specific instrument ............... 50
6.1 The scale of the problem – a rationale for intervention .......................................................... 50
6.2 Overview of the institutional drivers ....................................................................................... 50
6.3 The potential role of LIFE in addressing the institutional drivers ........................................... 51
6.4 The EU added value of a specific instrument for the environment ........................................ 64
7 Objectives and impact assessment criteria for a specific instrument for the
environment .................................................................................................... 69
7.1 Objectives for the instrument ................................................................................................. 69
7.2 An intervention logic for the specific financial instrument ...................................................... 75
7.3 Assessment criteria for use in the Impact Assessment ......................................................... 81
8 Choices for a future financial instrument for the environment and climate
change .............................................................................................................. 86
8.1 Thematic choices for the future financial instrument ............................................................. 86
8.2 Territorial scope of the future financial instrument ................................................................. 89
8.3 Delivery mechanisms for the future financial instrument ....................................................... 90
8.4 Management approaches for the future financial instrument ................................................. 94
9 Description of instrument options .................................................................. 97
9.2 Derivation of the Instrument Options ..................................................................................... 97
9.3 Description of the Instrument Options .................................................................................... 99
9.4 Detailed Intervention Logics for each of the Instrument Options ......................................... 101

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Combined Impact Assessment and Ex Ante Evaluation of the Review of the LIFE+
Regulation: Options Development

1 Purpose and outline approach to the assessment
1.1 Purpose and requirements of the assessment
The overall purpose of the study is to assist the Commission in carrying out a combined ex-
ante evaluation of the existing financing instrument LIFE+ and an Impact Assessment of
different options for the development of a new financial instrument focusing exclusively on
the environment. Throughout this report, the scope of a specific instrument for the
environment extends to all environmental issues, including climate action. As such, when
referring to the environmental acquis, this refers to all environmental legislation for the
environment, including climate.
It will provide advice on whether to replace, modify or continue the existing LIFE1+
Regulation, or whether to cease to have such an instrument. The current uncertainty over
the forthcoming financial perspectives for the period post 2013, as well as the future
development of alternative instruments, needs to be taken into account through appropriate
risk assessments.
The study has therefore to support the Commission through the standard steps of Impact
Assessment:
1. identifying the problems and needs to be addressed (and baseline scenario);
2. indicating the potential EU added value and rationale;
3. specifying policy objectives, developing policy options;
4. assessing options using agreed criteria; and
5. elaborating on the preferred option
Figure 1.1 provides an overview of how these steps are linked to the different activities to be
undertaken as part of the assessment. The respective volume 1 of the options report
focuses on task 1 to 3 (options development), whereas volume 2 addresses steps 4 to 6
(options assessment).
Both reports contain preliminary information and estimates which are not endorsed by the
Commission and serve an illustrative purpose.

1 LIFE ("L'Instrument Financier pour l'Environnment"/ the financing instrument for the environment)
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Table 1.1 Requirements of the Assessment
Stage 1: Establish baseline scenario
Needs assessment
Task 1:
Review environmental
needs and priorities Priority setting
Task 2: Baseline description (esp6EAP+)
Assess the baseline
scenario Baseline assessment
Stage 2: Identify, Assess and Compare Policy Options
Establishing the objectives, design and operation
Task 3:
Generation of policy
options
Options report and stakeholder consultation
Analysis and revision of policy options against
Task 4: TAansakly 4s:is ex-ante criteria
ofA onpatliyosniss of options
Analysis of alternative instruments
Assessment of revised options against ex-ante
Task 5: evaluation criteria
Assessment of options
Assessment of broad economic, social and
environmental impacts
Comparative assessment including sensitivity
Task 6: analysis
Comparison of impacts
Final Reporting

1.2 Method of approach
1.2.1 Description of Method
The method of completing the work programme is summarised in Table 1.1.
Table 1.2 Summary of method of approach
Steps Methods
Task 1 – Review of environmental needs and priorities
Step 1.1: Assessment of Environment  Desk research and literature review,
Problems building on draft SOE Assessment
 Interviews with key actors
 Analysis of drivers, pressures, state,
impact, response
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Step 1.2: Review of Strategic  Consultation with Commission Services
Perspectives and other stakeholders to establish
overview of policy needs and future
relevance of the LIFE+ Regulation
Step 1.3: Scaling the Cost of the Problem  Analysis of the existing evidence on the
cost of environmental problems

 Further development of COPI methods for
key domains
Step 1.4: Description of Alternative  Considerations of potential interventions
Themes based on the range of identified problems
and policy needs
Step 1.5: Review of Priorities  Survey of stakeholder views on the relative
significance of identified needs and related
interventions
Task 2 – Assessment of the baseline scenario
Step 2.1: Description of the Regulation  Summary of the intervention logic, design
and operation of the LIFE+ Regulation
Step 2.2: Update of 6EAP  Review of existing analyses relating to the
follow-on of the 6th Environment Action
Programme (6EAP), based on existing
work and consultations
Step 2.3: Update Complementary  Update of mid-term evaluation (MTE)
Analysis complementary analysis using additional
desk research and consultations
Step 2.4: Assessment of Current  Assessment of the likely outputs and
Regulation Impacts impacts of the LIFE+ Regulation
 Primary survey research with Commission
Services and Project Co-ordinators
Step 2.5: Sensitivity of Results to Minor  Review and adjustment of the impacts to
Changes reflect possible changes in the Regulation
as the baseline scenario
Step 2.6: Integration of IA with Ex ante  Assessment of the baseline scenario using
Evaluation the assessment of likely impacts and
evidence from the MTE
Task 3 – Generation of policy options
Step 3.1: Review of Exemplars  Review of experience by MS and other
countries to implement financial
instruments for the environment
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Step 3.2: Development of Intervention  Initial development of interventions and the
Logics and Objectives related logic, including the specification of
objectives
 Brainstorm workshop to review and revise
intervention logics and to ensure clarity in
policy objectives
Step 3.3: Detailed Option Design and  Development of options with reference to
Operation the various dimensions including
intervention levels and delivery systems
Step 3.4: Review and Expansion of IA  Elaboration of assessment criteria on the
Criteria basis of identified policy objectives to be
used in IA and any other particular matters
identified as important by the Steering
Group
Step 3.5 Draft Options Report  Presentation of alternative policy options
with supporting justification
Step 3.6: Steering Group Meeting  Presentation and discussion of policy
options
Step 3.7: Stakeholder Consultation on  Circulation for comment to agreed
Draft Options stakeholders
Step 3.8: Conclusions and Lessons from  Collation and analysis of stakeholder
Stakeholder Responses responses
 Stakeholder meeting
Task 4: Analysis of Options
Step 4.1: Operation of the Options  Further data collection and review of
alternative delivery and implementation
systems
Step 4.2: Analysis of Costs  Further analysis of the scale of
environmental problems
Step 4.3: Analysis of Impacts  Further analysis of the possible
environmental, economic and social
impacts
Step 4.4: Analysis of alternative  Further analysis of possible complementary
instruments instruments
Task 5 – Detailed assessment of policy options
Step 5.1: Assessment of the individual  Review of findings from the analysis of
policy options relevant national, Commission and Council
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documents
Step 5.2: Brainstorming workshop to
review the assessments of the policy  Review of findings from interviews and
options case studies with key stakeholders at EU
level, as well as other important players

and national authorities
 Brainstorming with DG ENV and other
actors considered useful
 Discussions and validation with the
Steering Group.
Task 6 – Comparison of the policy options
Step 6.1: Comparison of the policy  Comparison of options on the basis of the
options individual assessments
 Analysis of alternative MS interventions
Step 6.2: Assessment and consideration
 Discussions and validation with the
of proportionality and EU added value
Steering Group.
Step 7.1: Conclude on preferred option  Conclude on preferred option
Step 7.2: Ex-ante evaluation of preferred  Integration of impact assessment with the
option (previously 5.3) ex ante evaluation criteria to provide the ex
ante evaluation of the preferred option
Step 7.3: Assessment of efficiency of  Includes assessment of the efficiency of
preferred option management options
Step 7.4: Final Reporting and Meeting  Presentation of the Draft Final Report and
with Steering Group discussions with Steering Group
 Submission of Final Report
1.3 Structure of the report – Volume 1
Section 2: EU policy interest and legal obligations
Section 3: Problem definition
Section 4: Scale of the problem
Section 5: Institutional drivers of environmental problems
Section 6: Rationale and EU added value of an instrument for the environment
Section 7: Defining the policy objectives
Section 8: Choices for a future financial instrument for the environment
Section 9: Description of the instrument options
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2 The European Union has a strong policy interest and
legal right (obligation) to secure environmental
protection
This section details the EU policy interest and legal right to act with regard to environmental
protection. It summarises the Treaty on the Functioning of the European Union, the Cardiff
Process, international conventions and the subsidiarity principle as these aspects relates to
environmental action. It also briefly describes the EU policy frameworks which promote
environmental protection, and the budgetary framework for a specific instrument for the
environment.
2.1 The EU right to act
The constitutional basis of the European Union consists of two Treaties: the Treaty on
European Union (TEU) which was originally signed in 1992 and entered into force in 1993,
and the Treaty on the Functioning of the European Union (TFEU), originally named Treaty
establishing the European Community, signed in 1957 and entered into force in 1958. The
TEU and the TFUE were consolidated in 2008 into the Lisbon Treaty.2 All European
legislation, including any financial instruments, must have an explicit legal basis in one or
more articles of the TEU or TFEU3.
2.1.1 The Treaty on the Functioning of the European Union (TFEU)
The European Union‟s environmental objectives are enshrined in the Environmental Title
(Title XX, Articles 191 to 193) of the TFEU. The most common legal basis for environmental
legislation is Article 192 of the TFEU which empowers the European Parliament and the
Council to decide what action should be taken by the Union in order to achieve the
environmental objectives which are set out in Article 191 of TFEU. The Lisbon Treaty in
particular strengthened the emphasis on climate action by making combating climate
change an explicit part of the environmental objectives.
The Treaty on the Functioning of the European Union: Article
1914
1. Union Policy on the environment shall contribute to the pursuit of the following objectives:
▪ preserving, protecting and improving the quality of the environment
▪ protecting human health,
▪ prudent and rational utilisation of natural resources,
▪ promoting measures at international level to deal with regional or worldwide
environmental problems, and in particular combating climate change.

2. Union policy on the environment shall aim at a high level of protection taking into account the
diversity of situations in the various regions of the Union. It shall be based on the precautionary
principle and on the principles that preventive action should be taken, that environmental damage

2 European Commission (2008) Consolidated versions of the Treaty on European Union and the Treaty on the
Functioning of the European Union (2008/C 115/01). Available from:
http://www.ecb.int/ecb/legal/pdf/fxac08115enc_002.pdf
3 The TEU and TFEU were most recently amended by the Lisbon Treaty. The Lisbon Treaty was signed by the
EU Member States on 13 December 2007 and entered into force on 1 December 2009. As a result of one of the
Lisbon Treaty amendments, the former Treaty establishing the European Community was renamed as the Treaty
on the Functioning of the European Union (TFEU).
4 Formerly Article 174 of Treaty establishing the European Community.
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