Business environment in the EU Prepared by Dr. Endre Domonkos (PhD)

1. Business environment in the EU Prepared by Dr. Endre Domonkos (PhD) 1st Semester, Academic Year 2016/2017

2. I. Environmental assessment in the European Union • The notion of environmental assessment: procedure that the environmental implications of decisions are taken into account before the decisions are taken. • Legal basis: Directive85/337/EEC, as amended (known as 'Environmental Impact Assessment' – EIA Directive) and Directive 2001/42/EC (known as 'Strategic Environmental Assessment' – SEA Directive). • The aim of the Directives on Environmental Assessment: high level of protection of the environment. • The Directives on Environmental Assessment are crucial tools for sustainable development.

3. II. Council Directive 85/337/EEC on the assessment of the effects of certain public and private project on the environment I. • The Directive, known as the "EIA" (environmental impact assessment) Directive. • The environmental impact assessment must identify the direct and indirect effects of a project on the following factors. • Projects concerned - The projects may be proposed by a public or private person. - An assessment is obligatory for certain projects.

4. II. Council Directive 85/337/EEC on the assessment of the effects of certain public and private project on the environment II. • Other projects are not automatically assessed. • Member States can decide to subject them to assessment on a case-by-case basis or according to thresholds, certain criteria. • This particularly concerns projects in the following fields: agriculture, forestry, aquaculture, the mining industry, etc. • Information required and consultation of interested parties.

5. II. Council Directive 85/337/EEC on the assessment of the effects of certain public and private project on the environment III. • With due regard for rules and practices regarding commercial and industrial secrecy, this information must be made available to interested parties sufficiently early in the decision-making process. • Reasonable time-limits must be provided for, allowing sufficient time for all the interested parties to react. • These opinions must be taken into account in the approval procedure.

6. II. Council Directive 85/337/EEC on the assessment of the effects of certain public and private project on the environment IV. • Result of the assessment procedure and consultations. • At the end of the procedure, the following information must be made available to the public and transmitted to the other Member States concerned: • In accordance with national legislation, Member States must ensure that the interested parties can challenge the decision in court. • Assessment of the effects of plans and programmes on the environment.

7. III. Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment I. • This Directive, (known as the “SEA” Directive for “Strategic Environmental Assessment”) aims to supplement the EIA Directive (Directive 85/337/EEC). • The public plans and programmes covered by this Directive are subject to an environmental assessment during their preparation and before their adoption. • The report on environmental effects and the results of consultations shall be considered before the plan or programme is adopted.

8. III. Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment II. • In order to determine any unforeseen adverse effects, it is necessary to ensure that the significant environmental effects of the plans and programmes are monitored. • The environmental report and its content. • The draft plan or programme and the environmental report must be made available to the authorities responsible for environmental issues and to the public.

9. III. Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment III. • The authorities and the public shall have the opportunity to express their views on the draft plan or programme at an early stage and within appropriate time frames prior to its adoption or submission to the legislative process. • The Member State responsible for preparing the plan or programme is required to send a copy of the draft plan or programme, together with a copy of the environmental report, to other Member States:

10. III. Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment IV. • The environmental report, the opinions expressed by the relevant authorities and the public and the results of any transboundary consultations must be taken into account by the competent authority during the preparation of the plan or programme and before it is adopted. • When a plan or programme is adopted, the Member State responsible shall inform all of the parties concerned which have been consulted and make available to them: • Member States may provide for coordinated or European Union procedures.

11. IV. The Impact Assessment I. • The Commission introduced in 2002 integrated assessment of all new policies. • For comparing the options, relevant methods being used are cost-benefit analysis, cost-effectiveness analysis, and multi-criteria analysis. • As such, Impact Assessment should lead to better and more cost-effective policies that are clearly justified. • Around two-thirds of DG Environment's Impact Assessments have changed the proposals they accompany - often significantly.

12. IV. Impact assessment II. • Before the European Commission proposes new initiatives it assesses the potential economic, social and environmental consequences that they may have. • Impact assessment is a set of logical steps which helps the Commission to do this. • To this end, the Commission has rolled out a wide-ranging impact assessment system. • Impact assessment: integrated approach.

13. IV. The Impact assessment III. • The Commission's system is both accountable and transparent. • It strives for full involvement of stakeholders. • Impact assessment also helps to explain why an action is necessary at the EU-level and why the proposed response is an appropriate choice. • It may of course also demonstrate why no action at the EU-level should be taken.

14. V. Commission Impact Assessment Guidelines • The Guidelines of the European Commission in 2009 were based on: -experience of the Commission services in preparing impact assessments; - experience of the independent Impact Assessment Board since it was created in late 2006; - inputs from the High Level Group of National Experts on Better Regulation; - external evaluation of the Commission's impact assessment system in 2006/2007, and - public consultation on the Impact Assessment Guidelines held in mid-2008.

15. VI. Impact Assessment Board (IAB) I. • The Impact Assessment Board. • It was created at the end of 2006. • It is chaired by the Deputy Secretary General responsible for Better Regulation. • The Board examines and issues opinions on all the Commission's impact assessments. • It is independent of the policy making departments. • The Board can also draw on external expertise.

16. VI. Impact Assessment Board (IAB) II. • The Board also provides advice to Commission departments on methodology at the early stages of preparation of the impact assessments. • The opinions of the Board are not binding. • The Commission impact assessment is an aid - not a substitute - for political judgement. • The work of the IAB is transparent. • All impact assessments and all IAB opinions are published once the Commission has adopted the relevant proposal.

17. VII. Commission initiatives requiring an impact assessment • Impact assessments (IA) are necessary for the most important Commission initiatives and those having the most far reaching impacts. • They are prepared for - legislative proposals which have significant economic, social and environmental impacts - non-legislative initiatives, which define future policies - certain implementing measures, which are likelyto have significant impacts.

18. VIII. Planning of impact assessments - Roadmaps • A roadmap gives a first description of a planned Commission initiative. • Roadmaps, which set out the planned impact assessment work, are prepared for - those legislative proposals which have significant economic, social and environmental impacts; - non-legislative initiatives; - certain implementing measures.

19. IX. European Commission’s Report on the application and effectiveness of the EIA Directive • The report sets out findings concerning the application of Directive 85/337/EEC on the assessment of the effects of certain public and private projects on the environment (EIA). • Several aspects of the Directive's application need to be improved and strengthened. • Initiatives are suggested for solving the problems which have been identified. • Initiatives of the Commission to improve that the Directive will be better applied.

20. Literature - EUROPA > Summaries of EU legislation > Environment > General provisions Downloaded on 27 July 2014. - European Commission: Environment. In: and European Environment Agency; Downloaded 27 July 2014.