Environmental policy

1. Environmental policy

2. Key questions • Impact of green policy and initiatives on business: • cost and bureaucratic burden • stimulus to innovation and greater competitiveness? • Role of EU?

3. Business and the environment • Question of corporate social responsibility • Question of reputation • Need to comply with regulations: • specific – e.g. chemicals, end-of-life vehicles • general – environmental liability, etc. • Need to secure flexible regulations • Impact on competitiveness

4. Early attitudes to the environment • 1950s – little environmental awareness • Early 70s – changing but ‘limits to growth’ • i.e. growth and environmental protection incompatible • Environmental policy seen as cost burden to business

5. Emergence of ecological modernisation • Early 1980s – ideas from Netherlands and Germany • Environmental policy not a cost burden but → commercial gains: • reconciles environment and growth, encourages innovation (Porter hypothesis) and boosts competitiveness • shift to policies that use market mechanism • ‘first mover’ advantages • growth of eco-industries and related jobs

6. E.M. ideas increasingly influence EU policy • “Environmental action can generate benefits in the form of economic growth, employment and competitiveness” European Commission, Global assessment: Europe’s environment, 1999 • “High environmental standards are an engine for innovation and business opportunity” 6th Environmental Action Programme, Exec. Summary

7. Creation of eco-industries • Air pollution control, waste water management, solid waste management, soil remediation, renewables, recycling • Over 2% of EU GDP and almost 4m full-time jobs in EU eco-industries • EU – a major player on world stage in in eco-industries

8. Why EU environmental role? • Pollution knows no boundaries • Trade reasons: • different regulations as protectionism? • environmental dumping and ‘race to the bottom’

9. Environment – a ‘core’ EU objective • 300 + directives/regulations • Understanding of national policy needs reference to EU • Policy tension – leaders and laggards • leaders – pull others along • laggards – environmental policy unlikely or much less developed without EU rules • new member states

10. Evolution of EU policy • No direct environmental reference in Rome Treaty • 1972 Paris Summit decision to establish EC environmental policy • First Environmental Action Programme • Subsequent action programmes build on each other – now on 6th (2001–10)

11. 1987 Single European Act • First explicit environmental legal base • Establishes key principles: • preventive • damage rectified at source • polluter pays • policy integration • Member states allowed to take stronger measures provided compatible with Treaty

12. Maastricht Treaty – two new principles: • high level of protection • precautionary principle • Amsterdam Treaty: • sustainable development becomes a core EU objective • extension of co-decision procedure → greater role for European Parliament • Nice Treaty – no significant change • Lisbon Treaty – clearer international environment role for EU

13. Current themes and approaches • Integration – environment at the heart of policy making – a continuing theme • Some successes (shift from producer to income subsidies in CAP) but little change in some trends that damage environment, e.g. transport and energy growth • Continuing emphasis on market-based measures, e.g.: • continuing development of emissions trading • green purchasing by public sector • work with financial sector to develop criteria for ‘green’ lending and investment • incentives to business for ‘green’ behaviour • help with environmental management

14. Instruments of EU environmental policy • Successive Environmental Action Programmes • Currently on 7th (runs to 2020) • Funding – LIFE+, regional and agricultural funds • Market based – emissions trading, taxes and charges, targeted subsidies • Voluntary instruments • Ecolabel and EMAS • Voluntary agreements – CO2 in cars

15. Policy examples: voluntary • Own initiative – e.g. ‘Responsible Care’ chemical industry • Eco-labelling – national and EU (‘The Flower’) schemes • Environmental management schemes – EMAS – review, audit, statement and verification

16. Policy examples: compulsory • Environmental liability (polluter pays) – from 2007 • operators responsible for damage pay for it rather than society • incentive for precaution and prevention • Emissions trading (from 1 January 2005 and later extended) • to help meet international climate change commitments • applies to power stations, oil refineries, coke ovens, iron and steel, pulp and paper, building materials, ceramics (aluminium and chemicals excluded) and civil aviation • effective scheme ensures cheapest emission reductions made first • Limits on the sulphur dioxide emissions from shipping (in force since 1 January 2015)

17. The 7th EAP – runs until 2020 (1) • Organised within three types of objectives • Thematic objectives • Protection, conservation and enhancement of the EU’s ‘natural capital’ • Transformation of the EU into a resource-efficient, green, competitive, low-carbon economy • Protection of EU citizens from environment-related pressures and risks to health and well-being • The Enabling Framework • Improved implementation of EU environmental legislation • An increase in environmental knowledge and evidence for policy • Greater integration of environment policy with other policies

18. The 7th EAP – runs until 2020 (2) • Meeting local, regional and global challenges • More sustainable EU cities • More effective approach to international environment and climate initiatives • Existing and new policies are grouped under each objective and sub-objective as contributors to overall objectives • Individual initiatives can and do interact and relate to more than one objective

19. Summary • EU environment policy has grown in range and complexity over the years – shows no sign of changing • Environment issues cut across many policy areas • Policy is a mixture of voluntary and compulsory measures, Cont…

20. Summary Cont. • 7th EAP sets out current priorities – continuity with past • Environment policy increasingly not regarded as a threat to business