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Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission – DG Environment

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Conference EU Environment Policy: Impact on Thai Business 29 May 2008 EU policy-making Political impetus - European Council Decision making proces – institutional triangle: Council of Ministers, European Commission, European Parliament  Codecision, Assent, Consultation Primary legislation – treaties  Lisbon Treaty (being ratified now by countries) Secondary legislation:  Regulations, Directives, Decisions, Recommendations and opinions Transposition/implementation by Member States

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Page 1: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Environmental Governance and

Regulation in the EU

Timo MäkeläEuropean Commission – DG Environment

Page 2: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Overview EU environment policies and priorities

Current developments in the 4 priorities

Special focus on: Sustainable Consumption and Production action plan Environment into EU external (trade) policy

EU environment policy challenges for the years to come

Page 3: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

EU policy-making

Political impetus - European Council Decision making proces – institutional triangle: Council of

Ministers, European Commission, European Parliament Codecision, Assent, Consultation

Primary legislation – treaties Lisbon Treaty (being ratified now by countries)

Secondary legislation: Regulations, Directives, Decisions, Recommendations and

opinions Transposition/implementation by Member States

Page 4: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

EU approach to environment policy Objective

Sustainable Development

6th Environment Action Programme (2002-2012) 6 EAP outlines main priorities for action on the environment: Climate change Nature and biodiversity Environment and health Sustainable use of natural resources

Better regulation now central to environmental policy-making

Page 5: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

EU Climate change policies Environment policy and climate change at top of

agenda

EU Climate Change Programme EU Emission Trading Scheme: flagship Proposed legislative framework : target of 120 g/km CO2

emissions for new cars (2012)

EU commitment: Spring Council 2007 20% reduction in GHG emissions by 2020 20% share for energy from renewable sources

30% reduction in GHG emissions if international agreement

Page 6: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Climate Action and Renewable Energy implementation package Revision of EU Emissions Trading System (ETS)

Broader coverage: more emissions, more industries

Effort sharing in non ETS sectors: road transport, buildings, services and agriculture

Legally enforceable targets for share of renewables

Framework Carbon Capture and Geological Storage

Proposals set Europe on path to low-carbon economy

Page 7: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Climate change globally EU’s aim for post Kyoto Agreement

binding absolute emission reduction targets for developed countries

enhanced contributions by newly industrialising and developing countries.

limit global temperature increase to less than 2°C

Bali Conference : December 2007 Work towards global agreement

End 2008: UN Climate conference in Poznan: assessment of progress

Page 8: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Nature and biodiversity Loss of biodiversity is a global threat

just as serious as climate change EU target of halting biodiversity loss by 2010: additional

efforts needed Biodiversity action plan (2006): step up implementation Natura 2000 network of conservation areas: to be

extended 9th COP to the Convention on Biological Diversity (19-

30 May 2008) assess progress towards global target (reducing rate

of biodiversity loss by 2010)

Page 9: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Environment and health Binding rules on air, water, waste, chemicals…

Environment impact to health: a growing concern

Action on Chemicals: New legislation (REACH)

Proposal for new legislation on industrial emissions

Page 10: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Sustainable use of natural resources Robust legislation on waste; boosting eco-efficiency via

innovation

International Panel for Sustainable Resource Management

New policies on better ship dismantling

Revised Waste Framework Directive in 2008

Revision of the WEEE and RoHS directives in 2008

From waste to resource policies

Page 11: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Ecological footprint=>Globally there are 1.8 gha/capita available, while the overall global footprint is 2.2 gha/capita

Evolution of population & living standards => 6 times consumption by 2050

70-80% of environmental impacts: transport, food & drink, housing

Households & Industry (incl. energy industries) => 67% share of greenhouse gases in EU

Towards Sustainable Consumption Towards Sustainable Consumption and Productionand Production

- The issue -- The issue -

Page 12: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Prices do not reflect costs

Unsustainable Production & Consumption

Imperfect Information

Incomplete Markets

Internal Market Distortions

Green House Green House Gasses Gasses

Pollution Pollution Depletion Depletion Resources Resources

Climate Change Threats to Human Health

Threats to Biodiversity

Degradation Degradation air, water, soil… air, water, soil…

Population growth

Spending power Economic growth

Bounded Rationality

Page 13: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

The The SustainableSustainable ConsumptionConsumption and and Production Action PlanProduction Action Plan

1. Smarter Consumption – Better Products

2. Leaner Production

3. Global Action

Page 14: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Policy Framework for Smarter Policy Framework for Smarter Consumption and Better ProductsConsumption and Better Products

Revise Eco-design Minimum requirements Environmental performance benchmarks

Revise energy label Revise Eco-label

Excellence “Front runner”

EU Ecolabel also in Thailand!

MandatoryMandatory

VoluntaryVoluntary

Page 15: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Smarter ConsumptionSmarter Consumption

Fiscal or other incentives may be set by Community or Member States using reference points / benchmarking

Green Public Procurement: Authorities to buy above selected level

Working with Retailers and Consumers EU-level Forum for Retailers Commitment towards code of conduct Environmental claims - commercial practices

Awareness and education actions

Page 16: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Leaner ProductionLeaner Production

Resource Efficiency and Eco-innovation Tools and benchmarks

Environmental Technology Verification Build confidence for new technologies

Revised EMAS Increase participation, reduce burdens, SMEs

Page 17: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

SCP RoadmapSCP Roadmap EC Communication: 2008 First Group of actions 2008:

Revised Eco-design Directive Revised Eco-label Directive Revised EMAS Directive Communication on Green Public Procurement

Further actions later in 2008 and 2009 Revised Energy Efficiency Labelling Directive ….

Page 18: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Environmental aspects in EU external (trade) policy Partnership and Cooperation Agreement with Thailand and

Free Trade Agreement EU-ASEAN: Negotiations ongoing

PCA: Aim: reinforced cooperation, also for environment

FTA : Trade and Sustainable Development Chapter Objective: how to make trade work for Sustainable

Development? Include number of commitments Sustainability Impact Assessments Non sanctions based monitoring mechanism with

involvement of government and civil society

Page 19: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Environmental aspects in EU external (trade) policy Fund: SWITCH-Asia Programme

Promoting Sustainable Consumption and Production in Asia (“programme) – 90 million euros for the period 2007-2010 one third dedicated to ASEAN group

320 proposals received in the First Call

Page 20: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

Global negotiations - WTO US-EU proposal

Liberalisation of package of goods and services with clear environment benefit, in particular for climate change

Further binding commitments to eliminate tariffs and non-tariff barriers in trade in green technologies

Goal: spread green technologies globally

Page 21: Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission

Conference EU Environment Policy: Impact on Thai Business 29 May 2008

EU environment policy challenges for the years to come

Further strengthening implementation Continued effort to simplify and improve

policies and instruments Climate change and adaptation Protection of biodiversity Sustainable Production and Consumption