Business gets more responsibility for the environment, July 2002

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Series Details 19.7.02
Publication Date 19/07/2002
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On 17 July 2002 the European Commission agreed that business and industry should be given greater freedom to tackle environmental issues such as pollution. In a 'Communication on environmental agreements at EU level', the Commission proposes that greater use should be made of self-regulation and co-regulation, with business taking a more proactive approach to the environment.

Environmental agreements - which 'can form a rapid and flexible response to environmental challenges from stakeholders who gave gained particular experience in the field' - usually take the form of unilateral commitments from business. They can be initiated by stakeholders in areas where legislation is not proposed or foreseen; adopted as a response by stakeholders to proposed legislation; or initiated by the Commission.

Environmental agreements are described by the European Commission as 'mutually agreed commitments between public authorities and industry'. They are one of three main types of Voluntary Approaches, which are increasingly being used to address environmental problems. The other two types are initiatives co-ordinated by - or under the responsibility of - public authorities, such as eco-labelling and energy efficiency standards; and private sector initiatives, such as Responsible Care programmes.

Whilst wanting to encourage greater involvement from business, the Commission also wants to ensure that it, along with the European Parliament and the Council, remains involved in proposing and adopting relevant legislation. The intention is not to see the current legislative system superceded, but rather to supplement it where appropriate. The European Commissioner responsible for the environment, Margot Wallström, explained:

'The environment is an area where self-regulation and co-regulation can deliver important benefits in complementing the instruments which we already have at our disposal'

Environmental agreements with business clearly hold out a number of potential benefits as an instrument in our policy mix. They can encourage a proactive approach by industry and offer the prospect of tailor-made solutions for the faster achievement of environmental benefits. Environmental agreements can complement traditional regulation so our intention is not to initiate a wholesale replacement of environmental legislation.

The Commission wants to encourage business to engage in environmental agreements at Community level, not least in new areas where the institutions have not yet legislated or the Commission has not expressed its intention to legislate. Sustainable development requires action rather than simply reaction from stakeholders.'

There are two main types of agreements: those governed by self-regulation and those by co-regulation. For agreements adopted under the more informal self-regulation system - acknowledged by an exchange of letters or by a Commission Recommendation - it is important to ensure that appropriate monitoring and reporting mechanisms are established. Co-regulation requires the adoption of a legislative act, with the Parliament and Council establishing environmental objectives and monitoring requirements, and business giving a commitment to meet the requirements.

The Communication also explains how environmental agreements fit into the framework established by the 'Action Plan on the Simplification and Improvement of the Regulatory Environment', which the Commission adopted in June 2002.

In a letter to the Commission's Secretary-General, the employer's association UNICE welcomed the Communication:

'In the frame of better governance and simplification of the regulatory environment, we are very supportive of greater use of alternative regulatory models and mixes of legislative and non-legislative instruments, which often prove more effective than traditional legislation.'

Links:

European Commission
17.07.02: Press release: Commission Calls Upon Business to Reach Agreements to Protect the Environment [IP/02/1069]
COM(2002) 278: Action plan: 'Simplifying and improving the regulatory environment'
Environment and Sustainable Development: Voluntary Approaches
 
Union of Industrial and Employers' Confederations of Europe
Homepage
15.07.02: Environmental agreements. Letter to the Secretary-General of the European Commission July 15, 2002
 

Eric Davies
KnowEurope Researcher
Compiled: Friday, 19 July 2002

On 17 July 2002 the European Commission agreed that business and industry should be given greater freedom to tackle environmental issues such as pollution. In a 'Communication on environmental agreements at EU level', the Commission proposes that greater use should be made of self-regulation and co-regulation, with business taking a more proactive approach to the environment.

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