A Green Budget for Europe Cohesion Policy contributions by Patrick ten Brink of IEEP


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A Green Budget for Europe Cohesion Policy contributions by Patrick ten Brink of IEEP presentation at the WWF Green Forum 2012 27 September 2012

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A Green Budget for Europe Cohesion Policy contributions by Patrick ten Brink of IEEP

  1. 1. Patrick ten BrinkHead of Environmental Economics Programme and Head of Brussels Office Building on joint work with Keti Medarova-Bergstrom & Peter Hjerp Environmental Governance Programme A Green Path of Growth for the European Economy ? Paris 27 September 2012
  2. 2. Outline of presentation 1) The Cohesion Policy and the transition to a Green Economy 2) Climate change / environment mainstreaming – how to do it? 3) Priorities, project implementation, proofing tools 4) Timeline and opportunities
  3. 3. Scale and scope of proposed 2014-2020 EU MFF EC proposes that at least 20% of the MFF is allocated to climate related activities, which would mean approximately €200 billion for 2014-2020
  4. 4. EU Cohesion Policy – 2014-2020 (1) EC proposals on 2014-2020 EU Cohesion Policy: • Overall budget - €336 billion (33% of MFF) • Retains the main funds: ERDF, Cohesion Fund and ESF • Two new objectives: 1) Investment for growth and jobs (96% of the total Cohesion Policy) 2) European territorial cooperation
  5. 5. EU Cohesion Policy – 2014-2020 (2)
  6. 6. What role of Cohesion Policy for climate change? Treaty Objective 1 (TFEU, 2009): Treaty Objective 2 (TFEU, 2009): Cohesion Policy seeks to Solidarity with Member States to address economic, social and catch up with EU standards territorial disparities • Climate change impacts are • Help Member States meet expected to be territorially EU’s 20/20/20 climate and differentiated energy targets • Expected to exacerbate • Help Member States adapt further economic disparities to climate change due to losses in key economic sectors • Climate change investments as economic drivers
  7. 7. What is climate/environment mainstreaming? Mainstreaming of climate change / environment focuses on the integration of climate/environmental concerns and responses into relevant policies, plans and programmes at different levels of governance. Include 2 elements: 1) Scaling up dedicated investment for climate adaptation and mitigation and other environmental objectives - getting your priorities into the CP 2) Horizontal integration of climate change (et al.) - systematic improving of governance and implementation
  8. 8. Mainstreaming climate change in Cohesion Policy• Thematic concentration - Menu of 11 thematic objectives (Commission Proposal) 1) Strengthening research, technological development and innovation 2) Enhancing access , the use and quality of ICT 3) Enhancing competitiveness of SMEs 4) Supporting the shift towards low-carbon economy in all sectors 5) Promoting climate change adaptation, risk prevention and management 6) Protecting the environment, and promoting resource efficiency 7) Promoting sustainable transport and removing bottlenecks in key infrastructures 8) Promoting employment and labour mobility 9) Promoting social inclusions and combating poverty 10) Investing in education, skills and lifelong learning 11) Enhancing institutional capacity and efficient public administration• In addition – the Commission has proposed a number of other provisions to enhance climate/environment mainstreaming: e.g. Common Strategic Framework; earmarking; performance framework and reporting requirements
  9. 9. Implementation challenges• The success of mainstreaming strategy will depend on its implementation on the ground (Medarova-Bergstrom et al. 2011)• Issues of administrative capacity, knowledge base and awareness are severe in some MS/regions particularly in CEE• Climate mainstreaming is often perceived to entail higher administrative costs, which is not necessarily true (Hjerp et al 2012)• Biodiversity is also often seen as a cost, even though nature provides a wide range of ecosystem services (MA 2005, TEEB 2011) that address the objectives of the CP, often offering cost-effective solutions with a wide range of co-benefits. 10
  10. 10. Mainstreaming at every stage of the policy cycle Strategic objective and priorities for CC Main principlesMid-term evaluations PartnershipIndependent ex-post Contracts Objectives, targets,evaluations Milestones, result indicators‘Carrot and stick’ tools Priority interventions Operational Allocating sufficient funds Evaluation Ex-ante and SEA Programme Policy Inter-sectoral WG cycle Call for proposals Monitoring Project and reporting development Project selection criteria EIA and CBA (inc. WLC)Climate ‘tracking’ Green public procurement2017 and 2019 annual implementation reporting Sustainability managersInter-institutional monitoring committees Source: Medarova-Bergstrom et al. 2011
  11. 11. Procedural instrument example: Necater, a carbon proofingtool designed for regional investment programmes• All French OPs comply with the principle of carbon neutrality• Assess the overall neutrality of a set of projects in various sectors in terms of GHG emissions• Actions in favour of energy control, renewable energies and waste to compensate emissions of industrial activities and road freight• Used only for regional OPs but could be adapted to sectoral Ops• Project allocations are to be quantified ex ante and can be amended during the implementation stage• Only suitable for climate change mitigation projects Source: Hjerp et al 2011
  12. 12. Climate change in implementation phase Launching programs  Communicating the programme, Set-up of Monitoring Committee, Procurement procedures (tenders, calls); green public procurement Project preparation  Assistance to applicants, Project requirements, EIA and Cost-Benefit Analysis (CBA) Project evaluation and selection  Eligibility requirements, Appraisal criteria, Appraisal mechanism Project implementation  Technical support to beneficiaries (sustainability manager), On-going monitoring
  13. 13. Examples of climate change adaptation options: Water– mix of man-made and natural capital solutions Climate change Impact Adaptation option example Description Increasing the flow River restoration (buffer capacity of the river Damage from flooding zone), restoration of wetlands system and use of natural flood plains to reduce risk Installation and retrofitting of Adjustment of the Higher average summer environmental infrastructures maximum temperature temperatures and increased to prevent natural disasters that rails can support and incidence of heat waves maintain functions Additional rain overflow Structures built from basins to adapt sewage Increase in the frequency of ocean shore (in coastal system against flooding, extreme weather events engineering) or from bank enhancing water storage (in rivers) capacity of reservoirs Adequate design and Increase in the frequency of Storm water retention maintenance of bridges and extreme weather events reservoirs could be built tunnelsSource: Hjerp et al 2012
  14. 14. Political timeline Source: Implementation…..current programme….and then again 2014+ IEEP 15
  15. 15. Concluding remarks• Generally, difficult political context of austerity measures & debt crisis• Member States need to be smart about using limited public funds• Understanding synergies/trade-offs – taking the whole set of costs/benefits into account • Tapping potential / exploiting win-wins and turning ‘costs’ to ‘investments’ • Systematically assess and minimise trade-offs via priorities, valuation/assessment, project selection, use of conditionalities et al.• Use EU funds to leverage additional private financing through innovative financial instruments – JESSICA + new opportunities post-2013• Invest in knowledge base and tools (e.g. environmental accounting; carbon footprint assessments – e.g. Necater), strengthening implementation capacities to support action tomorrow.• Leading by example, collaboration, and mutual learning.
  16. 16. Additional information sourcesStrategies and instruments for climate proofing EU budget (IEEP)http://www.ieep.eu/assets/782/Climate_proofing_EU_budget.pdfCohesion Policy and Sustainable Development (IEEP)http://www.ieep.eu/assets/910/CP_and_SD_Final_Synthesis_Report.pdfInstruments for environmental and climate change mainstreaming in Cohesion Policy (IEEP)http://www.ieep.eu/assets/916/Supporting_Paper_5_Task_7_October_2011_.pdfGreen Infrastructure options (IEEP)http://www.ieep.eu/assets/898/Green_Infrastructure_Implementation_and_Efficiency.pdfNature in the Transition to a Green Economy (IEEP) - forthcominghttp://www.ieep.eu/newsletter/summer-2012/nature-in-the-transition-to-a-green-economy/The Economics of Ecosystems and Biodiversity (TEEB) in National and International Policy Making (ed.Patrick ten Brink) www.teebweb.org or via www.ieep.eu
  17. 17. Thank you for your attention ! Patrick ten Brink ptenbrink@ieep.eu IEEP is an independent not for profit institute dedicated to advancing an environmentally sustainable Europe through policy analysis, development and dissemination. For further information see: http://www.ieep.eu Follow us on twitter: IEEP_EUFor more information about IEEP’s work on greening the post-2013 EU budget and Cohesion Policy, please visit: http://www.ieep.eu/work-areas/governance/k/cohesion-policy/
  18. 18. Institute for European Environmental Policy (IEEP)• IEEP is an independent research organisation concerned with policies affecting the environment in Europe and beyond • Research and consultancy on the development, implementation and evaluation of environmental and environment-related policies in Europe • Policy advise and intelligence • Capacity-building• Interdisciplinary staff including lawyers and natural and social scientists• Key research areas: • Governance (including the reform and greening of EU budget and related funding instruments) • Agriculture and land management • Biodiversity • Climate change and energy • Resources use, waste and chemicals • Water, marine and fisheries; and • Environmental Economics (green economy, value of nature, EHS/MBI et al,)