Download - Environmental policy
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Environmental policy
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Key questions
• Impact of green policy and initiatives on business:– cost and bureaucratic burden– stimulus to innovation and greater
competitiveness?
• EU role?
• Current trends and issues
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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 – see below
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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
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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) & boosts competitiveness
– shift to policies that use market mechanism– growth of eco-industries/ 2mn jobs in EU– ‘first mover’ advantages
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E.M. ideas permeate 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
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Why EU environmental role?
• Pollution knows no boundaries
• Trade reasons - – different regulations as protectionism?– Environmental dumping and ‘race to the
bottom’
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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
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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)
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1987 Single European Act• 1st 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
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• Maastricht Treaty – High level of protection– Precautionary principle
• Amsterdam Treaty – Sustainable development - a core EU objective– Extension of co-decision procedure → greater role
for European Parliamentbut
– NO extension of qualified majority voting
• No significant change – Nice or constitution
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Environmental policy problems
• Early EU policy inflexible
– command and control
• Impact of national measures
• Inadequate information• Implementation, interpretation,
enforcement - legal, technical complexity, lack of inspectors
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Number of open infringements, 4.11.03 – over one third of cases
before ECJ
0
10
20
30
40
50
60
70
80
Dk Fin Aus Prt Ger UK Ire Sp
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Current themes and approaches
• Legislation - to be implemented - use of ECJ, monitoring, ‘name and shame’
• 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
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• Working with the market -e.g.– continuing market based instruments – green purchasing by public sector– Work with financial sector to develop
criteria for ‘green’ lending and investment– Business incentives for ‘green’ behaviour– Help with environmental management
• Help consumers re environmentally sustainable choices
• Better land use
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The 6th EAP (2001-10): Priority Areas
• Climate change - meet 8% Kyoto emissions reduction target for 2008-12 (and more)– Energy savings/efficiency, renewables, technology, etc– Policy integration– Cross-sectoral approaches – emissions trading– R&D – information
• nature/biodiversity• environment and health• sustainable use of natural resources - waste reduction,
recyclability, waste prevention - Integrated Product Policy
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Policy examples: voluntary
• Own initiative – e.g. ‘Responsible Care’ chemical industry
• Co-operation and shared responsibility – e.g. AutoOil
• Eco-labelling – national and EU (‘The Flower’) schemes
• Environmental management schemes – EMAS – review, audit, statement and verification
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Policy examples: compulsory
• Command-and-control to market-based– i.. Use market forces/price mechanism to
change behaviour –
• Environmental liability (Polluter pays principle) – from 2007– operators responsible for damage pay for it
rather than society – Incentive for precaution and prevention
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• Taxation – more common in member states
• Emissions trading (from January 2005)– To help meet Kyoto Protocol– Applies to power stations, oil refineries,
coke ovens, iron and steel, pulp and paper, building materials, ceramics (aluminium and chemicals excluded)
– Effective scheme ensures cheapest emission reductions made first
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Continuing enlargement and international challenges
• Environmental compliance – €50-80 bn for 2004 ‘10’ – need to spend 2-3% of GDP incoming years
• International dimension - push forward– International response to international
problems– Pollution havens/race to the bottom