REPORT on the proposal for a regulation of the European Parliament and of the Council on European environmental economic accounts

17.11.2010 - (COM(2010)0132 – C7‑0092/2010 – 2010/0073(COD)) - ***I

Committee on the Environment, Public Health and Food Safety
Rapporteur: Jo Leinen

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council on European environmental economic accounts

(COM(2010)0132 – C7‑0092/2010 – 2010/0073(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to Parliament and the Council (COM (2010)0132),

–   having regard to Article 294(2) and Article 338(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7-0092/2010),

–   having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–   having regard to the reasoned opinions sent to its President by national parliaments on the compliance of the draft act with the principle of subsidiarity,

–   having regard to Rule 55 of its Rules of Procedure,

–   having regard to the report of the Committee on the Environment, Public Health and Food Safety and the opinion of the Committee on Economic and Monetary Affairs (A7-0330/2010),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment  1 Proposal for a regulation Recital -1 (new)
Text proposed by the Commission	Amendment
	(-1) Under this Regulation, the Commission (Eurostat) acquires responsibilities and monitoring functions in important new areas. To enable it to fulfil them, adequate staff and financial resources must be made available. The financial resources that the Commission (Eurostat) requires should be provided through reallocation of monies within the European Union budget.
Amendment  2 Proposal for a regulation Recital -1 a (new)
Text proposed by the Commission	Amendment
	(-1a) The financial resources made available must be used by the Commission (Eurostat) in an economically responsible, transparent and bureaucratically efficient manner. The results of the environmental economic accounts should be made available to the public in a readily accessible and understandable form.
Amendment  3 Proposal for a regulation Recital 1
Text proposed by the Commission	Amendment
(1) Article 3 of the Treaty on European Union provides that the Union 'shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment.	(1) Article 3 of the Treaty on European Union provides that the Union 'shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment', taking into consideration that these goals may be best achieved through open markets.
Amendment  4 Proposal for a regulation Recital 2
Text proposed by the Commission	Amendment
(2) The Sixth Community Environment Action Programme confirmed that sound information on the state of the environment and on the key trends, pressures and drivers for environmental change is essential for the development of effective policy, its implementation, and the empowerment of citizens more generally.	(2) The Sixth Community Environment Action Programme confirmed that sound information on the state of the environment and on the key trends, pressures and drivers for environmental change is essential for the development of effective policy, its implementation, and the empowerment of citizens more generally. Instruments should be developed with a view to enhancing public awareness of the environmental effects of economic activity.
Amendment  5 Proposal for a regulation Recital 2 a (new)
Text proposed by the Commission	Amendment
	(2a) A scientifically sound approach to the shortage of resources and to the ecosystem will, in future, be crucial to the sustainable economic development of the European Union.
Amendment  6 Proposal for a regulation Recital 3 a (new)
Text proposed by the Commission	Amendment
	(3a) The need for integrated environmental and economic accounting arises because of the crucial functions of the environment in economic performance and in the generation of human welfare. These functions include providing natural resources for production and consumption activities, waste absorption by environmental media and environmental services of life support and other human amenities. Conventional national accounts have only partly taken account of these functions, focusing on market transactions and indicators that reflect important factors in welfare generation, but have not measured welfare itself.
Amendment  7 Proposal for a regulation Recital 4
Text proposed by the Commission	Amendment
(4) The need to supplement already existing indicators with data that incorporate environmental and social aspects in order to allow more coherent and comprehensive policy making has been recognised in Commission Communication COM(2009) 433 of August 2009 on GDP and beyond. To this end, environmental accounts offer a means of monitoring the pressures exerted by the economy on the environment and of exploring how these might be abated. In line with the tenets of sustainable development and the drive to achieve a low-carbon economy, embedded in the Lisbon Strategy and various major initiatives, developing a data framework that consistently includes environmental issues along with economic ones becomes all the more imperative.	(4) The need to supplement already existing indicators with data that incorporate environmental and social aspects in order to allow more coherent and comprehensive policy making has been recognised in Commission Communication COM(2009) 433 of August 2009 on GDP and beyond. To this end, environmental accounts show the interaction between economic, household and environmental factors. Environmental accounts are more informative than national accounts alone. They provide a significant database for environmental decisions and should be consulted for the drawing up by the Commission of impact assessments. In line with the tenets of sustainable development and the drive to achieve a resource-efficient and low-pollution economy, embedded in the Europe 2020 Strategy and various major initiatives, developing a data framework that consistently includes environmental issues along with economic ones becomes all the more imperative.
Amendment  8 Proposal for a regulation Recital 6 a (new)
Text proposed by the Commission	Amendment
	(6a) It is of great importance that European environmental economic accounts, as soon as the system is fully operational, are actively and accurately used in all relevant EU policy making as a key input to impact assessments, action plans, legislative proposals and other significant products of the policy process.
Amendment  9 Proposal for a regulation Recital 7
Text proposed by the Commission	Amendment
(7) Satellite accounts allow the analytical capacity of national accounting to be expanded for selected areas of social concern, such as pressures on the environment stemming from human activity, in a flexible manner, without overburdening or disrupting the central system.	(7) Satellite accounts allow the analytical capacity of national accounting to be expanded for selected areas of social concern, such as pressures on the environment stemming from human activity, in a flexible manner, without overburdening or disrupting the central system. Member States should regularly make available to the public information in a comprehensible form contained in environmental accounts by publishing it together with GDP data, for example.
Amendment  10 Proposal for a regulation Recital 13
Text proposed by the Commission	Amendment
(13) As the different sets of environmental economic accounts are under development and at different stages of maturity, a modular structure providing adequate flexibility should be adopted.	(13) As the different sets of environmental economic accounts are under development and at different stages of maturity in the various Member States, a modular structure providing adequate flexibility and facilitating the rapid introduction of additional modules should be adopted.
Amendment  11 Proposal for a regulation Recital 14 a (new)
Text proposed by the Commission	Amendment
	(14a) The introduction of additional reporting requirements should be made conditional upon an impact assessment. National competences will not be affected.
Amendment  12 Proposal for a regulation Recital 15
Text proposed by the Commission	Amendment
(15) The Commission should be entitled to grant derogations to Member States when major adaptations to their national statistical systems are required.	(15) The Commission should be entitled to grant derogations to Member States for a limited period when major adaptations to their national statistical systems are required.
Amendment  13 Proposal for a regulation Recital 15 a (new)
Text proposed by the Commission	Amendment
	(15a) The Commission should, through the European Neighbourhood Policy, encourage the national statistical offices of third countries that share environmental resources (mainly water) with the Member States to present equivalent environmental economic accounts regarding fundamental aspects of sustainable development and should contribute to the introduction of corresponding accounting methods.
Justification
Cooperation with the corresponding national offices in neighbouring countries is necessary for the comprehensive scrutiny of environmental economic accounts, including those of the EU.
Amendment  14 Proposal for a regulation Recital 17
Text proposed by the Commission	Amendment
(17) The measures necessary for the implementation of this Regulation should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission.	deleted
Justification
In accordance with the Treaty of Lisbon delegated powers to the Commission should happen in accordance with Art. 290 of TFEU and not the comitology system. Under the system of delegated acts there is no legal structure for the involvement of the committee.
Amendment  15 Proposal for a regulation Recital 19
Text proposed by the Commission	Amendment
(19) The European Statistical System Committee has been consulted,	deleted
Justification
In accordance with the Treaty of Lisbon delegated powers to the Commission should happen in accordance with Art. 290 of TFEU and not the comitology system. Under the system of delegated acts there is no legal structure for the involvement of the committee.
Amendment  16 Proposal for a regulation Article 1
Text proposed by the Commission	Amendment
This Regulation establishes a common framework for the collection, compilation, transmission and evaluation of European environmental economic accounts for the purpose of setting up environmental economic accounts as satellite accounts to ESA 95 by providing methodology, common standards, definitions, classifications and accounting rules, intended to be used for compiling environmental economic accounts.	This Regulation establishes a common framework for the collection, compilation, transmission and evaluation of European environmental economic accounts for the purpose of setting up environmental economic accounts as satellite accounts pursuant to Council Regulation (EC) No 2223/96 of 23 June 1996 on the European system of national and regional accounts in the Community (hereinafter ESA 95) to offer a means of monitoring the pressures exerted by the economy on the environment and of exploring how these might be abated.
Justification
Clarification of the objective of the Regulation (see also recital 4).
Amendment  17 Proposal for a regulation Article 1 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	This Regulation enables the Commission (Eurostat) to make reliable forecasts, based on comparable national data, about the environmental and economic situation of the individual Member States and the Union as a whole.
Amendment  18 Proposal for a regulation Article 3 – paragraph 3
Text proposed by the Commission	Amendment
3. The Commission shall adopt delegated acts in accordance with Article 9 for the purpose of adjusting the modules to environmental, economic and technical developments, as well as providing methodological guidance.	3. The Commission shall adopt delegated acts in accordance with Article 9 for the purpose of adjusting the modules to environmental, economic and other developments.
Justification
The delegation of power should be restricted to the adjustment of modules and not encompass the introduction of new modules, since this would require a new legislative proposal in accordance with the ordinary legislative procedure. The reference to methodological guidance in the COM-proposal is unclear and should be deleted. It is more appropriate to include such a reference in Art. 5.
Amendment  19 Proposal for a regulation Article 3 a (new)
Text proposed by the Commission	Amendment
	Article 3a Development of new environmental account modules
	As a matter of priority, the Commission shall, in cooperation with the Member States, develop the following modules for inclusion into the scope of this Regulation by the end of 2014:
	- Environmental Protection Expenditure and Revenues (EPER)/Environmental Protection and Expenditure Accounts (EPEA), Environmental Goods and Services Sector (EGSS);
	- Energy Accounts;
	- Environmentally Related Transfers (subsidies) and Resource Use and Management Expenditure Accounts (RUMEA);
	- Water Accounts (quantitative and qualitative) and Waste Accounts;
	- Forest Accounts; and
	- Ecosystem services Accounts.
Justification
The amendment builds on rapporteur's amendment 8, adding a timeframe for the new modules and a new module for accounting for ecosystem services.
Amendment  20 Proposal for a regulation Article 4
Text proposed by the Commission	Amendment
1. The Commission shall draw up a programme for pilot studies to be carried out by Member States on a voluntary basis in order to develop the reporting and data quality, establish long time series and develop methodology.	1. The Commission shall draw up a programme for pilot studies to be carried out by Member States on a voluntary basis in order to develop the reporting and data quality, establish long time series and develop methodology. The programme shall include the introduction of the new environmental account modules referred to in Article 3a.In drawing up the programme, the Commission shall ensure that no additional administrative or financial burdens are placed on respondents.
2. The results of the pilot studies shall be evaluated and published by the Commission, taking into account the benefits of the availability of the data in relation to the cost of collection and the response burden. On the basis of the conclusions of the pilot studies, the Commission shall adopt the necessary delegated acts in accordance with Article 9.	2. The results of these pilot studies shall be evaluated and published by the Commission, taking into account the benefits of the availability of the data in relation to the cost of collection and the response burden. In carrying out the evaluation, the Commission shall ensure that no additional administrative or financial burdens are placed on respondents. On the basis of the conclusions of the pilot studies, the Commission shall adopt the necessary delegated acts in accordance with Article 9.
Justification
The pilot studies should also be used for the introduction of new environmental account modules in order to obtain experience in using this instrument at an early stage, with a possible view to expanding the scope of the regulation.
Amendment  21 Proposal for a regulation Article 5
Text proposed by the Commission	Amendment
1. Member States shall collect the necessary data for the observation of the modules’ characteristics referred to in Article 3(2).	1. In accordance with the annexes of this Regulation, Member States shall collect the necessary data for the observation of the modules’ characteristics referred to in Article 3(2), at national and regional level as relevant.
2. Member States shall collect the necessary data using a combination of the different sources specified below, applying the principle of administrative simplification:	2. Member States shall collect the necessary data using a combination of the different sources specified below, applying the principle of administrative simplification:
(a) surveys;	(a) surveys;
(b) statistical estimation procedures where some of the characteristics have not been observed for all of the units;	(b) statistical estimation procedures where some of the characteristics have not been observed for all of the units;
(c) administrative sources.	(c) administrative sources.
3. Member States shall inform the Commission and shall provide details concerning the methods used and the quality of the data from the sources listed in paragraph 2.	3. Member States shall inform the Commission and shall provide details concerning the methods and sources used.
	3a. The Commission may adopt, by means of delegated acts in accordance with Article 9 and subject to the conditions of Articles 10 and 11, delegated acts to provide methodological guidance to facilitate the application of this Article.
Justification
The collection requirements should be clarified in paragraphs 1 and 2.
The regional data are of the same importance as national data. The indicators between regions of the same country could significantly vary while seen only at a national aggregate level could provide a different situation which does not correspond with the specificities of some regions. According to the principle of subsidiary the data should be made available at regional and local level in order to support it with reliable policy making decisions. At EU level the data is useful in order to identify clusters of regions and possible patterns.
The deletion of the reference to quality in paragraphs 3 is due to the fact that the quality issues are set out in Article 7.
The Commission should provide methodological guidance on the application of this article to facilitate the collection of high quality and comparable data.
Amendment  22 Proposal for a regulation Article 6 – paragraph 1
Text proposed by the Commission	Amendment
1. Member States shall transmit to the Commission (Eurostat) the data set out in the Annexes, including the confidential data, within the time limits specified therein.	1. Member States shall transmit to the Commission (Eurostat) the data set out in the Annexes, including the confidential data, within the time limits specified therein.
	The first subparagraph shall be without prejudice to national competences.
Amendment  23 Proposal for a regulation Article 6 – paragraph 2
Text proposed by the Commission	Amendment
2. The data shall be transmitted in an appropriate technical format, which shall be laid down in accordance with the regulatory procedure referred to in Article 12(2).	2. The data shall be transmitted in an appropriate technical format, which shall be laid down by the Commission by delegated acts in accordance with Article 9.
Amendment  24 Proposal for a regulation Article 6 – paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a. During the transitional periods, and for those Member States which need to make use of the transitional period to forward their data to Eurostat, the Commission (Eurostat) may assess the values of the modules listed in Article 3 of this Regulation.
Amendment  25 Proposal for a regulation Article 7 – paragraph 3
Text proposed by the Commission	Amendment
3. In applying the quality criteria referred to in paragraph 1 to the data covered by this Regulation, the modalities, structure and periodicity of the quality reports shall be defined in accordance with the regulatory procedure referred to in Article 12(2).	3. In applying the quality criteria referred to in paragraph 1 to the data covered by this Regulation, the modalities, structure and periodicity of the quality reports shall be defined by the Commission by delegated acts in accordance with Article 9.
Amendment  26 Proposal for a regulation Article 7 – paragraph 4
Text proposed by the Commission	Amendment
4. The Commission (Eurostat) shall assess the quality of the data transmitted.	4. The Commission (Eurostat) shall assess the quality of the data transmitted and may, within a time-limit of one month, raise an objection and oblige the Member State in question to submit an improved report.
Amendment  27 Proposal for a regulation Article 7 a (new)
Text proposed by the Commission	Amendment
	Article 7a Feasibility and effectiveness
	The Commission shall establish the feasibility and effectiveness of environmental economic accounts.
Amendment  28 Proposal for a regulation Article 8 – paragraph 1
Text proposed by the Commission	Amendment
1. The Commission may grant derogations to Member States during the transitional periods referred to in the Annexes in accordance with the regulatory procedure referred to in Article 12(2) insofar as the national statistical systems require major adaptations.	1. The Commission may grant derogations to Member States during the transitional periods referred to in the Annexes, by delegated acts in accordance with Article 9, insofar as the national statistical systems require major adaptations.
Amendment  29 Proposal for a regulation Article 9 – paragraph 1
Text proposed by the Commission	Amendment
1. The powers to adopt the delegated acts referred to in Articles 3(3) and 4(2) shall be conferred on the Commission for an indefinite period of time.	1. The powers to adopt the delegated acts referred to in Articles 3(3), 5(3a), 6(2), 7(3) and 8(1) shall be conferred on the Commission for a period of five years following the entry into force of this Regulation. The Commission shall make a report in respect of the delegated powers at the latest 6 months before the end of the five-year period. The delegation of powers shall be automatically extended for periods of an identical duration, unless the European Parliament or the Council revokes it in accordance with Article 10.
Justification
In light of the provisions of Article 290 (1) and (2) TFEU, it is essential to explicitly establish that the duration of the delegation of power will be five years and that this period shall be automatically extended for successive periods of five years unless the European Parliament or the Council revokes it.
The purpose of the specific report on the delegation of power is different from the evaluation report set out in Article 11a. The delivery deadline (five years), however, is the same for both in order to facilitate the Commission's reporting tasks.
Amendment  30 Proposal for a regulation Article 10 – paragraphs 1 and 2
Text proposed by the Commission	Amendment
1. The delegation of power referred to in Articles 3(3) and 4(2) may be revoked by the European Parliament or by the Council.	1. The delegation of powers referred to in Articles 3(3), 5 (3a), 6(2), 7(3) and 8 (1) may be revoked at any time by the European Parliament or by the Council.
2. The institution which has commenced an internal procedure for deciding whether to revoke the delegation of powers shall inform the other legislator and the Commission at the latest one month before the final decision is taken, stating the delegated powers which could be subject to revocation and the reasons for any such revocation.	2. The institution which has commenced an internal procedure for deciding whether to revoke the delegation of powers shall endeavour to inform the other institution and the Commission within a reasonable time before the final decision is taken, indicating the delegated powers which could be subject to revocation and possible reasons for a revocation.
Justification
Changes and adjustments are introduced to align this provision with standard language adopted by the European Parliament and the Council on the so-called pets file.
Amendment  31 Proposal for a regulation Article 11 – paragraph 1 and 2
Text proposed by the Commission	Amendment
1. The European Parliament or the Council may object to a delegated act within a period of two months from the date of notification. At the initiative of the European Parliament or the Council this period may be extended by one month.	1. The European Parliament or the Council may object to a delegated act within a period of two months from the date of notification. At the initiative of the European Parliament or the Council this period may be extended by two months.
2. If, on expiry of that period, neither the European Parliament nor the Council has objected to the delegated act, or if, before that date, the European Parliament and the Council have both informed the Commission that they have decided not to raise objections, the delegated act shall enter into force on the date stated in its provisions.	2. If, on expiry of the period referred to in paragraph 1 , neither the European Parliament nor the Council has objected to the delegated act, it shall be published in the Official Journal of the European Union and shall enter into force at the date stated therein.
	The delegated act may be published in the Official Journal of the European Union and enter into force before the expiry of that period if the European Parliament and the Council have both informed the Commission of their intention not to raise objections.
Justification
Changes are introduced to align this provision with standard language adopted by the European Parliament and the Council on the so-called pets file.
Amendment  32 Proposal for a regulation Article 11 a (new)
Text proposed by the Commission	Amendment
	Article 11a Report and Review
	The Commission shall submit a report on the implementation of this Regulation to the European Parliament and the Council every three years. That report shall evaluate in particular the quality of the data transmitted, as referred to in Article 6, the data collection methods, the administrative burden and the usefulness of those data in particular with regard to the objectives set out in Article 1. It shall also assess the possibilities for introducing new environmental account modules in addition to those referred to in Article 3a.
	The report shall, if appropriate, be accompanied by proposals: - for introducing new environmental account modules; - designed to further improve data quality and data collection methods, thereby improving the coverage and comparability of data and reducing the administrative burden on business and administration.
	The first report shall be submitted not later than 31 December 2013.
Justification
The COM proposal is lacking a review clause including an obligation for the Commission to submit on a regular basis an overall report on the experience gained with the implementation of the Regulation. This report should also evaluate the possibilities for introducing new environmental account modules (see Article 3a (new)).
Amendment  33 Proposal for a regulation Annex I – section 3 – row 14 a (new)
Text proposed by the Commission	Amendment
Ozone
03
tonnes (Mg)
Amendment  34 Proposal for a regulation Annex I – section 4 - point 2 a (new)
Text proposed by the Commission	Amendment
	2a. In order to meet user needs for timely data, Eurostat shall produce "now-casts" for data that Member States have not transmitted within 12 months after the end of the reference year.
Justification
Users have a need for timely data sets. Timeliness is mentioned in Action II of the GDP and beyond Action Plan and as one of eight quality criteria for official statistics.
Amendment  35 Proposal for a regulation Annex II – section 4 - point 2 a (new)
Text proposed by the Commission	Amendment
	2a. In order to meet user needs for timely data, Eurostat shall produce "now-casts" for data that Member States have not transmitted within 12 months after the end of the reference year.
Justification
Users have a need for timely data sets. Timeliness is mentioned in Action II of the GDP and beyond Action Plan and as one of eight quality criteria for official statistics.
Amendment  36 Proposal for a regulation Annex III – title
Text proposed by the Commission	Amendment
MODULE FOR ECONOMY-WIDE MATERIAL FLOW ACCOUNTS (EW-MFA)	MODULE FOR ECONOMY-WIDE MATERIAL STOCK AND FLOW ACCOUNTS (EW-MSA and EW-MFA)
Amendment  37 Proposal for a regulation Annex III – section 1 - paragraph 1
Text proposed by the Commission	Amendment
EW-MFA covers all solid, gaseous, and liquid materials, except for flows of air and water, measured in mass units per year. Like the system of national accounts, economy-wide material flow accounts serve two major purposes. The detailed material flows provide a rich empirical database for numerous analytical studies. They are also used to compile different economy-wide material flow indicators for national economies.	EW-MSA and EW-MFA cover all solid, gaseous, liquid materials and technosphere materials, except for flows of air and water, measured in mass units per year. Like the system of national accounts, economy-wide material flow accounts serve two major purposes. The detailed material flows provide a rich empirical database for numerous analytical studies. They are also used to compile different economy-wide material flow indicators for national economies. Combined with the evolution of material stock account they provide important information for assessing the use of natural resource assets in relation to their availability and regeneration.
Amendment  38 Proposal for a regulation Annex III – section 3 - point 1
Text proposed by the Commission	Amendment
Member States shall produce statistics on the characteristics listed in Section 5.	Member States shall produce statistics on the characteristics listed in Section 5 for the EW-MFA and for EW-MSA where applicable.
Amendment  39 Proposal for a regulation Annex III – section 4 - point 2 a (new)
Text proposed by the Commission	Amendment
	2a. In order to meet user needs for timely data, Eurostat shall produce "now-casts" for data that Member States have not transmitted within 12 months after the end of the reference year at the 2-digit level according to tables A and B.
Justification
Users have a need for timely data sets. Timeliness is mentioned in Action II of the GDP and beyond Action Plan and as one of eight quality criteria for official statistics.
Amendment  40 Proposal for a regulation Annex III – section 5 – before Table A – subparagraph 1 a (new)
Text proposed by the Commission	Amendment
	Concerning the report referred to in Article 11a, the Commission shall consider whether optional information may be replaced by compulsory reports.
Justification
Once the data collection structures have been established, there is no longer any reason to exclude optional information from mandatory reports.
Amendment  41 Proposal for a regulation Annex III – section 5 - table A - point 1.4
Text proposed by the Commission	Amendment
1.4 Wild fish catch, aquatic plants/animals, hunting and gathering	1.4 Wild fish catch, aquatic plants/animals, hunting and gathering(*)
Justification
Adding (**) to title 1.4 of the reporting tables.
Amendment  42 Proposal for a regulation Annex III – section 5 – table A – point 3 – subpoint 3.10 a (new)
Text proposed by the Commission	Amendment
	3.10a Unused extraction/harvest and excavation (***)
	3.10a.1 Unused harvest of biomass (***)
	3.10a.2 Unused extraction ores (***)
	3.10a.3 Unused extraction non-metallic minerals (***)
	3.10a.4 Unused extraction fossil energy carriers (***)
	3.10a.5 Unused earth excavation and dredging (***)
	3.10a.5.1 Unused excavation by construction (***)
	3.10a.5.2 Dredging (***)
Justification
Inclusion of unused extraction is in accordance with the Eurostat (2001) and OECD (2008) procedural guidelines. Data regarding unused extraction is already collected by a number of Member States. Introduction and harmonisation of this practice at EU level should be expedited by the regulation.
Amendment  43 Proposal for a regulation Annex III – section 5 – table A - footnote 1
Text proposed by the Commission	Amendment
(*) In addition, optional reporting of the net increment of timber stock.	(*) In addition, reporting of the net increment of stock.
Amendment  44 Proposal for a regulation Annex III – section 5 – table B – point 3 – subpoint 3.10 a (new)
Text proposed by the Commission	Amendment
	3.10a Unused extraction/harvest and excavation (*)
	3.10a.1 Unused harvest of biomass (*)
	3.10a.2 Unused extraction ores (*)
	3.10a.3 Unused extraction non-metallic minerals (*)
	3.10a.4 Unused extraction fossil energy carriers (*)
	3.10a.5 Unused earth excavation and dredging (*)
	3.10a.5.1 Unused excavation by construction (*)
	3.10a.5.2 Dredging (*)
Justification
Inclusion of unused extraction is in accordance with the Eurostat (2001) and OECD (2008) procedural guidelines. Data regarding unused extraction is already collected by a number of Member States. Introduction and harmonisation of this practice at EU level should be expedited by the regulation.
Amendment  45 Proposal for a regulation Annex III – section 6 – subparagraph 1 a (new)
Text proposed by the Commission	Amendment
	In order to meet user needs for complete European data, Eurostat shall produce and publish an estimate in cases in which a transitional period is granted, at the 2-digit level according to table A and B.
Justification
User needs for complete data sets must be met as this is the core added value for decision making.

EXPLANATORY STATEMENT

In its June 2006 conclusions, the European Council called on the Union and its Member States to extend the national accounts to key aspects of sustainable development. The communication by the Commission of 28 September 2009 ‘GDP and beyond - Measuring progress in a changing world’ (COM (2009) 0433 final) must be seen in this context. This communication proposes a number of measures to be taken in the short and medium term for the development of more comprehensive indicators providing more reliable basic information for better public debate and policy making. This Commission proposal for European environmental economic accounts is a valuable contribution this political approach.

A sound assessment of European environmental policy is only possible if reliable data is available. Mandatory data collection by the Member States is therefore necessary. Environmental data currently available at European level should be expanded in the medium term to facilitate policy assessment. Recycling and prevention of waste, air emissions and climatic change and sustainable consumption and production could be monitored much more effectively if high-quality data were available regarding the interaction between environmental and economic factors. While such information can be gleaned from environmental accounts, it is essential for this purpose to ensure the cooperation of all Member States and full harmonisation at EU level.

While, in my opinion, the Commission proposal basically meets these requirements, it is necessary to set out the desired objectives more specifically and establish clearly the future direction to be taken with regard to environmental economic accounts.

Aims and purposes

Environmental economic accounts should contribute to policy evaluation, particularly by making available data concerning the environmental impact of economic activities. Such information could be extremely valuable for the purposes of environmental policy making.

The aims and purposes of this proposal for a regulation, together with its contribution to the ‘GDP and beyond’ strategy should be made clearer in the proposal.

Scope

The proposal for a regulation concerns only the collection and compilation of data regarding air emissions, environmental taxes applicable to various economic sectors and macro-economic material flow accounting. In my view, this is a step towards more comprehensive environmental accounting since, according to the relevant European and national statistics offices, it is only in these areas that data for the whole of Europe is currently available. In my opinion, new priority modules, on which work is currently in progress and for which relevant data is likely to be available soon, should be identified in a working plan. Pilot studies should be carried out into their practical application. Since the data collected could be of great value for the purposes of environmental policy making, I am in favour of the rapid introduction and implementation at EU level of the proposed modules.

Verification

The Commission proposal should contain a verification clause. The Commission should report regularly on the implementation of the regulation in practice. No experience has yet been acquired at European level with legally binding environmental economic accounting standards. It is therefore important to verify the reliability and comparability of the data in order to be able to make improvements and in order to guarantee a high standard of European environmental accounting. Due account should also be taken of the development of new modules and experience acquired in the course of pilot studies. The verification report should be regarded as an opportunity to adjust the regulation in the light of fresh developments and experiences.

OPINION Committee on Economic and Monetary Affairs (28.10.2010)

for the Committee on the Environment, Public Health and Food Safety

on the proposal for a regulation of the European Parliament and of the Council on European environmental economic accounts
(COM(2010)0132 – C7-0092/10 – 2010/0073(COD))

Rapporteur: Hans-Peter Martin

AMENDMENTS

The Committee on Economic and Monetary Affairs calls on the Committee on the Environment, Public Health and Food Safety, as the committee responsible, to incorporate the following amendments in its report:

Amendment  1 Proposal for a regulation Recital -1 (new)
Text proposed by the Commission	Amendment
	(-1) Under this Regulation, the Commission (Eurostat) acquires important new areas of responsibility and monitoring functions. To enable it to implement them, adequate staff and financial resources must be made available. The financial resources that the Commission (Eurostat) will require should be provided through reallocation of monies within the European Union budget.
Amendment  2 Proposal for a regulation Recital -1 a (new)
Text proposed by the Commission	Amendment
	(-1a) The funding made available must be used by the Commission (Eurostat) in an economically responsible, transparent and bureaucratically efficient manner. The results of the environmental economic accounts should be made available to the public in a readily accessible and understandable form.
Amendment  3 Proposal for a regulation Recital -1 b (new)
Text proposed by the Commission	Amendment
	(-1b) The additional human and financial resources which the Commission (Eurostat) will need in order to fulfil its expanded remit could be released, in the form of an ‘enlargement dividend’, by the transfer of superfluous staff from the Commission’s Directorate-General for Enlargement.
Amendment  4 Proposal for a regulation Recital 1
Text proposed by the Commission	Amendment
(1) Article 3 of the Treaty on European Union provides that the Union 'shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment.	(1) Article 3 of the Treaty on European Union provides that the Union 'shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment', taking into consideration that these goals may be best achieved through open markets.
Amendment  5 Proposal for a regulation Recital 1 a (new)
Text proposed by the Commission	Amendment
	(1a) The planned extension of ESA 95 by means of this Regulation is overdue and urgent. The worldwide shortage of resources means, however, that this extension of the accounting system can be no more than a first step towards an internationally recognised system of ‘European sustainability statistics’ (ESS) which, as a priority, must include the full range of environmental and social indicators alongside economic indicators.
Amendment  6 Proposal for a regulation Recital 2 a (new)
Text proposed by the Commission	Amendment
	(2a) A scientifically sound approach to the shortage of resources and to the ecosystem will, in future, be crucial to the sustainable economic development of the European Union.
Amendment  7 Proposal for a regulation Recital 4
Text proposed by the Commission	Amendment
(4) The need to supplement already existing indicators with data that incorporate environmental and social aspects in order to allow more coherent and comprehensive policy making has been recognised in Commission Communication COM(2009) 433 of August 2009 on GDP and beyond. To this end, environmental accounts offer a means of monitoring the pressures exerted by the economy on the environment and of exploring how these might be abated. In line with the tenets of sustainable development and the drive to achieve a low-carbon economy, embedded in the Lisbon Strategy and various major initiatives, developing a data framework that consistently includes environmental issues along with economic ones becomes all the more imperative.	(4) The need to supplement already existing indicators with data that incorporate environmental and social aspects in order to allow more coherent and comprehensive policy making has been recognised in Commission Communication COM(2009) 433 of August 2009 on GDP and beyond. To this end, environmental accounts offer a means of monitoring all the negative effects of the economy on the environment and of exploring how these might be abated. In line with the tenets of sustainable development and the drive to achieve a resource-efficient and low-pollution economy, embedded in the Europe 2020 strategy and various major initiatives, developing a data framework that consistently includes environmental issues along with economic ones becomes all the more imperative. The establishment of the European environmental economic accounts is essential in this perspective, but should be seen as no more than a first step and should in no way prevent the development of alternative indicators to GDP, to cover a more extensive range of social and environmental factors, including indicators relating to living conditions, resource efficiency and the internalisation of environmental externalities, giving full attention to both monetarised and physical indicators.
Amendment  8 Proposal for a regulation Recital 6 a (new)
Text proposed by the Commission	Amendment
	(6a) It is of great importance that the European environmental economic accounts, as soon as the system is fully operational, are actively and accurately used in all relevant EU policy making as a key input to impact assessments, action plans, legislative proposals and other significant products of the policy process.
Amendment  9 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10)     The Commission presented its first strategy on ‘green accounting’ in 1994. Since then the Commission (Eurostat) and the Member States have developed and tested accounting methods to the point where several Member States now regularly provide first sets of environmental accounts. Most common are physical flow accounts on air emissions (including greenhouse gases) and on material consumption and monetary accounts on environmental protection expenditure and taxes.	(10)     The Commission presented its first strategy on ‘green accounting’ in 1994. Since then the Commission (Eurostat) and the Member States have developed and tested accounting methods to the point where several Member States now regularly provide first sets of environmental accounts. Most common are physical flow accounts on air emissions (including greenhouse gases) and on material consumption and monetary accounts on environmental protection expenditure and taxes. In order for this Regulation to contribute to building a system of 'European sustainability statistics' (ESS) providing a comprehensive overview of European interests of environmental relevance, the Commission should develop numerous modules, including modules for financial factors (e.g. environmental expenditure accounts, environmental manufacturing and service provision accounts, accounts for use of resources), modules for tangible factors (e.g. accounts for international raw-materials cycles, energy, water and waste accounts) and asset modules (e.g. forestation accounts, biodiversity accounts, accounts for protected natural areas). In order to complement the environmental focus of this system, indicators should also be developed for measuring sustainability in a broader sense, with an emphasis on issues such as the impact of the transport system, energy efficiency, green investments and social matters.
Amendment  10 Proposal for a regulation Recital 13
Text proposed by the Commission	Amendment
(13) As the different sets of environmental economic accounts are under development and at different stages of maturity, a modular structure providing adequate flexibility should be adopted.	(13) As the different sets of environmental economic accounts are under development and at different stages of maturity, a modular structure providing adequate flexibility should be adopted for a transitional period of six years. The objective must be a uniform quality standard for a new, comprehensive ‘European sustainability statistics’ (ESS) system.
Amendment  11 Proposal for a regulation Recital 18 a (new)
Text proposed by the Commission	Amendment
	(18a) In order for the Commission (Eurostat) to be able to meet the key new responsibilities that it acquires under this Regulation, adequate human and financial resources should be allocated through regrouping the existing financial resources in the budget of the European Union.
Amendment  12 Proposal for a regulation Article 1
Text proposed by the Commission	Amendment
This Regulation establishes a common framework for the collection, compilation, transmission and evaluation of European environmental economic accounts for the purpose of setting up environmental economic accounts as satellite accounts to ESA 95 by providing methodology, common standards, definitions, classifications and accounting rules, intended to be used for compiling environmental economic accounts.	This Regulation establishes a binding common framework for the collection, compilation, transmission and evaluation of European environmental economic accounts for the purpose of setting up environmental economic accounts as satellite accounts to ESA 95 by providing methodology, common standards, definitions, classifications, accounting rules and objectives, intended to be used for compiling environmental economic accounts.
Amendment  13 Proposal for a regulation Article 1 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	This Regulation puts the Commission (Eurostat) in a position to make reliable forecasts, based on comparable national data, about the environmental and economic situation of the individual Member States and the EU as a whole.
Amendment  14 Proposal for a regulation Article 3 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a. In order for this Regulation to contribute to building a system of ‘European sustainability statistics’ (ESS) providing a comprehensive overview of European interests of environmental relevance, the Commission shall develop numerous modules, including in particular modules for environmentally-related financial data, tangible environmental factors and natural assets.
Amendment  15 Proposal for a regulation Article 4 – paragraph 1
Text proposed by the Commission	Amendment
1. The Commission shall draw up a programme for pilot studies to be carried out by Member States on a voluntary basis in order to develop the reporting and data quality, establish long time series and develop methodology.	1. The Commission shall draw up within two years and in close relation to further developments on its Communication ‘GDP and beyond’, a comprehensive and coordinated programme for pilot studies to be carried out by Member States in order to develop the reporting and data quality, improve the methodology and establish long time series, including a broader inclusion of indicators relating to resource efficiency, internalisation of environmental externalities. This programme shall be published online and reported to the European Parliament and the Council.
Amendment  16 Proposal for a regulation Article 6 – paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a. During the transitional periods, and for those Member States which need the transitional period to forward their data to Eurostat, the Commission (Eurostat) may assess the values of the modules listed in Article 3 of this Regulation.
Amendment  17 Proposal for a regulation Article 7 – paragraph 4
Text proposed by the Commission	Amendment
4. The Commission (Eurostat) shall assess the quality of the data transmitted.	4. The Commission (Eurostat) shall assess the quality of the data transmitted and may, within a time-limit of one month, raise an objection and require the Member State in question to submit an improved report.
Amendment  18 Proposal for a regulation Article 7 – paragraph 4 a (new)
Text proposed by the Commission	Amendment
	4a. In order to further develop the European environmental economic accounts, including the cooperation between the national statistics authorities and the Commission (Eurostat) in this field, the Commission shall, by ...* and every four years thereafter, submit a report to the European Parliament and the Council on the quality and usefulness of the statistics compiled pursuant to this Regulation.
	_____________________ * Two years from the entry into force of this Regulation.
Amendment  19 Proposal for a regulation Annex I – section 3 – point 14 a (new)
Text proposed by the Commission	Amendment
	Name of air emission
	Ozone
	Symbol of air emission
	03
	Reporting unit
	tonnes (Mg)
Amendment  20 Proposal for a regulation Annex III – section 1 – paragraph 1
Text proposed by the Commission	Amendment
EW-MFA covers all solid, gaseous, and liquid materials, except for flows of air and water, measured in mass units per year. Like the system of national accounts, economy-wide material flow accounts serve two major purposes. The detailed material flows provide a rich empirical database for numerous analytical studies. They are also used to compile different economy-wide material flow indicators for national economies.	EW-MFA covers all solid, gaseous, and liquid materials and technosphere materials, except for flows of air and water, measured in mass units per year. Like the system of national accounts, economy-wide material flow accounts serve two major purposes. The detailed material flows provide a rich empirical database for numerous analytical studies. They are also used to compile different economy-wide material flow indicators for national economies.

PROCEDURE

Title	European environmental economic accounts
References	COM(2010)0132 – C7-0092/2010 – 2010/0073(COD)
Committee responsible	ENVI
Opinion by        Date announced in plenary	ECON 21.4.2010
Rapporteur        Date appointed	Hans-Peter Martin 27.4.2010
Discussed in committee	28.9.2010		18.10.2010
Date adopted	26.10.2010
Result of final vote	+: –: 0:	37 0 1
Members present for the final vote	Burkhard Balz, Slavi Binev, Sharon Bowles, Udo Bullmann, Nikolaos Chountis, George Sabin Cutaş, Leonardo Domenici, Derk Jan Eppink, Diogo Feio, Markus Ferber, Elisa Ferreira, Vicky Ford, Ildikó Gáll-Pelcz, Jean-Paul Gauzès, Sven Giegold, Sylvie Goulard, Liem Hoang Ngoc, Jürgen Klute, Rodi Kratsa-Tsagaropoulou, Philippe Lamberts, Werner Langen, Astrid Lulling, Hans-Peter Martin, Ivari Padar, Anni Podimata, Olle Schmidt, Edward Scicluna, Peter Simon, Peter Skinner, Theodor Dumitru Stolojan, Marianne Thyssen
Substitute(s) present for the final vote	Sophie Auconie, Sari Essayah, Ashley Fox, Thomas Mann, Gay Mitchell, Gianni Pittella, Andreas Schwab
Substitute(s) under Rule 187(2) present for the final vote	Enrique Guerrero Salom, Tatjana Ždanoka

PROCEDURE

Title	European environmental economic accounts
References	COM(2010)0132 – C7-0092/2010 – 2010/0073(COD)
Date submitted to Parliament	9.4.2010
Committee responsible        Date announced in plenary	ENVI 21.4.2010
Committee(s) asked for opinion(s)        Date announced in plenary	ECON 21.4.2010		ITRE 21.4.2010
Not delivering opinions        Date of decision	ITRE 24.6.2010
Rapporteur(s)        Date appointed	Jo Leinen 27.4.2010
Discussed in committee	4.10.2010
Date adopted	9.11.2010
Result of final vote	+: –: 0:	40 4 4
Members present for the final vote	János Áder, Kriton Arsenis, Pilar Ayuso, Paolo Bartolozzi, Sandrine Bélier, Martin Callanan, Bairbre de Brún, Esther de Lange, Anne Delvaux, Bas Eickhout, Edite Estrela, Jill Evans, Karl-Heinz Florenz, Elisabetta Gardini, Julie Girling, Françoise Grossetête, Jolanta Emilia Hibner, Dan Jørgensen, Christa Klaß, Holger Krahmer, Jo Leinen, Corinne Lepage, Kartika Tamara Liotard, Radvilė Morkūnaitė-Mikulėnienė, Miroslav Ouzký, Gilles Pargneaux, Antonyia Parvanova, Andres Perello Rodriguez, Mario Pirillo, Vittorio Prodi, Frédérique Ries, Anna Rosbach, Oreste Rossi, Daciana Octavia Sârbu, Horst Schnellhardt, Richard Seeber, Theodoros Skylakakis, Bogusław Sonik, Anja Weisgerber, Sabine Wils, Marina Yannakoudakis
Substitute(s) present for the final vote	Matthias Groote, Romana Jordan Cizelj, Miroslav Mikolášik, Bill Newton Dunn, Michèle Rivasi, Csaba Sándor Tabajdi, Michail Tremopoulos