(Codecision procedure: second reading)

The European Parliament,

–   having regard to the Council common position (6284/1/2006 – C6-0226/2006)(1),

–   having regard to its position at first reading(2) on the Commission proposal to Parliament and the Council (COM(2004)0621),

–   having regard to the amended Commission proposal (COM(2004)0621/2),

–   having regard to Article 251(2) of the EC Treaty,

–   having regard to Rule 62 of its Rules of Procedure,

–   having regard to the recommendation for second reading of the Committee on the Environment, Public Health and Food Safety (A6-0288/2006),

1.  Approves the common position as amended;

2.  Urges the Commission, in the absence of an agreement between the co-legislators on LIFE+ at second reading, to present a solution permitting the financing of activities falling under the institutional prerogatives that from 2007 onwards are due to fall under the LIFE+ programme; calls on the Commission to propose provisional measures for project activities in order to avoid a financing gap and to guarantee continuity of the Community's environmental policy and sustainable development in 2007;

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

(1) OJ C 238 E, 3.10.2006, p. 1. (2) OJ C 157 E, 6.7.2006, p. 451.

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 175(1) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and Social Committee(1),

Having regard to the opinion of the Committee of the Regions(2),

Acting in accordance with the procedure laid down in Article 251 of the Treaty(3),

Whereas:

(1)  Environmental protection is one of the key dimensions of sustainable development of the European Union. It is a priority for Community co-financing and should be funded primarily through the Community's horizontal financial instruments, including the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development, the Competitiveness and Innovation Framework Programme, the European Fisheries Fund and the seventh Research Framework Programme.

(2)  These Community financial instruments do not cover all environmental priorities. There is therefore a need for a Financial Instrument for the Environment (LIFE+) to provide specific support for developing and implementing Community environmental policy and legislation, in particular the objectives of the Sixth Community Environment Action Programme (6th EAP) laid down by Decision No 1600/2002/EC of the European Parliament and of the Council of 22 July 2002(4).

(3)  Support should be provided through grant agreements and public procurement contracts in accordance with Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities(5).

(4)  Measures and projects financed under LIFE+ should meet eligibility criteria to secure the best possible use of Community funds. Measures and projects should meet additional eligibility criteria to ensure European added value and to avoid the financing of recurring activities, except where such activities have clear demonstration value or a start-up function.

(5)  In the area of nature and biodiversity, the implementation of Community policy and legislation itself provides a framework for European added value. Best practice or demonstration measures and projects, including those relating to the management and designation of Natura 2000 sites in accordance with Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora(6) and Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds(7), should be eligible for Community financing under LIFE+, except where they are eligible for funding under other Community financial instruments. The Commission should produce a review of the contribution of these complementary instruments to the financing of Natura 2000 in time for the 2008/2009 review of the Financial Framework with a view to adapting LIFE+ to the necessary changes and ensuring a high level of Community co-financing.

(6)  The Member States agreed in Malahide in 2004 that arrangements needed to be established to ensure adequate financing for the Natura 2000 network, including Community co-financing. Since this Regulation will only finance best practice or demonstration measures related to the management of Natura 2000 sites, the Commission and Member States will need to ensure that sufficient funds are made available through other instruments for the management of the network, the annual cost of which is estimated to be around EUR 6 100 000 000 for the EU as a whole.

(7)  Innovative or demonstration measures and projects relating to Community environmental objectives, including the development or dissemination of best practice techniques, know-how or technologies, as well as measures and projects for awareness-raising campaigns and special training for agents involved in forest fire prevention interventions should be eligible for Community financing under LIFE+, except where they are eligible for funding under other Community financial instruments.

(8)  Measures and projects for the development and implementation of Community objectives relating to the broad-based, harmonised, comprehensive and long-term monitoring of forests and environmental interactions should be eligible for Community financing under LIFE+, except where they are eligible for funding under other Community financial instruments.

(9)  The challenge of effective policy development and implementation under the 6th EAP can be met only through support for best practice or demonstration measures and projects for the development or implementation of Community environmental policy; demonstration of innovative policy approaches, technologies, methods and instruments; consolidating the knowledge base; building implementation capacity; fostering good governance, promoting networking, mutual learning and the exchange of best practice; and improved dissemination of information, awareness-raising and communication. Financial support under this Regulation should therefore contribute to the development, implementation, monitoring and evaluation of environmental policy and legislation, as well as its communication and dissemination throughout the Community.

(10)  LIFE+ should have three components: LIFE+ Nature and Biodiversity, LIFE+ Environment Policy and Governance, and LIFE+ Information and Communication. It should be possible for measures and projects financed by LIFE+ to contribute to the achievement of the specific objectives of more than one of these three components and to involve the participation of more than one Member State, as well as to contribute to the development of strategic approaches to meeting environmental objectives.

(11)  In order to carry out its role in the initiation of environment policy development and implementation, the Commission should use resources from LIFE+ to complete studies and evaluations, to undertake services with a view to the implementation and integration of environment policy and legislation, to hold meetings, seminars and workshops with experts and stakeholders, to develop and maintain networks and to develop and maintain computer systems. In addition, the Commission should use the centrally managed part of the LIFE+ budget to undertake information, publication and dissemination activities, including events, exhibitions and similar awareness-raising measures, for the preparation and production costs of audio-visual materials, and to obtain technical and/or administrative assistance relating to the identification, preparation, management, monitoring, audit and supervision of programmes and projects.

(12)  Non-governmental organisations (NGOs) contribute to the development and implementation of Community environmental policy and legislation. It is therefore appropriate for the centrally managed part of the LIFE+ budget to support the operations of a number of appropriately qualified environmental NGOs through the competitive and transparent awarding of annual operating grants. Such NGOs would need to be independent and non-profit-making and to pursue activities in at least three European countries, either alone or in the form of an association.

(13)  The experience of current and past instruments has highlighted the need to plan and programme on a multi-annual basis and to concentrate efforts to promote environmental protection by prioritising and targeting the areas of activity able to benefit from Community co-financing.

(14)  Member States should prepare national annual work programmes, different both from plans and programmes which are prepared for a number of sectors and set a framework for future development consent and from plans and programmes which have been determined to require assessment pursuant to Directive 92/43/EEC, and those work programmes should not be considered plans or programmes subject to Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment(8).

(15)  Environmental protection requirements should be integrated into the definition and implementation of Community policies and activities, including financial instruments. LIFE+ should therefore be complementary to other Community financial instruments and the Commission and Member States should ensure such complementarity at Community, national, regional and local level.

(16)  In line with the conclusions of the Luxembourg European Council (December 1997) and of the Thessaloniki European Council (June 2003), candidate countries and the Western Balkan countries in the Stabilisation and Association Process should be eligible to participate in Community programmes, in accordance with the conditions established in the relevant bilateral agreements concluded with these countries.

(17)  It is necessary to consolidate a number of existing environmental instruments and to simplify programming and management by creating a single, streamlined financial instrument for the environment.

(18)  It is also necessary to ensure a smooth transition and to continue to monitor, audit and qualitatively assess the activities financed under current programmes following their expiry.

(19)  This Regulation lays down, for the entire duration of the programme, a financial envelope constituting the prime reference, within the meaning of point 37 of the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management(9), for the budgetary authority during the annual budgetary procedure.

(20)  The general objective of LIFE+ is to contribute to the implementation, updating and development of Community environmental policy and legislation and, in particular, to support the implementation of the 6th EAP. By working together through Community instruments to improve delivery at national or local levels, to achieve Community goals or to provide for Community-wide exchanges of information, Member States can achieve European added value. Since this objective of LIFE+ cannot be sufficiently achieved by the Member States and can therefore be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve its objective.

(21)  This Regulation defers many essential decisions to multi-annual strategic programmes and national annual work programmes. These issues are of critical concern to individual Member States and of crucial importance for their national environmental policy. It is therefore appropriate for certain measures to be adopted in accordance with the regulatory procedure provided for in Article 5 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission(10), in order to give Member States the option of bringing proposed measures before the Council for consideration. The regulatory procedure is also appropriate for the laying down of implementing rules other than the technical measures explicitly mentioned in this Regulation. The regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC should apply to the adoption and the possible amendment of multi-annual strategic programmes drawn up in accordance with Article 6(1) of this Regulation and to the adoption of amendments to the Annex to this Regulation, which specifies important provisions, in particular the measures eligible for funding, so as to enable the two arms of the legislative authority to scrutinise such measures before they are adopted,

HAVE ADOPTED THIS REGULATION:

Article 1

Purpose

1.  This Regulation establishes a financial instrument for the environment ("LIFE+").

2.  The general objective of LIFE+ shall be to contribute to the implementation, updating and development of Community environmental policy and legislation, including the integration of the environment into other policies, thereby contributing to sustainable development.

In particular, LIFE+ shall support the implementation of the 6th EAP, including the thematic strategies, and finance measures and projects with European added value in Member States.

Article 2

Definitions

Article 3

Eligibility criteria

1.  Measures and projects financed by LIFE+ shall support the achievement of the general objective set out in Article 1(2). Where possible, measures and projects financed by LIFE+ shall promote synergies between different priorities under the 6th EAP, and integration.

2.  Measures envisaged in the multi-annual strategic programmes drawn up in accordance with Article 6(1), national annual work programmes adopted in accordance with Article 6(4) and projects implemented pursuant to those programmes shall satisfy the following criteria:

3.  The Commission shall ensure that inter-regional and cross-border projects will be included in the national annual work programmes, especially where cross-border cooperation is essential to guarantee species conservation.

4.  In addition, to ensure European added value and avoid financing recurring activities, measures envisaged in national annual work programmes and projects implemented pursuant to those programmes shall satisfy at least one of the following criteria:

Article 4

Specific objectives

1.  LIFE+ shall consist of three components:

–  LIFE+ Nature and Biodiversity,

–  LIFE+ Environment Policy and Governance,

–  LIFE+ Information and Communication.

2.  The specific objectives of LIFE+ Nature and Biodiversity shall be:

3.  The specific objectives of LIFE+ Environment Policy and Governance shall be, in relation to the objectives of the 6th EAP, including for the priority areas of climate change, environment and health and quality of life, and natural resources and wastes:

4.  The specific objectives of LIFE+ Information and Communication shall be:

5.  The Annex contains the list of eligible measures.

Article 5

Types of intervention

1.  Community funding may take the following legal forms:

2.  Community grants may be provided in specific forms, such as framework partnership agreements, participation in financial mechanisms and funds, or co-funding of operating or action grants. Operating grants to bodies pursuing objectives of general European interest shall not be subject to the degressivity provisions of the Financial Regulation.

3.  For action grants, the maximum rate of co-financing shall be 50% of eligible costs. However, by way of exception, the maximum co-financing rate for LIFE+ Nature and Biodiversity may be up to 75% of eligible costs in the case of measures and projects concerning priority habitats or species for the implementation of Directive 79/409/EEC or Directive 92/43/EEC, when this is necessary to achieve the conservation objective.

4.  In the case of public procurement contracts, Community funds may cover the costs of purchase of services and goods. These costs may include expenditure on information and communication, preparation, implementation, monitoring, checking and evaluation of projects, policies, programmes and legislation.

Article 6

Programming

1.  The Commission shall draw up a first multi-annual strategic programme for 2007 to 2010, and, after a review taking account of the objectives set, a second multi-annual strategic programme for 2011 to 2013. These programmes shall define the principal objectives, priority areas of action, type of measures and expected results for Community funding in relation to the objectives and criteria set out in Articles 1, 3 and 4.

2.  For the purposes of drawing up the multi-annual strategic programmes referred to in paragraph 1, Member States shall submit draft national annual work programmes to the Commission for each year in the periods 2007 to 2010 and 2011 to 2013. These shall, as a minimum and for each year:

Member States shall include transnational measures in their draft national annual work programmes.

3.  The Commission shall consult Member States on the draft multi-annual strategic programmes within the Committee referred to in Article 14(1) and within the Committee referred to in Article 20 of Directive 92/43/EEC. The programmes shall be adopted in accordance with Article 15(2) of this Regulation. For the multi-annual strategic programme for 2007 to 2010, adoption shall take place as soon as possible, and no later than three months after the entry into force of this Regulation. The Commission shall provide for public participation in the draft multi-annual strategic programmes.

4.  The Commission shall consult Member States bilaterally on the draft national annual work programmes after consulting the Committee referred to in Article 20 of Directive 92/43/EEC, with a view to the adoption of national annual work programmes in accordance with Article 15 (1) (a) of this Regulation. Member States shall submit draft national annual work programmes for 2007 to the Commission as soon as possible, and no later than 3 months after the adoption of the first multi-annual strategic programme. They shall, as necessary, submit national annual work programmes for subsequent years, and updates of drafts already submitted, pursuant to the timetable laid down in accordance with Article 15(3)(a). Member States shall provide for public participation in draft national annual work programmes in line with the provisions of Directive 2003/35/EC(11).

Member States may, if they so wish, submit draft national annual work programmes for some or all of the years covered by this Regulation at the same time.

5.  The Commission shall regularly publish lists of projects financed through LIFE+, including a short description of objectives and results achieved and a summary of funds expended. It shall do so using appropriate media and technologies, including the Internet.

Article 7

Financial procedures

The Commission shall implement this Regulation in accordance with the Financial Regulation.

Article 8

Beneficiaries

Public and/or private bodies, actors and institutions may receive financing through LIFE+.

Article 9

Participation of third countries

Article 10

Complementarity between financial instruments

This Regulation shall not finance measures which fall within the scope of, or receive assistance for the same purpose from, other Community financial instruments, including the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development or the European Fisheries Fund. The beneficiaries under this Regulation shall provide information on funding they have received from the Community budget and on their ongoing applications for funding to the Commission. The Commission shall ensure coordination and complementarity with other Community instruments.

Article 11

Duration and budgetary resources

1.  This Regulation shall be implemented during the period beginning on 1 January 2007 and ending on 31 December 2013.

2.  The financial envelope for the implementation of LIFE+ shall be set at EUR 1 911 000 000 (in 2004 prices) for the period from 1 January 2007 to 31 December 2013.

3.  The budgetary resources allocated to the actions provided for in this Regulation shall be entered in the annual appropriations of the general budget of the European Union.

The budgetary authority shall authorise the available annual appropriations within the limits of the financial framework.

Article 12

Monitoring

1.  For any measures and projects financed by LIFE+, the beneficiary shall submit to the Commission, for measures in receipt of funding, technical and financial reports on the progress of work. A final report shall also be submitted within three months of the completion of the project.

2.  Without prejudice to the audits carried out by the Court of Auditors in liaison with the competent national audit bodies or departments pursuant to Article 248 of the Treaty, or any inspection carried out pursuant to Article 279(1)(b) of the Treaty, officials and other staff of the Commission shall carry out on-the-spot checks, including sample checks, on projects financed under LIFE+, in particular to check compliance with the eligibility criteria set out in Article 3, and assess their contribution to EU policy objectives.

3.  Contracts and agreements resulting from this Regulation shall provide in particular for supervision and financial control by the Commission, or any representative that the Commission may authorise, and for audits by the Court of Auditors, if necessary on-the-spot.

4.  The beneficiary of financial assistance shall keep available for the Commission, for a period of five years following the last payment in respect of any project, all supporting documents regarding expenditure on that project.

5.  On the basis of the results of the reports and sample checks referred to in paragraphs 1 and 2, the Commission shall, if necessary, adjust the scale or the conditions of allocation of the financial assistance originally approved as well as the timetable for payments.

6.  The Commission shall take all other steps necessary to verify that measures and projects financed are carried out properly and in compliance with the provisions of this Regulation and the Financial Regulation.

Article 13

Protection of Community financial interests

1.  The Commission shall ensure that, when measures financed under this Regulation are implemented, the financial interests of the Community are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective checks and by the recovery of the amounts unduly paid and, if irregularities are detected, by the application of effective, proportional and dissuasive penalties, in accordance with Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities' financial interests(13), Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities(14), and Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations conducted by the European Anti-Fraud Office (OLAF)(15).

2.  For Community measures financed under LIFE+, "irregularity" as referred to in Article 1(2) of Regulation (EC, Euratom) No 2988/95 shall mean any infringement of a provision of Community law or any breach of a contractual obligation resulting from an act or omission by an economic operator which has, or would have, the effect of prejudicing the general budget of the European Union or budgets managed by the Communities by an unjustified item of expenditure.

3.  The Commission shall reduce, suspend or recover the amount of financial assistance granted for a project if it finds irregularities, including non-compliance with the provisions of this Regulation or the individual decision or the contract or agreement granting the financial assistance in question, or if it transpires that, without Commission approval having being sought, the project has been subjected to a change which conflicts with its nature or implementing conditions.

4.  If time limits have not been observed or if only part of the allocated financial assistance is justified by the progress made with implementing a project, the Commission shall request the beneficiary to submit observations within a specified period. If the beneficiary does not give a satisfactory answer, the Commission may cancel the remaining financial assistance and demand repayment of sums already paid.

5.  Any undue payment shall be repaid to the Commission. Interest shall be added to any sums not repaid in good time under the conditions laid down by the Financial Regulation.

Article 14

Committee

1.  The Commission shall be assisted by a committee.

2.  Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at three months.

3.  Where reference is made to this paragraph, Article 5a(1) to (4) and Article 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

4.  Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

The period laid down in Article 4(2) of Decision 1999/468/EC shall be set at three months.

Article 15

Implementing decisions

1.  The following implementing decisions shall be taken in accordance with the regulatory procedure referred to in Article 14(2):

2.  The following implementing decisions shall be taken in accordance with the regulatory procedure with scrutiny referred to in Article 14(3):

3.  The following implementing decisions shall be taken in accordance with the management procedure referred to in Article 14(4):

Article 16

Evaluation

1.  The Commission shall ensure that regular monitoring of multi-annual programmes takes place to assess their impact.

2.  No later than 30 September 2010, the Commission shall submit a mid-term review of LIFE+ to the European Parliament and to the Committee referred to in Article 14(1). The mid-term review shall evaluate the implementation of this Regulation from 2007 to 2009. The Commission shall, if appropriate, propose modifications to the implementing decisions in accordance with Article 15.

3.  The Commission shall arrange for a final evaluation of the implementation of this Regulation assessing its contribution to the implementation, updating and development of Community environmental policy and legislation and the use made of the appropriations. It shall submit this final evaluation to the European Parliament and the Council no later than 31 December 2012, together, if appropriate, with a proposal for the further development of a financial instrument exclusively in the environmental field, to apply from 2014 onwards.

Article 17

Repeal and transitional provisions

1.  The following instruments shall be repealed with a view to simplification and consolidation:

2.  Measures started before 31 December 2006 pursuant to the acts referred to in paragraph 1 shall, until their completion, continue to be governed by those acts. The Committee referred to in Article 14(1) shall replace the committees provided for in these acts. This Regulation shall be used to fund any obligatory monitoring and evaluation required under those acts following their expiry. Until their completion, measures shall comply with the technical provisions defined in the acts referred to in paragraph 1.

Article 18

Entry into force

This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at ,

For the European Parliament For the Council

The President The President

ANNEX

Measures eligible for funding

(1) OJ C 255, 14.10.2005, p. 52. (2) OJ C 231, 20.9.2005, p. 72. (3) Position of the European Parliament of 7 July 2005 (OJ C 157 E, 6.7.2006, p. 451), Council Common Position of 27 June 2006 (OJ C 238 E, 3.10.2006, p. 1) and Position of the European Parliament of 24 October 2006. (4) OJ L 242, 10.9.2002, p. 1. (5) OJ L 248, 16.9.2002, p. 1. (6) OJ L 206, 22.7.1992, p. 7. Directive as last amended by Regulation (EC) No 1882/2003 of the European Parliament and of the Council (OJ L 284, 31.10.2003, p. 1). (7) OJ L 103, 25.4.1979, p. 1. Directive as last amended by Regulation (EC) No 807/2003 (OJ L 122, 16.5.2003, p. 36). (8) OJ L 197, 21.7.2001, p. 30. (9) OJ C 139, 14.6.2006, p. 1. (10) OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/512/EC (OJ L 200, 22.7.2006, p. 11). (11) Directive 2003/35/EC of the European Parliament and of the Council of 26 May 2003 providing for public participation in respect of the drawing up of certain plans and programmes relating to the environment (OJ L 156, 25.6.2003, p. 17). (12) OJ L 117, 5.5.1999, p. 1. (13) OJ L 312, 23.12.1995, p. 1. (14) OJ L 292, 15.11.1996, p. 2. (15) OJ L 136, 31.5.1999, p. 1. (16) OJ L 192, 28.7.2000, p. 1. Regulation as last amended by Regulation (EC) No 1682/2004 (OJ L 308, 5.10.2004, p. 1). (17) OJ L 191, 13.7.2001, p. 1. Decision as amended by Decision No 786/2004/EC (OJ L 138, 30.4.2004, p. 7). (18) OJ L 75, 16.3.2002, p. 1. Decision as amended by Decision No 786/2004/EC. (19) OJ L 324, 11.12.2003, p. 1. Regulation as amended by Regulation (EC) No 788/2004 (OJ L 138, 30.4.2004, p. 17).