Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental Governance and Regulation in the EU Timo Mäkelä European Commission – DG Environment

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Overview EU environment policies and priorities  Current developments in the 4 priorities Special focus on:  Sustainable Consumption and Production action plan  Environment into EU external (trade) policy EU environment policy challenges for the years to come

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 EU policy-making Political impetus - European Council Decision making proces – institutional triangle: Council of Ministers, European Commission, European Parliament  Codecision, Assent, Consultation Primary legislation – treaties  Lisbon Treaty (being ratified now by countries) Secondary legislation:  Regulations, Directives, Decisions, Recommendations and opinions Transposition/implementation by Member States

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 EU approach to environment policy Objective  Sustainable Development 6 th Environment Action Programme ( )  6 EAP outlines main priorities for action on the environment:  Climate change  Nature and biodiversity  Environment and health  Sustainable use of natural resources Better regulation now central to environmental policy- making

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 EU Climate change policies Environment policy and climate change at top of agenda EU Climate Change Programme  EU Emission Trading Scheme: flagship  Proposed legislative framework : target of 120 g/km CO2 emissions for new cars (2012) EU commitment: Spring Council 2007  20% reduction in GHG emissions by 2020  20% share for energy from renewable sources 30% reduction in GHG emissions if international agreement

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Climate Action and Renewable Energy implementation package Revision of EU Emissions Trading System (ETS)  Broader coverage: more emissions, more industries Effort sharing in non ETS sectors: road transport, buildings, services and agriculture Legally enforceable targets for share of renewables Framework Carbon Capture and Geological Storage Proposals set Europe on path to low-carbon economy

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Climate change globally EU’s aim for post Kyoto Agreement  binding absolute emission reduction targets for developed countries  enhanced contributions by newly industrialising and developing countries.  limit global temperature increase to less than 2°C Bali Conference : December 2007  Work towards global agreement End 2008: UN Climate conference in Poznan: assessment of progress

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Nature and biodiversity Loss of biodiversity is a global threat  just as serious as climate change EU target of halting biodiversity loss by 2010: additional efforts needed Biodiversity action plan (2006): step up implementation Natura 2000 network of conservation areas: to be extended 9th COP to the Convention on Biological Diversity ( May 2008)  assess progress towards global target (reducing rate of biodiversity loss by 2010)

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environment and health Binding rules on air, water, waste, chemicals… Environment impact to health: a growing concern Action on Chemicals: New legislation (REACH) Proposal for new legislation on industrial emissions

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Sustainable use of natural resources Robust legislation on waste; boosting eco-efficiency via innovation International Panel for Sustainable Resource Management New policies on better ship dismantling Revised Waste Framework Directive in 2008 Revision of the WEEE and RoHS directives in 2008 From waste to resource policies

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Ecological footprint =>Globally there are 1.8 gha/capita available, while the overall global footprint is 2.2 gha/capita Evolution of population & living standards => 6 times consumption by % of environmental impacts: transport, food & drink, housing Households & Industry (incl. energy industries) => 67% share of greenhouse gases in EU Towards Sustainable Consumption and Production - The issue -

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Prices do not reflect costs Unsustainable Production & Consumption Imperfect Information Incomplete Markets Internal Market Distortions Green House Gasses Pollution DepletionResources Climate Change Threats to Human Health Threats to Biodiversity Degradation air, water, soil… Population growth Spending power Economic growth Bounded Rationality

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 The Sustainable Consumption and Production Action Plan 1.Smarter Consumption – Better Products 2.Leaner Production 3.Global Action

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Policy Framework for Smarter Consumption and Better Products Revise Eco-design  Minimum requirements  Environmental performance benchmarks Revise energy label Revise Eco-label  Excellence “Front runner” EU Ecolabel also in Thailand! Mandatory Voluntary

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Smarter Consumption Fiscal or other incentives may be set by Community or Member States using reference points / benchmarking Green Public Procurement: Authorities to buy above selected level Working with Retailers and Consumers  EU-level Forum for Retailers  Commitment towards code of conduct  Environmental claims - commercial practices Awareness and education actions

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Leaner Production Resource Efficiency and Eco-innovation  Tools and benchmarks Environmental Technology Verification  Build confidence for new technologies Revised EMAS  Increase participation, reduce burdens, SMEs

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 SCP Roadmap EC Communication: 2008 First Group of actions 2008:  Revised Eco-design Directive  Revised Eco-label Directive  Revised EMAS Directive  Communication on Green Public Procurement Further actions later in 2008 and 2009  Revised Energy Efficiency Labelling Directive  ….

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental aspects in EU external (trade) policy Partnership and Cooperation Agreement with Thailand and Free Trade Agreement EU-ASEAN: Negotiations ongoing PCA: Aim: reinforced cooperation, also for environment FTA : Trade and Sustainable Development Chapter  Objective: how to make trade work for Sustainable Development?  Include number of commitments  Sustainability Impact Assessments  Non sanctions based monitoring mechanism with involvement of government and civil society

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Environmental aspects in EU external (trade) policy Fund: SWITCH-Asia Programme  Promoting Sustainable Consumption and Production in Asia (“programme) – 90 million euros for the period one third dedicated to ASEAN group  320 proposals received in the First Call

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 Global negotiations - WTO US-EU proposal  Liberalisation of package of goods and services with clear environment benefit, in particular for climate change  Further binding commitments to eliminate tariffs and non- tariff barriers in trade in green technologies  Goal: spread green technologies globally

Conference EU Environment Policy: Impact on Thai Business 29 May 2008 EU environment policy challenges for the years to come Further strengthening implementation Continued effort to simplify and improve policies and instruments Climate change and adaptation Protection of biodiversity Sustainable Production and Consumption