Common Position (EC) No 42/1999 of 22 October 1999 adopted by the Council, acting in accordance with the procedure referred to in Article 251 of the Treaty establishing the European Community, with a view to adopting a Regulation of the European Parliament and of the Council concerning the financial instrument for the environment (LIFE)
2. 12. 1999 EN Official Journal of the European Communities C 346/1 I (Information) COUNCIL COMMON POSITION (EC) No 42/1999 adopted by the Council on 22 October 1999 with a view to adopting Regulation (EC) No /1999 of the European Parliament and of the Council concerning the financial instrument for the environment (LIFE) (1999/C 346/01) 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 (1), Having regard to the opinion of Committee (2), the Economic and Social Having regard to the opinion of Regions (3), the Committee of the Acting in accordance with the procedure laid down in Article 251 of the Treaty (4), Whereas: further contributing to the implementation, updating and development of Community environment policy and of environmental legislation, in particular as regards the integration of the environment into other policies, and to Community, amendments are to be made to Regulation (EEC) No 1973/92, which should, for reasons of clarity, be recast and replaced by this Regulation; development sustainable the in (3) The financial instrument for the environment, LIFE, is being implemented in phases; the second phase ends on 31 December 1999; (4) Given the positive contribution of LIFE to the attainment of the objectives of Community policy on the environment and in accordance with Article 14 of Regulation (EEC) No 1973/92, a third phase for a period of five years ending on 31 December 2004 should be set in motion; (1) Council Regulation (EEC) No 1973/92 of 21 May 1992 establishing a financial instrument for the environment (LIFE) (5) was to the implementation of Community environment policy and of environmental legislation; to development adopted and contribute (5) reinforced as financial LIFE should be a instrument, complementary with other Community instruments, without however limiting LIFE interventions to areas not covered by other Community financial instruments; specific (2) Regulation (EEC) No 1973/92 was substantially amended by Regulation (EC) No 1404/96 (6); with a view to (1) OJ C 15, 20. 1. 1999, p. 4. (2) OJ C 209, 22. 7. 1999, p. 14. (3) Opinion delivered on 16 September 1999 (not yet published in the Official Journal). (4) Opinion of the European Parliament of 14 April 1999 (OJ C 219, 30. 7. 1999, p. 265), Council Common Position of 22 October 1999 and Decision of the European Parliament of (not yet published in the Official Journal). (5) OJ L 206, 22. 7. 1992, p. 1. (6) OJ L 181, 20. 7. 1996, p. 1. (6) The and efficiency transparency various procedures for LIFE should be improved by identifying clearly the three component parts which constitute the instrument; the of (7) is necessary to ensure effective monitoring and It evaluation of the actions undertaken under LIFE; (8) The experience gained with LIFE during the second phase has highlighted the need to concentrate efforts by C 346/2 EN Official Journal of the European Communities specifying more clearly the areas of activity able to benefit from Community financial aid, simplifying the management burden and improving the measures to disseminate experience gained, the results achieved and their long-term impact, with a view to promoting the transfer of these results; information concerning the (9) The development of Community environmental policy the results achieved and the actions individual take account of must experience implemented under LIFE; from the gained participation programmes, environment; of in those particular countries in the 2. 12. 1999 in Community the of field (16) While the abovementioned Central and Eastern European the costs countries should normally themselves meet arising from their participation, the Community may decide, if necessary, for specific cases and in conformity with the rules applicable to the general budget of the European Union and the relevant association agreements, to supplement the national contribution of the country concerned; (10) Consideration should be given to migration routes and the role of buffer zones in the context of projects contributing to the implementation of Natura 2000í; (17) The other accession candidate countries may, where they make a financial contribution to LIFE, participate on laid down for conditions the to those and Eastern European accession candidate Central countries; equivalent (11) Preparatory projects should concern the development of new Community environmental actions and instruments, legislation and and/or the updating of environmental policies; (12) Decision No 2179/98/EC of the European Parliament and of the Council of 24 September 1998 on the review of the European Community programme of policy and action in relation to the environment and sustainable development Towards sustainabilityí (1) sets, among the priority objectives of the Community, the development of of the environmental industry, including, and medium-sized in enterprises (SMEs), and giving priority to the problems of SMEs as regards technical and financial obstacles to the development and use of clean technology in relation to the environment; awareness on the part of small particular, programmes promotion further for (13) The employment implications of proposals considered for financial support under LIFE-Environment should be taken into account, where appropriate; (14) For third countries bordering on the Mediterranean and the Baltic Sea other than the countries of Central and concluded association Eastern Europe which have agreements with the European Community, technical assistance activities are needed to create capacities and administrative structures in the field of the environment; (15) The Europe agreements European Communities and their Member States, of the one part, and the and Eastern European countries, of the other part, provide for the accession candidate Central between the (18) Receipts from third countries the instrument constitute resources in question and are earmarked for entered as such in the corresponding expenditure item; (19) Selection mechanisms should be established so that Community assistance may be adapted to the particular features of to be supported; guidelines should promote synergy between demonstration actions and the guiding principles of Community environmental policy with a view to sustainable development; the projects as (20) A committee should be set up to assist the Commission in implementing this Regulation; the measures necessary for the implementation of this instrument are measures of general scope within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 exercise of laying down the procedures implementing powers conferred on the Commission (2), these measures should be adopted in accordance with the regulatory procedure set out in Article 5 of the said Decision; the for (21) This Regulation lays down, for the entire duration of the third phase, a financial framework constituting the prime the reference, within the meaning of point 33 of Interinstitutional Agreement of 6 May 1999 between the the Commission (3), for the budgetary authority during the annual budgetary procedure; the Council Parliament, European and (22) The European Parliament should examine the advisability of continuing the LIFE action beyond the third phase, acting on the basis of a proposal from the Commission, and the Council (1) OJ L 275, 10. 10. 1998, p. 1. (2) OJ L 184, 17. 7. 1999, p. 23. (3) OJ C 172, 18. 6. 1999, p. 1. 2. 12. 1999 EN Official Journal of the European Communities C 346/3 HAVE ADOPTED THIS REGULATION: Article 1 General objective A financial instrument referred to as LIFEí, is hereby established. the for environment, hereinafter The general objective of LIFE shall be to contribute to the implementation, updating and development of Community in environment policy and of particular as regards the integration of the environment into other policies, in the Community. and to sustainable development environmental legislation, conservation of natural habitats and of wild fauna and flora (2) the Natura 2000 European network and, established by the latter Directive. in particular, 2. The following shall be eligible for LIFE-Nature: (a) nature conservation projects which further the specific objective set out in paragraph 1 and contribute to maintaining or restoring natural habitats and/or species populations to a favourable conservation status within the meaning of Directive 92/43/EEC; (b) accompanying measures which further the specific objective set out in paragraph 1 and are required to: (i) prepare projects Member States (ástarterí measure); involving partners in several Article 2 Thematic components and general criteria (ii) exchange measure); experiences between projects (áco-opí shall LIFE the LIFE-Nature, LIFE-Environment and LIFE-Third Countries. consist of thematic three components (iii) monitor and evaluate projects and disseminate their results, including the results of projects decided upon during the preceding phases of LIFE (áassistí measure). The projects financed by LIFE shall meet the following general criteria: Financial assistance shall be provided by co-financing of 3. projects. The maximum rate shall be: (a) be of Community interest by making a significant contribution to the general objective laid down in Article 1; (a) 50 % for nature conservation projects and 100 % for accompanying measures; (b) be carried out by technically and financially sound participants; (c) be feasible in terms of technical proposals, timetable, budget and value for money. Priority may be given to projects based on a multinational approach when this is likely to have more effective results in terms of achievement of objectives taking into account feasibility and costs. Article 3 LIFE-Nature specific objective of LIFE-Nature to the to 1. The contribute implementation of Council Directive 79/409/EEC of 2 April 1979 on the conservation of wild birds (1), Council Directive 92/43/EEC of 21 May 1992 on the shall be (b) by way of exception, the rate of 50 % provided for in (a) shall be a maximum of 75 % for projects concerning priority natural habitats or priority species within the meaning of Directive 92/43/EEC or the species of birds considered as priority for funding under LIFE-Nature by the committee set up pursuant to Article 16 of Directive 79/409/EEC. to be Proposals for projects 4. to paragraph 2(a) shall be forwarded to the Commission by the involve more than one Member States. Where projects Member State, proposals shall be forwarded by the Member State in which the project coordinating body is located. financed pursuant in accordance with paragraph 7, before Proposals shall be forwarded to the Commission before 31 October of each year. The Commission shall decide on these proposals, the following 30 April. Proposals for the year 2000 shall be forwarded to the Commission before 31 March 2000. The Commission shall decide on these proposals in accordance with paragraph 7 before 31 October 2000. (1) OJ L 103, 25. 4. 1979, p. 1. Directive as last amended by Directive (2) OJ L 206, 22. 7. 1992, p. 7. Directive as last amended by Directive 97/49/EC (OJ L 223, 13. 8. 1997, p. 9). 97/62/EC (OJ L 305, 8. 11. 1997, p. 42). C 346/4 EN Official Journal of the European Communities 2. 12. 1999 5. in Proposals shall be considered for financial support, accordance with paragraph 7, only where they comply with the requirements of Article 2 and paragraph (2)(a) of this Article, and meet the following criteria: assistance, specific technical conditions of the project approved. the financial procedures and controls, and the 8. At the Commission’s initiative: (a) projects in the European territory of the Member States relating to: (i) a site proposed by a Member State under Article 4 of Directive 92/43/EEC, or (a) accompanying measures to be financed pursuant to paragraph 2(b)(i) and (ii) shall, after consultation of the committee mentioned of Directive 92/43/EEC, be the subject of calls for expressions of interest. Member submit proposals on accompanying measures to the Commission; States may in Article 21 (ii) a site classified pursuant to Article 4 of Directive 79/409/EEC, or (b) accompanying measures paragraph 2(b)(iii) expression of interest. to be financed pursuant shall be the subject of calls to for (iii) a species in Annexes II or IV to Directive 92/43/EEC or in Annex I to Directive 79/409/EEC; (b) projects in accession candidate countries to which Article 6 applies relating to: All calls for expression of interest shall be published in the Official Journal of the European Communities where the specific criteria to be met will be set out. (i) (ii) in Annex I or a species in Annex II a site of international importance hosting a type of habitat to Directive 92/43/EEC or a type of habitat or species not present in the Community but classified in the relevant Berne Convention resolutions as being in need of specific conservation measures; or international importance hosting a bird a site of species in Annex I to Directive 79/409/EEC or a migratory bird species present in the Community or a bird species not present in the Community but classified Convention relevant resolutions as being in need of specific conservation measures; or Berne the in (iii) a species in Annexes II or IV to Directive 92/43/EEC or in Annex I to Directive 79/409/EEC or a species not present in the Community but classified in Appendix I or II to the Berne Convention. 6. A summary of the proposals received shall be sent to the Member States by the Commission. Upon request, it shall place the original documents at the disposal of the Member States for consultation. Projects considered under for 7. LIFE-Nature shall be subject to the procedure set out in Article 11. For the purposes of this paragraph, the committee shall be that referred to in Article 20 of Directive 92/43/EEC. financial support An outline decision shall be adopted by the Commission and addressed to the Member States on the projects which have been accepted, and individual decisions shall be addressed to financial the beneficiaries laying down the amount of Article 4 LIFE-Environment 1. The specific objective of LIFE-Environment shall be to contribute to the development of innovative and integrated techniques and methods and to the further development of Community environment policy. The following projects and/or measures shall be eligible 2. for LIFE-Environment: (a) demonstration projects which further the objective set out in paragraph 1 and: - integrate considerations on the environment and on sustainable development in land-use development and planning, including in urban and coastal areas; or - minimise the environmental impacts of economic activities by means of a preventive approach; or - prevent, reuse, recover and recycle waste of all kinds and ensure the sound management of waste streams; or - reduce the environmental impact of products through an integrated approach to production, distribution, their consumption and handling at life-time, of including environmentally friendly products; the end of development the (b) projects which are preparatory to the development of new instruments, legislation and Community environmental and/or to the updating of environmental policies; actions and 2. 12. 1999 EN Official Journal of the European Communities C 346/5 (c) accompanying measures required to: (i) disseminate experience between projects; information for the exchange of (ii) the and promote evaluate, monitor, actions undertaken during this implementation phase of the LIFE instrument and during the first two phases, and information on the for experience gained and on the transfer of results obtained with such actions. dissemination of the Financial assistance shall be provided by co-financing of 3. projects. The rate of Community financial support shall be a maximum for projects of 30 % of generating the beneficiaries’ contribution to the financing shall be at least as much as the Community support. the eligible cost of substantial the project revenue. In this case, net rate of Community financial The to all other applicants shall be a maximum of 50 % of the eligible cost of the project. support rate of Community The the accompanying measures shall be a maximum of 100 % of their cost. financial support for as As far are 4. concerned, demonstration projects guidelines will be established by the Commission, after being subject to the procedure set out in Article 11, and published in the Official Journal of the European Communities. The guidelines shall promote synergy between demonstration actions and the guiding principles of Community environmental policy with a view to sustainable development. Proposals for projects to be financed pursuant 5. to paragraph 2(a) shall be forwarded to the Commission by the Member States. Where projects involve more than one Member State, proposals shall be forwarded by the Member State in which the project coordinating body is located. Proposals shall be forwarded to the Commission before 31 January of each year. The Commission shall decide on these proposals, in accordance with paragraph 10, before 31 July. the year 2000 shall be forwarded to the Proposals Commission before 31 March 2000. The Commission shall decide on these proposals in accordance with paragraph 10 before 31 October 2000. for 6. Proposals shall only be considered for financial support, in accordance with paragraph 10, where they comply with the requirements of Article 2 and paragraph (2)(a) of this Article and meet the following criteria: (a) providing solutions to a problem which arises very often in the Community or is of great concern to some Member States; (b) being innovative by virtue of the technology or the method applied; (c) setting an example and representing progress compared with the current situation; (d) being capable of promoting the dissemination and widest and/or possible products conducive to environmental protection; application of practices technologies (e) aiming at developing and transferring know-how which can be used in identical or similar situations; (f) promoting cooperation in the environmental field; (g) having a potential satisfactory cost-benefit ratio from an environmental point of view; (h) promoting integration of environmental considerations into activities whose main aims are economic and social. When these proposals are considered, implications appropriate. should also be their employment taken into account, where 7. The following costs shall be considered ineligible: (a) land purchase; (b) studies not specifically addressing the objective aimed at by the financed projects; (c) investments in major infrastructures or investments of a non-innovative activities already confirmed on an industrial scale; structural nature, including (d) research and technological development activities. 8. At the Commission’s initiative: to be financed pursuant (a) projects to be financed pursuant to paragraph 2(b) and to accompanying measures paragraph 2(c)(i) shall, after consultation of the committee mentioned in Article 11, be the subject of calls for submit expression of proposals on projects to paragraph 2(b) to the Commission; financed pursuant interest. Member States may to be C 346/6 EN Official Journal of the European Communities 2. 12. 1999 (b) accompanying measures paragraph 2(c)(ii) expression of interest. to be financed pursuant to calls subject the shall be to for the projects referred to in paragraph 2(a) and a maximum of 100 % of the cost of the accompanying measures referred to in paragraph 2(b). All calls for expression of interest shall be published in the Official Journal of the European Communities where the specific criteria to be met will be set out. 9. A summary of the main points and of the content of the proposals received under paragraphs 2(a) and (b) shall be sent it to the Member States by the Commission. Upon request, shall place the original documents at the Member States for consultation. the disposal of Projects considered for financial support shall be subject 10. to the procedure set out in Article 11. be An shall outline decision 11. the Commission and addressed to the Member States on the projects which have been accepted and individual decisions shall be addressed to the beneficiaries laying down the amount of financial assistance, the financial procedures and controls, and the specific technical conditions of the projects approved. adopted by Article 5 LIFE-Third Countries shall be Proposals for projects to be financed under paragraph 4. 2(a) submitted to the from third countries Commission by the relevant national authorities. Where projects involve more than one country, proposals shall be submitted by the country in which the project coordinating body is located or by the international organisation acting to protect the environment in the geographical area concerned. Proposals shall be submitted to the Commission before 31 January of each year. The Commission shall decide on these applications in accordance with paragraph 7 before 31 July. Proposals the year 2000 shall be submitted to the Commission before 31 March 2000. The Commission shall decide on these proposals in accordance with paragraph 7 before 31 October 2000. for 5. in Proposals shall be considered for financial support, accordance with paragraph 7, only where they comply with the requirements of Article 2 and paragraph (2)(a) of this Article and meet the following criteria: (a) be of interest to the Community, notably through their contribution to implementing regional and international guidelines and agreements; (b) contribute approach development at international, national or regional level; promoting sustainable an to 1. The specific objective of LIFE-Third Countries shall be to contribute to the establishment of capacities and administrative structures needed in the environmental sector and in the development of environmental policy and action programmes in third countries bordering on the Mediterranean and the Baltic Sea other than the countries of Central and Eastern Europe which have concluded association agreements with the European Community and are referred to in Article 6(1). 2. The following shall be eligible for LIFE-Third Countries: (a) technical assistance projects which further the objective set out in paragraph 1; (c) provide solutions to major environmental problems in the region and the relevant sector. Priority will be given to projects which will promote cooperation at trans-national or regional level. the trans-frontier, A summary of the main points and the content of the 6. proposals received from the third countries shall be sent to the Member States by the Commission. Upon request, disposal of the Member States for consultation. it shall place the original documents at the (b) accompanying measures for required evaluating, monitoring and promoting the actions undertaken during the LIFE instrument and this implementation phase of during the first two phases thereof, for the exchange of experience between projects and for the dissemination of information on the experience gained and on the results obtained with such actions. Projects considered for financial support shall be subject 7. to the procedure set out in Article 11. Without prejudice to this procedure, the committee set up pursuant to Article 21 of Directive 92/43/EEC shall be consulted before a decision is taken protection. The Commission shall adopt a decision concerning the list of projects selected. concerning projects nature on 3. Financial assistance shall be provided by co-financing of projects and accompanying measures. The rate of Community financial support shall be a maximum of 70 % of the cost of 8. The projects approved shall give rise to a contract between the Commission and the beneficiaries setting out the 2. 12. 1999 EN Official Journal of the European Communities C 346/7 amount of financial assistance, the financial procedures and controls, as well as all the specific technical conditions of the approved project. The list of proposals accepted shall be sent to the Member States. countries, accession candidate be open for participation by those countries in accordance with paragraphs 2 to 6. Countries participating under this Article may not participate under Article 5. LIFE will 9. At the Commission’s initiative, accompanying measures to be financed under paragraph 2(b) shall be the subject of calls for expression of interest published in the Official Journal of the European Communities and setting out the specific criteria to be met. 8. The annual breakdown of appropriations devoted to co-financing of the instrument by the countries referred to in paragraphs 1 and 7 is published in the general budget of the European Union, Section III, Part B, Annex IV. Article 6 Participation of accession candidate countries 1. LIFE shall be open to the accession candidate Central and Eastern European countries in accordance with the conditions referred to in the association agreements concluded with those countries and on the basis of provisions of the decision of the Association Council competent for each country concerned. 2. Proposals for projects to be financed under LIFE-Nature and LIFE-Environment shall be forwarded to the Commission by the national authorities of the countries concerned within the time limits indicated in Article 3(4) and Article 4(5) respectively. Where projects involve more than one country, proposals shall be forwarded by the country in which the project coordinating body is located. Proposals which meet 3. in Article 2 and the specific criteria set out in Article 3(5)(b) and Article 4(6) and (8) shall be taken into consideration for Community financial support. the general criteria set out A summary of the main points and of the content of the 4. proposals the received from the national authorities of countries concerned shall be sent to the Member States by the the original Commission. Upon request, documents for consultation. shall place the Member States it the disposal of at 5. Projects considered for LIFE financial support shall be subject either to the procedure set out in Article 3(7) or to that set out in Article 11 according to the type of project proposed. 6. The projects approved shall give rise to a contract or an agreement between the Commission and the beneficiaries setting out the amount of financial assistance, the financial procedures and controls, as well as all the specific technical the approved action. The list of proposals conditions of accepted shall be sent to the Member States. Article 7 Consistency between financial instruments accession to the 1. Without prejudice candidate countries set out in Article 6, projects receiving aid provided for under the Structural Funds or other Community budget instruments shall not be eligible for financial assistance under this Regulation. conditions for 2. The Commission shall ensure that actions undertaken in the framework of this Regulation are consistent with those undertaken under the Structural Funds, research, technological development other and Community financial instruments. demonstration programmes or Article 8 Duration of the third phase and budgetary resources 1. LIFE shall be implemented in phases. The third phase shall start on 1 January 2000 and shall end on 31 December 2004. The financial framework for the implementation of the third phase for the period 2000 to 2004 is hereby set at EUR 613 million. The budgetary resources allocated to the actions provided 2. for entered in the annual in this Regulation shall be appropriations of the general budget of the European Union. The available annual appropriations shall be authorised by the financial budgetary perspective. authority within the limits of the The amount of resources to be allocated to each of the 3. areas of activity shall be as follows: (a) 47 % for actions undertaken under Article 3; (b) 47 % for actions undertaken under Article 4; 7. Where conditions and provisions equivalent to those referred to in paragraph 1 have been established for the other (c) 6 % for actions undertaken under Article 5. C 346/8 EN Official Journal of the European Communities 2. 12. 1999 The accompanying measures shall be limited to 5 % of the available appropriations. Article 10 Article 9 Monitoring of projects 1. For any project financed by LIFE, the beneficiary shall send the Commission and, upon request, the Member State concerned technical and financial reports on the progress of work. Reports in summarised form. A final report shall also be sent to the Commission and the Member State concerned within three months of completion of the project. to Member States could be sent sent The Commission shall determine the form and content of the reports. The report shall be based on the physical and financial indicators set out in the Commission decision approving the projects or in the contract or agreement concluded with the beneficiaries. These indicators shall be such as to indicate the progress of the work and the objectives to be attained within a specified time limit. 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(c) of the Treaty, the Commission may carry out officials and other staff of on-the-spot checks, including sample checks, on projects financed under LIFE. Protection of Community financial interests 1. The Commission may 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 support in question, or if it transpires that, without Commission approval having being sought, the project has been subjected to a major change which conflicts with the nature or implementing conditions of the project. 2. If the time limits have not been observed or if only part of the allocated financial assistance is justified by the progress the Commission shall made with implementing a project, request its 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. the beneficiary to submit 3. Any undue payment shall be repaid to the Commission. Interest may be added to any sums not repaid in good time. the The Commission shall implementation of this paragraph. lay down detailed rules for Article 11 Committee The Commission shall be assisted by a regulatory 1. committee. Before carrying out an on-the-spot check, the Commission shall inform the beneficiary and its Member State unless there are good reasons to suspect fraud and/or improper use. 2. Where reference is made to this Article, the regulatory procedure set out in Article 5 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof. 3. For a period of five years following the last payment in respect of any action, the beneficiary of financial assistance shall keep available for the Commission all the supporting documents regarding expenditure on the action. The period laid down in Article 5(6) of Decision 3. 1999/468/EC shall be set at three months. On the basis of the results of the reports and sample 4. checks referred to in paragraphs 1 and 2, the Commission shall, the conditions of allocation of the financial assistance originally approved and also the timetable for payments. if necessary, adjust the scale or 5. The Commission shall take every other step necessary to verify that the projects financed are carried out properly and in compliance with the provisions of this Regulation. Article 12 Evaluation of the third phase and continuation of LIFE 1. Not later than 30 September 2003, the Commission shall submit a report to the European Parliament and the Council on the implementation of this Regulation, its contribution to the development of Community environmental policy and the use made of the appropriations, and shall, where appropriate, make proposals for any adjustments to be made with a view to continuing the action beyond the third phase. 2. 12. 1999 EN Official Journal of the European Communities C 346/9 2. The European Parliament and the Council, acting in accordance with the Treaty, shall decide no later than 1 July 2004 on the implementation of the fourth phase as from 1 January 2005. 2. References to the repealed Regulation shall be understood as referring to this Regulation and shall be read in accordance with the table of equivalence set out in the Annex to this Regulation. Article 13 Repeal of Council Regulation (EEC) No 1973/92 Article 14 Entry into force Council Regulation (EEC) No 1973/92 shall be repealed taken and contracts or financial 1. without prejudice to decisions agreements concluded concerning the granting of assistance pursuant to that Regulation. This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at For the European Parliament The President For the Council The President C 346/10 EN Official Journal of the European Communities 2. 12. 1999 ANNEX TABLE OF EQUIVALENCE Regulation (EEC) No 1973/92 This Regulation Article 1 Article 2(1)(a) Article 1 Article 3(1) and (2)(a) Article 2(1)(b)(i) and (ii) Article 4(1) and (2)(a) Article 2(1)(b)(iii), first subparagraph Article 4(1) and (2)(b) Article 2(1)(b)(iii), first, second, third and fourth indents - Article 2(2)(a) Article 5(1) and (2)(a) Article 2(2)(b) and (c) - Article 2(3) Article 4(a) Article 4(b) Article 5 Article 6 Article 3(2)(b), Article 4(2)(c), Article 5(2)(b) Article first subparagraph, Article 5(3), first sentence sentence, Article 3(3), 4(3), first - Article 7(1) Article 7(2) Article 7(1), first subparagraph Article 8(1), first and second sentences Article 7(1), second subparagraph Article 8(1), third sentence Article 7(1), third subparagraph Article 8(2) second sentence Article 7(2) Article 7(3) Article 8(1) Article 8(2) Article 8(3) - - Article 8(3) Article 3(3)(a), first part, and (b) and Article 4(3), second and third subparagraphs Article 3(3)(a), subparagraph and Article 5(3), second sentence part, Article 4(3), second fourth 2. 12. 1999 EN Official Journal of the European Communities C 346/11 Regulation (EEC) No 1973/92 This Regulation Article 9(1) Article 9(2) Article 9(3) Article 9(4) Article 3(4) and (8)(a) and Article 4(5) and (8)(a) Article 5(4) - Article 3(6), Article 4(9), and Article 5(6) Article 9(5), first subparagraph Article 3(7), first subparagraph, and (8)(a), first sentence, Article 4(8)(a) and (10) and Article 5(7) Article 9(5), second subparagraph, first indent Article 3(7), second subparagraph, and Article 4(11) Article 9(5), second subparagraph, second indent Article 5(8) Article 9(6) Article 9a(1)(a) Article 9a(1)(b)(i) Article 3(7), second subparagraph, Article 4(11) and Article 5(8) Article 2 Article 3(5)(a) Article 9a(1)(b)(ii) and (iii) Article 4(6) Article 9a(1)(b)(iv) - Article 9a(1)(c), first, second, third and fourth indents Article 5(5) Article 9a(1)(c), fifth and sixth indents Article 2, second subparagraph, (b) and (c) Article 9a(2) Article 9b - Article 4(7)(b),(c) and (d) Article 10(1), first indent Article 9(5) Article 10(1), second and third indents - Article 10(2) Article 10(3) Article 9(2) Article 9(3) C 346/12 EN Official Journal of the European Communities 2. 12. 1999 Regulation (EEC) No 1973/92 This Regulation Article 11(1) Article 11(2) Article 11(3) Article 12(1) Article 12(2) Article 12(3) Article 12(4) Article 13 Article 13a Article 14 Article 15 Article 16 Article 17 Article 10(1) Article 10(2) Article 10(3) - Article 9(1) Article 9(4) - Article 11 Article 6 Article 12 - - Article 14 2. 12. 1999 EN Official Journal of the European Communities C 346/13 STATEMENT OF THE COUNCIL’S REASONS I. INTRODUCTION 1. On 10 December 1998 the Commission submitted a proposal for a Regulation (1) based on Article 130s(1) (new Article 175(1)) of the EC Treaty, recasting Council Regulation (EC) No 1404/96 amending Regulation (EEC) No 1973/92 establishing a financial instrument for the environment (LIFE). 2. The European Parliament delivered its opinion (2) at first reading on 14 April 1999. Following that opinion, the Commission forwarded an amended proposal on 16 June 1999 (3). The Economic and Social Committee delivered its opinion (4) on 26 May 1999. The Committee of the Regions delivered its opinion on 16 September 1999 (5). 3. On 22 October 1999 the Council unanimously adopted its common position. II. OBJECTIVE 4. The proposal for a Regulation still focuses on demonstration projects and aims, in the light of experience gained during the first two phases of LIFE, to improve on LIFE II in particular in respect of: - the instrument’s contribution to the implementation and development of environmental legislation; - clarifying the fields of action eligible for funding by drawing a distinction between three components, namely LIFE-Nature, LIFE-Environment and LIFE-Third Countries; - defining the projects involving third countries; - the dissemination and utilisation of the project results. III. ANALYSIS OF THE COMMON POSITION 5. General remarks In the light of the objective set out above, the Council has endeavoured to draw up an instrument which is flexible and efficient enough to make optimum use of the resources available, channeling them into projects which contribute effectively to the implementation of Community policy and legislation on the environment and to sustainable development. Guided by these considerations, the Council was able to incorporate in its common position either verbatim, in substance or in part most of the European Parliament amendments which the Commission included in its amended proposal, as well as amendments 45 and 46. (1) OJ C 15, 20. 1. 1999, p. 4. (2) OJ C 219, 30. 7. 1999, p. 265. (3) OJ C (4) OJ C 209, 22. 7. 1999, p. 14. (5) OJ C C 346/14 EN Official Journal of the European Communities 2. 12. 1999 6. Specific remarks (Unless otherwise indicated, the references below are to the text of the common position. A consistent effort has been made to match the wording of the recitals with that of the Articles while avoiding duplications, in particular between recitals. ) The main amendments made by the Council to the Commission’s amended proposal are as follows: Article 1 The wording has been slightly amended to make it apparent that áimplementation, updating and developmentí applies to environment policy and environmental legislation alike. Article 2 The Council considered it judicious to specify when priority may be given to projects based on a multinational approach in order to prevent that priority prevailing over the other, specific priorities, and consequently adopted a criterion of feasibility and costs. The Council did not think it appropriate in this Article, which defines general criteria, to itemise the various levels of cooperation (amendments 17 and 28), given that the ácooperationí dimension was already set out in several provisions. Article 3 - p a r a g r a p h 3(b): the bird species covered by projects eligible for 75 % financial support have been specified (those considered a priority by the committee set up under the Wild Birds Directive) - p a r a g r a p h 4: a transitional provision has been introduced for the submission and selection of projects for the year 2000. The same applies to A r t i c l e s 4 ( 5 ) a n d 5 ( 4 ) - p a r a g r a p h 5(a): the tenth recital draws attention to migration routes and buffer zones for projects contributing to the implementation of Natura 2000, in accordance with one of the provisions of Decision No 2179/98/EC of the European Parliament and of the Council on the review of the Vth action programme Towards Sustainabilityí - p a r a g r a p h 5(b): references to the Annexes to the Wild Birds Directive and to the Berne Convention resolutions have been clarified - p a r a g r a p h 8: the wording has been modified to make it clear that the accompanying measures relating to cooperation or the exchange of experience are subject to consultation of the relevant committee and that the Member States may submit proposals for such measures. Article 4 - p a r a g r a p h 1: has been rewritten to clearly state the specific objective of LIFE-Environment and to distinguish it from the categories of project set out in p a r a g r a p h 2 2. 12. 1999 EN Official Journal of the European Communities C 346/15 - p a r a g r a p h 2 ( a ) , f i r s t i n d e n t : given the current situation with regard to environmental problems related to land-use planning, the Council preferred not to give priority to urban areas but, at most, to put them on an equal footing with coastal areas (á including in urban and coastal areasí) - p a r a g r a p h 2 (b): these projects should also target Community legislation - p a r a g r a p h 4: as the guidelines are so important for preparing and selecting projects, an opinion of the committee provided for in Article 11 does not suffice and implementation of the full committee procedure is desirable - p a r a g r a p h 6 (g): since the resources available for LIFE are necessarily limited, it seems wise to retain an environmental cost-benefit criterion as applied in LIFE II - p a r a g r a p h 6 (h): the wording proposed by the Commission in paragraph 6(g) of its amended proposal tends to mix sustainability and job creation and to make job creation one of the project selection criteria, although LIFE is supposed to serve environmental purposes and instruments specifically concerning employment already exist elsewhere. The Council therefore prefers wording closer to that proposed by the Parliament in its Amendment 45, drawing attention to the employment implications of the project proposals without making them into a selection criterion (see also r e c i t a l 13) - r e c i t a l 12: in keeping with several provisions in Decision No 2179/98/EC of the European Parliament and of the Council, this recital draws attention to the priority to be given to small and medium-sized enterprises - p a r a g r a p h 8: the wording has been changed to bring out the fact that the preparatory projects and the accompanying measures concerning the exchange of experience are subject to consultation of the relevant committee and that Member States may submit proposals for such preparatory projects. Article 5 - p a r a g r a p h 1: the wording has been amended to ensure that Cyprus is unequivocally covered and that Article 6 is not duplicated (see also the second sentence of A r t i c l e 6 (7)); - p a r a g r a p h 7: as special powers are necessary to assess projects concerning nature the committee set up under the Habitats Directive has been protection, consultation of provided for. Article 8 - p a r a g r a p h 1: the Council, like the Parliament (Amendment 46), has mentioned a financial reference amount, as was the case for LIFE II, the Interinstitutional Agreement of 6 May 1999 (see also r e c i t a l 21). The Council nevertheless thought that it was not possible to exceed the amount of EUR 613 million proposed by the Commission given the limits of the financial perspective; in accordance with the terms of - p a r a g r a p h 2: the Council has not taken up Amendment 34 concerning the funding of since the second subparagraph of accompanying measures, which seems paragraph 3 already includes them in the overall available appropriations. superfluous C 346/16 EN Official Journal of the European Communities 2. 12. 1999 Article 9 Reporting obligations, in particular vis-à-vis the Member State of the beneficiary, have been clarified. The Council has not adopted the second part of Amendment 35 concerning indicators for ápossible problemsí as it was not clear what form such indicators could take in practice and since the Commission has complete freedom to include any relevant indicators in the decision approving the project or in the contract or agreement concluded with the beneficiary. Article 11 The Council has retained the regulatory committee, already in place under LIFE II, proposed by the Commission; its procedure has been brought into line with Article 5 of the Council Decision of June 1999 on committee procedure, and the period allowed for the Council to act has been extended to three months. Article 12 Without affecting the possible launch of the fourth phase of LIFE, the deadline for submitting the the Commission report Parliament and of the Council have been brought forward so as to facilitate the preparation and selection of projects during the transitional year between the third and fourth phases. to the Parliament and to the Council and that for the decision of