EU COMMUNITARIAN ENVIROMENTAL POLICY FEATURES

Ludmila Vergun PhD, Associate Professor the Department of Theoretical and Applied Economics, Department of Economics Faculty, Kyiv National Taras Shevchenko University (Ukraine)

The issues of environmental protection, rational nature usage and conduction of communitarian policy in the ecological field are among the most substantial elements of the expanded European Union activity.

Since the 1970s EU member counties have conducted purposeful and coordinated activity on environmental protection, have formed an appropriate regulatory framework, institutional structures, principles and tools of common environmental policy to ensure sustainable development. Currently this policy embraces industrial, competitive, agricultural, regional, scientific and technological aspects of the integrated association common policy. Further dynamic economic development of the European Union countries, strengthening of their international competitive positions are considered by the EU political leadership, business community and scientists from the perspective of sustainable development concept implementation, gradual abandonment of resource-consuming model and transition to resource-saving innovative model. The need for such approach has been caused by a number of challenges and threats generated by globalization processes, scientific and technological revolution, as well as by the crisis of traditional basics of the reproductive process. “The term ” sustainable development ” itself, according to the International UN Commission on Environment and Development, could mean the development that meets present needs, but does not compromise the ability of future generations to meet their needs”1.
Communitarian (common) environmental policy is one of the efficient instruments of concepts of sustainable development effective implementation in the European Union. Since the early 20th century, the environmental issues have been gradually included into the economic strategies of European firms and companies, together they have become an integral part of sustainable development and the common European Union policy. OECD countries adopted the Declaration of ecologically sustainable development in 2009, aimed at achieving economic growth on the principles of environmental and social stability2. In the same year the European Union revised the European Strategy for Sustainable Development (as a part of communitarian environmental policy) that had been valid since 20013 and adopted the pan-European Plan for rebuilding the economy, which provides for a set of measures to prevent climate change, improve energy efficiency, introduce environmentally friendly technologies, support environmentally friendly products and phase-out of nuclear energy usage. The first EU member states to adopt a formal decision on the moratorium on the use of nuclear reactors and their gradual decommissioning were Germany (nuclear power plants provide 23% of the energy needs of the country) and France (80%)4. One of the EU communitarian environmental policy features is its “horizontal” nature since it, unlike other branch or sector policies, is related to almost all areas of activity.
The adoption of the 1986 Single European Act was the first time when the EU not only got authority in the field of environmental protection, but also formed the common and branch principles of its environmental activities in general. The Single European Act of 1986 clearly defines the principles, development and implementation of EU policies in the environmental field, while the Maastricht Treaty of 1991 formulates the goals of sustainable community development and the Amsterdam Treaty of 1999 reinforced the existing institutional framework with the provisions that “the high level of protection and improvement of the environment” should be considered after implementing measures concerning the common market and monetary union, and “requirements for environmental protection should be integrated into the definition and implementation of the Community policies and activities, particularly in the areas pertaining to sustainable development “5.
The concept of sustainable development and basic principles of the EU environmental protection were embodied by the six Community Environmental Action Programs, which were adopted between the 1970s and 2002 and foresaw the development of a wide range of tools, such as regulatory and financial, as well as horizontal measures and mechanisms for financial support6.
The Programs in question determine the communitarian principles of the EU environmental policy as well as environmental issues, approaches and tools to address them. Established by the Programs so-called “horizontal approach” to environmental issues contributed to the formation and development of the “integration principle”, which involves the implementation of the environmental problems in all areas of economic activity of the European Union and replacement of the team approach with the joint responsibility.
The Integration principle of the common EU policy on environmental protection has found its further development in the Sixth Community Action Program for 2001-2010, entitled “Environment 2010: Our Future, Our Choice”, where the main purpose, timing and priorities were defined, along with the means of achieving the goals of environmental protection by EU member countries. Unlike the regulatory approach, this program offered a new strategic approach which creates a number of tools and measures that may affect decision-makers, such as entrepreneurs, consumers, politicians and citizens. The program focuses on such priority areas as improving the process of legislation implementation, integration of environmental issues into other areas of activity, close cooperation with the market, environmental planning and decision management.
Moreover, the program identified four priority areas for action which include climate changes, biological diversity, environment and health, as well as natural resources and waste management.
In addition to the EU environmental programs, some specific environmental programs and projects are financed within the framework of joint scientific-technical, technological and innovation policy, strategic objective of which is creation of the European research and information space, promotion of innovative activities, structural reform of economy, and environmental protection on the principles of sustainable development. This policy is implemented within the so-called Framework Programs in the research and technological fields. At this moment the Seventh Framework Program for Research and Technological Development (2007-2013) is the key component of the Lisbon strategy. It is divided into four areas, according to the declared common goals and objectives of the European Union, aimed to achieve leadership in the key areas of economy, science and technology of environmental protection and rational nature resources usage. The budget of the program amounts to 50 billion euros, yet this amount is insufficient and therefore the EU has identified the increase of both public and private investments into research and development to 3% of GDP [10]7 as the key objective.
By The Seventh Framework Program of Scientific and Technological Measures for 2007-2013, the EU provided 10 billion euros for the development of environmentally friendly technologies. In accordance with the European Competitiveness and Innovation Program, 433 million euros shall be invested into environmental innovations8. Along with the tools of common environmental policy existing in EU countries, new ones are being introduced, particularly including quotas and special tariffs for energy sources restoration in the form of so-called “safety valve” which limits the payments of companies for each ton of carbon dioxide waste with a certain amount. The model of environmentally oriented development of the EU economy at the state level is supposed to undertake a number of fiscal reforms and elimination of environmentally hazardous subsidies, dissemination of environmental state procurement practices, removal of environmental goods and services trade barriers, assistance in implementation of environmental initiatives by corporations. Such initiatives are manifested in the increase of investments into clean technologies and alternative energy. European TNC’s of chemical, oil and automotive industries become powerful private investors into research and development of ecology saving origin. Thus, only one division of the British Petroleum Alternative Energy company invested $ 8 billion into the development of solar, wind and hydro power, which amounts to 5% of all the company’s investments9.
Environmental challenges and threats, judging by world and European practice, become a powerful incentive for technological innovations and development of European environmental business, result in increased promotional value of leading companies, which ultimately may lead to the next “green” revolution.
Along with the integration principle, subsidiarity, shared responsibility and prevention or “polluter pays” rule are the principles of EU communitarian environmental policy.
The term “polluter pays” first appeared in the Program of Action on Environment (1973-1976), indicating that funds needed for preventive measures and restoration of the environment must be provided by those who pollute the environment. This principle was used in all the following programs and has been identified as a tool for harmonization of the single market. It was introduced in legislation in the 1970s, and later integrated into Maastricht and Lisbon agreements. The principle in question confirms that member states may without imposing severe restrictions on imports guarantee such business entities certain compensations financed in accordance with the “polluter pays” principle. Subject to this principle, the costs of measures needed to keep the environment in good condition in a particular area conducted by certain business entities, shall not exceed the expenditures of pollution by such companies.
The principle of shared responsibility means that all interested parties should bear joint responsibility in the process of achieving the EU objectives set forth in the relevant directives. It is reflected in the Directive on Packaging and Waste, which mentions that all the business entities must feel the spirit of the “polluter pays” principle in order to achieve the purposes of this Directive. As for harmonization measures, the implementation of communitarian policy of the Community in the environmental field demands certain economic and fiscal measures. The “polluter pays” principle in the environmental protection can be realized by imposing taxes and fees, and thus encourage consumers and manufacturers to operate without damaging the environment. Framework Directive on waste also directly refers to the “polluter pays” principle, as this principle implies that the expenses of waste management must be the borne by the subjects that possess those wastes.
Effective common EU policy on environmental issues means preventing pollution rather than struggle with the consequences, means not only risk evaluation in order to avoid danger, but also development of measures based on information known at the moment.
From the very beginning (first appeared in the Single European Act) the precautionary principle has played an important role in the development of a common Community environmental policy.
The purpose of this principle is to reach the objectives set by this policy, namely “safe and rational use of natural resources”. Sector Framework Directive (concerning water, waste, air) contain illustrative examples of this principle, however, it can best be illustrated by the example of procedures for evaluating the environmental impact.
The effectiveness of the joint EU environmental policy largely depends on amounts and sources of funding and their regulatory support from the legislative institutions. In this context, the Lisbon Treaty considerably increases the powers of the European Parliament, which can adopt binding decisions in areas such as the EU budget, agricultural, environmental, transport policy and structural funds, while the environmental policy is funded through the structural funds in the proportion of 50% by the Cohesion Fund and 12-15% by the European Regional Development Fund.
An important element of the integrated joint EU environmental policy is the system of carbon emissions trade. The offer for sale of quotas almost ten times exceeds the demand in today’s global market. Among the EU Member States 200 million tons belong to Poland, 100 million tons to the Czech Republic and 50 million tons to Hungary. As for Ukraine, after signing the Kyoto Protocol our state became one of the biggest sellers of this article. According to current estimates from 1 January 2008 to 31 December 2012 Ukraine will have 1.5 billion tons of CO2, which can be sold, depending on prices, for $ 1.5 to 10 billion. The National Environmental Investment Agency and the Japanese new «HEDO» technology state company signed an agreement in April 2009 in accordance with which Japan purchased quotas for 30 million tons of carbon dioxide emission10. Today Ukraine emits only 45% of the 1990 level of greenhouse gases and has surplus quota. However, these quotas appeared not due to the energy efficiency of the economy, but due to manufacture reduction that followed the collapse of the USSR. Thus Ukraine is one of most energy efficient countries, which potentially could provide up to 14% of its energy needs through restorable sources, but the figure is only at 1%11.
Founded on the priority of European integration course of Ukraine, the need to establish innovative economic model based on the sustainable development, incorporation and use of common principles and tools of environmental policy of the EU countries is an objective precondition for its accession to the European socio-economic, technological, innovational and socio-political institutions.

Referencies:

1. Common European Economic Space: settlement of megaregional contradictions. Monograph./ Ed. DG Lukyanenko, V. Chuzhikov. K. 2007, p. 52.
2. C/MIN (2009) 5/ADD1/ FINAL/ Organisation for Economic Cooperation and Development. 30 Sep. 2009/
3. A Sustainble Europe for a Better World-A European Strategy for Sustainble Development, 2001.
4. B. Thumler. Perspektiven de Energiewende. – “Die politische Meinung”, Nr. 499, Juni, 2011, s. 15-16.
5. European Union: Consolidated Treaties – AK, Port-Royal, 1999, p. 206.
6. The programs covered seven areas and objectives: climate change, oxidation and air quality, urbanization, environment, coastal zones, waste management, water management, nature protection and biological diversity (OJL 242, 10.09.2002).
7. O. Shnyrkov, A. Kapustin. Development of national innovation policies of EU member states at the beginning of the XXI century./ / Actual problems of international relations. Vol. 84 Part II, Kyiv, 2009 p. 216-223.
O. Shnyrkov. The European Union in the global innovation space. K., STPC “Kyiv University”, 2008 p.132
8. The Environmental Industries Commission “Reforming the Budget? Changing Europe”, November, 2008
9. State of the World 2008: Innovations for a Sustainable Economy. Worldwatch Institute, 2008, p. 16.
10. Kyoto point of increase. “Dzerkalo tizhnya”,4.04.2009, p. 12.
11. V. Voitenko. Environmental crisis and bioethics. “Dzerkalo tizhnya”,4.06.2011, p. 12.