Union environmental and climate policy and legislation have delivered substantial improvements to the state of the environment. However, major environmental and climate challenges remain which, if left unaddressed, will have significant consequences for the Union.
(2)
Tackling those environmental and climate challenges should, due to their scale and complexity, be funded primarily through the Union's major funding programmes. In its Communication of 29 June 2011 entitled 'A Budget for Europe 2020', recognising the climate change challenge, the Commission stated that it intends to increase the climate-related proportion of the Union budget to at least 20 % with contributions from different policies. This Regulation should contribute to the achievement of that goal.
(3)
Those Union funding programmes cannot address all specific needs relating to the environment and climate action. For the environment and for climate action, specific approaches are required to deal with uneven integration of their objectives into Member States' practices, uneven and inadequate implementation of the legislation in the Member States, and insufficient dissemination of information about, and promotion of, policy goals. It is appropriate to provide a follow-up to the programme established by Regulation (EC) No 614/2007 of the European Parliament and of the Council (4) and adopt a new regulation. Therefore, this Regulation should establish a dedicated funding Programme for the Environment and Climate Action (the 'LIFE Programme'). In order for Union funding to achieve substantial impact, close synergies and complementarity should be developed between the LIFE Programme and other Union funding programmes.
(4)
Environmental assets are unevenly distributed across the Union, but their benefits concern, and are felt by, the Union as a whole. The Union's obligation to preserve those assets calls for the consistent application of the principles of solidarity and responsibility sharing, which require that some Union environmental and climate problems be better addressed at regional or local level. Since 1992, LIFE programmes have played an essential role for better solidarity and responsibility sharing in preserving the common good of the Union's environment and climate. The LIFE Programme should continue playing that role.
(5)
Given its characteristics and size, the LIFE Programme cannot solve all environmental and climate problems. Rather, its objective should be to act as a catalyst for changes in policy development and implementation by providing and disseminating solutions and best practices to achieve environmental and climate goals, and by promoting innovative environmental and climate change technologies. In that endeavour, the LIFE Programme should support the implementation of the General Union Environment Action Programme to 2020 'Living well, within the limits of our planet' as established by Decision of the European Parliament and of the Council (5) ("7th Environment Action Programme").
(6)
This Regulation lays down a financial envelope of EUR 3 456,655 million in current prices, which amounts to 0,318 % of the total amount of commitment appropriations referred to in Council Regulation (EU, Euratom) No 1311/2013 (6), for the entire duration of the LIFE Programme which is to constitute the prime reference amount, within the meaning of Point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, cooperation in budgetary matters and on sound financial management (7), for the European Parliament and the Council during the annual budgetary procedure.
(7)
In line with the conclusions of the Luxembourg European Council of December 1997 and of the Thessaloniki European Council of June 2003, candidate countries and the Western Balkan countries involved in the Stabilisation and Association Process, as well as countries to which the European Neighbourhood Policy applies, should be eligible to participate in Union programmes, in accordance with the conditions laid down in the relevant bilateral or multilateral agreements concluded with those countries.
(8)
Pursuant to Council Decision 2001/822/EC (8) (the Overseas Association Decision), individuals from an overseas country or territory (OCT) and, where applicable, the relevant public and/or private bodies and institutions in an OCT are eligible to participate in Union programmes, subject to the rules and objectives of the programme in question, as well as to the arrangements applicable to the Member State to which the OCT is linked.
(9)
For environmental and climate action-related investments within the Union to be effective, some activities need to be implemented outside its borders. Those investments may not always be financed under the Union's external action financial instruments. Interventions in countries not directly participating in the LIFE Programme, and participation of legal persons based in those countries in activities financed under the LIFE Programme should exceptionally be possible, provided specific conditions set out in this Regulation are met.
(10)
This Regulation should also provide a framework for cooperation with and for providing support to relevant international organisations with a view to responding to environmental and climate policy needs that do not fall within the scope of external action financial instruments, such as certain studies.
(11)
Environmental and climate requirements should be integrated into the Union's policies and activities. The LIFE Programme should therefore be complementary to other Union funding programmes, including the European Regional Development Fund (9), the European Social Fund (10), the Cohesion Fund (11), the European Agriculture Guarantee Fund (12), the European Agricultural Fund for Rural Development (13), the European Maritime and Fisheries Fund, and Horizon 2020 - The Framework Programme for Research and Innovation (14) ("Horizon 2020").
The Commission and Member States should ensure such complementarity at all levels. At Union level, complementarity should be ensured by establishing structured cooperation between the LIFE Programme and the shared-management Union funding programmes in the Common Strategic Framework, established by Regulation of the European Parliament and of the Council (EU) No 1303/2013 (15) ("Common Provisions Regulation"), in particular in order to promote funding of activities that complement integrated projects or support the use of solutions, methods and approaches developed under the LIFE Programme. The LIFE Programme should also encourage the uptake of the results of environmental and climate-related research and innovation of Horizon 2020. Within this context it should offer co-financing opportunities for projects with clear environmental and climate benefits in order to ensure synergies between the LIFE Programme and Horizon 2020. Coordination is required to prevent double funding. The Commission should take steps to prevent overlap and additional administrative burden on project beneficiaries arising from reporting obligations from different financial instruments. To ensure clarity and the practical feasibility of integrated projects under the LIFE Programme, potential arrangements for cooperation should be laid down at an early stage. Member States should envisage referring to such arrangements in their Partnership Agreements to ensure that advantages of integrated projects can be taken into account during the drawing-up of operational or rural development programmes.
(12)
Halting and reversing the loss of biodiversity and improving resource efficiency, together with addressing environment and health-related concerns, remain key challenges for the Union. These challenges require increased efforts at Union level to provide solutions and best practices that help to achieve the targets of the Commission Communication of 3 March 2010 entitled 'Europe 2020: a strategy for smart, sustainable and inclusive growth' (the 'Europe 2020 Strategy'). In addition, improved governance, in particular through awareness raising and stakeholder involvement, is essential to deliver environmental objectives. Therefore the sub-programme for Environment should have three priority areas for action: Environment and Resource Efficiency, Nature and Biodiversity, and Environmental Governance and Information. It should be possible for projects financed by the LIFE Programme to contribute to the achievement of the specific objectives of more than one of those priority areas and to involve the participation of more than one Member State.
(13)
The Commission Communication of 20 September 2011 entitled 'Roadmap to a Resource Efficient Europe' proposed the milestones and actions that are needed to put the Union on a path to resource-efficient and sustainable growth. Therefore, the priority area Environment and Resource Efficiency should support the effective implementation of Union environmental policy by the public and private sectors, in particular in the environmental sectors covered by the Roadmap to a Resource Efficient Europe, by facilitating the development and sharing of new solutions and best practices. In this context the Commission should ensure consistency and avoid overlap with Horizon 2020.
(14)
The Commission Communication of 3 May 2011 entitled 'Our life insurance, our natural capital: an EU biodiversity strategy to 2020' (the 'Union Biodiversity Strategy to 2020') has set targets to halt and reverse biodiversity loss. Those targets include, inter alia, the full implementation of Council Directive 92/43/EEC (16) and Directive 2009/147/EC of the European Parliament and of the Council (17), as well as maintaining and restoring ecosystems and their services. The LIFE Programme should contribute to achieving those targets. Therefore, the priority area Nature and Biodiversity should focus on the implementation and management of the Natura 2000 network set up under Directive 92/43/EEC, in particular in relation to the prioritised action framework prepared on the basis of Article 8 of that Directive, on the development and dissemination of best practices in relation to biodiversity and Directives 92/43/EEC and 2009/147/EC, as well as on the wider biodiversity challenges identified by the Union Biodiversity Strategy to 2020.
(15)
The contribution of the LIFE Programme to the annual funding needs of the Natura 2000 network should be seen in the context of secured biodiversity expenses from other Union funds. Particular importance should be given to integrated projects under the LIFE Programme as a coordinated funding mechanism for the Natura 2000 network, given their potential to leverage funds and to increase the absorption capacity for nature and biodiversity spending within other Union funds.
(16)
Forests play a significant role for environment and climate as regards, for instance, biodiversity, water, soil, and climate change mitigation and adaptation. Forests and soils help to regulate the climate by taking up carbon dioxide (CO2) from the atmosphere and storing immense amounts of carbon. To optimise that role, the provision of relevant, compatible data and information is necessary. This Regulation should therefore also represent a framework for supporting synergies between environmental and climate actions associated with forests and soils, including their monitoring. Other areas for increased synergies are water scarcity and droughts, as well as management of flood risks.
(17)
With a view to optimising the use of LIFE Programme resources, synergies between actions under the sub-programme for Environment, in particular to protect biodiversity, and climate change mitigation and adaptation measures under the sub-programme for Climate Action should be fostered.
(18)
The Commission Communication of 15 December 2011 entitled 'A Roadmap for moving to a competitive low carbon economy in 2050' (the 'Roadmap 2050') acknowledged that testing new approaches to climate change mitigation would remain essential for moving to a low-carbon economy. Adaptation to climate change, as a cross-cutting Union priority, also needs to be ensured. Moreover, governance promotion and awareness raising is essential to deliver constructive results and to ensure stakeholder involvement. Therefore, the sub-programme for Climate Action should support efforts contributing to three priority areas: Climate Change Mitigation, Climate Change Adaptation and Climate Governance and Information. It should be possible for projects financed by the LIFE Programme to contribute to the achievement of the specific objectives of more than one of those priority areas and to involve the participation of more than one Member State.
(19)
The priority area Climate Change Mitigation should contribute to the development and implementation of Union climate-related policy and legislation, in particular with regard to greenhouse gas monitoring and reporting, policies related to land use, land-use change and forestry, conservation of natural carbon sinks, the emissions trading system, Member States' effort to reduce greenhouse gas emissions, carbon capture and storage, renewable energy, energy efficiency, transport and fuels, ozone layer protection and fluorinated gases. The construction of carbon capture and storage infrastructure is considered beyond the scope of the LIFE Programme and is therefore not to be supported.
(20)
The first consequences of climate change can already be seen in Europe and worldwide, such as extreme weather conditions leading to floods and droughts, and rising temperatures and sea levels. The priority area Climate Change Adaptation should therefore help populations, economic sectors and regions to adapt to such impacts through specific adaptation measures and strategies, in order to ensure a more resilient Union. Actions in this field should be complementary to actions eligible for funding under the civil protection financial instrument as established by Decision No 1313/2013/EU of the European Parliament and of the Council (18). The construction of large infrastructure is considered beyond the scope of the LIFE Programme and is therefore not to be supported.
(21)
Full implementation of environmental and climate policy and legislation is inextricably linked to achieving better governance, improving stakeholder involvement and disseminating information. Therefore, the priority areas Governance and Information should in both sub-programmes support the development of cooperation platforms and the sharing of best practices for more effective compliance and enforcement, including training programmes for judges and public prosecutors, and should generate support from the public and stakeholders for the Union's policy-making efforts in the areas of environment and climate. In particular, they should support improvements in the dissemination of knowledge base and best practices in the implementation of Union legislation, in awareness raising, and in public participation, access to information and access to justice on environmental matters.
(22)
In the framework of this Regulation, support should be provided in accordance with Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (19). Projects financed under the LIFE Programme should meet eligibility and award criteria to secure the best possible use of Union funds and to ensure Union added value. When evaluating Union added value, the Commission should pay particular attention, as applicable to the priority areas, to the potential of projects to be replicated and transferred, the sustainability of their results and the contribution to achieving the general and specific objectives of the priority areas as well as to the thematic priorities implemented through the project topics. Projects with cross-sectoral impacts should be encouraged. The Commission should also promote and encourage the use of green public procurement, in particular when implementing projects.
(23)
In order to maintain a level playing field for all undertakings active in the internal market and to avoid undue distortions of competition, funding provided under the LIFE Programme should address market failures, where appropriate. Moreover, in cases where funding constitutes state aid within the meaning of Article 107(1) of the Treaty on the Functioning of the European Union (TFEU), it should be designed in a way consistent with state aid rules so as to prevent market distortions, such as crowding-out of private funding, creating ineffective market structures or preserving inefficient companies, and may not be put into effect until it is approved by the Commission in accordance with Article 108(3) TFEU, unless it complies with a regulation adopted pursuant to Council Regulation (EC) No 994/98 (20).
(24)
In order to improve the implementation of environmental and climate policy and enhance the integration of environmental and climate objectives in other policies, the LIFE Programme should promote projects that support integrated approaches to the implementation of environmental and climate legislation and policy. Such integrated projects should serve as concrete tools for enhancing the integration of environment and climate objectives into other Union policies and into overall Union expenditure in line with the Europe 2020 strategy. They should provide examples of good practice for efficient and well-coordinated implementation of Union environmental and climate policy in Member States and regions. For the sub-programme for Environment, integrated projects should focus primarily on the implementation of the Union Biodiversity Strategy to 2020, with particular regard to the effective management and consolidation of the Natura 2000 network set up by Directive 92/43/EEC through the implementation of prioritised action frameworks prepared on the basis of Article 8 of that Directive, of Directive 2000/60/EC of the European Parliament and of the Council (21), and of waste and air legislation.
(25)
Integrated projects, while focusing on the themes identified, should be multi-purpose delivery mechanisms (e.g. aiming at environmental benefits and capacity-building) that make it possible to achieve results in other policy areas, in particular the marine environment in accordance with the objectives of Directive 2008/56/EC of the European Parliament and of the Council (22). Integrated projects could also be envisaged in other environmental areas. For the sub-programme for Climate Action, those projects should in particular concern climate change mitigation and adaptation strategies and action plans.
(26)
Integrated projects should support only a series of specific activities and measures, while other activities that complement those included in the project should be funded from other Union funding programmes, as well as from national, regional and private sector funds. Funding through the LIFE Programme should exploit synergies and ensure consistency between different Union funding sources by providing a strategic environmental and climate focus while ensuring that procedures are simplified.
(27)
Integrated projects, having a strong focus on implementation of Union environmental and climate legislation and policy through integrated approaches, require action in all parts of the Union and in all sectors targeted in this Regulation. This calls for the introduction of a distributional element in the selection process to facilitate geographical balance, and for Member States to endeavour, if necessary supported by a LIFE technical assistance project, to prepare and propose at least one integrated project during the LIFE programming period.
(28)
Given the novelty of the integrated project approach, stakeholders should be supported, when needed, by technical assistance. A two-stage application procedure should alleviate the application phase. In the first stage, a financial plan should indicate which other Union, national or private funding sources are to be mobilised and to what extent. Only in the second stage should letters of intent from at least one other funding source be required so as to ensure that the requirement of mobilisation of an additional funding source is fulfilled. The extent to which other Union funds are mobilised should be taken into account during the award phase.
(29)
The success of integrated projects is dependent on close cooperation between national, regional and local authorities and the non-state actors concerned by the LIFE Programme's objectives. The principles of transparency and disclosure of decisions concerning the development, implementation, assessment and monitoring of projects should therefore be applied.
(30)
For projects under the sub-programme for the Environment, other than integrated projects, a proportionate distribution of funds among all Member States for the duration of the first multiannual work programme should, in line with the principles of solidarity and responsibility sharing, be made through the establishment of indicative national allocations.
(31)
In order to build Member States' capacity to participate in the LIFE Programme, guaranteed funding for capacity-building projects should be made available to any Member State that meets the relevant requirements established by this Regulation. Such funding should be made available on the basis of an agreed capacity-building plan outlining the interventions and funding required.
(32)
Quality should serve as the overarching criterion governing the project evaluation and award process in the LIFE Programme. The distributional elements introduced for the purpose of reflecting geographical balance are of an indicative nature and should not suggest secured funds or allocations per Member State.
(33)
The Union is a party to the United Nations Economic Commission for Europe (UNECE) Convention on Access to Information, Public Participation and Access to Justice in Environmental matters (the 'Aarhus Convention'). The work of non-governmental organisations (NGOs) and networks of non-profit-making entities which pursue an aim of general Union interest should therefore be supported, since they are effective in supporting the aims of the Aarhus Convention by advocating the concerns and views of Union citizens as part of the policy development process as well as in supporting its implementation, and in raising awareness of environmental and climate-related problems and policy responses. It is appropriate for the LIFE Programme to support a broad range of NGOs as well as networks of non-profit-making entities which pursue an aim of general Union interest, primarily active in the field of environment or climate action, through the competitive and transparent award of operating grants, in order to help them make effective contributions to Union policy, and to promote and strengthen implementation and enforcement of Union environmental and climate objectives, as well as build up and strengthen their capacity to become more efficient partners.
(34)
In order to carry out its role in the initiation of environmental and climate policy development and implementation, the Commission should use resources from the LIFE Programme to support the initiation, implementation and mainstreaming of Union environmental and climate policy and legislation, including the purchase of services and goods. Financial resources allocated to communication activities under this Regulation should also cover corporate communication on the political priorities of the Union, as well as on the implementation and transposition status of all major Union environmental and climate legislation.
(35)
The current gap in the market between the demand for and supply of loans, equity and risk capital is likely to persist in the context of a financial crisis and, it is appropriate, therefore, to allow the use of financial instruments to support projects with revenue generating capacity in the areas of environment or climate. Financial instruments supported by the LIFE Programme should be used to address specific market needs in a cost-effective way, in line with the objectives of the Programme, and should not crowd out private financing. It should be possible to combine financial instruments with grants funded from the Union budget, including under this Regulation.
(36)
The experience of past LIFE programmes has highlighted the need to focus efforts on concrete environmental and climate policy priorities and areas for action. Those thematic priorities should not be exhaustive to allow applicants to submit proposals in other areas and to incorporate new ideas to react to new challenges. Multiannual work programmes should also be flexible to achieve the LIFE Programme targets and objectives, while providing the necessary stability of project topics implementing the thematic priorities for potential applicants to plan, prepare and submit proposals. The first multiannual work programme should be valid for four years to be followed by a second work programme of three years' duration. Both work programmes should contain a non-exhaustive list of project topics implementing the thematic priorities.
(37)
The experience of past LIFE programmes has highlighted the importance of LIFE national contact points, in particular in providing support to applicants and beneficiaries and thereby contributing to the successful implementation of the programmes. The system of LIFE national and regional contact points should therefore be continued and, where possible, strengthened, in particular in Member States with low project uptake, and collaboration between the Commission and the LIFE national contact points and amongst LIFE national and regional contact points should be reinforced. The experience of past LIFE programmes has also highlighted the importance of ensuring the effective dissemination of project results and networking activities to increase the leverage effect and Union added value of the LIFE Programme, in particular through the organisation of seminars, workshops and other activities aiming at the exchange of experience, knowledge and good practices within the Union. The Commission should therefore continue and strengthen targeted dissemination activities, including those with a specific focus on integrated projects, in particular in Member States with low project uptake, and in relation to specific sectors, and facilitate the cooperation and exchange of experiences between LIFE beneficiaries and others. The Commission should also continue to regularly publish the list of projects financed through the LIFE Programme, including a short description of objectives and results achieved and a summary of the funds committed using appropriate media and technologies.
(38)
With a view to simplifying the LIFE Programme and reducing the administrative burden for applicants and beneficiaries, more use should be made of flat rates and lump sums without compromising the eligibility of VAT and of permanent staff costs under the conditions laid down by Regulation (EU, Euratom) No 966/2012. As per current practice, the sum of the public organisations' (as coordinating beneficiary and/or associated beneficiary) contributions to the project should exceed by at least 2 % the sum of the salary costs of the personnel of national administrations charged to the project. Union funds should not be used to subsidise national budgets, for example, to cover VAT costs. However, only limited information is available on the amounts of Union funds used to cover VAT. The Commission should, therefore, provide an overview, in the mid-term and ex-post evaluations of the LIFE Programme, of VAT reimbursements per Member State that project beneficiaries under the LIFE Programme have requested at the final payment stage.
(39)
The maximum co-financing rates should be set at such levels as are necessary to maintain the effective level of support provided by the LIFE Programme.
(40)
The LIFE Programme and its sub-programmes should be regularly monitored and evaluated based on corresponding performance indicators to allow for readjustments, including any necessary revision of the thematic priorities. When further defining the performance indicators for the assessment of programmes and projects, the Commission should place emphasis on quality monitoring on the basis of performance indicators and expected results and impacts. The Commission should also propose a method for monitoring the long-term success of projects, in particular in the priority area Nature and Biodiversity. In order to provide evidence of the co-benefits that both sub-programmes can bring to climate action and biodiversity, and to provide information on the level of spending, the monitoring of the LIFE Programme should track climate-related expenditure and biodiversity-related expenditure, as defined in 'A Budget for Europe 2020'. Such tracking should be based on a simple methodology by placing the expenditure in one of three categories: climate/biodiversity-related expenditure only (to be counted as 100 %), significantly climate/biodiversity-related expenditure (to be counted as 40 %), and not climate/biodiversity-related expenditure (to be counted as 0 %). That methodology should not exclude the use of more precise methodologies, where appropriate.
(41)
Given the long-standing experience of the Commission in managing the LIFE Programme and projects, and the positive experience of LIFE beneficiaries with external Monitoring Teams, management of the LIFE Programme should remain within the Commission. Any change in the management structure of the LIFE Programme and of the projects should be subject to an ex-ante cost-benefit analysis and give special consideration to ensuring adequate and comprehensive expertise, in particular in the priority area Nature and Biodiversity.
(42)
The financial interests of the Union should be protected through proportionate measures throughout the expenditure cycle, including the prevention, detection and investigation of irregularities, the recovery of funds lost, unduly paid or incorrectly used and, where appropriate, penalties.
(43)
In order to secure the best possible evaluation of the use of Union funds, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of performance indicators applicable to thematic priorities for the sub-programme for Environment and the priority areas for the sub-programme for Climate Action, of modification of the thematic priorities set out in Annex III, and of increasing the percentage of the budget allocated to grants for projects supporting the conservation of nature and biodiversity. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.
(44)
In order to ensure uniform conditions for the implementation of this Regulation relating to the adoption of the multiannual work programmes, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (23)
(45)
If the Committee for the LIFE Programme for the Environment and Climate Action does not deliver any opinion on a draft implementing act, the Commission should, in accordance with the second subparagraph of Article 5(4) of Regulation (EU) No 182/2011, not adopt the draft implementing act. The recourse to this procedure should be justified, inter alia, by the need to assess the proportionate distribution of funds between integrated projects, in particular the maximum amount that a single integrated project may receive.
(46)
To ensure efficient transition between the measures adopted under Regulation (EC) No 614/2007 and the LIFE Programme, it is necessary to continue to monitor, audit and qualitatively assess the activities financed under that Regulation following its expiry.
(47)
The added value of the LIFE Programme derives from the specificity of its approach and focus which make its interventions particularly adapted to environmental and climate needs. The LIFE Programme can contribute to more effective implementation of environmental policies than Member States acting on their own because of increased pooling of resources and expertise. It also provides the platform for developing and exchanging best practices and knowledge, improving, catalysing, and accelerating changes in the implementation of the acquis, and building capacity, supporting private actors, in particular SMEs, in testing small-scale technologies and solutions, and allowing Member States and stakeholders to learn from each other. Moreover, the LIFE Programme creates synergies across Union and national funds while leveraging additional private sector funds, thereby increasing the coherence of Union intervention and promoting a more homogeneous implementation of the acquis.
(48)
Since the objectives of this Regulation, namely contributing to the implementation and development of Union environmental and climate policy and legislation, including the integration of the environment and climate objectives into other policies, and promoting better governance, cannot be sufficiently achieved by the Member States but can rather, by reason of scale and effects of this Regulation, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. 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 those objectives.
(49)
Regulation (EC) No 614/2007 should therefore be repealed,
