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EU Environment Policy – The Challenge
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  1. EC approach towards financing infrastructure projectsDagmar KALJARIKOVÁPolicy Officer for Turkey, Montenegro, REC CEE and NGOsUnit for Enlargement and Neighbouring CountriesEuropean Commission – DG EnvironmentPEIP meetingBrussels, 26 November 2007

  2. EU Environment Policy – The Challenge Adoption of EU environment legislation is a major challenge: • Legislative • more than 270 pieces of legislation; 80 Major Directives • Institutional • strengthen administrative structures: ministries, agencies but also implementation and enforcement institutions • improve intra-ministerial co-ordination • environmental management in business needs attention • Financial • High estimates of compliance costs.

  3. Financial challenge – how to address it Key issues to be considered: • Compliance with the environment acquis • Heavy investments Directives (UWWTD, DWD, Landfills, WFD, IPPC, LCP, etc.) • EIA, Habitats and Birds Directives • Strategic planning and prioritisation • Approximation Strategies for Environment • Financing Strategies for Environment • Building capacity • To define strategic documents • To mobilise financial resources (attracting donors, national co-financing) • To absorb financial assistance available (PPFs)

  4. ENV Financing Strategies – EC approach EFS plays a number of important roles: • Defines the projects needed to achieve compliance with specific directives • Overall estimates for investments needed • Cost estimates for specific projects • Considers affordability issues • Nationally • For specific projects (focus on Operation & Maintenance costs) • Proposes a credible time frame for implementation

  5. ENV Financing Strategies – EC approach Preparation of EFS – process: • Identification of key stakeholders • Ministries, Agencies, National Funds, Regional and Local authorities (Ministry of Finance plays crucial role) • Establishment of sectoral working groups • Coordination amongst sectors • Steps in the process • Assessment of the existing situation • Description of requirements and making presumptions (e.g. sensitive waters) • Definition of measures needed and costs hereof • Plan for investments and realistic financing (affordability criteria) • Agreement of all relevant institutions

  6. Financial challenge – EC assistance Priority ENV Investment Programme (PEIP) – support to SEE through CARDS: • Identifying and prioritising investment infrastructure projects in line with EU acquis • Developing a list of priority environmental projects • Assistance in formulating bankable investment project proposals • Facilitating dialogue with IFIs • Facilitating exchange of expertise between SEE countries‘ experts

  7. Financial challenge – EC assistance Further capacity building activities – support through Phare, CARDS, FI for Turkey or TAIEX: • Environmental Heavy-Cost Investment Planning in Turkey – priority environment investments and DSPs http://www.cowiprojects.com/envest/index.htm • Capacity building of environmental authorities through transfer of best practice and training to support effective use of financial resources (MCP Phare2005) – regional financing strategies in BG, RO & TK, national financing strategy for HR, analysis of affordability criteria website under development • DABLAS Task Force – a platform for co-operation on financing of water related investments in the region http://ec.europa.eu/environment/enlarg/dablas/index_en.htm • TAIEX – workshops, study visits and expertise http://taiex.ec.europa.eu/

  8. Financial challenge – EC assistance Instrument for Pre-Accession (IPA): • Component I • Technical assistance available forthe preparation of Approximation and Investment strategiesfor ENV • Capacity buildingof the relevant institutions • Infrastructure investmentsin potential CCs • Component II • Cross-Border Cooperation (CBC) • Component III „Regional development“ (available only to CCs) • Investments in the field of transport, ENVIRONMENT (OP ENV) and regional competitiveness • Technical assistance for projects‘ preparation

  9. Financial challenge – Involvement of IFIs and MSs Enhanced cooperation with IFIs – 2006 MoU signed by the Commission (ELARG and ECFIN) and IFIs (EIB, EBRD, IBRD & IFC, Nordic Investment Bank, CoEB, Black Sea Trade and Development Bank) • IFIs Advisory Group established in March 2007(replacement of Infrastructure Steering Group) in order to • Advisory function on the coordination of investment projects in the region • The scope of work extended beyond regional transport, energy and environment projects to cover sectors such as health, education, social issues, municipalities as well as Public Private Partnership • Operational WGs • Environmental principles signed by major IFIs – May 2006 http://www.eib.org/about/press/2006/2006-052-the-european-principles-for-the-environment-adopted-by-five-european-multilateral-financing-institutions-.htm Enhanced cooperation with MSs: • Consultations with MSs on MIPDs for all countries • REC CEE

  10. Thank you for your attention!