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The European Commission and the EU Member States combined constitute the world's largest single donor. The massive European commitment to development, over $50 billion per year, accounts for more than half of all official development aid to more than 160 countries spanning the globe from the EU’s neighbors to Africa, the Middle East, Latin America and Asia.

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New EU Ecolabel rules

The EU's ecolabel for environmentally friendly goods and services will enter into force next month following their publication on 30 January in the Official Journal of the European Union. Important changes include even higher environmental standards, lower fees and simplified criteria linked to public purchasing and other EU policies.

The scheme currently covers 26 product groups, including cleaning products, electronic equipment, textiles and tourist accommodation. The European Commission aims to increase the number of product groups to between 40 and 50 by 2015. The new rules include the possibility for Ecolabel criteria to be developed for food and drink products in the future. There will also be greater synergy with other national environmental labels as well as faster criteria development and revision procedures. The EU Ecolabel ? the only pan-European environmental label ? is a voluntary scheme launched in 1992 to encourage the production and consumption of green goods and services across the European Union. Today, more than 24,000 products and services carry the label's signature Flower logo. The new rules, which were adopted by the Council of Ministers in November, will enter into force 21 days after publication.

Further details on the EU Ecolabel

EU to launch FTA negotiations with individual ASEAN countries, beginning with Singapore

EU to launch FTA negotiations with individual ASEAN countries, beginning with Singapore

EU Member States just gave the green light for the Commission to pursue negotiations towards free trade agreements (FTAs) with individual countries of the Association of Southeast Asian Nations (ASEAN). As a first step, the Commission intends to begin negotiations with Singapore early in 2010.

With around ? 55 billion of bilateral trade, Singapore is the EU?s most important trading partner among the ASEAN countries. However, the door remains open for other ASEAN countries willing to negotiate a comprehensive FTA with the EU.

EU Trade Commissioner Benita Ferrero-Waldner made the following statement: "Creating new business opportunities for European companies in the dynamic ASEAN countries will strengthen the competitiveness of manufacturers, farmers and service providers in the EU. While we don't lose sight of our ultimate goal of achieving an agreement within a regional framework, I welcome today's decision which will allow us to move forward and re-engage with this important region through negotiations with individual ASEAN member states."

After the US and China, the group of ASEAN countries is the EU's 3rd largest trade partner outside Europe. Trade in goods and services between the EU and ASEAN has grown by more than a quarter between 2004 and 2008, reaching ? 175 billion in 2008.

The envisaged FTAs are expected to lower or abolish the currently existing tariff and non-tariff (i.e. regulatory and technical) barriers to trade and investment in many ASEAN markets, so as to further strengthen the EU's commercial ties with the dynamic ASEAN region. Creating new export opportunities in the ASEAN markets is a priority under the EU's Global Europe trade strategy.

Background

The Commission had launched negotiations on a region-to-region FTA with ASEAN countries in 2007. However, progress in these negotiations was slow and both sides agreed in March 2009 to make a pause.

As the EU remains committed to strengthening its competitiveness through increased market access in ASEAN countries, EU Member States have now asked the Commission to pursue, on a case-by-case basis, negotiations with those individual ASEAN countries showing interest in negotiating comprehensive FTAs bilaterally.

The ultimate objective, however, remains to reach an agreement with the ASEAN region. The bilateral agreements could become valuable building blocks towards that objective.

Commission welcomes final adoption of Europe's climate and energy package

Commission welcomes final adoption of Europe's climate and energy package

The EU has finalised a deal that will help Europe transform into a low-carbon economy and increase energy security. Fully in line with the Commission's proposals in January 2008, agreement has been reached on legally binding targets, by 2020, to cut greenhouse gas emissions by 20%, to establish a 20% share for renewable energy, and to improve energy efficiency by 20%.

Deals were hammered out on revisions to the emissions trading system, the distribution of the reduction effort outside of the emissions trading system, a legal framework for environmentally safe carbon capture and storage (CCS) as well as on the related proposals on CO2 emissions from cars and on fuel quality. As the first region in the world to commit to such far-reaching and legally binding emission reductions, Europe is leading the fight against climate change. Today's vote is an important contribution towards an ambitious international climate agreement to be reached in Copenhagen by the end of 2009.

 Commission President Jos? Manuel Barroso said: "The EU's climate and energy package is part of the solution both to the climate crisis and to the current economic and financial crisis. It represents a green "new deal" which will enhance the competitiveness of EU industry in an increasingly carbon-constrained world. Moving to a low carbon economy will encourage innovation, provide new business opportunities and create new green jobs."

Environment Commissioner Stavros Dimas said: "Today's decisive votes send a clear signal to our international partners about our determination to address climate change and should convince them to follow our example. This package provides the concrete measures the EU needs to deliver on its target to reduce greenhouse gas emissions by 20% by 2020. And it reconfirms our commitment to moving to a 30% reduction as part of a comprehensive international agreement when other developed countries undertake similar commitments".

Energy Commissioner Piebalgs said: "I am very pleased with the outcome. There has been some tough negotiation and some long nights of debate, but the result is a truly remarkable piece of legislation which puts the EU on track towards a low-carbon energy economy in which renewable energy sources play a key role".

Environmental integrity maintained

Today's agreement maintains the architecture of the proposals put forward by the Commission on 23 January 2008. At its heart are three commitments to be met by 2020: to reduce greenhouse gas emissions by at least 20%, to ensure that 20% of final energy consumption is met with renewable sources, and to raise energy efficiency by 20%. The package also contains a clear offer to go further and commit to a 30% cut in the event of a satisfactory international agreement being reached.

The vote is a historic agreement on long-term binding emission reduction targets for all sectors of the economy. No other group of countries anywhere in the world has agreed on similar targets in the run-up to 2020.

Binding targets for Renewable Energy

The Directive sets legally binding targets for each Member State, in order to reach our EU target of a 20% share of renewable energy in 2020. It creates cooperation mechanisms so that we can achieve the targets in a cost effective way. It removes administrative barriers and other burdens, confirms the 10% target for renewables in transport and, in a world first, fixes biofuels sustainability criteria to ensure that we only support biofuels that have no negative environmental impact.

A more ambitious Emissions Trading System

The extended EU Emissions Trading System (EU ETS) is the world's largest greenhouse gas emissions trading system, and could now serve as the nucleus of a much larger global carbon market. The improvements mean that from 2013 an emissions cap will be set at EU level and cut each year to reach a 21% cut in 2020.

The agreement will increase the level of auctioning in the system. Whereas there is an option for transitional free allowances that most new Member States could apply for, the rule for power companies will be that they have to buy allowances. Industry installations not subject to carbon leakage will be required to buy 20% of allowances in 2013 rising to 70% in 2020 and 100% in 2027. Operators at risk of carbon leakage that invest in the most efficient technologies will receive allowances for free in accordance with a benchmark based on best available technology. Overall, more than 50% of allowances will be auctioned from 2013, and the proportion will rise each year.

The revised EU ETS allows the use of offset credits from outside the EU, but this amount remains below half of the reduction effort in order to ensure a sufficient level of emission reductions inside the EU.

Member States should now use at least half of their auctioning revenues on measures to combat climate change.

A fair contribution from all Member States

The agreement also has implications for small-scale emitters in sectors including transport, buildings, agriculture and waste, which represent some 60% of total GHG emissions in the EU. By 2020, emissions from these areas are to be reduced by an average of 10% compared to 2005, shared out between Member States according to differences in GDP per capita. The agreement maintains the national targets for Member States, together with a linear legally binding trajectory for the period 2013-2020 with annual monitoring and compliance checks. Additional flexibility has been added to the trajectory.

A framework for carbon capture and storage (CCS)

A Directive on geological storage of CO2 provides a legal framework to manage possible environmental risks and liability issues. The reinforced carbon market will provide a long-term incentive for investment, while up to 300 million allowances in the new entrants reserve under the EU ETS will be made available to stimulate the construction and operation of up to 12 commercial demonstration projects to capture and store CO2, and for innovative renewable energy demonstration technologies in the EU.

Binding targets for emissions from the new car fleet

Agreement was also reached on the proposal to set emissions standards for new passenger cars which is an important tool to assist Member States in meeting their emissions targets in the non-ETS sectors. The new legislation (along with complementary measures such as the fuel quality directive) will set binding emissions targets to ensure that emissions from the new car fleet are reduced to an average of 120g CO2/km. Although the agreed legislation provides for a phasing-in of the targets over the period 2012 to 2015 the overall ambition level of the Commission's proposal is maintained through the setting of a stringent long-term target of 95g CO2/km by 2020. This proposal will on average contribute about one third of the reductions required from the non-ETS sectors.

The agreement on the fuel quality Directive will place an obligation on suppliers to reduce greenhouse gases from the entire fuel production chain by 6% by 2020. A review in 2012 will consider increasing the ambition level to 10% greenhouse gas reduction by 2020 through the inclusion of international projects, carbon capture and storage as well as electricity for cars.

A message to rest of the world

The adoption of the package means that the EU now has a strengthened set of far-reaching legislative tools to share with the rest of the world.

The next step will be the technical implementation of today's agreements including the establishing of rules for auctions, the determining the benchmarks for free allocations and preparing regulations on reporting. Further adjustments will also be needed when an international agreement on climate change is reached in Copenhagen in 2009.

The revisions render the EU ETS fit to go global and constitute an important building block for the establishment of a truly global carbon market.

Further information:

ETS: MEMO/08/796

Effort-sharing: MEMO/08/797

CCS: MEMO/08/798

CO2 from passenger cars: MEMO/08/799

Fuel Quality: MEMO/08/800

European Parliament's vote on Plant Protection Products Regulation

European Parliament's vote on Plant Protection Products Regulation

On 13 January 2009 the European Parliament adopted in second reading a Regulation to replace the current legislation on plant protection products (91/414/EEC), based on a Commission proposal from 2006. The new legislation will increase the protection of human health and the environment, will lead to a better protection of agricultural production and will extend and deepen the single market of plant protection products.

Commissioner A. Vassiliou said: "This is certainly a very good way for the European Parliament and the Council to start the New Year ? by improving the protection of human health and of the environment. The new legislation will also benefit our farmers, as it ensures their own protection through specific measures such as the promotion of safer products."

The new Regulation will facilitate innovation by establishing clear criteria for approval of substances. Rules are proposed to ensure an open and competitive market. The existing legislation is improved and simplified, in particular in terms of approval procedures.

The new Regulation confirms the importance that the European Commission gives to a high level of protection of human health and the environment, while at the same time harmonises further the availability of plant protection products. Moreover it intends to favour competition and reduce administrative burden for all stakeholders.

The text contains provisions on the following main issues:

  • criteria for approval of active substances
  • inspection and monitoring on production, storage, transport and use of plant protection products
  • a simplified evaluation and authorization procedure
  • the role of the European Food Safety Authority (EFSA)
  • data protection ? data sharing
  • mutual recognition for plant protection products
  • informing on the use of plant protection products to neighbours
  • reduction of tests on vertebrates

The Commission welcomes the work done by the European Parliament and the Council as all objectives targeted by the initial proposal have been maintained in the text resulting from the co-decision process.

The new legislation has to be formally adopted by the Council, and it will enter into force later this year. Together with the end of the review programme of existing active substances, the Commission will have met its objective to make sure that efficient plant protection is achieved with safer products.

List of pre-registered substances under REACH published

List of pre-registered substances under REACH published

On 19 December 2008, ECHA has published on its website a list of pre-registered substances. The list contains about 150,000 substances which were pre-registered by 65,000 companies between 1 June and 1 December 2008. ECHA has been screening part of the information submitted and due to the high number of pre-registrations ECHA will continue to check the information into the New Year. The fully screened list will be published at a later date.

During the six month period from 1 June to 1 December 2008, ECHA received about 2.75 million preregistrations for about 150,000 substances. As provided by the EACH regulation, ECHA published today the list of pre-registered substances, i.e. before 1 January 2009. The pre-registrations cover all the EU ?existing substances? (EINECS) and the list of notified new substances (ELINCS), together about 105,000 substances. The remainder of the substances on the list are not in these inventories and are currently being screened. The screening process will continue beyond 1 January 2009 and ECHA will update the list as the checking progresses. Companies are reminded that all of the preregistered substances on the list may not fall within the scope of REACH, and some of them may have been registered without taking into account the volume trigger set by the regulation for manufacturing or importing.

 

During the screening process ECHA removes those pre-registrations that are in all evidence not substances (for example, pre-registrations that are articles, such as ?shoes?). ECHA also merges substances that are synonyms into one pre-SIEF. Moreover, pre-registrations not submitted by EU/EEA companies will be deleted. The screening will result in fewer substances on the list and changes to the number of companies in the pre-SIEFs. The potential registrants in a pre-SIEF will first ensure that their substance is the same in order to establish the Substance Information Exchange Fora (SIEFs). Data sharing under REACH may take place in the SIEFs as well as the preparation of joint submission of registration dossiers.

 

Further Information

List of pre-registered substances (19 DEC 2008) can be accessed via a dedicated page in the ECHA CHEM section of the Agency website at:

http://apps.echa.europa.eu/preregistered/pre-registered-sub.aspx

 

Pre-registration Q&A

is a compilation of general, IUCLID 5 and REACH-IT related questions and answers. It can be accessed at: http://echa.europa.eu/doc/pre-registration/pre_reg_qa_en.pdf

 

Companies submitted over 2 million REACH pre-registrations

Companies submitted over 2 million pre-registrations by the deadline

The six-month REACH pre-registration period closed on 1 December at midnight. EU/EEA-based companies submitted well over two million pre-registrations covering more than 100 000 substances. ECHA is currently processing and verifying the alidity of the remaining unprocessed files. The list of pre-registered substances will be published on the ECHA website by 1 January 2009. Companies that have failed to preregister cannot continue manufacturing or importing their substance until they have submitted a full registration dossier.

 

ECHA?s Executive Director Geert Dancet said: ?Pre-registration was an enormous success for ECHA. We managed to upgrade the REACH-IT system continuously throughout the six month period despite the exponential growth in the number of pre-registrations during the final weeks before the deadline. Having virtually all pre-registrations submitted in REACH-IT will permit a timely publication of the List of Pre-registered Substances and a swift start of data sharing.?

 

The REACH pre-registration period which started on 1 June was closed at midnight (GMT) yesterday 1 December. Half of the submissions arrived during the last three weeks. The rapid increase in the number of concurrent users during peak hours from less than 2000 until October to over 4 000 in late November forced ECHA to add capacity to the REACH-IT system and increase its speed several times. Yesterday, pre-registration via web form was enabled as a back-up procedure to ensure that even in the unlikely event of a last-minute unavailability of REACH-IT companies could continue their submissions.

 

For the last two weeks of the pre-registration period (17 November - 1 December) ECHA offered enhanced helpdesk assistance to companies that still needed help with their pre-registrations. Companies located in the EU/EEA submitted about 2500 pre-registration related questions. ECHA?s helpdesk resolved them in time by email or by phone so that companies could pre-register by the deadline.

 

The current statistics show that ECHA received over 2.2 million pre-registrations from companies manufacturing in or importing chemicals to the EU and EEA countries (Iceland, Liechtenstein and Norway). A preliminary breakdown by country of pre-registrations and of companies that submitted pre-registrations is attached.

ECHA received about fifteen times more pre-registrations than expected. This was mainly caused by several companies submitting all existing substances and precautionary double pre-registrations of the same substance in a supply chain by many companies. The final numbers for pre-registrations and substances will be announced when ECHA publishes the List of Pre-registered Substances later this month. By that time, ECHA expects to have validated the remaining unprocessed pre-registrations and identified company information which appears to be incorrect or inaccurate; consequently ECHA will only be able to re-open the pre-SIEF functionality later than initially planned.

 

After Pre-registration

 

Companies that have pre-registered their substances will benefit from the staggered

registration deadlines (2010, 2013 or 2018) for their substances. Their next REACH

obligation is to start data sharing in Substance Information Exchange Forums (SIEFs) after ECHA will have published the List of Pre-registered Substances. Companies may organise their data-sharing as they consider most appropriate. Some industry associations have tools ready to assist the data-sharing.

 

Companies starting to manufacture or import a substance at or above one tonne per year after 1 December for first time can benefit from late pre-registration provisions. This provision does not apply to those companies that have failed to meet the pre-registration deadline.

 

Such companies cannot continue manufacturing or importing the substance until they have submitted a full registration dossier and paid the registration fee.

 

Further Information

Press Memo Pre-registration, Data Submission to ECHA and REACH provides background information on pre-registration and what companies need to do after it. The memo can be accessed at:

http://echa.europa.eu/doc/press/press_memo2_en_20080603.pdf

Pre-registration web pages contain basic information in 22 EU languages on the different phases of pre-registration: preparation, account creation, submission, pre-SIEF, SIEF and registration as well as guidance and legislative references. The pages can be accessed at: http://echa.europa.eu/pre-registration_en.asp

ECHA website: http://echa.europa.eu

EU gives developing countries duty-free access with GSP+

EU gives developing countries duty-free access with GSP+

The European Commission has decided to give 16 developing countries duty-free access to the EU market for around 6400 tariff lines, under the European Union's special incentive arrangement for sustainable development and good governance.  The preferences, called GSP+, are in addition to the standard Generalised System of Preferences (GSP) extended to developing countries. 

GSP+ is offered to vulnerable developing countries that have ratified and effectively implemented 27 core UN and ILO conventions on human and labour rights, and other international conventions related to the environment and governance principles.   As a result of the Commission's decision today, the GSP+ beneficiaries from 1 January 2009 until the end of 2011 will be: Armenia, Azerbaijan, Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Georgia, Guatemala, Honduras, Mongolia, Nicaragua, Paraguay, Peru, Sri Lanka and Venezuela.   The eligibility of two of the countries, El Salvador and Sri Lanka, is currently the subject of an investigation by the European Commission into the implementation of certain UN and ILO conventions.

EU Trade Commissioner Catherine Ashton said: "GSP+ is at the heart of our pro-development trade policy.  The decision today ensures that sustainable development and good governance will continue to be rewarded."

GSP+ provides an important incentive to developing countries to ratify and effectively implement a broadly defined set of international standards in the fields of human rights, core labour standards, sustainable development and good governance.  Experience shows that the incentive effect of the GSP+ is strong, as countries have made every effort to fulfil the requirements.  GSP+ preferences are of real economic value to the beneficiary countries:  in 2007 there was EUR 4.7 billion worth of trade under this scheme, with a nominal duty loss (compared to standard GSP rates) for the EU of over ?357 million.  The duty-free access means a considerable tariff reduction over the rates applied under the regular GSP scheme.  Tariff cuts include tobacco (cut by up to 52%), various fruit juices (up to 30%), fruits (up to 20%), vegetables (up to 14%), fish (up to 20%) and honey (up to 17%).  

Before making the decision on GSP+, the European Commission examined all applications submitted before the deadline of 31 October 2008.  Applications were checked against the eligibility criteria set in the GSP Regulation, drawing as appropriate on the findings of the relevant international organisations for the conventions involved. As a result of the examination the list of GSP+ beneficiary countries for the period 2009 - 2011 has been established.  Three countries will receive GSP+ benefits for the first time:  Armenia, Azerbaijan and Paraguay.  One previous beneficiary country, Panama, did not submit an application before the deadline.    The new GSP Regulation provides an additional opportunity for applications in mid-2010, half-way through the life of the GSP Regulation 2009-2011.

Although El Salvador and Sri Lanka were included in the decision today, questions remain over the degree of effective implementation of certain UN and ILO conventions in these countries.  The European Commission launched investigations in May (El Salvador) and October (Sri Lanka) in order to ascertain whether or not the two countries fulfil the conditions to continue to receive GSP+ preferences.  While the investigations are ongoing the countries continue to receive preferential access, but depending on the findings they could be withdrawn from the scheme. 

Background

The EU's Generalised System of Preferences (GSP) is a trade arrangement through which the EU provides preferential access to the EU market to 176 developing countries and territories, in the form of reduced tariffs for their goods when entering the EU market. There is no expectation or requirement that this access be reciprocated.  It is implemented by a Council Regulation applicable for a period of three years at a time. GSP covers three separate preference regimes:

  • The standard GSP, which provides preferences to 176 Developing Countries and Territories on around 6400 tariff lines;
  • The special incentive arrangement for sustainable development and good governance, known as GSP+, which offers additional tariff reductions to support vulnerable developing countries in their ratification and implementation of international conventions;
  • The Everything But Arms (EBA) arrangement, which provides Duty-Free, Quota-Free access for all products for the 50 Least-Developed Countries (LDCs) on 7200 tariff lines.

 

More on the GSP+ decision