European Commission

The Financial Instrument for the Environment

L I F E - I I I

Launched in 1992, LIFE (The FinancialInstrument for the Environment) is oneof the spearheads of Community envi-ronment policy.

LIFE cofinances environmental initia-tives in the European Union and cer-tain third countries bordering on theMediterranean and the Baltic Sea andin central and east European acces-sion candidate countries that havedecided to participate in LIFE.

LIFE has been implemented in phases:• 400 million euros were allocated for

the first phase (1992-1995), • approximately 450 million euros

were allocated for the secondphase (1996-1999),

• the current phase, “LIFE III” (2000-2004)1 has a budget of 640 millioneuros.

In the framework of sustainable devel-opment, LIFE should contribute to theimplementation, development andenhancement of the Community envi-ronmental policy and legislation aswell as the integration of the environ-ment into other EU policies. LIFEshould also lead new solutions facingEU environmental problems beingexplored.

Life is the instrument which shouldwork towards the implementation ofCommunity policy defined by theSixth Action Programme for the Envi-ronment based on a practical approach.

Open to all “natural and legal per-sons”, projects financed by LIFE mustmeet the following general criteria:• correspond to the priorities estab-

lished at Community level and con-tribute to the objectives definedabove;

• be submitted by technically andfinancially sound participants;

• be feasible in terms of technicalcontent, timetable and budget andoffer good value for money.

LIFE consists of three thematic compo-nents: “LIFE-Nature”, “LIFE-Environ-ment” and “LIFE-Third countries”.

Each year a call for proposals is pub-lished in the Official Journal (OJEC),the Member States and third countriessend the Commission their projectproposals. The Commission publishesthe closing date in the Official Journaland evaluates the proposals. TheCommission is responsible for thefinancial control and monitoring of theimplementation of LIFE projects.Accompanying measures ensure theon-site monitoring of projects, dis-semination of results and, in the caseof LIFE-Nature, encourage certainforms of cooperation between similarprojects (“Co-op” measure).

2050 LIFE projects were supportedfrom 1992 to 2002:• 700 LIFE-Nature projects,• 1199 LIFE-Environment projects,• 161 LIFE-Third country projects.

Community environmental policy

The environmental policy of the Euro-pean Union is based on the precaution-ary principle and on the principles thatpreventive action should be taken, envi-ronmental damage rectified at sourceand that the polluter should pay.

Moreover, the Treaty of Amsterdam stipu-lates that Community policy on health,safety and the environment must aim at ahigh level of protection, taking account ofnew developments based on scientific data.

The European Union has a proactive envi-ronmental policy aimed at protecting thesoil, water and air, the climate, fauna andflora. In thirty years, six Community Envi-ronmental Action Programmes have beensuccessfully implemented and over 700legal texts (Directives, Regulations, Deci-sions, etc) adopted concerning the envi-ronment.

The range of environmental instruments hasgrown with the development of Communityenvironment policy. In addition to adoptingframework legislation, which provides ahigh level of protection for the environmentwhile guaranteeing the operation of theinternal market, the European Union hasestablished a number of non-regulatoryinstruments (voluntary agreements, envi-ronmental monitoring, economic instru-ments, etc) and a financial instrument forthe environment: LIFE.

The F inancia l Instrument for the Env i ronment

1 Regulation (EC) No 1655/2000 of the European Parliament and of the Council of 17 July 2000concerning the Financial Instrumentfor the Environment (LIFE). This Regulation repeals Regulation(EEC) No 1973/92 which establishedthe LIFE financial instrument.

A European ecological network:Natura 2000

The purpose of the Natura 2000 networkis to preserve biodiversity by maintainingor restoring natural habitats of Commu-nity importance.

To combat the serious decline in biodiver-sity and following closely on the 1992 Rioconference, the European Union adoptedthe “birds” directive of 1979 and the “habi-tats” directives of 1992 on the conservationof habitats and species. The Natura 2000network has been established as a result.

The objective is to promote the conserva-tion of natural habitats and the habitats ofwild fauna and flora while taking intoaccount the economic, social and culturalrequirements and specific regional and localcharacteristics of each Member State.

The Natura 2000 network is primarily basedon a policy of contracts concluded with allthe local partners: elected representatives,proprietors, managers, etc. Their supportconstitutes the best guarantee of the long-term success of the network. The emphasishas therefore been placed on local consul-tations prior to drawing up proposals forsites suitable for inclusion in the network.However, the European Commission doeshave other regulatory tools to ensureprogress on Natura 2000 should the con-tract-based policy fail to meet the objec-tives set in the Member States.

It should be stressed that the purpose ofNatura 2000 is not to create “nature sanc-tuaries” where all human activity is prohib-ited (for example, forestry resources can beexploited in the designated areas). On thecontrary, today, the presence – or resump-tion – of beneficial human activity is oftenessential for maintaining biodiversity, espe-cially in rural and forested areas.

LIFE-Nature in action

LIFE-Nature finances nature conserva-tion projects; this can cover a very widerange of projects, reflecting the diversityof natural environments in Europe.Examples include:

Belgium: acquisition of land to protectareas of special importance.Denmark: restoration of riverbanks andwetland habitats; reintroduction of grazing.Germany: restoration of wetlands.Estonia: preservation of Baltic borealcoastal meadows.Greece: protection of almost extinct speciessuch as the Mediterranean monk seal.Spain: protection of grasslands, wetlands,dunes, lagoons and coastal and maritimeareas; protection of declining species(brown bear, European black vulture, Euro-pean mink, bats, etc.).France: ecological land management con-tracts with groups of farmers. Ireland: enhancement of Ireland’s naturalheritage, in particular through eco-tourism. Italy: protection of certain species (wolves,bears, bats, etc.) or certain habitats (e.g.wetlands, river ecosystems, springs).Latvia: restoration and protection of exten-sive natural areas.Luxembourg: restoration of biodiversitydestroyed by farming.

Hungary: conservation of the wolf and thelynx in the north-east of the country.Netherlands: reintroduction of sponta-neous processes to recreate natural land-scapes.Austria: “green bridge” above a motorwayto allow brown bears to move into the Alpsand strengthen the bear population.Portugal: management plans for Natura2000 sites.Romania: national action plan to protectdolphins in the Black Sea.Slovenia: protection of peatbogs.Finland: monitoring of certain species ofbutterfly, indicators of the state of the envi-ronment.Sweden: restoration of large areas ofcoastal meadows and wetlands on theislands of the Baltic sea.United Kingdom: protection of birds whichnest on the land, which may involve theremoval of non-native animal species suchas the American mink which are proliferat-ing in the Hebrides.

LIFE - NatureThe specific objective of LIFE-Nature is to contribute to the imple-mentation of Community nature protection legislation: the “Birds”Directive (79/409/EEC) and the “Habitats” Directive (92/43/EEC),and in particular the establishment of the “Natura 2000” network(see below) for the in situ management and conservation ofEurope’s most remarkable fauna and flora species and habitats.

Nature conservation projects which contribute to maintaining or restoring natu-ral habitats and/or species populations to a favourable conservation status withinthe meaning of the Habitats Directive are eligible for LIFE-Nature. Projects mustconcern Special Protection Areas or Sites of Community Importance and thespecies listed in these Directives.

The European Union has allocated approximately 300 million euros for LIFE-Naturefor the period 2000-2004. The rate of Community cofinancing may be up to 50%of the costs. By way of exception, for projects concerning priority natural habitatsor priority species defined in the Habitats Directive the Commission can finance upto 75% of the eligible costs.

The LIFE Regulation defines five areaseligible for funding: • land-use development and plan-

ning,• water management; • reduction of the environmental

impact of economic activities;• waste management;• reduction of the environmental

impact of products through an inte-grated product policy.

LIFE-Environment does not financeresearch or investment in existingtechnologies or infrastructure. Thepurpose of the programme is to bridgethe gap between research and devel-opment results and their large-scaleapplication. To this end, demonstra-tion projects based on the results ofprojects which have been supportedunder past or ongoing technologicalresearch and development pro-grammes are encouraged.

The dissemination of results is essen-tial for ensuring that innovative tech-nologies and procedures for protect-ing the environment are widelyapplied.

The European Union has allocatedapproximately 300 million euros forLIFE-Environment for the period 2000-2004. The rate of Community cofi-nancing can be up to 30% for projectsgenerating substantial net revenue,50% in other cases.

LIFE - Env i ronment

The specific objective of LIFE-Environment is to contribute to the development of innovative techniques and methods by cofinancing demonstration projects.

LIFE-Environment in action

Project examples:

Belgium: integrated environmental man-agement system for major socio-culturalevents (festivals, fairs, etc).Denmark: decontamination of treatedwood waste; ecological label for the retailsector.Germany: recycling of demolition wasteand waste oils; action to improve waterquality; local environmental managementplans.

Greece: environmental management planfor the 2004 Olympic Games in Athens;environment-friendly olive oil production.Spain: integrated initiatives to promote sus-tainable development and sustainabletourism; EMAS in the farming sector.France: automobile parts design: improv-ing environmental performance; mobilityand environment-friendly transport; innova-tive treatment of waste water. Ireland: environmental management atregional level; recycling of electronic equip-ment: creation of jobs providing an entryinto the labour market. Italy: local initiatives to promote sustainabletourism; action to combat the greenhouseeffect and air pollution.Luxembourg: Use of simulation and moni-toring software for successful treatment ofwaste water.Netherlands: integrated water manage-ment in towns and cities; promotion ofecological construction; “bonus points”encouraging the consumption of environ-ment-friendly products.Austria: sustainable development strategiesin urban and rural areas; promotion of bio-fuels and recycled building materials.

Portugal: monitoring of air quality; reduc-ing the environmental impact of pig farming.Romania: selective household waste col-lection system.Finland: integrated management of coastalareas and river basins.Sweden: low solvent lacquers based onnew binder combinations; ecological treat-ment of waste; sustainable forest manage-ment.United Kingdom: sustainable urban devel-opment; collection, redistribution and reuseof waste IT equipment.

Technical assistance projects are eli-gible for LIFE-Third countries if they:• are of interest to the Community,

notably through their contribution toimplementing regional and interna-tional guidelines and agreements;

• promote sustainable developmentat the international, national orregional level;

• provide solutions to major environ-mental problems in the region andthe relevant sector.

Priority is given to projects which willpromote cooperation at the transfron-tier, transnational or regional level.

The European Union has allocatedover 38 million euros to LIFE-Thirdcountries for the period 2000-2004.The rate of Community cofinancingcan be up to 70% of the maximumcost of technical assistance projects.

LIFE-Third countries in action

Some of the projects recently selected:

Albania: sustainable traffic development inTirana.Algeria: creation of an environmental infor-mation, awareness and training centre.Bosnia-Herzegovina: environmental actionplan for the Bardaca wetland area; environ-mental management assistance to regionaland local authorities; reduction of the envi-ronmental impact of industrial activity; assis-tance in the preparation of legislation toreduce pollution.Croatia: introduction of national provisionsconcerning air pollution and waste.Cyprus: preparation of a legislative frame-work for reducing air pollution.Gaza Strip and West Bank: integratedmanagement of the rural environment.Jordan: creation of a natural tourist park inJerash province: environmental aspects.Lebanon: reduction of industrial pollutionand waste, measures to combat forest fires.Malta: preparation of legislation to combatnitrate pollution.

Russia: environmental technical assistanceto the City of Kaliningrad; administrativeassistance for the protection of the Balticcoast.Syria: introduction of environmental man-agement systems (mainly EMAS) in Syrianbusinesses.Tunisia: introduction of EMAS and the ISOstandard 14001 in SMEs; establishment ofpilot desertification monitoring systems(with Morocco).Turkey: measures to improve air and waterquality and waste management; programmeto combat odorous emissions.

LIFE - Th i rd countr ies

The objective of LIFE-Third countries is to contribute to theestablishment of capacities and administrative structuresneeded in the environmental sector and in the development ofenvironmental policy and action programmes in third countriesbordering on the Mediterranean and the Baltic Sea other thancentral and east European accession candidate countries.

LIFE: further information

More information is available on the LIFE homepage (http://europa.eu.int/comm/environment/life/home.htm). User-friendly databases contain brief descriptions of LIFE-Nature, LIFE-Environment and LIFE-Third countries projects funded since 1992. Thefull text of the LIFE Regulation and the infopacks for each LIFE component – includ-ing information on how to apply for funding, project selection criteria and applicationforms – can be found on the LIFE homepage.

Contact

European CommissionDirectorate-General for the EnvironmentLIFE Unit – BU-9 02/1 -B-1049 BrusselsFax: +32 2 296 95 56Web: http://europa.eu.int/comm/environment/life/home.htm

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