EUROPEAN COMMISSION
Brussels, 11.7.2022
COM(2022) 329 final
2022/0210(COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
amending Regulation (EU) No 691/2011 as regards introducing new environmental economic accounts modules
(Text with EEA relevance)
EXPLANATORY MEMORANDUM
1.CONTEXT OF THE PROPOSAL
•Reasons for and objectives of the proposal
Regulation (EU) No 691/2011 of the European Parliament and of the Council of 6 July 2011 on European environmental economic accounts 1 sets out a common framework for collecting, compiling, transmitting and evaluating European environmental economic accounts. It was amended by Regulation (EU) No 538/2014 2 . The Regulation covers six modules: air emissions accounts, environmentally related taxes by economic activity, economy-wide material flow accounts, environmental protection expenditure accounts, environmental goods and services sector accounts, and physical energy flow accounts.
Article 10 of the Regulation lists potential new modules to be introduced later based on Commission proposals. This proposal introduces three new environmental account modules already provided for under Article 10: forest accounts, ecosystem accounts, and environmental subsidies and similar transfers accounts.
The main objective of the proposal is to extend the scope of the European environmental economic accounts to provide better information for the European Green Deal, a growth strategy that aims to transform the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy. 3
Environmental economic accounts are a multipurpose statistical framework bringing together economic and environmental information. They measure the contribution of the environment to the economy and the impact of the economy on the environment in a consistent and compatible way with macroeconomic statistics (national accounts).
Users analyse and use environmental economic accounts in modelling and outlooks and for preparing policy proposals and reporting on policy implementation and impact. The new modules will make more integrated datasets available for such purposes.
Ecosystem accounts integrate biodiversity and natural capital considerations with mainstream economic questions on resource allocation and sustainability. Forest accounts specifically measure forest area and its available share for timber extraction and trace their changes over time. Environmental subsidies and similar transfers accounts identify and quantify domestic fiscal policy measures and non-EU resources that support the Green Deal through economic activities and products, protecting the environment and safeguarding natural resources.
The three proposed modules respond to and are underpinned by international statistical standards: the System of Environmental Economic Accounts (SEEA) Central Framework and SEEA Ecosystem Accounts. 4 The United Nations Statistical Commission adopted the SEEA Central Framework as an international statistical standard at its 43rd session in February 2012 and the SEEA Ecosystem Accounts at its 52nd session in March 2021. The new modules are fully in line with the SEEA.
For several years, many Member States have gained experience in compiling and reporting on forest accounts and environmental subsidies and similar transfers data. This has happened through regular voluntary data collections of the Commission (Eurostat) and pilot studies that helped test the feasibility of introducing ecosystem accounts into the EU. This experience was shared with all other Member States.
For environmental subsidies and similar transfers accounts, some of the requirements have already been covered through mandatory reporting of environmental protection expenditure accounts. A more comprehensive and streamlined reporting on environmental subsidies and similar transfers will draw upon this experience and – once in place – provide the data on transfers required for environmental protection expenditure accounts.
This proposal complements changes set out in Commission Delegated Regulation (EU) 2022/125 5 . The changes to the scope and deadlines for reporting data for the current modules of European environmental economic accounts ensure that the data better respond to users’ needs.
The proposal also updates references to the 1995 edition of the European System of Accounts (ESA95). They are replaced by references to the 2010 edition of the European System of Accounts (ESA2010) set out in Regulation (EU) No 549/2013 of the European Parliament and of the Council 6 .
This initiative is not part of the regulatory fitness and performance programme (REFIT).
•Consistency with existing policy provisions in the policy area
Regulation (EU) No 691/2011 sets out a common framework for collecting, compiling, transmitting and evaluating environmental economic accounts in the EU to set up satellite accounts to complement the European System of Accounts (ESA 2010).
Recital 16 of the Regulation states the different sets of environmental economic accounts are under development and at different stages of maturity and stresses the need for a modular structure, providing sufficient flexibility, for example, to introduce additional modules.
Article 3 of the Regulation sets out a list of modules of the environmental economic accounts to be compiled within the common framework. For each module, a separate annex to the Regulation describes the objectives, coverage, characteristics for data compilation and reporting, the first reference year, frequency and transmission deadlines, and reporting tables. Commission Delegated Regulation (EU) 2022/125 updated the annexes for the existing six modules of European environmental economic accounts to shorten the time between which some of the data are reported, add more characteristics to the list, and streamline the reporting tables. 7
Article 10 of the Regulation lists new environmental economic account modules that could be introduced based on Commission proposals, including the three new modules in this proposal. The three modules are also listed as development areas in the European strategy for environmental economic accounts for 2019-2023, which was endorsed by the European Statistical System Committee 8 .
Article 4 of the Regulation sets out that the Commission must test the feasibility of introducing new environmental economic account modules through voluntary pilot studies by Member States. For this reason, several pilot studies have been carried out for the three proposed modules, testing the feasibility of compiling the data. For forest accounts and environmental subsidies and similar transfers, some Member States already compile and report annual data to the Commission (Eurostat) on a voluntary basis.
Environmental accounting uses existing data for compiling the accounts. Better use will be made of information from existing data collections.
•Consistency with other EU policies
Environmental economic accounts bring together economic and environmental information, measuring the contribution of the environment to the economy and the impact of the economy on the environment. This proposal provides information for the European Green Deal by integrating environmental sustainability considerations for economic policy purposes. The data produced under this Regulation will also contribute to European Semester greening initiatives, mainstreaming sustainability in all EU policies, and monitoring the UN’s 2030 Agenda on Sustainable Development.
The proposal for the forest accounts module is in line with climate and forest resource policies. As part of the European Green Deal, the Commission presented the new EU forest strategy for 2030 9 as one of its flagship initiatives. The strategy recognises the central and multifunctional role of forests and the contribution of forestry (and the entire forest-based value chain) to achieving a sustainable and climate-neutral economy by 2050 and preserving lively and prosperous rural communities. It also announced for 2023 a legislative initiative on forest monitoring and strategic plans. The forest accounts module supports the EU forest strategy for 2030 and the future forest monitoring initiative and connects forest policies with policies on climate, energy and the bio-economy.
The ecosystem accounts module provides data to describe progress in one of the six priority objectives of the environment action programme to 2030 10 : protecting, preserving and restoring biodiversity and enhancing natural capital. This module also contributes to monitoring implementation of the EU nature restoration plan, part of the EU biodiversity strategy for 2030.
Economic instruments for pollution control and natural resource management, such as environmental subsidies, are increasingly important EU environmental policy tools, and there is considerable interest in obtaining more information about their use and effectiveness. The environmental subsidies and similar transfers module contributes to monitoring implementation of the European Green Deal. This includes greening national budgets, informing of the real price for the environment, supporting the EU’s energy transition and climate targets for 2030, and carrying out renewable energy, biodiversity, waste management and circular economy policies.
Regulation (EU) No 549/2013 set out the current version of the European System of Accounts (ESA 2010), and the European environmental economic accounts should refer to this version.
2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
•Legal basis
The legal basis for this proposal is Article 338(1) of the Treaty on the Functioning of the European Union (TFEU). In line with the ordinary legislative procedure, Parliament and the Council adopt measures to ensure that statistics are produced to enable the EU perform its role. The statistics must meet certain standards of impartiality, reliability, objectivity, scientific independence, cost-effectiveness and statistical confidentiality without putting an excessive burden on businesses, authorities and citizens.
The objective of this proposal is to ensure international comparability of environmental economic accounts by extending the scope of Regulation (EU) No 691/2011 to additional modules listed under Article 10. This article explicitly provides for adding new modules and provides a candidate list. The first three modules on this list were already added under Regulation (EU) No 538/2014.
•Subsidiarity (for non-exclusive competence)
The subsidiarity principle applies to the extent that the proposal does not fall within the EU’s exclusive competence.
Action at EU level is justified. First, European statistics must be comparable across Member States and in order to derive EU totals calculated from Member State totals. Second, the environment has a transnational scale and nature. And third, some uses of the environmental economic accounts go beyond the EU, such as the Sustainable Development Goals, and so the EU must apply global standards.
The proposed act concerns a European Economic Area matter and should therefore extend to the Area.
•Proportionality
The proposal complies with the proportionality principle.
Member States must produce the new environmental economic accounts using common specifications, based on the international SEEA standards and then transmit the data to the Commission (Eurostat) for validation and dissemination.
In line with the principle of proportionality, the proposed regulation does not go beyond what is necessary to achieve its objective.
•Choice of the instrument
A regulation is the most appropriate instrument given the objective and content of the proposal and the fact that it amends an existing regulation.
3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
•Ex-post evaluations/fitness checks of existing legislation
Based on Commission standards, Eurostat’s system for evaluating existing legislation, including the European statistical programme’s evaluation 11 , was followed and formed a central part of the whole process. In addition, surveys are carried out every year to find out more about users, their needs and how satisfied they are with Eurostat services. Eurostat uses evaluation results to improve processes for producing statistical information and output. The results feed into different strategic plans, such as the Eurostat work programme and management plan.
•Stakeholder consultations
The proposal has been discussed with the European Statistical System, and the technical details with data producers and users through written consultations. It was also discussed in task forces and in the working groups on environmental economic accounts and on monetary environmental statistics and accounts in May 2020 and May 2021. In addition, the underlying issues were discussed in meetings of the directors for sectoral and environmental statistics and accounts in July and October 2021. The same group was also consulted in writing in December 2021. All these consultations led to technical improvements and simplifications.
•Collection and use of expertise
The Commission (Eurostat) consulted the European Statistical System Committee because the national statistical institutes (NSIs) are responsible for coordinating all national activities on European statistics.
•Impact assessment
An impact assessment was deemed unnecessary for the following reasons. First, Regulation (EU) No 691/2011 already exists as a policy tool for the initiative. In particular, Article 10 explicitly provides for the possibility of adding new thematic accounts and lists potential modules. Second, around 30 pilot studies on the new topics have been carried out by Member States with the Commission’s (Eurostat) financial support (in line with Article 4). Lastly, experience has been gained over the last 5 years from voluntary data collection on forest and environmental subsidies accounts. In conclusion, there is a sound evidence base and experience has been built up over the years.
•Regulatory fitness and simplification
The Commission is strongly committed to simplify or reduce burden whenever it amends any legislation. Environmental accounting produces high-quality statistics by reusing available data and limiting the administrative burden on businesses and the public. This is achieved by integrating existing source data and combining them into robust estimates and indicators based on international standards.
•Fundamental rights
Not applicable.
4.BUDGETARY IMPLICATIONS
The proposal does not change the implications of Regulation (EU) No 691/2011 for the EU budget, in particular from Article 4.
5.OTHER ELEMENTS
•Implementation plans and monitoring, evaluation and reporting arrangements
Article 7 of Regulation (EU) No 691/2011 requires Member States to produce quality reports and transmit them to the Commission (Eurostat). Eurostat uses the quality reports, among other inputs, to validate the quality of the transmitted data. The quality report rules will also apply to the three new modules.
Under Article 10 of Regulation (EU) No 691/2011, the Commission submits to Parliament and the Council a report on the implementation of the Regulation every 3 years.
•Detailed explanation of the specific provisions of the proposal
This proposal contains three articles and one annex.
Article 1 specifies the amendments to be introduced to Regulation (EU) No 691/2011. The amendments are described below.
– Article 2 – Definitions
Article 2(7) to (9) defines forest accounts, environmental subsidies and similar transfers and ecosystem accounts.
– Article 3(1) – Modules
Three new modules are added to the list of modules of European environmental economic accounts in subparagraphs (g) to (i), with references to the Annexes specifying their objectives, coverage, and reporting obligations.
– Article 3(4a) – Delegated powers
A new sub-paragraph 3(4a) empowers the Commission to adopt a delegated act to decide on which of the ecosystem services, already included in the reporting tables in Section 5 of Annex IX monetary values, will be reported. The provisions in Annex IX set ecosystem services in physical and monetary units. The ecosystem services in monetary units will be a subset of the ecosystem services in physical units.
– Article 5(2) – Data collection
Member States can use innovative approaches other than those already set out in Article 5(2).
– Article 8 – Derogations
Includes the possibility to request a derogation from reporting data for the three new modules.
–Article 9 – Delegation procedure
Extends the delegated powers by adding a reference to the new Article 3(4a).
– Article 10 – Report and review
Updates areas to include in the implementation report of this Regulation to Parliament and the Council.
–Annex IV – Environmental protection expenditure accounts
Deletes ‘environmental protection transfers (received/paid)’ characteristic from Annex IV because it will be collected under the new Annex VIII.
–New annexes
Three new annexes are added to the Regulation: Annex VII for forest accounts, Annex VIII for environmental subsidies and similar transfers accounts, and Annex IX for ecosystem accounts.
–References to EU-27 and ESA2010
Replaces all references of ‘EU-28’ by ‘EU-27’ and ‘ESA95’ by ‘ESA2010’.
Article 2 of the proposal repeals Member States’ obligation to report data on environmental protection transfers (set out in the existing Annex IV on environmental protection expenditure accounts) as soon as the more comprehensive and streamlined set of data on environmental subsidies and similar transfers is delivered under Annex VIII. This ensures that double reporting is avoided.
Article 3 sets the date of entry into force and direct applicability of this Regulation. Article 1(7) must exceptionally apply from 2025, as the collection of the ‘environmental protection transfers (received/paid)’ characteristic in Annex VIII only starts in 2025 (see Section 4 in Annex VIII).
2022/0210 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
amending Regulation (EU) No 691/2011 as regards introducing new environmental economic accounts modules
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 338(1) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Acting in accordance with the ordinary legislative procedure,
Whereas:
(1)Decision No 2022/591 of the European Parliament and of the Council of 6 April 2022 laying down a General Union Environment Action Programme to 2030 12 confirmed that sound information on the key trends, pressures and drivers for environmental change is essential for the development of effective policy, its implementation, and the empowerment of citizens. Instruments should be developed with a view to enhancing public awareness of the environmental effects of economic activity. Environmental economic accounts is one such instruments.
(2)Article 10 of Regulation (EU) No 691/2011 of the European Parliament and of the Council 13 provides that the Commission is to report on the implementation of that Regulation to the European Parliament and the Council and, if appropriate, taking into account the findings of the pilot studies referred to in Article 4(2) of Regulation (EU) No 691/2011 to propose the introduction of new environmental economic accounts modules, such as environmentally related transfers (subsidies), forest accounts and ecosystem services accounts.
(3)The new modules are to contribute directly to Union’s policy priorities of green growth and resource efficiency.
(4)The United Nations Statistical Commission adopted the System of Environmental-Economic Accounting (‘SEEA’) central framework as an international statistical standard at its 43rd session in February 2012 and the SEEA Ecosystem Accounting (chapters 1 to 7 describing the accounting framework and the physical accounts) at its 52nd session in March 2021. The new modules set out by this Regulation are fully in line with the SEEA.
(5)In order to carry out its tasks under the Treaties, especially those related to the environment, sustainability and climate change, the Union should have relevant, comprehensive and reliable information. Evidence‐based decision‐making requires statistics that meet high‐quality criteria, as set out in Regulation (EC) No 223/2009 of the European Parliament and of the Council 14 , in accordance with their objectives.
(6)In order to better monitor progress towards a green, competitive and resilient circular economy and to monitor progress towards the Sustainable Development Goals in a Union context, additional data is required.
(7)The conclusions of the Economic and Financial Affairs Council on European statistics held on 6 November 2020 encourage the European statistical system to respond to the emerging information demands set out by the European Green Deal, including those related to the review and enlargement of the programme of European environmental economic accounts.
(8)In 2019, the European Court of Auditors published a special report No 2019/16 entitled “European Environmental Economic Accounts: usefulness for policymakers can be improved”. 15 That report points to a need for more complete data on forests and ecosystems and for full implementation of forest accounts.
(9) Article 5(2) of Regulation (EU) No 691/2011 lists the sources that Member States may use to estimate the environmental economic accounts. In order to ensure flexibility and to reduce the administrative burden on respondents, National Statistical Institutes and other national authorities, Member States should be allowed to use innovative approaches. Member States should always inform the Commission and provide details as regards the quality of those approaches for the Commission to assess the quality of the data.
(10)As the Union currently consists of 27 Member States, it is appropriate to refer to ‘EU-27’.
(11)The list of possible future European environmental economic accounts listed in Article 10 of Regulation (EU) No 691/2011 needs to be updated to align them to the current policy priorities of the Union.
(12)The European System of Accounts 1995 (ESA95) was replaced by the European System of Accounts 2010 (‘ESA 2010’) set up by Regulation (EU) No 549/2013 of the European Parliament and of the Council 16 .
(13)‘ESA 2010’ contains the reference framework of common standards, definitions, classifications and accounting rules for drawing up the accounts of the Member States for the statistical requirements of the Union.
(14)In order to take into account the current state of development of methodologies to value ecosystem services, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in order to supplement the Regulation by establishing for which of the ecosystem services already included in the reporting tables in section 5 of Annex IX monetary values should be reported, the first reference year as well as a list of acceptable methods for establishing those monetary values. It is of particular importance that the Commission carry out appropriate consultations during the preparatory work, including at expert level, and that those consultations are conducted in accordance with the principles laid down in the Inter-institutional Agreement of 13 April 2016 on Better Law-Making 17 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
(15)Since the objectives of this Regulation, namely the introduction of new environmental accounts modules into the current legal framework for European statistics on EEEA, cannot be sufficiently achieved by the Member States but can rather, by reason of consistency and comparability, 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 the 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.
(16)The European Statistical System Committee has been consulted,
HAVE ADOPTED THIS REGULATION:
Article 1
Regulation (EU) No 691/2011 is amended as follows:
(1) in Article 2, the following points are added:
‘(7) ‘forest accounts’ means assets accounts for forest resources, comprising wooded land and timber on wooded land, and economic activity accounts for forestry and logging;
(8) ‘environmental subsidies and similar transfers’ means current and capital transfers, as defined in ESA 2010, intended to support activities protecting the environment and safeguarding national resources and related products;
(9) ‘ecosystem accounts’ means a set of accounts designed to provide consistent information on extent and condition of ecosystems and on the flows of services from these ecosystems to society.’;
(2) Article 3 is amended as follows:
(a)in paragraph 1, the following points are added:
‘(g) a module for forest accounts, as set out in Annex VII;
(h) a module for environmental subsidies and similar transfers accounts, as set out in Annex VIII;
(i) a module for ecosystem accounts, as set out in Annex IX.’
(b)the following new paragraph 4a is inserted:
‘4a .The Commission (Eurostat) shall carry out a methodological and feasibility study on the monetary valuation of ecosystem services. Based on the results of this study, the Commission may supplement this Regulation in order to define, by means of a delegated act, for which of the ecosystem services already included in the reporting tables in section 5 of Annex IX monetary values shall be reported, the first reference year as well as a list of acceptable methods for establishing these monetary values.’;
(3) in Article 5, paragraph 2, the following text is added:
‘(d) any other relevant sources, methods or innovative approaches insofar as they allow for the production of statistics that are comparable and compliant with the applicable specific quality requirements.
Member States which decide to use the sources, methods or innovative approaches referred to in point (d) shall inform the Commission (Eurostat) during the year preceding the reference year during which the source, method or innovative approach will be introduced, and shall provide details concerning the quality of the data obtained.’;
(4) in Article 8, paragraph 2 is replaced by the following:
‘2. For the purposes of obtaining a derogation under paragraph 1 for Annexes VII, VIII and IX, the Member State concerned shall present a duly justified request to the Commission no later than [OPOCE, please insert exact date which is 24 months after the entry into force of this Regulation].’;
(5) Article 9 is amended as follows:
(a)paragraphs 2 and 3 are replaced by the following:
‘2. The power to adopt delegated acts referred to in Article 3(3), (4) and (4a) shall be conferred on the Commission for a period of five years from 11 August 2011. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the 5-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.
3. The delegation of power referred to in Article 3(3), (4) and (4a) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.’
(b)paragraph 5 is replaced by the following:
‘5. A delegated act adopted pursuant to Article 3(3), (4) and (4a) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.’;
(6) in Article 10, the first hyphen point is replaced by the following:
‘ - for introducing new environmental economic account modules, such as Water Accounts (quantitative and qualitative), Resource Management Expenditure Accounts, Subsidies or support measures potentially harmful for the environment and Waste Accounts’;
(7) in Annex IV, section 3, the words ‘environmental protection transfers (received/paid)’ shall be deleted;
(8) all references to ‘EU-28’ and the term ‘ESA 95’ shall be replaced by EU-27 and by ‘ESA 2010’ respectively throughout the text and the Annexes.
(9) Annexes VII, VIII and IX, as set out in the Annex to this Regulation, are added to Regulation (EU) No 691/2011.
Article 2
The data on environmental protection transfers (received/paid) formerly submitted pursuant to Annex IV shall be submitted under Annex VIII. Member States shall no longer provide data on environmental protection transfers (received/paid) pursuant to Annex IV.
Article 3
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Point (7) of Article 1 shall apply from 1 January 2025.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament For the Council
The President The President