PURPOSE: the alignment of Council Regulation (EC) No\n2173/2005 on the establishment of a FLEGT licensing scheme for\nimports of timber into the European Community to the new rules of\nthe Treaty on the Functioning of the European Union (Commission\ndelegated and implementing powers).
\nPROPOSED ACT: Regulation of the European Parliament\nand of the Council (amending Council Regulation (EC) No\n2173/2005).
\nPARLIAMENT’S ROLE: Parliament decides in\naccordance with the ordinary legislative procedure and on an equal\nfooting with the Council.
\nBACKGROUND: the Treaty on the Functioning of the\nEuropean Union (TFEU) makes a distinction between:
\nIn the context of the alignment of Regulation (EC) No\n2173/2005 to the new rules of the TFEU, powers currently conferred\nto the Commission by that Regulation have been reclassified into\nmeasures of delegated nature and measures of implementing\nnature.
\nIMPACT ASSESSMENT: there was no need for an impact\nassessment.
\nLEGAL BASIS: Article 207(2) of the Treaty on the\nFunctioning of the European Union (TFEU).
\nCONTENT: the proposed Regulation seeks to identify the\ndelegated powers of the Commission in Council Regulation (EC) No\n2173/2005 and to establish the corresponding procedure for adoption\nof these acts.
\nBUDGETARY IMPACT: this\nmeasure does not involve any additional Union\nexpenditure.
\nPURPOSE: the alignment of Council Regulation (EC) No\n2173/2005 on the establishment of a FLEGT licensing scheme for\nimports of timber into the European Community to the new rules of\nthe Treaty on the Functioning of the European Union (Commission\ndelegated and implementing powers).
\nPROPOSED ACT: Regulation of the European Parliament\nand of the Council (amending Council Regulation (EC) No\n2173/2005).
\nPARLIAMENT’S ROLE: Parliament decides in\naccordance with the ordinary legislative procedure and on an equal\nfooting with the Council.
\nBACKGROUND: the Treaty on the Functioning of the\nEuropean Union (TFEU) makes a distinction between:
\nIn the context of the alignment of Regulation (EC) No\n2173/2005 to the new rules of the TFEU, powers currently conferred\nto the Commission by that Regulation have been reclassified into\nmeasures of delegated nature and measures of implementing\nnature.
\nIMPACT ASSESSMENT: there was no need for an impact\nassessment.
\nLEGAL BASIS: Article 207(2) of the Treaty on the\nFunctioning of the European Union (TFEU).
\nCONTENT: the proposed Regulation seeks to identify the\ndelegated powers of the Commission in Council Regulation (EC) No\n2173/2005 and to establish the corresponding procedure for adoption\nof these acts.
\nBUDGETARY IMPACT: this\nmeasure does not involve any additional Union\nexpenditure.
\nPURPOSE: Commission Communication on the integration\nof renewable energy into the Single Market.
\nCONTEXT: in 2007 the EU set the ambitious goal of\nachieving a 20% share of renewable energy and a 10% share of\nrenewable energy in transport by 2020 and has flanked these\nobjectives by a series of supporting policies. The renewable energy\ngoal is a headline target of the Europe 2020 strategy for smart,\nsustainable and inclusive growth. At the start of 2012, these\npolicies are beginning to work and the EU is currently on track to\nachieve its goals.
\nHowever, the economic crisis has made investors\ncautious about the energy sector. In Europe's liberalised energy\nmarkets, the growth of renewable energy depends on private sector\ninvestment, which in turn relies on the stability of renewable\nenergy policy. Investment in infrastructure, manufacturing and\nlogistics also requires related investment - in testing facilities,\ncable production, factories and ships to build offshore wind\ninstallations. In parallel to a rigorous implementation of the Renewable\nEnergy Directive, clarity on longer-term policy is needed to\nensure that the necessary investment is made.
\nThe Energy\nRoadmap 2050 builds on the single energy market, the\nimplementation of the energy infrastructure package and climate\nobjectives as outlined in the 2050\nLow Carbon Economy Roadmap. Regardless of scenario choice, the\nbiggest share of energy supply in 2050 will come from renewable\nenergy.
\nHowever, despite the strong framework to 2020, the\nRoadmap suggests that growth of renewable energy will drop after\n2020 without further intervention due to their higher costs and\nbarriers compared to fossil fuels. Early policy clarity on the post\n2020 regime will generate real benefits for investors in industry\nand infrastructure as well as for renewable energy investors\ndirectly.
\nWhilst the Renewable Energy Directive (2009/28/EC)\nprovides for setting a post2020 roadmap in 2018, stakeholders have\nalready been asking for clarity regarding policy developments after\n2020.
\nThis is why the Commission believes it is important\nto start preparing now for the period beyond\n2020.
\nCONTENT: this Communication i) explains how renewable\nenergy is being integrated into the single market; ii) gives some\nguidance on the current framework until 2020, and iii) outlines\npossible policy options for beyond 2020, to ensure continuity\nand stability, enabling Europe's renewable energy production\nto continue to grow to 2030 and beyond.
\nThe Communication indicates the following areas where\nefforts should be stepped up until 2020 to achieve renewable energy\ngoals whilst being cost-efficient:
\nInternal market for energy: strong growth in renewable energy markets suggests\nthat significant \"maturing\" of technologies is occurring. Achieving\ncompetitiveness, however, requires political commitment to\nregulatory frameworks that support industrial policy, technology\ndevelopment and removal of market distortions. It is important to\ndrive down costs, to ensure renewable energy technologies become\ncompetitive and ultimately market driven.
\n\n1) \nPolicies that hinder investment in renewables\nshould be revised and in particular, fossil fuel subsidies\nshould be phased out.
\n\n2) \nIn view of the complementarity of climate and\nrenewable energy policies, a well-functioning carbon market is\nnecessary together with properly designed energy taxes to\ngive investors strong incentives to invest in low carbon\ntechnologies and their development.
\n\n3) \nAt the same time renewable energy should be\ngradually integrated into the market with reduced or no\nsupport, and should over time contribute to the stability and\nsecurity of the grid on a level footing with conventional\nelectricity generators and competitive electricity\nprices.
\nImproving support schemes: today, most renewable energy technologies benefit\nfrom national support schemes, but only a small share of the energy\nmarket is affected: less than a third of the 19% of electricity\nfrom renewable energy is sheltered from market prices. Mature\ntechnologies operating in competitive markets, with a\nwell-functioning carbon market should ultimately no longer need\nsupport. However, some form of R&D and other financial or\nadministrative support may continue to be needed for newer,\nless mature technologies.
\nRecent changes to support schemes have in some cases\nbeen triggered by unexpectedly high growth rapidly increasing\nexpenditure on renewable energy, which is not sustainable in the\nshort term. In some Member States, changes to support schemes have\nlacked transparency, have been introduced suddenly and at times\nhave even been imposed retroactively or have introduced\nmoratoriums. For new technologies and investment still dependant on\nsupport, such practices undermine investor confidence in the\nsector. Moreover diverging national support schemes, based on\ndiffering incentives may create barriers to entry and\nprevent market operators from deploying cross-border business\nmodels, possibly hindering business development. Such a risk of\nimpairing the single market must be avoided and more action is also\nneeded to ensure consistency of approach and remove distortions. To\nencourage this, the Commission plans to prepare guidance on best\npractice and experience gained in these matters and, if needed,\non support scheme reform, to avoid fragmentation of the\ninternal market. Principles for support schemes need to be\nestablished that minimise market distortions, avoid over\ncompensation and ensure consistency across Member\nStates.
\nBoosting cooperation and trade: the Renewable Energy Directive created cooperation\nmechanisms to enable renewable energy produced in one Member State\nto count towards the target of another. These have not yet been\nwidely exploited despite the potential economic benefits for\nboth parties. Only two Member States have indicated that they would\nuse cooperation mechanisms to achieve their 2020\ntargets.
\nTo encourage the development of renewable energy\nproduction in and with neighbouring countries, the Commission will\nfacilitate international cooperation on renewable energy\ndevelopment by both enabling full use of the cooperation mechanisms\nwhich could develop renewables in the Southern\nMediterranean.
\nTransforming infrastructures: the challenge of meeting future infrastructure needs\nwill very much depend on our capacity to develop renewables, grid\ninfrastructure and better operational solutions together in a\nsingle market. Infrastructure development is therefore both\nurgent and critical for the success of the single market and\nfor the integration of renewable energy. Early adoption of the\nlegislative proposals of the energy infrastructure package is\ncrucial in that respect, in particular for speeding up the\nconstruction of new infrastructure with a cross-border impact. The\nCommission will continue to work with distribution and transmission\nsystem operators, regulators, Member States and industry to ensure\nthe development of energy infrastructure is accelerated to\ncomplete the process of integrating Europe's networks and\nmarkets.
\nDriving technology innovation: research and development (R&D) funding continues\nto be crucial to support technology innovation and development. The\nStrategic Energy Technology (SET) plan and the forthcoming Horizon\n2020 research programme are the EU's main contribution to driving\ndevelopments in key energy technologies. The Commission's 2013\nCommunication on energy technology policy will identify future\nR&D needs and challenges in line with the priorities identified\nin Horizon 2020. It will develop plans to ensure Europe will\ncompete globally to drive innovation forward on a broad range of\nrenewable energy technologies, including new ones, as well as\nexplore further scope for action in promoting existing SET Plan\ntechnologies.
\nPost 2020: the\nCommission states that if current policy initiatives are not\nadequate to achieve our long-term energy and climate policy\nobjectives, as the 2050 Roadmap suggests, renewable energy\nannual growth would slump from 6% to 1%. To maintain robust\ngrowth of renewable energy beyond 2020, which is a \"no regrets\"\nconclusion of the 2050 analysis, a supportive policy framework will\nbe needed to address remaining market or infrastructure\ninadequacies. It is crucial to consider the options for concrete\n2030 milestones. The impact assessment accompanying the report\ndiscusses three policy options. These are:
\n\n· \na decarbonisation without renewable energy\ntargets option, relying on the carbon market and a revised ETS\n(Directive 2009/29/EC);
\n\n· \nthe continuation of the current regime,\nwith binding renewable energy, emissions reductions and energy\nefficiency targets; and
\n\n· \nan enhanced, more harmonised management of our\nwhole energy sector with an EU renewable energy\ntarget.
\nIt is clear that specific 2030 renewables milestones\ncan only be designed after reflection on the state of post-2020\nclimate policy, the degree of competition in Europe's electricity,\nheating and cooling and transport fuel markets, and the degree of\nenergy diversity and technology innovation expected by\n2020.
\nThe Committee on Industry, Research and Energy adopted\nthe initiative report by Herbert REUL (EPP, DE) on the current\nchallenges and opportunities for renewable energy in the European\ninternal energy market in response to the Commission communication\nentitled ‘Renewable Energy: a major player in the European\nenergy market’.
\nGetting the benefit of renewables : Members agree with the Commission that RES,\ntogether with energy efficiency measures and flexible and smart\ninfrastructure, are the ‘no regrets’ options identified\nby the Commission and that RES in the future will account for a\ngrowing share of energy provision in Europe. Members recalls that\nall scenarios presented by the Commission in its Energy Roadmap 2050 assume a\nshare of at least 30% RES in the EU’s energy mix in 2030. They\nsuggest, therefore, that the EU should endeavour to achieve an even\nhigher share.
\nEmphasising that safe, secure, affordable and\nsustainable energy provision is indispensable for the\ncompetitiveness of European industry and the economy, Members\nhighlight that the share of RES in electricity, heating and cooling\nand transport needs to be increased in a manner that is\ncost-efficient, taking into account the benefits and full costs of\nRES, including system costs, while safeguarding supply security.\nThe report calls on the EU to guarantee that the promotion of\nrenewable resources in the production and use of energy will not\njeopardise food security, high-quality sustainable food production\nor agricultural competitiveness.
\nThe report notes that the Member States, within the\nframework provided by the EU Renewable Energy Directive 2009/28/EC,\nare currently acting independently in promoting RES within\nnational administrative frameworks that differ widely, and\nthat this is exacerbating their uneven development. A functioning\ninternal market could contribute to compensating RES variability\nand the uneven distribution of natural assets.
\nConvinced that most areas can make contributions to\nthe deployment of RES, Members stress the need to incentivise\ninvestment in RES where they have the greatest potential, in order\nto ensure efficient use of public funding. They call on the\nCommission to explore with the European Investment Bank and\nnational institutions possibilities for innovative financial\ninstruments to finance renewable energy projects, while carbon\nmarkets should do their part in incentivising investments in RES\nprojects;
\nRenewable energy on the European internal energy\nmarket : Members note that the\ninternal market in gas and electricity is to be completed by\n2014 and will be crucial for RES integration to serve as a\ncost-effective means to balance variable electricity production.\nThe Commission is called upon to : (i) use all the instruments\navailable, including the referral of Member States to the Court of\nJustice, to bring the internal energy market closer to completion\nas quickly as possible; (ii) tackle inappropriate market\nconcentration where it hinders competition. Member States are\ncalled upon to continue with the full implementation of the\ninternal energy market legislation and the development of\ninterconnections, as well as the elimination of energy islands and\nbottlenecks.
\nInfrastructure requirements : the report insists on the modernisation of\nthe energy grid. It also stresses that infrastructure\ndevelopment is urgent and critical for the success of the\nsingle market. Members note that implementation of the energy\ninfrastructure package is crucial in this respect, in particular\nfor speeding up the construction of new infrastructure with\ncross-border impact.
\nNoting that there is an increasing need for a\nstable policy framework to provide economic guarantees\nconcerning the availability of these reserves as well as for system\nand balancing services, Member reject the concept of competition\nfor subsidies between energy sources and call for an energy market\ndesign tailored to the Union’s long-term energy and climate\npolicy objectives, which makes it possible to integrate RES\ntechnologies into the internal energy market.
\nThe Commission is called upon to assess whether there\nis a capacity issue in the EU and to determine the amount of\nfirm capacity that can be provided by variable RES in an integrated\nEU power system, as well as its potential impact on generation\nadequacy.
\nNoting the advantages of decentralised renewable\nenergy supply close to consumption centres, Members point out\nthat the Commission should facilitate the development of adequate\nmodelling tools to define the optimal mix of distant, large scale\ngeneration plants and distribution level installations.
\nThe report also notes that insufficient network\ncapacity and storage facilities and a lack of cooperation between\ntransmission system operators can add to uncoordinated cross-border\nenergy flows (loop flows) and could cause serious emergencies\nin other Member States. In this regards, Members call on the Member\nStates to press ahead as quickly as possible with the development\nof transmission and distribution systems and to encourage greater\ncooperation between transmission system operators.
\nThe Commission is asked to elaborate a short-term\nloop-flow compensation mechanism providing affected Member\nStates with a fair cost-sharing methodology until necessary grid\ndevelopments and the flow-based market coupling are\ncompleted.
\nThe report underlines the potential of smart grids,\ndemand side management tools and energy storage solutions, both\nto facilitate the best possible integration of RES-E and to even\nout grid fluctuations.
\nEmpowering consumers : stressing the need for further action to increase\nthe social acceptance of renewable energy sources, Members state\nthat an effective action to this end would be to establish a\nholistic approach to the producer/consumer – or\n‘prosumer’ – who would be able to manage the process\nof energy generation. The report notes that a prerequisite for\nefficient local consumption and production of energy, from a\nprosumer and distribution-grid perspective, is the roll-out of\nsmart meters and more generally of smart grids.
\nMembers stress that energy should be affordable for\nall and that industry’s ability to compete must not be\naffected. They ask the Member States to take the necessary measures\nto ensure that low income customers are effectively\nprotected, while raising public awareness of the potential of\nenergy saving and energy efficiency measures.
\nRecognising that the deployment of small-scale\nRES represents an opportunity for single households, industries\nand communities to become energy producers, the report notes the\nimportance of stimulating local cooperatives for renewable energy\nin increasing citizens’ participation, increasing\naccessibility of renewable energy and generating financial\ninvestments
\nInternational cooperation and trade : Members underline the role domestic renewable\nenergy sources play in terms of security of supply and\nre-establishing a positive trade balance with oil and gas exporter\ncountries. They stress that these should play a larger role in\nachieving the EU’s energy security.
\nEmphasising that the unlawful distortion of\ncompetition on the market is unacceptable and that the best\nconditions for the growth of RES are offered by free and open\nglobal markets, the report calls on the Commission\nto :
\nThe report underlines the need for closer cooperation\non energy policy, including in the field of renewable energy, with\nthe EU’s neighbouring countries, and the need to exploit the\ntrading potential of renewables more effectively.
\nInnovation, R&D and industrial\npolicy : Members stress that\nonly innovation, based on R&D, can secure Europe’s leading\nposition in renewable energy technology markets. They stress\nprivate investors’ need for certainty and call on the\nCommission to foster an industrial strategy for energy\ntechnologies, including, in particular, renewable energy\ntechnologies.
\nA European framework for the promotion of renewable\nenergy : Members welcome the\nCommission’s declared intention to draw up guidelines on\ngood practice and the reform of national support arrangements.\nThe Commission is called upon to produce the guidelines as soon as\npossible to ensure that the different national schemes do not\ndistort competition or create barriers to trade and investment\nwithin the EU, in order to encourage predictability and\ncost-effectiveness and avoid excessive subsidies.
\nLastly, Members regard it as essential, in view of the\nmultiplicity of support arrangements in place in the Member States,\nto move the debate about greater convergence and a suitable\nEuropean system of support for post-2020 forward.
\nPURPOSE: Commission Communication on the integration\nof renewable energy into the Single Market.
\nCONTEXT: in 2007 the EU set the ambitious goal of\nachieving a 20% share of renewable energy and a 10% share of\nrenewable energy in transport by 2020 and has flanked these\nobjectives by a series of supporting policies. The renewable energy\ngoal is a headline target of the Europe 2020 strategy for smart,\nsustainable and inclusive growth. At the start of 2012, these\npolicies are beginning to work and the EU is currently on track to\nachieve its goals.
\nHowever, the economic crisis has made investors\ncautious about the energy sector. In Europe's liberalised energy\nmarkets, the growth of renewable energy depends on private sector\ninvestment, which in turn relies on the stability of renewable\nenergy policy. Investment in infrastructure, manufacturing and\nlogistics also requires related investment - in testing facilities,\ncable production, factories and ships to build offshore wind\ninstallations. In parallel to a rigorous implementation of the Renewable\nEnergy Directive, clarity on longer-term policy is needed to\nensure that the necessary investment is made.
\nThe Energy\nRoadmap 2050 builds on the single energy market, the\nimplementation of the energy infrastructure package and climate\nobjectives as outlined in the 2050\nLow Carbon Economy Roadmap. Regardless of scenario choice, the\nbiggest share of energy supply in 2050 will come from renewable\nenergy.
\nHowever, despite the strong framework to 2020, the\nRoadmap suggests that growth of renewable energy will drop after\n2020 without further intervention due to their higher costs and\nbarriers compared to fossil fuels. Early policy clarity on the post\n2020 regime will generate real benefits for investors in industry\nand infrastructure as well as for renewable energy investors\ndirectly.
\nWhilst the Renewable Energy Directive (2009/28/EC)\nprovides for setting a post2020 roadmap in 2018, stakeholders have\nalready been asking for clarity regarding policy developments after\n2020.
\nThis is why the Commission believes it is important\nto start preparing now for the period beyond\n2020.
\nCONTENT: this Communication i) explains how renewable\nenergy is being integrated into the single market; ii) gives some\nguidance on the current framework until 2020, and iii) outlines\npossible policy options for beyond 2020, to ensure continuity\nand stability, enabling Europe's renewable energy production\nto continue to grow to 2030 and beyond.
\nThe Communication indicates the following areas where\nefforts should be stepped up until 2020 to achieve renewable energy\ngoals whilst being cost-efficient:
\nInternal market for energy: strong growth in renewable energy markets suggests\nthat significant \"maturing\" of technologies is occurring. Achieving\ncompetitiveness, however, requires political commitment to\nregulatory frameworks that support industrial policy, technology\ndevelopment and removal of market distortions. It is important to\ndrive down costs, to ensure renewable energy technologies become\ncompetitive and ultimately market driven.
\n\n1) \nPolicies that hinder investment in renewables\nshould be revised and in particular, fossil fuel subsidies\nshould be phased out.
\n\n2) \nIn view of the complementarity of climate and\nrenewable energy policies, a well-functioning carbon market is\nnecessary together with properly designed energy taxes to\ngive investors strong incentives to invest in low carbon\ntechnologies and their development.
\n\n3) \nAt the same time renewable energy should be\ngradually integrated into the market with reduced or no\nsupport, and should over time contribute to the stability and\nsecurity of the grid on a level footing with conventional\nelectricity generators and competitive electricity\nprices.
\nImproving support schemes: today, most renewable energy technologies benefit\nfrom national support schemes, but only a small share of the energy\nmarket is affected: less than a third of the 19% of electricity\nfrom renewable energy is sheltered from market prices. Mature\ntechnologies operating in competitive markets, with a\nwell-functioning carbon market should ultimately no longer need\nsupport. However, some form of R&D and other financial or\nadministrative support may continue to be needed for newer,\nless mature technologies.
\nRecent changes to support schemes have in some cases\nbeen triggered by unexpectedly high growth rapidly increasing\nexpenditure on renewable energy, which is not sustainable in the\nshort term. In some Member States, changes to support schemes have\nlacked transparency, have been introduced suddenly and at times\nhave even been imposed retroactively or have introduced\nmoratoriums. For new technologies and investment still dependant on\nsupport, such practices undermine investor confidence in the\nsector. Moreover diverging national support schemes, based on\ndiffering incentives may create barriers to entry and\nprevent market operators from deploying cross-border business\nmodels, possibly hindering business development. Such a risk of\nimpairing the single market must be avoided and more action is also\nneeded to ensure consistency of approach and remove distortions. To\nencourage this, the Commission plans to prepare guidance on best\npractice and experience gained in these matters and, if needed,\non support scheme reform, to avoid fragmentation of the\ninternal market. Principles for support schemes need to be\nestablished that minimise market distortions, avoid over\ncompensation and ensure consistency across Member\nStates.
\nBoosting cooperation and trade: the Renewable Energy Directive created cooperation\nmechanisms to enable renewable energy produced in one Member State\nto count towards the target of another. These have not yet been\nwidely exploited despite the potential economic benefits for\nboth parties. Only two Member States have indicated that they would\nuse cooperation mechanisms to achieve their 2020\ntargets.
\nTo encourage the development of renewable energy\nproduction in and with neighbouring countries, the Commission will\nfacilitate international cooperation on renewable energy\ndevelopment by both enabling full use of the cooperation mechanisms\nwhich could develop renewables in the Southern\nMediterranean.
\nTransforming infrastructures: the challenge of meeting future infrastructure needs\nwill very much depend on our capacity to develop renewables, grid\ninfrastructure and better operational solutions together in a\nsingle market. Infrastructure development is therefore both\nurgent and critical for the success of the single market and\nfor the integration of renewable energy. Early adoption of the\nlegislative proposals of the energy infrastructure package is\ncrucial in that respect, in particular for speeding up the\nconstruction of new infrastructure with a cross-border impact. The\nCommission will continue to work with distribution and transmission\nsystem operators, regulators, Member States and industry to ensure\nthe development of energy infrastructure is accelerated to\ncomplete the process of integrating Europe's networks and\nmarkets.
\nDriving technology innovation: research and development (R&D) funding continues\nto be crucial to support technology innovation and development. The\nStrategic Energy Technology (SET) plan and the forthcoming Horizon\n2020 research programme are the EU's main contribution to driving\ndevelopments in key energy technologies. The Commission's 2013\nCommunication on energy technology policy will identify future\nR&D needs and challenges in line with the priorities identified\nin Horizon 2020. It will develop plans to ensure Europe will\ncompete globally to drive innovation forward on a broad range of\nrenewable energy technologies, including new ones, as well as\nexplore further scope for action in promoting existing SET Plan\ntechnologies.
\nPost 2020: the\nCommission states that if current policy initiatives are not\nadequate to achieve our long-term energy and climate policy\nobjectives, as the 2050 Roadmap suggests, renewable energy\nannual growth would slump from 6% to 1%. To maintain robust\ngrowth of renewable energy beyond 2020, which is a \"no regrets\"\nconclusion of the 2050 analysis, a supportive policy framework will\nbe needed to address remaining market or infrastructure\ninadequacies. It is crucial to consider the options for concrete\n2030 milestones. The impact assessment accompanying the report\ndiscusses three policy options. These are:
\n\n· \na decarbonisation without renewable energy\ntargets option, relying on the carbon market and a revised ETS\n(Directive 2009/29/EC);
\n\n· \nthe continuation of the current regime,\nwith binding renewable energy, emissions reductions and energy\nefficiency targets; and
\n\n· \nan enhanced, more harmonised management of our\nwhole energy sector with an EU renewable energy\ntarget.
\nIt is clear that specific 2030 renewables milestones\ncan only be designed after reflection on the state of post-2020\nclimate policy, the degree of competition in Europe's electricity,\nheating and cooling and transport fuel markets, and the degree of\nenergy diversity and technology innovation expected by\n2020.
\nThe Committee on Industry, Research and Energy adopted\nthe initiative report by Herbert REUL (EPP, DE) on the current\nchallenges and opportunities for renewable energy in the European\ninternal energy market in response to the Commission communication\nentitled ‘Renewable Energy: a major player in the European\nenergy market’.
\nGetting the benefit of renewables : Members agree with the Commission that RES,\ntogether with energy efficiency measures and flexible and smart\ninfrastructure, are the ‘no regrets’ options identified\nby the Commission and that RES in the future will account for a\ngrowing share of energy provision in Europe. Members recalls that\nall scenarios presented by the Commission in its Energy Roadmap 2050 assume a\nshare of at least 30% RES in the EU’s energy mix in 2030. They\nsuggest, therefore, that the EU should endeavour to achieve an even\nhigher share.
\nEmphasising that safe, secure, affordable and\nsustainable energy provision is indispensable for the\ncompetitiveness of European industry and the economy, Members\nhighlight that the share of RES in electricity, heating and cooling\nand transport needs to be increased in a manner that is\ncost-efficient, taking into account the benefits and full costs of\nRES, including system costs, while safeguarding supply security.\nThe report calls on the EU to guarantee that the promotion of\nrenewable resources in the production and use of energy will not\njeopardise food security, high-quality sustainable food production\nor agricultural competitiveness.
\nThe report notes that the Member States, within the\nframework provided by the EU Renewable Energy Directive 2009/28/EC,\nare currently acting independently in promoting RES within\nnational administrative frameworks that differ widely, and\nthat this is exacerbating their uneven development. A functioning\ninternal market could contribute to compensating RES variability\nand the uneven distribution of natural assets.
\nConvinced that most areas can make contributions to\nthe deployment of RES, Members stress the need to incentivise\ninvestment in RES where they have the greatest potential, in order\nto ensure efficient use of public funding. They call on the\nCommission to explore with the European Investment Bank and\nnational institutions possibilities for innovative financial\ninstruments to finance renewable energy projects, while carbon\nmarkets should do their part in incentivising investments in RES\nprojects;
\nRenewable energy on the European internal energy\nmarket : Members note that the\ninternal market in gas and electricity is to be completed by\n2014 and will be crucial for RES integration to serve as a\ncost-effective means to balance variable electricity production.\nThe Commission is called upon to : (i) use all the instruments\navailable, including the referral of Member States to the Court of\nJustice, to bring the internal energy market closer to completion\nas quickly as possible; (ii) tackle inappropriate market\nconcentration where it hinders competition. Member States are\ncalled upon to continue with the full implementation of the\ninternal energy market legislation and the development of\ninterconnections, as well as the elimination of energy islands and\nbottlenecks.
\nInfrastructure requirements : the report insists on the modernisation of\nthe energy grid. It also stresses that infrastructure\ndevelopment is urgent and critical for the success of the\nsingle market. Members note that implementation of the energy\ninfrastructure package is crucial in this respect, in particular\nfor speeding up the construction of new infrastructure with\ncross-border impact.
\nNoting that there is an increasing need for a\nstable policy framework to provide economic guarantees\nconcerning the availability of these reserves as well as for system\nand balancing services, Member reject the concept of competition\nfor subsidies between energy sources and call for an energy market\ndesign tailored to the Union’s long-term energy and climate\npolicy objectives, which makes it possible to integrate RES\ntechnologies into the internal energy market.
\nThe Commission is called upon to assess whether there\nis a capacity issue in the EU and to determine the amount of\nfirm capacity that can be provided by variable RES in an integrated\nEU power system, as well as its potential impact on generation\nadequacy.
\nNoting the advantages of decentralised renewable\nenergy supply close to consumption centres, Members point out\nthat the Commission should facilitate the development of adequate\nmodelling tools to define the optimal mix of distant, large scale\ngeneration plants and distribution level installations.
\nThe report also notes that insufficient network\ncapacity and storage facilities and a lack of cooperation between\ntransmission system operators can add to uncoordinated cross-border\nenergy flows (loop flows) and could cause serious emergencies\nin other Member States. In this regards, Members call on the Member\nStates to press ahead as quickly as possible with the development\nof transmission and distribution systems and to encourage greater\ncooperation between transmission system operators.
\nThe Commission is asked to elaborate a short-term\nloop-flow compensation mechanism providing affected Member\nStates with a fair cost-sharing methodology until necessary grid\ndevelopments and the flow-based market coupling are\ncompleted.
\nThe report underlines the potential of smart grids,\ndemand side management tools and energy storage solutions, both\nto facilitate the best possible integration of RES-E and to even\nout grid fluctuations.
\nEmpowering consumers : stressing the need for further action to increase\nthe social acceptance of renewable energy sources, Members state\nthat an effective action to this end would be to establish a\nholistic approach to the producer/consumer – or\n‘prosumer’ – who would be able to manage the process\nof energy generation. The report notes that a prerequisite for\nefficient local consumption and production of energy, from a\nprosumer and distribution-grid perspective, is the roll-out of\nsmart meters and more generally of smart grids.
\nMembers stress that energy should be affordable for\nall and that industry’s ability to compete must not be\naffected. They ask the Member States to take the necessary measures\nto ensure that low income customers are effectively\nprotected, while raising public awareness of the potential of\nenergy saving and energy efficiency measures.
\nRecognising that the deployment of small-scale\nRES represents an opportunity for single households, industries\nand communities to become energy producers, the report notes the\nimportance of stimulating local cooperatives for renewable energy\nin increasing citizens’ participation, increasing\naccessibility of renewable energy and generating financial\ninvestments
\nInternational cooperation and trade : Members underline the role domestic renewable\nenergy sources play in terms of security of supply and\nre-establishing a positive trade balance with oil and gas exporter\ncountries. They stress that these should play a larger role in\nachieving the EU’s energy security.
\nEmphasising that the unlawful distortion of\ncompetition on the market is unacceptable and that the best\nconditions for the growth of RES are offered by free and open\nglobal markets, the report calls on the Commission\nto :
\nThe report underlines the need for closer cooperation\non energy policy, including in the field of renewable energy, with\nthe EU’s neighbouring countries, and the need to exploit the\ntrading potential of renewables more effectively.
\nInnovation, R&D and industrial\npolicy : Members stress that\nonly innovation, based on R&D, can secure Europe’s leading\nposition in renewable energy technology markets. They stress\nprivate investors’ need for certainty and call on the\nCommission to foster an industrial strategy for energy\ntechnologies, including, in particular, renewable energy\ntechnologies.
\nA European framework for the promotion of renewable\nenergy : Members welcome the\nCommission’s declared intention to draw up guidelines on\ngood practice and the reform of national support arrangements.\nThe Commission is called upon to produce the guidelines as soon as\npossible to ensure that the different national schemes do not\ndistort competition or create barriers to trade and investment\nwithin the EU, in order to encourage predictability and\ncost-effectiveness and avoid excessive subsidies.
\nLastly, Members regard it as essential, in view of the\nmultiplicity of support arrangements in place in the Member States,\nto move the debate about greater convergence and a suitable\nEuropean system of support for post-2020 forward.
\nPURPOSE: Commission Communication on the integration\nof renewable energy into the Single Market.
\nCONTEXT: in 2007 the EU set the ambitious goal of\nachieving a 20% share of renewable energy and a 10% share of\nrenewable energy in transport by 2020 and has flanked these\nobjectives by a series of supporting policies. The renewable energy\ngoal is a headline target of the Europe 2020 strategy for smart,\nsustainable and inclusive growth. At the start of 2012, these\npolicies are beginning to work and the EU is currently on track to\nachieve its goals.
\nHowever, the economic crisis has made investors\ncautious about the energy sector. In Europe's liberalised energy\nmarkets, the growth of renewable energy depends on private sector\ninvestment, which in turn relies on the stability of renewable\nenergy policy. Investment in infrastructure, manufacturing and\nlogistics also requires related investment - in testing facilities,\ncable production, factories and ships to build offshore wind\ninstallations. In parallel to a rigorous implementation of the Renewable\nEnergy Directive, clarity on longer-term policy is needed to\nensure that the necessary investment is made.
\nThe Energy\nRoadmap 2050 builds on the single energy market, the\nimplementation of the energy infrastructure package and climate\nobjectives as outlined in the 2050\nLow Carbon Economy Roadmap. Regardless of scenario choice, the\nbiggest share of energy supply in 2050 will come from renewable\nenergy.
\nHowever, despite the strong framework to 2020, the\nRoadmap suggests that growth of renewable energy will drop after\n2020 without further intervention due to their higher costs and\nbarriers compared to fossil fuels. Early policy clarity on the post\n2020 regime will generate real benefits for investors in industry\nand infrastructure as well as for renewable energy investors\ndirectly.
\nWhilst the Renewable Energy Directive (2009/28/EC)\nprovides for setting a post2020 roadmap in 2018, stakeholders have\nalready been asking for clarity regarding policy developments after\n2020.
\nThis is why the Commission believes it is important\nto start preparing now for the period beyond\n2020.
\nCONTENT: this Communication i) explains how renewable\nenergy is being integrated into the single market; ii) gives some\nguidance on the current framework until 2020, and iii) outlines\npossible policy options for beyond 2020, to ensure continuity\nand stability, enabling Europe's renewable energy production\nto continue to grow to 2030 and beyond.
\nThe Communication indicates the following areas where\nefforts should be stepped up until 2020 to achieve renewable energy\ngoals whilst being cost-efficient:
\nInternal market for energy: strong growth in renewable energy markets suggests\nthat significant \"maturing\" of technologies is occurring. Achieving\ncompetitiveness, however, requires political commitment to\nregulatory frameworks that support industrial policy, technology\ndevelopment and removal of market distortions. It is important to\ndrive down costs, to ensure renewable energy technologies become\ncompetitive and ultimately market driven.
\n\n1) \nPolicies that hinder investment in renewables\nshould be revised and in particular, fossil fuel subsidies\nshould be phased out.
\n\n2) \nIn view of the complementarity of climate and\nrenewable energy policies, a well-functioning carbon market is\nnecessary together with properly designed energy taxes to\ngive investors strong incentives to invest in low carbon\ntechnologies and their development.
\n\n3) \nAt the same time renewable energy should be\ngradually integrated into the market with reduced or no\nsupport, and should over time contribute to the stability and\nsecurity of the grid on a level footing with conventional\nelectricity generators and competitive electricity\nprices.
\nImproving support schemes: today, most renewable energy technologies benefit\nfrom national support schemes, but only a small share of the energy\nmarket is affected: less than a third of the 19% of electricity\nfrom renewable energy is sheltered from market prices. Mature\ntechnologies operating in competitive markets, with a\nwell-functioning carbon market should ultimately no longer need\nsupport. However, some form of R&D and other financial or\nadministrative support may continue to be needed for newer,\nless mature technologies.
\nRecent changes to support schemes have in some cases\nbeen triggered by unexpectedly high growth rapidly increasing\nexpenditure on renewable energy, which is not sustainable in the\nshort term. In some Member States, changes to support schemes have\nlacked transparency, have been introduced suddenly and at times\nhave even been imposed retroactively or have introduced\nmoratoriums. For new technologies and investment still dependant on\nsupport, such practices undermine investor confidence in the\nsector. Moreover diverging national support schemes, based on\ndiffering incentives may create barriers to entry and\nprevent market operators from deploying cross-border business\nmodels, possibly hindering business development. Such a risk of\nimpairing the single market must be avoided and more action is also\nneeded to ensure consistency of approach and remove distortions. To\nencourage this, the Commission plans to prepare guidance on best\npractice and experience gained in these matters and, if needed,\non support scheme reform, to avoid fragmentation of the\ninternal market. Principles for support schemes need to be\nestablished that minimise market distortions, avoid over\ncompensation and ensure consistency across Member\nStates.
\nBoosting cooperation and trade: the Renewable Energy Directive created cooperation\nmechanisms to enable renewable energy produced in one Member State\nto count towards the target of another. These have not yet been\nwidely exploited despite the potential economic benefits for\nboth parties. Only two Member States have indicated that they would\nuse cooperation mechanisms to achieve their 2020\ntargets.
\nTo encourage the development of renewable energy\nproduction in and with neighbouring countries, the Commission will\nfacilitate international cooperation on renewable energy\ndevelopment by both enabling full use of the cooperation mechanisms\nwhich could develop renewables in the Southern\nMediterranean.
\nTransforming infrastructures: the challenge of meeting future infrastructure needs\nwill very much depend on our capacity to develop renewables, grid\ninfrastructure and better operational solutions together in a\nsingle market. Infrastructure development is therefore both\nurgent and critical for the success of the single market and\nfor the integration of renewable energy. Early adoption of the\nlegislative proposals of the energy infrastructure package is\ncrucial in that respect, in particular for speeding up the\nconstruction of new infrastructure with a cross-border impact. The\nCommission will continue to work with distribution and transmission\nsystem operators, regulators, Member States and industry to ensure\nthe development of energy infrastructure is accelerated to\ncomplete the process of integrating Europe's networks and\nmarkets.
\nDriving technology innovation: research and development (R&D) funding continues\nto be crucial to support technology innovation and development. The\nStrategic Energy Technology (SET) plan and the forthcoming Horizon\n2020 research programme are the EU's main contribution to driving\ndevelopments in key energy technologies. The Commission's 2013\nCommunication on energy technology policy will identify future\nR&D needs and challenges in line with the priorities identified\nin Horizon 2020. It will develop plans to ensure Europe will\ncompete globally to drive innovation forward on a broad range of\nrenewable energy technologies, including new ones, as well as\nexplore further scope for action in promoting existing SET Plan\ntechnologies.
\nPost 2020: the\nCommission states that if current policy initiatives are not\nadequate to achieve our long-term energy and climate policy\nobjectives, as the 2050 Roadmap suggests, renewable energy\nannual growth would slump from 6% to 1%. To maintain robust\ngrowth of renewable energy beyond 2020, which is a \"no regrets\"\nconclusion of the 2050 analysis, a supportive policy framework will\nbe needed to address remaining market or infrastructure\ninadequacies. It is crucial to consider the options for concrete\n2030 milestones. The impact assessment accompanying the report\ndiscusses three policy options. These are:
\n\n· \na decarbonisation without renewable energy\ntargets option, relying on the carbon market and a revised ETS\n(Directive 2009/29/EC);
\n\n· \nthe continuation of the current regime,\nwith binding renewable energy, emissions reductions and energy\nefficiency targets; and
\n\n· \nan enhanced, more harmonised management of our\nwhole energy sector with an EU renewable energy\ntarget.
\nIt is clear that specific 2030 renewables milestones\ncan only be designed after reflection on the state of post-2020\nclimate policy, the degree of competition in Europe's electricity,\nheating and cooling and transport fuel markets, and the degree of\nenergy diversity and technology innovation expected by\n2020.
\nPURPOSE: Commission Communication on the integration\nof renewable energy into the Single Market.
\nCONTEXT: in 2007 the EU set the ambitious goal of\nachieving a 20% share of renewable energy and a 10% share of\nrenewable energy in transport by 2020 and has flanked these\nobjectives by a series of supporting policies. The renewable energy\ngoal is a headline target of the Europe 2020 strategy for smart,\nsustainable and inclusive growth. At the start of 2012, these\npolicies are beginning to work and the EU is currently on track to\nachieve its goals.
\nHowever, the economic crisis has made investors\ncautious about the energy sector. In Europe's liberalised energy\nmarkets, the growth of renewable energy depends on private sector\ninvestment, which in turn relies on the stability of renewable\nenergy policy. Investment in infrastructure, manufacturing and\nlogistics also requires related investment - in testing facilities,\ncable production, factories and ships to build offshore wind\ninstallations. In parallel to a rigorous implementation of the Renewable\nEnergy Directive, clarity on longer-term policy is needed to\nensure that the necessary investment is made.
\nThe Energy\nRoadmap 2050 builds on the single energy market, the\nimplementation of the energy infrastructure package and climate\nobjectives as outlined in the 2050\nLow Carbon Economy Roadmap. Regardless of scenario choice, the\nbiggest share of energy supply in 2050 will come from renewable\nenergy.
\nHowever, despite the strong framework to 2020, the\nRoadmap suggests that growth of renewable energy will drop after\n2020 without further intervention due to their higher costs and\nbarriers compared to fossil fuels. Early policy clarity on the post\n2020 regime will generate real benefits for investors in industry\nand infrastructure as well as for renewable energy investors\ndirectly.
\nWhilst the Renewable Energy Directive (2009/28/EC)\nprovides for setting a post2020 roadmap in 2018, stakeholders have\nalready been asking for clarity regarding policy developments after\n2020.
\nThis is why the Commission believes it is important\nto start preparing now for the period beyond\n2020.
\nCONTENT: this Communication i) explains how renewable\nenergy is being integrated into the single market; ii) gives some\nguidance on the current framework until 2020, and iii) outlines\npossible policy options for beyond 2020, to ensure continuity\nand stability, enabling Europe's renewable energy production\nto continue to grow to 2030 and beyond.
\nThe Communication indicates the following areas where\nefforts should be stepped up until 2020 to achieve renewable energy\ngoals whilst being cost-efficient:
\nInternal market for energy: strong growth in renewable energy markets suggests\nthat significant \"maturing\" of technologies is occurring. Achieving\ncompetitiveness, however, requires political commitment to\nregulatory frameworks that support industrial policy, technology\ndevelopment and removal of market distortions. It is important to\ndrive down costs, to ensure renewable energy technologies become\ncompetitive and ultimately market driven.
\n\n1) \nPolicies that hinder investment in renewables\nshould be revised and in particular, fossil fuel subsidies\nshould be phased out.
\n\n2) \nIn view of the complementarity of climate and\nrenewable energy policies, a well-functioning carbon market is\nnecessary together with properly designed energy taxes to\ngive investors strong incentives to invest in low carbon\ntechnologies and their development.
\n\n3) \nAt the same time renewable energy should be\ngradually integrated into the market with reduced or no\nsupport, and should over time contribute to the stability and\nsecurity of the grid on a level footing with conventional\nelectricity generators and competitive electricity\nprices.
\nImproving support schemes: today, most renewable energy technologies benefit\nfrom national support schemes, but only a small share of the energy\nmarket is affected: less than a third of the 19% of electricity\nfrom renewable energy is sheltered from market prices. Mature\ntechnologies operating in competitive markets, with a\nwell-functioning carbon market should ultimately no longer need\nsupport. However, some form of R&D and other financial or\nadministrative support may continue to be needed for newer,\nless mature technologies.
\nRecent changes to support schemes have in some cases\nbeen triggered by unexpectedly high growth rapidly increasing\nexpenditure on renewable energy, which is not sustainable in the\nshort term. In some Member States, changes to support schemes have\nlacked transparency, have been introduced suddenly and at times\nhave even been imposed retroactively or have introduced\nmoratoriums. For new technologies and investment still dependant on\nsupport, such practices undermine investor confidence in the\nsector. Moreover diverging national support schemes, based on\ndiffering incentives may create barriers to entry and\nprevent market operators from deploying cross-border business\nmodels, possibly hindering business development. Such a risk of\nimpairing the single market must be avoided and more action is also\nneeded to ensure consistency of approach and remove distortions. To\nencourage this, the Commission plans to prepare guidance on best\npractice and experience gained in these matters and, if needed,\non support scheme reform, to avoid fragmentation of the\ninternal market. Principles for support schemes need to be\nestablished that minimise market distortions, avoid over\ncompensation and ensure consistency across Member\nStates.
\nBoosting cooperation and trade: the Renewable Energy Directive created cooperation\nmechanisms to enable renewable energy produced in one Member State\nto count towards the target of another. These have not yet been\nwidely exploited despite the potential economic benefits for\nboth parties. Only two Member States have indicated that they would\nuse cooperation mechanisms to achieve their 2020\ntargets.
\nTo encourage the development of renewable energy\nproduction in and with neighbouring countries, the Commission will\nfacilitate international cooperation on renewable energy\ndevelopment by both enabling full use of the cooperation mechanisms\nwhich could develop renewables in the Southern\nMediterranean.
\nTransforming infrastructures: the challenge of meeting future infrastructure needs\nwill very much depend on our capacity to develop renewables, grid\ninfrastructure and better operational solutions together in a\nsingle market. Infrastructure development is therefore both\nurgent and critical for the success of the single market and\nfor the integration of renewable energy. Early adoption of the\nlegislative proposals of the energy infrastructure package is\ncrucial in that respect, in particular for speeding up the\nconstruction of new infrastructure with a cross-border impact. The\nCommission will continue to work with distribution and transmission\nsystem operators, regulators, Member States and industry to ensure\nthe development of energy infrastructure is accelerated to\ncomplete the process of integrating Europe's networks and\nmarkets.
\nDriving technology innovation: research and development (R&D) funding continues\nto be crucial to support technology innovation and development. The\nStrategic Energy Technology (SET) plan and the forthcoming Horizon\n2020 research programme are the EU's main contribution to driving\ndevelopments in key energy technologies. The Commission's 2013\nCommunication on energy technology policy will identify future\nR&D needs and challenges in line with the priorities identified\nin Horizon 2020. It will develop plans to ensure Europe will\ncompete globally to drive innovation forward on a broad range of\nrenewable energy technologies, including new ones, as well as\nexplore further scope for action in promoting existing SET Plan\ntechnologies.
\nPost 2020: the\nCommission states that if current policy initiatives are not\nadequate to achieve our long-term energy and climate policy\nobjectives, as the 2050 Roadmap suggests, renewable energy\nannual growth would slump from 6% to 1%. To maintain robust\ngrowth of renewable energy beyond 2020, which is a \"no regrets\"\nconclusion of the 2050 analysis, a supportive policy framework will\nbe needed to address remaining market or infrastructure\ninadequacies. It is crucial to consider the options for concrete\n2030 milestones. The impact assessment accompanying the report\ndiscusses three policy options. These are:
\n\n· \na decarbonisation without renewable energy\ntargets option, relying on the carbon market and a revised ETS\n(Directive 2009/29/EC);
\n\n· \nthe continuation of the current regime,\nwith binding renewable energy, emissions reductions and energy\nefficiency targets; and
\n\n· \nan enhanced, more harmonised management of our\nwhole energy sector with an EU renewable energy\ntarget.
\nIt is clear that specific 2030 renewables milestones\ncan only be designed after reflection on the state of post-2020\nclimate policy, the degree of competition in Europe's electricity,\nheating and cooling and transport fuel markets, and the degree of\nenergy diversity and technology innovation expected by\n2020.
\nPURPOSE: Commission Communication on the integration\nof renewable energy into the Single Market.
\nCONTEXT: in 2007 the EU set the ambitious goal of\nachieving a 20% share of renewable energy and a 10% share of\nrenewable energy in transport by 2020 and has flanked these\nobjectives by a series of supporting policies. The renewable energy\ngoal is a headline target of the Europe 2020 strategy for smart,\nsustainable and inclusive growth. At the start of 2012, these\npolicies are beginning to work and the EU is currently on track to\nachieve its goals.
\nHowever, the economic crisis has made investors\ncautious about the energy sector. In Europe's liberalised energy\nmarkets, the growth of renewable energy depends on private sector\ninvestment, which in turn relies on the stability of renewable\nenergy policy. Investment in infrastructure, manufacturing and\nlogistics also requires related investment - in testing facilities,\ncable production, factories and ships to build offshore wind\ninstallations. In parallel to a rigorous implementation of the Renewable\nEnergy Directive, clarity on longer-term policy is needed to\nensure that the necessary investment is made.
\nThe Energy\nRoadmap 2050 builds on the single energy market, the\nimplementation of the energy infrastructure package and climate\nobjectives as outlined in the 2050\nLow Carbon Economy Roadmap. Regardless of scenario choice, the\nbiggest share of energy supply in 2050 will come from renewable\nenergy.
\nHowever, despite the strong framework to 2020, the\nRoadmap suggests that growth of renewable energy will drop after\n2020 without further intervention due to their higher costs and\nbarriers compared to fossil fuels. Early policy clarity on the post\n2020 regime will generate real benefits for investors in industry\nand infrastructure as well as for renewable energy investors\ndirectly.
\nWhilst the Renewable Energy Directive (2009/28/EC)\nprovides for setting a post2020 roadmap in 2018, stakeholders have\nalready been asking for clarity regarding policy developments after\n2020.
\nThis is why the Commission believes it is important\nto start preparing now for the period beyond\n2020.
\nCONTENT: this Communication i) explains how renewable\nenergy is being integrated into the single market; ii) gives some\nguidance on the current framework until 2020, and iii) outlines\npossible policy options for beyond 2020, to ensure continuity\nand stability, enabling Europe's renewable energy production\nto continue to grow to 2030 and beyond.
\nThe Communication indicates the following areas where\nefforts should be stepped up until 2020 to achieve renewable energy\ngoals whilst being cost-efficient:
\nInternal market for energy: strong growth in renewable energy markets suggests\nthat significant \"maturing\" of technologies is occurring. Achieving\ncompetitiveness, however, requires political commitment to\nregulatory frameworks that support industrial policy, technology\ndevelopment and removal of market distortions. It is important to\ndrive down costs, to ensure renewable energy technologies become\ncompetitive and ultimately market driven.
\n\n1) \nPolicies that hinder investment in renewables\nshould be revised and in particular, fossil fuel subsidies\nshould be phased out.
\n\n2) \nIn view of the complementarity of climate and\nrenewable energy policies, a well-functioning carbon market is\nnecessary together with properly designed energy taxes to\ngive investors strong incentives to invest in low carbon\ntechnologies and their development.
\n\n3) \nAt the same time renewable energy should be\ngradually integrated into the market with reduced or no\nsupport, and should over time contribute to the stability and\nsecurity of the grid on a level footing with conventional\nelectricity generators and competitive electricity\nprices.
\nImproving support schemes: today, most renewable energy technologies benefit\nfrom national support schemes, but only a small share of the energy\nmarket is affected: less than a third of the 19% of electricity\nfrom renewable energy is sheltered from market prices. Mature\ntechnologies operating in competitive markets, with a\nwell-functioning carbon market should ultimately no longer need\nsupport. However, some form of R&D and other financial or\nadministrative support may continue to be needed for newer,\nless mature technologies.
\nRecent changes to support schemes have in some cases\nbeen triggered by unexpectedly high growth rapidly increasing\nexpenditure on renewable energy, which is not sustainable in the\nshort term. In some Member States, changes to support schemes have\nlacked transparency, have been introduced suddenly and at times\nhave even been imposed retroactively or have introduced\nmoratoriums. For new technologies and investment still dependant on\nsupport, such practices undermine investor confidence in the\nsector. Moreover diverging national support schemes, based on\ndiffering incentives may create barriers to entry and\nprevent market operators from deploying cross-border business\nmodels, possibly hindering business development. Such a risk of\nimpairing the single market must be avoided and more action is also\nneeded to ensure consistency of approach and remove distortions. To\nencourage this, the Commission plans to prepare guidance on best\npractice and experience gained in these matters and, if needed,\non support scheme reform, to avoid fragmentation of the\ninternal market. Principles for support schemes need to be\nestablished that minimise market distortions, avoid over\ncompensation and ensure consistency across Member\nStates.
\nBoosting cooperation and trade: the Renewable Energy Directive created cooperation\nmechanisms to enable renewable energy produced in one Member State\nto count towards the target of another. These have not yet been\nwidely exploited despite the potential economic benefits for\nboth parties. Only two Member States have indicated that they would\nuse cooperation mechanisms to achieve their 2020\ntargets.
\nTo encourage the development of renewable energy\nproduction in and with neighbouring countries, the Commission will\nfacilitate international cooperation on renewable energy\ndevelopment by both enabling full use of the cooperation mechanisms\nwhich could develop renewables in the Southern\nMediterranean.
\nTransforming infrastructures: the challenge of meeting future infrastructure needs\nwill very much depend on our capacity to develop renewables, grid\ninfrastructure and better operational solutions together in a\nsingle market. Infrastructure development is therefore both\nurgent and critical for the success of the single market and\nfor the integration of renewable energy. Early adoption of the\nlegislative proposals of the energy infrastructure package is\ncrucial in that respect, in particular for speeding up the\nconstruction of new infrastructure with a cross-border impact. The\nCommission will continue to work with distribution and transmission\nsystem operators, regulators, Member States and industry to ensure\nthe development of energy infrastructure is accelerated to\ncomplete the process of integrating Europe's networks and\nmarkets.
\nDriving technology innovation: research and development (R&D) funding continues\nto be crucial to support technology innovation and development. The\nStrategic Energy Technology (SET) plan and the forthcoming Horizon\n2020 research programme are the EU's main contribution to driving\ndevelopments in key energy technologies. The Commission's 2013\nCommunication on energy technology policy will identify future\nR&D needs and challenges in line with the priorities identified\nin Horizon 2020. It will develop plans to ensure Europe will\ncompete globally to drive innovation forward on a broad range of\nrenewable energy technologies, including new ones, as well as\nexplore further scope for action in promoting existing SET Plan\ntechnologies.
\nPost 2020: the\nCommission states that if current policy initiatives are not\nadequate to achieve our long-term energy and climate policy\nobjectives, as the 2050 Roadmap suggests, renewable energy\nannual growth would slump from 6% to 1%. To maintain robust\ngrowth of renewable energy beyond 2020, which is a \"no regrets\"\nconclusion of the 2050 analysis, a supportive policy framework will\nbe needed to address remaining market or infrastructure\ninadequacies. It is crucial to consider the options for concrete\n2030 milestones. The impact assessment accompanying the report\ndiscusses three policy options. These are:
\n\n· \na decarbonisation without renewable energy\ntargets option, relying on the carbon market and a revised ETS\n(Directive 2009/29/EC);
\n\n· \nthe continuation of the current regime,\nwith binding renewable energy, emissions reductions and energy\nefficiency targets; and
\n\n· \nan enhanced, more harmonised management of our\nwhole energy sector with an EU renewable energy\ntarget.
\nIt is clear that specific 2030 renewables milestones\ncan only be designed after reflection on the state of post-2020\nclimate policy, the degree of competition in Europe's electricity,\nheating and cooling and transport fuel markets, and the degree of\nenergy diversity and technology innovation expected by\n2020.
\nPURPOSE: Commission Communication on the integration\nof renewable energy into the Single Market.
\nCONTEXT: in 2007 the EU set the ambitious goal of\nachieving a 20% share of renewable energy and a 10% share of\nrenewable energy in transport by 2020 and has flanked these\nobjectives by a series of supporting policies. The renewable energy\ngoal is a headline target of the Europe 2020 strategy for smart,\nsustainable and inclusive growth. At the start of 2012, these\npolicies are beginning to work and the EU is currently on track to\nachieve its goals.
\nHowever, the economic crisis has made investors\ncautious about the energy sector. In Europe's liberalised energy\nmarkets, the growth of renewable energy depends on private sector\ninvestment, which in turn relies on the stability of renewable\nenergy policy. Investment in infrastructure, manufacturing and\nlogistics also requires related investment - in testing facilities,\ncable production, factories and ships to build offshore wind\ninstallations. In parallel to a rigorous implementation of the Renewable\nEnergy Directive, clarity on longer-term policy is needed to\nensure that the necessary investment is made.
\nThe Energy\nRoadmap 2050 builds on the single energy market, the\nimplementation of the energy infrastructure package and climate\nobjectives as outlined in the 2050\nLow Carbon Economy Roadmap. Regardless of scenario choice, the\nbiggest share of energy supply in 2050 will come from renewable\nenergy.
\nHowever, despite the strong framework to 2020, the\nRoadmap suggests that growth of renewable energy will drop after\n2020 without further intervention due to their higher costs and\nbarriers compared to fossil fuels. Early policy clarity on the post\n2020 regime will generate real benefits for investors in industry\nand infrastructure as well as for renewable energy investors\ndirectly.
\nWhilst the Renewable Energy Directive (2009/28/EC)\nprovides for setting a post2020 roadmap in 2018, stakeholders have\nalready been asking for clarity regarding policy developments after\n2020.
\nThis is why the Commission believes it is important\nto start preparing now for the period beyond\n2020.
\nCONTENT: this Communication i) explains how renewable\nenergy is being integrated into the single market; ii) gives some\nguidance on the current framework until 2020, and iii) outlines\npossible policy options for beyond 2020, to ensure continuity\nand stability, enabling Europe's renewable energy production\nto continue to grow to 2030 and beyond.
\nThe Communication indicates the following areas where\nefforts should be stepped up until 2020 to achieve renewable energy\ngoals whilst being cost-efficient:
\nInternal market for energy: strong growth in renewable energy markets suggests\nthat significant \"maturing\" of technologies is occurring. Achieving\ncompetitiveness, however, requires political commitment to\nregulatory frameworks that support industrial policy, technology\ndevelopment and removal of market distortions. It is important to\ndrive down costs, to ensure renewable energy technologies become\ncompetitive and ultimately market driven.
\n\n1) \nPolicies that hinder investment in renewables\nshould be revised and in particular, fossil fuel subsidies\nshould be phased out.
\n\n2) \nIn view of the complementarity of climate and\nrenewable energy policies, a well-functioning carbon market is\nnecessary together with properly designed energy taxes to\ngive investors strong incentives to invest in low carbon\ntechnologies and their development.
\n\n3) \nAt the same time renewable energy should be\ngradually integrated into the market with reduced or no\nsupport, and should over time contribute to the stability and\nsecurity of the grid on a level footing with conventional\nelectricity generators and competitive electricity\nprices.
\nImproving support schemes: today, most renewable energy technologies benefit\nfrom national support schemes, but only a small share of the energy\nmarket is affected: less than a third of the 19% of electricity\nfrom renewable energy is sheltered from market prices. Mature\ntechnologies operating in competitive markets, with a\nwell-functioning carbon market should ultimately no longer need\nsupport. However, some form of R&D and other financial or\nadministrative support may continue to be needed for newer,\nless mature technologies.
\nRecent changes to support schemes have in some cases\nbeen triggered by unexpectedly high growth rapidly increasing\nexpenditure on renewable energy, which is not sustainable in the\nshort term. In some Member States, changes to support schemes have\nlacked transparency, have been introduced suddenly and at times\nhave even been imposed retroactively or have introduced\nmoratoriums. For new technologies and investment still dependant on\nsupport, such practices undermine investor confidence in the\nsector. Moreover diverging national support schemes, based on\ndiffering incentives may create barriers to entry and\nprevent market operators from deploying cross-border business\nmodels, possibly hindering business development. Such a risk of\nimpairing the single market must be avoided and more action is also\nneeded to ensure consistency of approach and remove distortions. To\nencourage this, the Commission plans to prepare guidance on best\npractice and experience gained in these matters and, if needed,\non support scheme reform, to avoid fragmentation of the\ninternal market. Principles for support schemes need to be\nestablished that minimise market distortions, avoid over\ncompensation and ensure consistency across Member\nStates.
\nBoosting cooperation and trade: the Renewable Energy Directive created cooperation\nmechanisms to enable renewable energy produced in one Member State\nto count towards the target of another. These have not yet been\nwidely exploited despite the potential economic benefits for\nboth parties. Only two Member States have indicated that they would\nuse cooperation mechanisms to achieve their 2020\ntargets.
\nTo encourage the development of renewable energy\nproduction in and with neighbouring countries, the Commission will\nfacilitate international cooperation on renewable energy\ndevelopment by both enabling full use of the cooperation mechanisms\nwhich could develop renewables in the Southern\nMediterranean.
\nTransforming infrastructures: the challenge of meeting future infrastructure needs\nwill very much depend on our capacity to develop renewables, grid\ninfrastructure and better operational solutions together in a\nsingle market. Infrastructure development is therefore both\nurgent and critical for the success of the single market and\nfor the integration of renewable energy. Early adoption of the\nlegislative proposals of the energy infrastructure package is\ncrucial in that respect, in particular for speeding up the\nconstruction of new infrastructure with a cross-border impact. The\nCommission will continue to work with distribution and transmission\nsystem operators, regulators, Member States and industry to ensure\nthe development of energy infrastructure is accelerated to\ncomplete the process of integrating Europe's networks and\nmarkets.
\nDriving technology innovation: research and development (R&D) funding continues\nto be crucial to support technology innovation and development. The\nStrategic Energy Technology (SET) plan and the forthcoming Horizon\n2020 research programme are the EU's main contribution to driving\ndevelopments in key energy technologies. The Commission's 2013\nCommunication on energy technology policy will identify future\nR&D needs and challenges in line with the priorities identified\nin Horizon 2020. It will develop plans to ensure Europe will\ncompete globally to drive innovation forward on a broad range of\nrenewable energy technologies, including new ones, as well as\nexplore further scope for action in promoting existing SET Plan\ntechnologies.
\nPost 2020: the\nCommission states that if current policy initiatives are not\nadequate to achieve our long-term energy and climate policy\nobjectives, as the 2050 Roadmap suggests, renewable energy\nannual growth would slump from 6% to 1%. To maintain robust\ngrowth of renewable energy beyond 2020, which is a \"no regrets\"\nconclusion of the 2050 analysis, a supportive policy framework will\nbe needed to address remaining market or infrastructure\ninadequacies. It is crucial to consider the options for concrete\n2030 milestones. The impact assessment accompanying the report\ndiscusses three policy options. These are:
\n\n· \na decarbonisation without renewable energy\ntargets option, relying on the carbon market and a revised ETS\n(Directive 2009/29/EC);
\n\n· \nthe continuation of the current regime,\nwith binding renewable energy, emissions reductions and energy\nefficiency targets; and
\n\n· \nan enhanced, more harmonised management of our\nwhole energy sector with an EU renewable energy\ntarget.
\nIt is clear that specific 2030 renewables milestones\ncan only be designed after reflection on the state of post-2020\nclimate policy, the degree of competition in Europe's electricity,\nheating and cooling and transport fuel markets, and the degree of\nenergy diversity and technology innovation expected by\n2020.
\nThe Committee on Foreign Affairs adopted an\nown-initiative report by Liisa JAAKONSAARI (S&D, FI) containing\nthe European Parliament’s recommendations to the Council, the\nCommission and the European External Action Service on the\nnegotiations for an EU-Kazakhstan enhanced partnership and\ncooperation agreement (PCA).
\nMembers, first of all, underline the troubles which\nhave marked the political life of this country and note that,\nnotwithstanding the Kazakh government’s stated ambition to\nstrengthen Kazakhstan’s democratic process and to conduct\nelections in line with international standards, the general\nelections held on 15 January 2012 were deemed by the OSCE not to be\nin line with its standards.
\nThey also recall that, after the tragic events of\nDecember 2011 in Zhanaozen, (demonstration of strikers within the\noil sector which the anti-riot police answered by opening fire on\nthe civilians, causing the death of several people) opposition\nparties, independent media, trade unions, activists and human\nrights defenders have become targets of repression. Members\nalso emphasise the fact that the opposition within the country is\npersecuted.
\nWhilst they welcome Kazakhstan’s political will\nand practical engagement to further deepen partnership with the EU,\nthey consider that the negotiations must ensure that this PCA is a\ncomprehensive framework for the further development of\nrelations, addressing all priority areas, including human rights,\nthe rule of law, good governance, and democratisation but also\neconomic development, trade and investment, energy and\ntransport.
\nAmong the broad topics for negotiation, Members\nprioritise the following key elements:
\nPolitical dialogue and\ncooperation: Members demand that the\nEU works closely with Kazakhstan in order to promote regional\ncooperation and the improvement of neighbourly relations in the\nCentral Asia region, whilst ensuring that the tackling of\nquestions such as border management, the fight against extremism\nand counter-terrorism. Members particularly insist that the\nEU encourages Kazakhstan to work together\nwith its neighbours in order to come to a common solution on the\nstatus of the Caspian Sea.
\nHuman rights and fundamental freedoms:\nMembers believe that the PCA should incorporate\nclauses and benchmarks relating to the protection and promotion of\nhuman rights as enshrined in the Constitution of Kazakhstan and\nother relevant international instruments. Progress in the\nnegotiation of the new PCA must be linked to the progress of\npolitical reform of the type that builds up an open and\ndemocratic society including an independent civil society and\nopposition. Evoking the\nParliament's resolution of 15 March 2012 demanding the release\nof all persons detained on politically motivated charges in the\ncountry, Members call on the Kazakh authorities to investigate all\nallegations in connection with the Zhanaozen violence and to punish\nthose responsible. They call on the country’s authorities,\nmoreover, to allow the opposition to express itself and to release\ncondemned activists such as Vladimir Kozlov, Akzhanat Aminov et\nSerik Sapargali. Members demand, among other things: i) a binding\ncommitment from the country to bring the legal system fully into\nline with international standards; ii) access to independent\njustice; iii) the end of politically motivated arrests and\nconvictions carried out on the basis of the vague criminal charge\nof “inciting social discord”; iv) the establishment of\nindependent civil society platforms in order to ensure that the\naspirations and voices of civil society are heard; v) intensifying\nthe scope of the exchange programmes in education and culture, and\nvisa facilitation.
\nEconomic cooperation: in\nconformity with WTO rules, Members call for the removal of tariff\nand non-tariff barriers in order to extend trade, particularly\ntrade in services and foreign investment. Principally within the\nfield of energy, the cooperation must be reinforced,\nparticularly in terms of the efforts to develop the trans-Caspian\nenergy route. Members further recommend that Kazakhstan’s\nparticipation in the Russian-led Customs Union and the Eurasian\nEconomic Union does not constitute a barrier to trade or to\neconomic and financial cooperation with the EU.
\nThey call for:
\nOn the institutional level, lastly, Members\nhope that the European Parliament sees its role reinforced within\nthe framework of these negotiations and the follow-up of this\nagreement. They call for the establishment of a comprehensive\nmonitoring mechanism between Parliament and EEAS once the Agreement\nis concluded, so as to allow for comprehensive and regular\ninformation on the implementation of the PCA, and in particular of\nits objectives, so as to duly inform the Parliament of the results\nof the actions undertaken as regards reform in the field of the\nhuman rights.
\nThe Committee on Foreign Affairs adopted an\nown-initiative report by Liisa JAAKONSAARI (S&D, FI) containing\nthe European Parliament’s recommendations to the Council, the\nCommission and the European External Action Service on the\nnegotiations for an EU-Kazakhstan enhanced partnership and\ncooperation agreement (PCA).
\nMembers, first of all, underline the troubles which\nhave marked the political life of this country and note that,\nnotwithstanding the Kazakh government’s stated ambition to\nstrengthen Kazakhstan’s democratic process and to conduct\nelections in line with international standards, the general\nelections held on 15 January 2012 were deemed by the OSCE not to be\nin line with its standards.
\nThey also recall that, after the tragic events of\nDecember 2011 in Zhanaozen, (demonstration of strikers within the\noil sector which the anti-riot police answered by opening fire on\nthe civilians, causing the death of several people) opposition\nparties, independent media, trade unions, activists and human\nrights defenders have become targets of repression. Members\nalso emphasise the fact that the opposition within the country is\npersecuted.
\nWhilst they welcome Kazakhstan’s political will\nand practical engagement to further deepen partnership with the EU,\nthey consider that the negotiations must ensure that this PCA is a\ncomprehensive framework for the further development of\nrelations, addressing all priority areas, including human rights,\nthe rule of law, good governance, and democratisation but also\neconomic development, trade and investment, energy and\ntransport.
\nAmong the broad topics for negotiation, Members\nprioritise the following key elements:
\nPolitical dialogue and\ncooperation: Members demand that the\nEU works closely with Kazakhstan in order to promote regional\ncooperation and the improvement of neighbourly relations in the\nCentral Asia region, whilst ensuring that the tackling of\nquestions such as border management, the fight against extremism\nand counter-terrorism. Members particularly insist that the\nEU encourages Kazakhstan to work together\nwith its neighbours in order to come to a common solution on the\nstatus of the Caspian Sea.
\nHuman rights and fundamental freedoms:\nMembers believe that the PCA should incorporate\nclauses and benchmarks relating to the protection and promotion of\nhuman rights as enshrined in the Constitution of Kazakhstan and\nother relevant international instruments. Progress in the\nnegotiation of the new PCA must be linked to the progress of\npolitical reform of the type that builds up an open and\ndemocratic society including an independent civil society and\nopposition. Evoking the\nParliament's resolution of 15 March 2012 demanding the release\nof all persons detained on politically motivated charges in the\ncountry, Members call on the Kazakh authorities to investigate all\nallegations in connection with the Zhanaozen violence and to punish\nthose responsible. They call on the country’s authorities,\nmoreover, to allow the opposition to express itself and to release\ncondemned activists such as Vladimir Kozlov, Akzhanat Aminov et\nSerik Sapargali. Members demand, among other things: i) a binding\ncommitment from the country to bring the legal system fully into\nline with international standards; ii) access to independent\njustice; iii) the end of politically motivated arrests and\nconvictions carried out on the basis of the vague criminal charge\nof “inciting social discord”; iv) the establishment of\nindependent civil society platforms in order to ensure that the\naspirations and voices of civil society are heard; v) intensifying\nthe scope of the exchange programmes in education and culture, and\nvisa facilitation.
\nEconomic cooperation: in\nconformity with WTO rules, Members call for the removal of tariff\nand non-tariff barriers in order to extend trade, particularly\ntrade in services and foreign investment. Principally within the\nfield of energy, the cooperation must be reinforced,\nparticularly in terms of the efforts to develop the trans-Caspian\nenergy route. Members further recommend that Kazakhstan’s\nparticipation in the Russian-led Customs Union and the Eurasian\nEconomic Union does not constitute a barrier to trade or to\neconomic and financial cooperation with the EU.
\nThey call for:
\nOn the institutional level, lastly, Members\nhope that the European Parliament sees its role reinforced within\nthe framework of these negotiations and the follow-up of this\nagreement. They call for the establishment of a comprehensive\nmonitoring mechanism between Parliament and EEAS once the Agreement\nis concluded, so as to allow for comprehensive and regular\ninformation on the implementation of the PCA, and in particular of\nits objectives, so as to duly inform the Parliament of the results\nof the actions undertaken as regards reform in the field of the\nhuman rights.
\nPURPOSE : to present a renewed EU strategy 2011-14 for\nCorporate Social Responsibility
\nBACKGROUND : the European Commission has previously\ndefined Corporate Social Responsibility (CSR) in its 2001 Green Paper as “a\nconcept whereby companies integrate social and environmental\nconcerns in their business operations and in their interaction with\ntheir stakeholders on a voluntary basis”.
\nThe Commission details the progress made since its\nGreen Paper and a business-lead initiative called the European\nAlliance for CSR. Indicators of progress\ninclude:
\n\n· \nthe number of EU enterprises that have signed up\nto the ten CSR principles of the United Nations Global Compact has\nrisen from 600 in 2006 to over 1900 in 2011;
\n\n· \nthe number of organisations with sites\nregistered under the Environmental Management and Audit Scheme\n(EMAS) has risen from 3 300 in 2006 to over 4 600 in\n2011;
\n\n· \nthe number of EU companies signing transnational\ncompany agreements with global or European workers’\norganisations, covering issues such as labour standards, rose from\n79 in 2006 to over 140 in 2011.
\nIn spite of this progress, important challenges\nremain. Many companies in the EU have not yet fully integrated\nsocial and environmental concerns into their operations and core\nstrategy. Accusations persist of the involvement of a small\nminority of European enterprises in human rights harm and failure\nto respect core labour standards. Only 15 out of 27 EU Member\nStates have national policy frameworks to promote CSR. The\nCommission has identified a number of factors that will help to\nfurther increase the impact of its CSR policy, including the need\nto better clarify what is expected of enterprises, and the need to\npromote market reward for responsible business conduct, including\nthrough investment policy and public procurement.
\nThe Council and the European Parliament in its\nresolutions of 2007, and 2011 have called on the\nCommission to further develop its CSR policy. Furthermore, in the\nEurope 2020 Strategy, the Commission made a commitment to renew the\nEU strategy to promote Corporate Social Responsibility. In the\nSingle Market Act it stated that it would adopt a new communication\non CSR by the end of 2011.
\nThe economic crisis and its social consequences\nhave to some extent damaged consumer confidence and levels of trust\nin business. They have focused public attention on the social and\nethical performance of enterprises. By renewing efforts to promote\nCSR now, the Commission aims to create conditions favourable to\nsustainable growth, responsible business behaviour and durable\nemployment generation in the medium and long term.
\nCONTENT : the Commission presents a modern\nunderstanding of CSR, including an updated definition, and a\nnew agenda for action. The main features are as follows:
\nDefinition: the\nCommission puts forward a new definition of CSR as “the\nresponsibility of enterprises for their impacts on\nsociety”. Respect for applicable legislation, and for\ncollective agreements between social partners, is a prerequisite\nfor meeting that responsibility. To fully meet their corporate\nsocial responsibility, enterprises should have in place a process\nto integrate social, environmental, ethical, human rights and\nconsumer concerns into their business operations and core\nstrategy in close collaboration with their stakeholders, with\nthe aim of:
\n\n· \nmaximising the creation of shared value for\ntheir owners/shareholders and for their other stakeholders and\nsociety at large;
\n\n· \nidentifying, preventing and mitigating their\npossible adverse impacts.
\nThe complexity of that process will depend on factors\nsuch as the size of the enterprise and the nature of its\noperations. For most small and medium-sized enterprises, especially\nmicroenterprises, the CSR process is likely to remain informal and\nintuitive.
\nThe new definition is consistent with\ninternationally recognised CSR principles and guidelines, such\nas the OECD Guidelines for Multinational Enterprises, the ISO 26000\nGuidance Standard on Social Responsibility and the United Nations\nGuiding Principles on Business and Human Rights.
\nAgenda for action: the\nnew CSR policy puts forward an action agenda for the period\n2011-2014 covering 8 areas. This agenda contains commitments from\nthe Commission itself, as well as suggestions for enterprises,\nMember States, and other stakeholder groups. In implementing this\nagenda, the Commission will at all times take account the\nparticular characteristics of SMEs, especially their limited\nresources, and avoid creating unnecessary administrative\nburdens.
\nEnhancing the visibility of CSR and disseminating good\npractices: by giving public\nrecognition to what enterprises do in the field of CSR, the EU can\nhelp to disseminate good practice, foster peer learning, and\nencourage more enterprises to develop their own strategic\napproaches to CSR.
\nThe Commission intends to:
\n\n· \ncreate in 2013 multi stakeholder CSR\nplatforms in a number of relevant industrial sectors, for\nenterprises, their workers and other stakeholders to make\npublic commitments on the CSR issues relevant to each sector and\njointly monitor progress;
\n\n· \nlaunch from 2012 onwards a European award\nscheme for CSR partnerships between enterprises and other\nstakeholders.
\nImproving and tracking levels of trust in\nbusiness: there is frequently a gap between citizens’\nexpectations and what they perceive to be the reality of business\nbehaviour. This gap is caused partly by instances of irresponsible\nbehaviour by some enterprises, as well as by cases of some\nenterprises exaggerating their environmental or social credentials.\nThe Commission intends to:
\n\n· \naddress the issue of misleading marketing\nrelated to the environmental impacts of products (so-called\n\"green-washing\") in the context of the report on the application of\nthe Unfair Commercial Practices Directive, and consider the need\nfor possible specific measures on this issue;
\n\n· \ninitiate an open debate with citizens,\nenterprises and other stakeholders on the role and potential of\nbusiness in the 21st century, with the aim of encouraging common\nunderstanding and expectations, and carry out periodic surveys of\ncitizen trust in business and attitudes towards CSR.
\nImproving self- and co-regulation\nprocesses: the Commission will launch a process in 2012 with\nenterprises and other stakeholders to develop a code of good\npractice for self- and co-regulation exercises, which should\nimprove the effectiveness of the CSR process.
\nEnhancing market reward for CSR: this means leveraging\nEU policies in the fields of consumption, investment and public\nprocurement in order to promote market reward for responsible\nbusiness conduct. The Commission will:
\n\n· \nfacilitate the better integration of social and\nenvironmental considerations into public procurement as part of the\n2011 review of the Public Procurement Directives, without\nintroducing additional administrative burdens for contracting\nauthorities or enterprises, and without undermining the principle\nof awarding contracts to the most economically advantageous\ntender;
\n\n· \nconsider a requirement on all investment funds\nand financial institutions to inform all their clients\n(citizens, enterprises, public authorities etc.) about\nany ethical or responsible investment criteria they apply or any\nstandards and codes to which they adhere.
\nImproving company disclosure of social and\nenvironmental information: one\nsource estimates that about 2,500 European companies publish CSR or\nsustainability reports, which puts the EU in a position of global\nleadership. However this is still only a small fraction of the\n42,000 large companies operating in the EU. In order to ensure a\nlevel playing field, the Commission will present a legislative\nproposal on the transparency of the social and environmental\ninformation provided by companies in all sectors.
\nFurther integrating CSR into education, training and\nresearch: the Commission will\nexplore opportunities for financing further research and\ninnovation on CSR, and supporting CSR principles and guidelines\nin research funded still under the 7th Framework Programme, as well\nas under its successor, Horizon 2020, and in building the European\nResearch Area. It intends to provide further financial support\nfor education and training projects on CSR under the EU Lifelong\nLearning and Youth in Action Programmes, and launch an action\nin 2012 to raise the awareness of education professionals and\nenterprises on the importance of cooperation on CSR.
\nEmphasising the importance of national and\nsub-national CSR policies: the\nCommission intends to create with Member States in 2012 a peer\nreview mechanism for national CSR policies. It invites Member\nStates to develop by mid 2012 their own plans or national lists of\npriority actions to promote CSR in support of the Europe 2020\nstrategy, with reference to internationally recognised CSR\nprinciples and guidelines and in cooperation with enterprises and\nother stakeholders, taking account of the issues raised in this\ncommunication.
\nBetter aligning European and global approaches to\nCSR: the EU should promote\nEuropean interests in international CSR policy developments, while\nat the same time ensuring the integration of internationally\nrecognised principles and guidelines into its own CSR policies. The\nCommission intends to monitor the commitments made by European\nenterprises with more than 1 000 employees to take account of\ninternationally recognised CSR principles and guidelines, and take\naccount of the ISO 26000 Guidance Standard on Social Responsibility\nin its own operations. Furthermore, it invites all large European\nenterprises to make a commitment by 2014 to take account of at\nleast one of the following sets of principles and guidelines when\ndeveloping their approach to CSR: the UN Global Compact, the OECD\nGuidelines for Multinational Enterprises, or the ISO 26000 Guidance\nStandard on Social Responsibility.
\nThe report further notes that improving the\ncoherence of EU policies relevant with business and human\nrights is a critical challenge. The Commission intends\nto:
\n\n· \nwork with enterprises and stakeholders in 2012\nto develop human rights guidance for a limited number of\nrelevant industrial sectors, as well as guidance for small and\nmedium-sized enterprises, based on the UN Guiding Principles on\nBusiness and Human Rights.
\n\n· \npublish by the end of 2012 a report on EU\npriorities in the implementation of the UN Guiding Principles, and\nthereafter to issue periodic progress reports.
\nLastly, it invites EU\nMember States to develop by the end of 2012 national plans for the\nimplementation of the UN Guiding Principles.
\nThe Committee on Legal Affairs adopted the\nown-initiative report by Raffaele BALDASSARRE (EPP, IT) on\ncorporate social responsibility (CSR): accountable, transparent and\nresponsible business behaviour and sustainable growth.
\nThe Committee on Employment and Social Affairs was\nalso consulted for an opinion on this report pursuant to Rule 50 of\nthe Rules of Procedure (Associated committee).
\nThe two committees have decided to work together\nclosely in order to ensure that a cogent approach is taken in\nestablishing Parliament's position on the renewed EU strategy\n2011-2014 for corporate social responsibility. In pursuit of this\nobjective and fully in keeping with their respective\nresponsibilities, the two committees have decided to draw up, under\nRule 50 of the Rules of Procedure, two own-initiative reports, each\ncovering a separate area : the second report concerns\nCorporate Social Responsibility: promoting society's interests and\na route to sustainable and inclusive recovery [see 2012/2097(INI)].
\nMembers call for a modern understanding of CSR.\nThey strongly advocate corporate social responsibility (CSR), and\ntake the view that CSR – if implemented correctly and\npractised by all companies, not only larger firms – can make a\ngreat contribution towards restoring lost confidence, which is\nnecessary for a sustainable economic recovery, and can mitigate the\nsocial consequences of the economic crisis. This is why they\nbelieve that making CSR part of a sustainable business strategy\nis in the interest of businesses and of society as a\nwhole.
\nMembers believe that in cases where a business is in\ndifficulty, excessive bonuses, compensation and salaries paid to\nmanagers are incompatible with socially responsible\nbehaviour.
\nThe report states that a business’s tax policy\nshould be considered part and parcel of CSR and that socially\nresponsible behaviour consequently leaves no room for strategies\naimed at evading tax or exploiting tax havens.
\nOverall, Members endorse the new definition of CSR\nput forward by the Commission, which does away with the\ndichotomy between voluntary and compulsory approaches which has\nhitherto polarised debate on CSR.
\nStrengthening the links between CSR, the general\npublic, competitiveness and innovation: Members consider that the Commission should take the\ninitiative on this issue. They call on the Commission\nto:
\nMaking CSR policies more transparent and more\neffective: the report urges the\nCommission to draw up specific measures to combat misleading and\nfalse information regarding commitments to corporate social\nresponsibility and relating to the environmental and social impact\nof products and services. The issues of filing and considering\ncomplaints on the basis of an open and clear procedure and\ninitiating investigations should be examined. The report considers\nnot only that ‘greenwashing’ is a form of deception that\nmisleads consumers, public authorities, and investors, but that it\nalso reduces trust in CSR as an effective means of promoting\nsustainable and inclusive growth. Members agree that greater\naccount should be taken of social and environmental considerations\nin public procurement and calls, in this connection, for the lowest\nprice no longer to be used as an award criterion and for greater\naccountability throughout the subcontracting chain. Further\ninitiatives should be taken to unlock and strengthen the potential\nof CSR in tackling climate change (by linking it to resource and\nenergy efficiency), e.g. in the processes companies use to purchase\nraw materials.
\nMembers stress that Socially Responsible Investment\n(SRI) is part of the implementation process of CSR in investment\ndecisions. This should combine investors’ financial objectives\nwith their concerns regarding social, environmental and ethical\n(SEE) and corporate governance issues. They acknowledge the\nimportance of businesses divulging information on sustainability\nsuch as social and environmental factors, with a view to\nidentifying sustainability risks and increasing investor and\nconsumer trust. The report also stresses that stringent respect for\nhuman rights, due diligence and transparency must be\nmaintained in order to ensure CSR along the whole supply\nchain.
\nMembers state that corporate responsibility must\nnot be reduced to a marketing tool, and that it should be\nembedded in a company’s overall business strategy. They call\non the Commission and the Member States to introduce corporate\nstewardship codes that reflect the importance of responsibility for\nall in the company.
\nIn addition, Members advocate the adoption of a\nlegislative proposal on the legislative proposal on the\ntransparency of the social and environmental information, provided\nby companies allowing for high flexibility of action, matched by a\nsufficient level of comparability to meet the needs of investors\nand other stakeholders as well as the need to provide consumers\nwith easy access to information on businesses’ impact on\nsociety.
\nOther proposes measures include: (i) the need for\nincreased, more inclusive and more transparent monitoring of CSR\nprinciples in EU trade policy; (ii) the provision of concrete\ninformation on and education and training in CSR, so that\nenterprises can take full advantage of CSR and implement it in\ntheir organisational culture; (iii) further consideration to be\ngiven to both binding and non-binding measures to facilitate the\nrecognition and promotion of efforts by businesses in connection\nwith transparency and the disclosure of non-financial\ninformation.
\nMembers are opposed to the introduction of specific\nparameters, such as EU-wide performance indicators, which could\ngive rise to unnecessary red tape and inefficient operational\nstructures.
\nAs regards auto-regulation: Members welcome the Commission’s intention to\nlaunch a ‘Community of Practice’ on CSR which must be\ncomplementary to a code of good practice for co-regulation and\nself-regulation. In this respect, they call for the full and active\nconsultation and involvement of representative organisations,\nincluding trade unions.
\nWhilst acknowledging the substantial value and\npotential of self-regulation and co-regulation instruments, Members\nare opposed, however, to the introduction of a single\napproach that fails to take account of the specificities of\neach sector and the specific requirements of businesses.
\nMembers support the Commission’s proposal to\nrequire all investment funds and financial institutions to inform\nevery customer (citizens, businesses, public authorities, etc)\nabout any ethical or responsible investment criteria which they\napply or any standards and codes to which they adhere. They call\nfor the CSR policies of companies in the relevant sectors (such as\ntravel, insurance, accommodation and telecommunications) to include\npositive and practical strategies and structures to support victims\nof crime and their families during a crisis.
\nCSR and SMEs: putting theory into\npractice: Members draw attention to\nthe special features of SMEs, which mainly operate at local and\nregional level inside specific sectors. They call for the\n‘think small first’ principle to be strengthened.\nThey oppose all measures that could result in additional\nadministrative or financial constraints for SMEs. Members call on\nthe Commission, in collaboration with Member States, SME\nintermediary organisations and other stakeholders, to devise\nstrategies and measures to help SMEs pool best CSR practice.\nDevelopment and support strategies aimed at disseminating CSR among\nSMEs should also be devised and specific measures should be drawn\nup for small and micro-enterprises.
\nOn an external note,\nMembers stress that, following the entry into force of the Lisbon\nTreaty, Parliament is to be fully informed on how the findings of\nSustainability Impact Assessments (SIA) of agreements are\nincorporated into negotiations. They stress that future bilateral\ninvestment treaties signed by the EU must guarantee that a fair\nbalance is struck between the need to protect investors and the\nneed to allow for state intervention, especially with regard to\nsocial, health and environmental standards.
\nThe report also calls on the Commission to raise\nawareness at corporate level concerning the importance of CSR and\nthe consequences of non-compliance The Commission should\nencourage EU companies to take initiatives aimed at promoting CSR\nand to exchange good practices with their partners in other\ncountries.
\nTo conclude, Members\nemphasise the need for any regulatory measures to be drawn up\nwithin a robust legal framework and in line with international\nstandards, in order to avoid disparate national interpretations.\nThey encourage the Commission to continue its efforts to promote\nCSR in relations with other countries and regions around the world\nand call for greater efforts to make reciprocity a central tenet of\ntrade relations. They reaffirm the belief that the development of\nCSR should be driven primarily through the multi-stakeholder\napproach. There is a need for targeted measures and approaches for\nthe development of CSR among SMEs.
\nLastly, the report notes that the current Commission\nstrategy for CSR covers the period 2011-2014. It calls on the\nCommission to ensure that an ambitious strategy is adopted in good\ntime for the period after 2014.
\nThe Committee on Legal Affairs adopted the\nown-initiative report by Raffaele BALDASSARRE (EPP, IT) on\ncorporate social responsibility (CSR): accountable, transparent and\nresponsible business behaviour and sustainable growth.
\nThe Committee on Employment and Social Affairs was\nalso consulted for an opinion on this report pursuant to Rule 50 of\nthe Rules of Procedure (Associated committee).
\nThe two committees have decided to work together\nclosely in order to ensure that a cogent approach is taken in\nestablishing Parliament's position on the renewed EU strategy\n2011-2014 for corporate social responsibility. In pursuit of this\nobjective and fully in keeping with their respective\nresponsibilities, the two committees have decided to draw up, under\nRule 50 of the Rules of Procedure, two own-initiative reports, each\ncovering a separate area : the second report concerns\nCorporate Social Responsibility: promoting society's interests and\na route to sustainable and inclusive recovery [see 2012/2097(INI)].
\nMembers call for a modern understanding of CSR.\nThey strongly advocate corporate social responsibility (CSR), and\ntake the view that CSR – if implemented correctly and\npractised by all companies, not only larger firms – can make a\ngreat contribution towards restoring lost confidence, which is\nnecessary for a sustainable economic recovery, and can mitigate the\nsocial consequences of the economic crisis. This is why they\nbelieve that making CSR part of a sustainable business strategy\nis in the interest of businesses and of society as a\nwhole.
\nMembers believe that in cases where a business is in\ndifficulty, excessive bonuses, compensation and salaries paid to\nmanagers are incompatible with socially responsible\nbehaviour.
\nThe report states that a business’s tax policy\nshould be considered part and parcel of CSR and that socially\nresponsible behaviour consequently leaves no room for strategies\naimed at evading tax or exploiting tax havens.
\nOverall, Members endorse the new definition of CSR\nput forward by the Commission, which does away with the\ndichotomy between voluntary and compulsory approaches which has\nhitherto polarised debate on CSR.
\nStrengthening the links between CSR, the general\npublic, competitiveness and innovation: Members consider that the Commission should take the\ninitiative on this issue. They call on the Commission\nto:
\nMaking CSR policies more transparent and more\neffective: the report urges the\nCommission to draw up specific measures to combat misleading and\nfalse information regarding commitments to corporate social\nresponsibility and relating to the environmental and social impact\nof products and services. The issues of filing and considering\ncomplaints on the basis of an open and clear procedure and\ninitiating investigations should be examined. The report considers\nnot only that ‘greenwashing’ is a form of deception that\nmisleads consumers, public authorities, and investors, but that it\nalso reduces trust in CSR as an effective means of promoting\nsustainable and inclusive growth. Members agree that greater\naccount should be taken of social and environmental considerations\nin public procurement and calls, in this connection, for the lowest\nprice no longer to be used as an award criterion and for greater\naccountability throughout the subcontracting chain. Further\ninitiatives should be taken to unlock and strengthen the potential\nof CSR in tackling climate change (by linking it to resource and\nenergy efficiency), e.g. in the processes companies use to purchase\nraw materials.
\nMembers stress that Socially Responsible Investment\n(SRI) is part of the implementation process of CSR in investment\ndecisions. This should combine investors’ financial objectives\nwith their concerns regarding social, environmental and ethical\n(SEE) and corporate governance issues. They acknowledge the\nimportance of businesses divulging information on sustainability\nsuch as social and environmental factors, with a view to\nidentifying sustainability risks and increasing investor and\nconsumer trust. The report also stresses that stringent respect for\nhuman rights, due diligence and transparency must be\nmaintained in order to ensure CSR along the whole supply\nchain.
\nMembers state that corporate responsibility must\nnot be reduced to a marketing tool, and that it should be\nembedded in a company’s overall business strategy. They call\non the Commission and the Member States to introduce corporate\nstewardship codes that reflect the importance of responsibility for\nall in the company.
\nIn addition, Members advocate the adoption of a\nlegislative proposal on the legislative proposal on the\ntransparency of the social and environmental information, provided\nby companies allowing for high flexibility of action, matched by a\nsufficient level of comparability to meet the needs of investors\nand other stakeholders as well as the need to provide consumers\nwith easy access to information on businesses’ impact on\nsociety.
\nOther proposes measures include: (i) the need for\nincreased, more inclusive and more transparent monitoring of CSR\nprinciples in EU trade policy; (ii) the provision of concrete\ninformation on and education and training in CSR, so that\nenterprises can take full advantage of CSR and implement it in\ntheir organisational culture; (iii) further consideration to be\ngiven to both binding and non-binding measures to facilitate the\nrecognition and promotion of efforts by businesses in connection\nwith transparency and the disclosure of non-financial\ninformation.
\nMembers are opposed to the introduction of specific\nparameters, such as EU-wide performance indicators, which could\ngive rise to unnecessary red tape and inefficient operational\nstructures.
\nAs regards auto-regulation: Members welcome the Commission’s intention to\nlaunch a ‘Community of Practice’ on CSR which must be\ncomplementary to a code of good practice for co-regulation and\nself-regulation. In this respect, they call for the full and active\nconsultation and involvement of representative organisations,\nincluding trade unions.
\nWhilst acknowledging the substantial value and\npotential of self-regulation and co-regulation instruments, Members\nare opposed, however, to the introduction of a single\napproach that fails to take account of the specificities of\neach sector and the specific requirements of businesses.
\nMembers support the Commission’s proposal to\nrequire all investment funds and financial institutions to inform\nevery customer (citizens, businesses, public authorities, etc)\nabout any ethical or responsible investment criteria which they\napply or any standards and codes to which they adhere. They call\nfor the CSR policies of companies in the relevant sectors (such as\ntravel, insurance, accommodation and telecommunications) to include\npositive and practical strategies and structures to support victims\nof crime and their families during a crisis.
\nCSR and SMEs: putting theory into\npractice: Members draw attention to\nthe special features of SMEs, which mainly operate at local and\nregional level inside specific sectors. They call for the\n‘think small first’ principle to be strengthened.\nThey oppose all measures that could result in additional\nadministrative or financial constraints for SMEs. Members call on\nthe Commission, in collaboration with Member States, SME\nintermediary organisations and other stakeholders, to devise\nstrategies and measures to help SMEs pool best CSR practice.\nDevelopment and support strategies aimed at disseminating CSR among\nSMEs should also be devised and specific measures should be drawn\nup for small and micro-enterprises.
\nOn an external note,\nMembers stress that, following the entry into force of the Lisbon\nTreaty, Parliament is to be fully informed on how the findings of\nSustainability Impact Assessments (SIA) of agreements are\nincorporated into negotiations. They stress that future bilateral\ninvestment treaties signed by the EU must guarantee that a fair\nbalance is struck between the need to protect investors and the\nneed to allow for state intervention, especially with regard to\nsocial, health and environmental standards.
\nThe report also calls on the Commission to raise\nawareness at corporate level concerning the importance of CSR and\nthe consequences of non-compliance The Commission should\nencourage EU companies to take initiatives aimed at promoting CSR\nand to exchange good practices with their partners in other\ncountries.
\nTo conclude, Members\nemphasise the need for any regulatory measures to be drawn up\nwithin a robust legal framework and in line with international\nstandards, in order to avoid disparate national interpretations.\nThey encourage the Commission to continue its efforts to promote\nCSR in relations with other countries and regions around the world\nand call for greater efforts to make reciprocity a central tenet of\ntrade relations. They reaffirm the belief that the development of\nCSR should be driven primarily through the multi-stakeholder\napproach. There is a need for targeted measures and approaches for\nthe development of CSR among SMEs.
\nLastly, the report notes that the current Commission\nstrategy for CSR covers the period 2011-2014. It calls on the\nCommission to ensure that an ambitious strategy is adopted in good\ntime for the period after 2014.
\nPURPOSE : to present a renewed EU strategy 2011-14 for\nCorporate Social Responsibility
\nBACKGROUND : the European Commission has previously\ndefined Corporate Social Responsibility (CSR) in its 2001 Green Paper as “a\nconcept whereby companies integrate social and environmental\nconcerns in their business operations and in their interaction with\ntheir stakeholders on a voluntary basis”.
\nThe Commission details the progress made since its\nGreen Paper and a business-lead initiative called the European\nAlliance for CSR. Indicators of progress\ninclude:
\n\n· \nthe number of EU enterprises that have signed up\nto the ten CSR principles of the United Nations Global Compact has\nrisen from 600 in 2006 to over 1900 in 2011;
\n\n· \nthe number of organisations with sites\nregistered under the Environmental Management and Audit Scheme\n(EMAS) has risen from 3 300 in 2006 to over 4 600 in\n2011;
\n\n· \nthe number of EU companies signing transnational\ncompany agreements with global or European workers’\norganisations, covering issues such as labour standards, rose from\n79 in 2006 to over 140 in 2011.
\nIn spite of this progress, important challenges\nremain. Many companies in the EU have not yet fully integrated\nsocial and environmental concerns into their operations and core\nstrategy. Accusations persist of the involvement of a small\nminority of European enterprises in human rights harm and failure\nto respect core labour standards. Only 15 out of 27 EU Member\nStates have national policy frameworks to promote CSR. The\nCommission has identified a number of factors that will help to\nfurther increase the impact of its CSR policy, including the need\nto better clarify what is expected of enterprises, and the need to\npromote market reward for responsible business conduct, including\nthrough investment policy and public procurement.
\nThe Council and the European Parliament in its\nresolutions of 2007, and 2011 have called on the\nCommission to further develop its CSR policy. Furthermore, in the\nEurope 2020 Strategy, the Commission made a commitment to renew the\nEU strategy to promote Corporate Social Responsibility. In the\nSingle Market Act it stated that it would adopt a new communication\non CSR by the end of 2011.
\nThe economic crisis and its social consequences\nhave to some extent damaged consumer confidence and levels of trust\nin business. They have focused public attention on the social and\nethical performance of enterprises. By renewing efforts to promote\nCSR now, the Commission aims to create conditions favourable to\nsustainable growth, responsible business behaviour and durable\nemployment generation in the medium and long term.
\nCONTENT : the Commission presents a modern\nunderstanding of CSR, including an updated definition, and a\nnew agenda for action. The main features are as follows:
\nDefinition: the\nCommission puts forward a new definition of CSR as “the\nresponsibility of enterprises for their impacts on\nsociety”. Respect for applicable legislation, and for\ncollective agreements between social partners, is a prerequisite\nfor meeting that responsibility. To fully meet their corporate\nsocial responsibility, enterprises should have in place a process\nto integrate social, environmental, ethical, human rights and\nconsumer concerns into their business operations and core\nstrategy in close collaboration with their stakeholders, with\nthe aim of:
\n\n· \nmaximising the creation of shared value for\ntheir owners/shareholders and for their other stakeholders and\nsociety at large;
\n\n· \nidentifying, preventing and mitigating their\npossible adverse impacts.
\nThe complexity of that process will depend on factors\nsuch as the size of the enterprise and the nature of its\noperations. For most small and medium-sized enterprises, especially\nmicroenterprises, the CSR process is likely to remain informal and\nintuitive.
\nThe new definition is consistent with\ninternationally recognised CSR principles and guidelines, such\nas the OECD Guidelines for Multinational Enterprises, the ISO 26000\nGuidance Standard on Social Responsibility and the United Nations\nGuiding Principles on Business and Human Rights.
\nAgenda for action: the\nnew CSR policy puts forward an action agenda for the period\n2011-2014 covering 8 areas. This agenda contains commitments from\nthe Commission itself, as well as suggestions for enterprises,\nMember States, and other stakeholder groups. In implementing this\nagenda, the Commission will at all times take account the\nparticular characteristics of SMEs, especially their limited\nresources, and avoid creating unnecessary administrative\nburdens.
\nEnhancing the visibility of CSR and disseminating good\npractices: by giving public\nrecognition to what enterprises do in the field of CSR, the EU can\nhelp to disseminate good practice, foster peer learning, and\nencourage more enterprises to develop their own strategic\napproaches to CSR.
\nThe Commission intends to:
\n\n· \ncreate in 2013 multi stakeholder CSR\nplatforms in a number of relevant industrial sectors, for\nenterprises, their workers and other stakeholders to make\npublic commitments on the CSR issues relevant to each sector and\njointly monitor progress;
\n\n· \nlaunch from 2012 onwards a European award\nscheme for CSR partnerships between enterprises and other\nstakeholders.
\nImproving and tracking levels of trust in\nbusiness: there is frequently a gap between citizens’\nexpectations and what they perceive to be the reality of business\nbehaviour. This gap is caused partly by instances of irresponsible\nbehaviour by some enterprises, as well as by cases of some\nenterprises exaggerating their environmental or social credentials.\nThe Commission intends to:
\n\n· \naddress the issue of misleading marketing\nrelated to the environmental impacts of products (so-called\n\"green-washing\") in the context of the report on the application of\nthe Unfair Commercial Practices Directive, and consider the need\nfor possible specific measures on this issue;
\n\n· \ninitiate an open debate with citizens,\nenterprises and other stakeholders on the role and potential of\nbusiness in the 21st century, with the aim of encouraging common\nunderstanding and expectations, and carry out periodic surveys of\ncitizen trust in business and attitudes towards CSR.
\nImproving self- and co-regulation\nprocesses: the Commission will launch a process in 2012 with\nenterprises and other stakeholders to develop a code of good\npractice for self- and co-regulation exercises, which should\nimprove the effectiveness of the CSR process.
\nEnhancing market reward for CSR: this means leveraging\nEU policies in the fields of consumption, investment and public\nprocurement in order to promote market reward for responsible\nbusiness conduct. The Commission will:
\n\n· \nfacilitate the better integration of social and\nenvironmental considerations into public procurement as part of the\n2011 review of the Public Procurement Directives, without\nintroducing additional administrative burdens for contracting\nauthorities or enterprises, and without undermining the principle\nof awarding contracts to the most economically advantageous\ntender;
\n\n· \nconsider a requirement on all investment funds\nand financial institutions to inform all their clients\n(citizens, enterprises, public authorities etc.) about\nany ethical or responsible investment criteria they apply or any\nstandards and codes to which they adhere.
\nImproving company disclosure of social and\nenvironmental information: one\nsource estimates that about 2,500 European companies publish CSR or\nsustainability reports, which puts the EU in a position of global\nleadership. However this is still only a small fraction of the\n42,000 large companies operating in the EU. In order to ensure a\nlevel playing field, the Commission will present a legislative\nproposal on the transparency of the social and environmental\ninformation provided by companies in all sectors.
\nFurther integrating CSR into education, training and\nresearch: the Commission will\nexplore opportunities for financing further research and\ninnovation on CSR, and supporting CSR principles and guidelines\nin research funded still under the 7th Framework Programme, as well\nas under its successor, Horizon 2020, and in building the European\nResearch Area. It intends to provide further financial support\nfor education and training projects on CSR under the EU Lifelong\nLearning and Youth in Action Programmes, and launch an action\nin 2012 to raise the awareness of education professionals and\nenterprises on the importance of cooperation on CSR.
\nEmphasising the importance of national and\nsub-national CSR policies: the\nCommission intends to create with Member States in 2012 a peer\nreview mechanism for national CSR policies. It invites Member\nStates to develop by mid 2012 their own plans or national lists of\npriority actions to promote CSR in support of the Europe 2020\nstrategy, with reference to internationally recognised CSR\nprinciples and guidelines and in cooperation with enterprises and\nother stakeholders, taking account of the issues raised in this\ncommunication.
\nBetter aligning European and global approaches to\nCSR: the EU should promote\nEuropean interests in international CSR policy developments, while\nat the same time ensuring the integration of internationally\nrecognised principles and guidelines into its own CSR policies. The\nCommission intends to monitor the commitments made by European\nenterprises with more than 1 000 employees to take account of\ninternationally recognised CSR principles and guidelines, and take\naccount of the ISO 26000 Guidance Standard on Social Responsibility\nin its own operations. Furthermore, it invites all large European\nenterprises to make a commitment by 2014 to take account of at\nleast one of the following sets of principles and guidelines when\ndeveloping their approach to CSR: the UN Global Compact, the OECD\nGuidelines for Multinational Enterprises, or the ISO 26000 Guidance\nStandard on Social Responsibility.
\nThe report further notes that improving the\ncoherence of EU policies relevant with business and human\nrights is a critical challenge. The Commission intends\nto:
\n\n· \nwork with enterprises and stakeholders in 2012\nto develop human rights guidance for a limited number of\nrelevant industrial sectors, as well as guidance for small and\nmedium-sized enterprises, based on the UN Guiding Principles on\nBusiness and Human Rights.
\n\n· \npublish by the end of 2012 a report on EU\npriorities in the implementation of the UN Guiding Principles, and\nthereafter to issue periodic progress reports.
\nLastly, it invites EU\nMember States to develop by the end of 2012 national plans for the\nimplementation of the UN Guiding Principles.
\nPURPOSE: to present a renewed EU strategy 2011-14 for\nCorporate Social Responsibility
\nBACKGROUND: the European Commission has previously\ndefined Corporate Social Responsibility (CSR) in its 2001 Green Paper as “a\nconcept whereby companies integrate social and environmental\nconcerns in their business operations and in their interaction with\ntheir stakeholders on a voluntary basis”.
\nThe Commission details the progress made since its\nGreen Paper and a business-lead initiative called the European\nAlliance for CSR. Indicators of progress\ninclude:
\n\n· \nthe number of EU enterprises that have signed up\nto the ten CSR principles of the United Nations Global Compact has\nrisen from 600 in 2006 to over 1 900 in 2011;
\n\n· \nthe number of organisations with sites\nregistered under the Environmental Management and Audit Scheme\n(EMAS) has risen from 3 300 in 2006 to over 4 600 in\n2011;
\n\n· \nthe number of EU companies signing transnational\ncompany agreements with global or European workers’\norganisations, covering issues such as labour standards, rose from\n79 in 2006 to over 140 in 2011.
\nIn spite of this progress, important challenges\nremain. Many companies in the EU have not yet fully integrated\nsocial and environmental concerns into their operations and core\nstrategy. Accusations persist of the involvement of a small\nminority of European enterprises in human rights harm and failure\nto respect core labour standards. Only 15 out of 27 EU Member\nStates have national policy frameworks to promote CSR. The\nCommission has identified a number of factors that will help to\nfurther increase the impact of its CSR policy, including the need\nto better clarify what is expected of enterprises, and the need to\npromote market reward for responsible business conduct, including\nthrough investment policy and public procurement.
\nThe Council and the European Parliament in its\nresolutions of 2007, and 2011 have called on the\nCommission to further develop its CSR policy. Furthermore, in the\nEurope 2020 Strategy, the Commission made a commitment to renew the\nEU strategy to promote Corporate Social Responsibility. In the\nSingle Market Act it stated that it would adopt a new communication\non CSR by the end of 2011.
\nThe economic crisis and its social consequences\nhave to some extent damaged consumer confidence and levels of trust\nin business. They have focused public attention on the social and\nethical performance of enterprises. By renewing efforts to promote\nCSR now, the Commission aims to create conditions favourable to\nsustainable growth, responsible business behaviour and durable\nemployment generation in the medium and long term.
\nCONTENT : the Commission presents a modern\nunderstanding of CSR, including an updated definition, and a\nnew agenda for action. The main features are as follows:
\nDefinition: the\nCommission puts forward a new definition of CSR as “the\nresponsibility of enterprises for their impacts on\nsociety”. Respect for applicable legislation, and for\ncollective agreements between social partners, is a prerequisite\nfor meeting that responsibility. To fully meet their corporate\nsocial responsibility, enterprises should have in place a process\nto integrate social, environmental, ethical, human rights and\nconsumer concerns into their business operations and core\nstrategy in close collaboration with their stakeholders, with\nthe aim of:
\n\n· \nmaximising the creation of shared value for\ntheir owners/shareholders and for their other stakeholders and\nsociety at large;
\n\n· \nidentifying, preventing and mitigating their\npossible adverse impacts.
\nThe complexity of that process will depend on factors\nsuch as the size of the enterprise and the nature of its\noperations. For most small and medium-sized enterprises, especially\nmicroenterprises, the CSR process is likely to remain informal and\nintuitive.
\nThe new definition is consistent with\ninternationally recognised CSR principles and guidelines, such\nas the OECD Guidelines for Multinational Enterprises, the ISO 26000\nGuidance Standard on Social Responsibility and the United Nations\nGuiding Principles on Business and Human Rights.
\nAgenda for action: the\nnew CSR policy puts forward an action agenda for the period\n2011-2014 covering 8 areas. This agenda contains commitments from\nthe Commission itself, as well as suggestions for enterprises,\nMember States, and other stakeholder groups. In implementing this\nagenda, the Commission will at all times take account the\nparticular characteristics of SMEs, especially their limited\nresources, and avoid creating unnecessary administrative\nburdens.
\nEnhancing the visibility of CSR and disseminating good\npractices: by giving public\nrecognition to what enterprises do in the field of CSR, the EU can\nhelp to disseminate good practice, foster peer learning, and\nencourage more enterprises to develop their own strategic\napproaches to CSR.
\nThe Commission intends to:
\n\n· \ncreate in 2013 multi stakeholder CSR\nplatforms in a number of relevant industrial sectors, for\nenterprises, their workers and other stakeholders to make\npublic commitments on the CSR issues relevant to each sector and\njointly monitor progress;
\n\n· \nlaunch from 2012 onwards a European award\nscheme for CSR partnerships between enterprises and other\nstakeholders.
\nImproving and tracking levels of trust in\nbusiness: there is frequently a gap between citizens’\nexpectations and what they perceive to be the reality of business\nbehaviour. This gap is caused partly by instances of irresponsible\nbehaviour by some enterprises, as well as by cases of some\nenterprises exaggerating their environmental or social credentials.\nThe Commission intends to:
\n\n· \naddress the issue of misleading marketing\nrelated to the environmental impacts of products (so-called\n\"green-washing\") in the context of the report on the application of\nthe Unfair Commercial Practices Directive, and consider the need\nfor possible specific measures on this issue;
\n\n· \ninitiate an open debate with citizens,\nenterprises and other stakeholders on the role and potential of\nbusiness in the 21st century, with the aim of encouraging common\nunderstanding and expectations, and carry out periodic surveys of\ncitizen trust in business and attitudes towards CSR.
\nImproving self- and co-regulation\nprocesses: the Commission will launch a process in 2012 with\nenterprises and other stakeholders to develop a code of good\npractice for self- and co-regulation exercises, which should\nimprove the effectiveness of the CSR process.
\nEnhancing market reward for CSR: this means leveraging\nEU policies in the fields of consumption, investment and public\nprocurement in order to promote market reward for responsible\nbusiness conduct. The Commission will:
\n\n· \nfacilitate the better integration of social and\nenvironmental considerations into public procurement as part of the\n2011 review of the Public Procurement Directives, without\nintroducing additional administrative burdens for contracting\nauthorities or enterprises, and without undermining the principle\nof awarding contracts to the most economically advantageous\ntender;
\n\n· \nconsider a requirement on all investment funds\nand financial institutions to inform all their clients\n(citizens, enterprises, public authorities etc.) about\nany ethical or responsible investment criteria they apply or any\nstandards and codes to which they adhere.
\nImproving company disclosure of social and\nenvironmental information: one\nsource estimates that about 2,500 European companies publish CSR or\nsustainability reports, which puts the EU in a position of global\nleadership. However this is still only a small fraction of the\n42,000 large companies operating in the EU. In order to ensure a\nlevel playing field, the Commission will present a legislative\nproposal on the transparency of the social and environmental\ninformation provided by companies in all sectors.
\nFurther integrating CSR into education, training and\nresearch: the Commission will\nexplore opportunities for financing further research and\ninnovation on CSR, and supporting CSR principles and guidelines\nin research funded still under the 7th Framework Programme, as well\nas under its successor, Horizon 2020, and in building the European\nResearch Area. It intends to provide further financial support\nfor education and training projects on CSR under the EU Lifelong\nLearning and Youth in Action Programmes, and launch an action\nin 2012 to raise the awareness of education professionals and\nenterprises on the importance of cooperation on CSR.
\nEmphasising the importance of national and\nsub-national CSR policies: the\nCommission intends to create with Member States in 2012 a peer\nreview mechanism for national CSR policies. It invites Member\nStates to develop by mid 2012 their own plans or national lists of\npriority actions to promote CSR in support of the Europe 2020\nstrategy, with reference to internationally recognised CSR\nprinciples and guidelines and in cooperation with enterprises and\nother stakeholders, taking account of the issues raised in this\ncommunication.
\nBetter aligning European and global approaches to\nCSR: the EU should promote\nEuropean interests in international CSR policy developments, while\nat the same time ensuring the integration of internationally\nrecognised principles and guidelines into its own CSR policies. The\nCommission intends to monitor the commitments made by European\nenterprises with more than 1 000 employees to take account of\ninternationally recognised CSR principles and guidelines, and take\naccount of the ISO 26000 Guidance Standard on Social Responsibility\nin its own operations. Furthermore, it invites all large European\nenterprises to make a commitment by 2014 to take account of at\nleast one of the following sets of principles and guidelines when\ndeveloping their approach to CSR: the UN Global Compact, the OECD\nGuidelines for Multinational Enterprises, or the ISO 26000 Guidance\nStandard on Social Responsibility.
\nThe report further notes that improving the\ncoherence of EU policies relevant with business and human\nrights is a critical challenge. The Commission intends\nto:
\n\n· \nwork with enterprises and stakeholders in 2012\nto develop human rights guidance for a limited number of\nrelevant industrial sectors, as well as guidance for small and\nmedium-sized enterprises, based on the UN Guiding Principles on\nBusiness and Human Rights.
\n\n· \npublish by the end of 2012 a report on EU\npriorities in the implementation of the UN Guiding Principles, and\nthereafter to issue periodic progress reports.
\nLastly, it invites EU\nMember States to develop by the end of 2012 national plans for the\nimplementation of the UN Guiding Principles.
\nPURPOSE: to present a renewed EU strategy 2011-14 for\nCorporate Social Responsibility
\nBACKGROUND: the European Commission has previously\ndefined Corporate Social Responsibility (CSR) in its 2001 Green Paper as “a\nconcept whereby companies integrate social and environmental\nconcerns in their business operations and in their interaction with\ntheir stakeholders on a voluntary basis”.
\nThe Commission details the progress made since its\nGreen Paper and a business-lead initiative called the European\nAlliance for CSR. Indicators of progress\ninclude:
\n\n· \nthe number of EU enterprises that have signed up\nto the ten CSR principles of the United Nations Global Compact has\nrisen from 600 in 2006 to over 1 900 in 2011;
\n\n· \nthe number of organisations with sites\nregistered under the Environmental Management and Audit Scheme\n(EMAS) has risen from 3 300 in 2006 to over 4 600 in\n2011;
\n\n· \nthe number of EU companies signing transnational\ncompany agreements with global or European workers’\norganisations, covering issues such as labour standards, rose from\n79 in 2006 to over 140 in 2011.
\nIn spite of this progress, important challenges\nremain. Many companies in the EU have not yet fully integrated\nsocial and environmental concerns into their operations and core\nstrategy. Accusations persist of the involvement of a small\nminority of European enterprises in human rights harm and failure\nto respect core labour standards. Only 15 out of 27 EU Member\nStates have national policy frameworks to promote CSR. The\nCommission has identified a number of factors that will help to\nfurther increase the impact of its CSR policy, including the need\nto better clarify what is expected of enterprises, and the need to\npromote market reward for responsible business conduct, including\nthrough investment policy and public procurement.
\nThe Council and the European Parliament in its\nresolutions of 2007, and 2011 have called on the\nCommission to further develop its CSR policy. Furthermore, in the\nEurope 2020 Strategy, the Commission made a commitment to renew the\nEU strategy to promote Corporate Social Responsibility. In the\nSingle Market Act it stated that it would adopt a new communication\non CSR by the end of 2011.
\nThe economic crisis and its social consequences\nhave to some extent damaged consumer confidence and levels of trust\nin business. They have focused public attention on the social and\nethical performance of enterprises. By renewing efforts to promote\nCSR now, the Commission aims to create conditions favourable to\nsustainable growth, responsible business behaviour and durable\nemployment generation in the medium and long term.
\nCONTENT : the Commission presents a modern\nunderstanding of CSR, including an updated definition, and a\nnew agenda for action. The main features are as follows:
\nDefinition: the\nCommission puts forward a new definition of CSR as “the\nresponsibility of enterprises for their impacts on\nsociety”. Respect for applicable legislation, and for\ncollective agreements between social partners, is a prerequisite\nfor meeting that responsibility. To fully meet their corporate\nsocial responsibility, enterprises should have in place a process\nto integrate social, environmental, ethical, human rights and\nconsumer concerns into their business operations and core\nstrategy in close collaboration with their stakeholders, with\nthe aim of:
\n\n· \nmaximising the creation of shared value for\ntheir owners/shareholders and for their other stakeholders and\nsociety at large;
\n\n· \nidentifying, preventing and mitigating their\npossible adverse impacts.
\nThe complexity of that process will depend on factors\nsuch as the size of the enterprise and the nature of its\noperations. For most small and medium-sized enterprises, especially\nmicroenterprises, the CSR process is likely to remain informal and\nintuitive.
\nThe new definition is consistent with\ninternationally recognised CSR principles and guidelines, such\nas the OECD Guidelines for Multinational Enterprises, the ISO 26000\nGuidance Standard on Social Responsibility and the United Nations\nGuiding Principles on Business and Human Rights.
\nAgenda for action: the\nnew CSR policy puts forward an action agenda for the period\n2011-2014 covering 8 areas. This agenda contains commitments from\nthe Commission itself, as well as suggestions for enterprises,\nMember States, and other stakeholder groups. In implementing this\nagenda, the Commission will at all times take account the\nparticular characteristics of SMEs, especially their limited\nresources, and avoid creating unnecessary administrative\nburdens.
\nEnhancing the visibility of CSR and disseminating good\npractices: by giving public\nrecognition to what enterprises do in the field of CSR, the EU can\nhelp to disseminate good practice, foster peer learning, and\nencourage more enterprises to develop their own strategic\napproaches to CSR.
\nThe Commission intends to:
\n\n· \ncreate in 2013 multi stakeholder CSR\nplatforms in a number of relevant industrial sectors, for\nenterprises, their workers and other stakeholders to make\npublic commitments on the CSR issues relevant to each sector and\njointly monitor progress;
\n\n· \nlaunch from 2012 onwards a European award\nscheme for CSR partnerships between enterprises and other\nstakeholders.
\nImproving and tracking levels of trust in\nbusiness: there is frequently a gap between citizens’\nexpectations and what they perceive to be the reality of business\nbehaviour. This gap is caused partly by instances of irresponsible\nbehaviour by some enterprises, as well as by cases of some\nenterprises exaggerating their environmental or social credentials.\nThe Commission intends to:
\n\n· \naddress the issue of misleading marketing\nrelated to the environmental impacts of products (so-called\n\"green-washing\") in the context of the report on the application of\nthe Unfair Commercial Practices Directive, and consider the need\nfor possible specific measures on this issue;
\n\n· \ninitiate an open debate with citizens,\nenterprises and other stakeholders on the role and potential of\nbusiness in the 21st century, with the aim of encouraging common\nunderstanding and expectations, and carry out periodic surveys of\ncitizen trust in business and attitudes towards CSR.
\nImproving self- and co-regulation\nprocesses: the Commission will launch a process in 2012 with\nenterprises and other stakeholders to develop a code of good\npractice for self- and co-regulation exercises, which should\nimprove the effectiveness of the CSR process.
\nEnhancing market reward for CSR: this means leveraging\nEU policies in the fields of consumption, investment and public\nprocurement in order to promote market reward for responsible\nbusiness conduct. The Commission will:
\n\n· \nfacilitate the better integration of social and\nenvironmental considerations into public procurement as part of the\n2011 review of the Public Procurement Directives, without\nintroducing additional administrative burdens for contracting\nauthorities or enterprises, and without undermining the principle\nof awarding contracts to the most economically advantageous\ntender;
\n\n· \nconsider a requirement on all investment funds\nand financial institutions to inform all their clients\n(citizens, enterprises, public authorities etc.) about\nany ethical or responsible investment criteria they apply or any\nstandards and codes to which they adhere.
\nImproving company disclosure of social and\nenvironmental information: one\nsource estimates that about 2,500 European companies publish CSR or\nsustainability reports, which puts the EU in a position of global\nleadership. However this is still only a small fraction of the\n42,000 large companies operating in the EU. In order to ensure a\nlevel playing field, the Commission will present a legislative\nproposal on the transparency of the social and environmental\ninformation provided by companies in all sectors.
\nFurther integrating CSR into education, training and\nresearch: the Commission will\nexplore opportunities for financing further research and\ninnovation on CSR, and supporting CSR principles and guidelines\nin research funded still under the 7th Framework Programme, as well\nas under its successor, Horizon 2020, and in building the European\nResearch Area. It intends to provide further financial support\nfor education and training projects on CSR under the EU Lifelong\nLearning and Youth in Action Programmes, and launch an action\nin 2012 to raise the awareness of education professionals and\nenterprises on the importance of cooperation on CSR.
\nEmphasising the importance of national and\nsub-national CSR policies: the\nCommission intends to create with Member States in 2012 a peer\nreview mechanism for national CSR policies. It invites Member\nStates to develop by mid 2012 their own plans or national lists of\npriority actions to promote CSR in support of the Europe 2020\nstrategy, with reference to internationally recognised CSR\nprinciples and guidelines and in cooperation with enterprises and\nother stakeholders, taking account of the issues raised in this\ncommunication.
\nBetter aligning European and global approaches to\nCSR: the EU should promote\nEuropean interests in international CSR policy developments, while\nat the same time ensuring the integration of internationally\nrecognised principles and guidelines into its own CSR policies. The\nCommission intends to monitor the commitments made by European\nenterprises with more than 1 000 employees to take account of\ninternationally recognised CSR principles and guidelines, and take\naccount of the ISO 26000 Guidance Standard on Social Responsibility\nin its own operations. Furthermore, it invites all large European\nenterprises to make a commitment by 2014 to take account of at\nleast one of the following sets of principles and guidelines when\ndeveloping their approach to CSR: the UN Global Compact, the OECD\nGuidelines for Multinational Enterprises, or the ISO 26000 Guidance\nStandard on Social Responsibility.
\nThe report further notes that improving the\ncoherence of EU policies relevant with business and human\nrights is a critical challenge. The Commission intends\nto:
\n\n· \nwork with enterprises and stakeholders in 2012\nto develop human rights guidance for a limited number of\nrelevant industrial sectors, as well as guidance for small and\nmedium-sized enterprises, based on the UN Guiding Principles on\nBusiness and Human Rights.
\n\n· \npublish by the end of 2012 a report on EU\npriorities in the implementation of the UN Guiding Principles, and\nthereafter to issue periodic progress reports.
\nLastly, it invites EU\nMember States to develop by the end of 2012 national plans for the\nimplementation of the UN Guiding Principles.
\nPURPOSE: to present a renewed EU strategy 2011-14 for\nCorporate Social Responsibility
\nBACKGROUND: the European Commission has previously\ndefined Corporate Social Responsibility (CSR) in its 2001 Green Paper as “a\nconcept whereby companies integrate social and environmental\nconcerns in their business operations and in their interaction with\ntheir stakeholders on a voluntary basis”.
\nThe Commission details the progress made since its\nGreen Paper and a business-lead initiative called the European\nAlliance for CSR. Indicators of progress\ninclude:
\n\n· \nthe number of EU enterprises that have signed up\nto the ten CSR principles of the United Nations Global Compact has\nrisen from 600 in 2006 to over 1 900 in 2011;
\n\n· \nthe number of organisations with sites\nregistered under the Environmental Management and Audit Scheme\n(EMAS) has risen from 3 300 in 2006 to over 4 600 in\n2011;
\n\n· \nthe number of EU companies signing transnational\ncompany agreements with global or European workers’\norganisations, covering issues such as labour standards, rose from\n79 in 2006 to over 140 in 2011.
\nIn spite of this progress, important challenges\nremain. Many companies in the EU have not yet fully integrated\nsocial and environmental concerns into their operations and core\nstrategy. Accusations persist of the involvement of a small\nminority of European enterprises in human rights harm and failure\nto respect core labour standards. Only 15 out of 27 EU Member\nStates have national policy frameworks to promote CSR. The\nCommission has identified a number of factors that will help to\nfurther increase the impact of its CSR policy, including the need\nto better clarify what is expected of enterprises, and the need to\npromote market reward for responsible business conduct, including\nthrough investment policy and public procurement.
\nThe Council and the European Parliament in its\nresolutions of 2007, and 2011 have called on the\nCommission to further develop its CSR policy. Furthermore, in the\nEurope 2020 Strategy, the Commission made a commitment to renew the\nEU strategy to promote Corporate Social Responsibility. In the\nSingle Market Act it stated that it would adopt a new communication\non CSR by the end of 2011.
\nThe economic crisis and its social consequences\nhave to some extent damaged consumer confidence and levels of trust\nin business. They have focused public attention on the social and\nethical performance of enterprises. By renewing efforts to promote\nCSR now, the Commission aims to create conditions favourable to\nsustainable growth, responsible business behaviour and durable\nemployment generation in the medium and long term.
\nCONTENT : the Commission presents a modern\nunderstanding of CSR, including an updated definition, and a\nnew agenda for action. The main features are as follows:
\nDefinition: the\nCommission puts forward a new definition of CSR as “the\nresponsibility of enterprises for their impacts on\nsociety”. Respect for applicable legislation, and for\ncollective agreements between social partners, is a prerequisite\nfor meeting that responsibility. To fully meet their corporate\nsocial responsibility, enterprises should have in place a process\nto integrate social, environmental, ethical, human rights and\nconsumer concerns into their business operations and core\nstrategy in close collaboration with their stakeholders, with\nthe aim of:
\n\n· \nmaximising the creation of shared value for\ntheir owners/shareholders and for their other stakeholders and\nsociety at large;
\n\n· \nidentifying, preventing and mitigating their\npossible adverse impacts.
\nThe complexity of that process will depend on factors\nsuch as the si