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1939TH COUNCIL MEETING - ENVIRONMENT -BRUSSELS, 25 AND 26 JUNE 1996 -PRESIDENT: EDO RONCHI, MINISTER FOR THE ENVIRONMENT OF THE ITALIAN REPUBLIC

European Council - PRES/96/188   26/06/1996

Other available languages: FR DE DA ES NL IT PT EL

The Governments  of  the  Member  States  and the  European  Commission  were
represented as follows:

Belgium:
Jan PEETERS                    State Secretary for the Environment

Denmark:
Svend AUKEN                    Minister for the Environment and Energy

Germany:
Angela MERKEL                  Minister for the Environment

Greece:
Adamantios VASSILAKIS          Deputy Permanent Representative

Spain:
Isabel TOCINO BISCAROLASAGA    Minister for the Environment

France:
Corinne LEPAGE                 Minister for the Environment

Ireland:
Brendan HOWLIN                 Minister for the Environment

Italy:
Edo RONCHI                     Minister for the Environment
Valerio CALZOLAIO              State Secretary for the Environment

Luxembourg:
Johny LAHURE                   Minister for the Environment

Netherlands:
Margreet DE BOER               Minister  for   Housing,  Planning   and  the
                               Environment

Austria:
Martin BARTENSTEIN             Minister for the Environment

Portugal:
Elisa FERREIRA                 Minister for the Environment

Finland :
Pekka HAAVISTO                 Minister for the Environment

Sweden:
Anna LINDH                     Minister for the Environment
Mats ENGSTRÖM                  State Secretary for the Environment

United Kingdom:
John GUMMER                    Secretary of State for the Environment
The Earl of Lindsay            Parliamentary   Under-Secretary   of   State,
                               Scottish Office

For the Commission:
Ritt BJERREGAARD               Member

POLLUTION STANDARDS FOR THE ENGINES OF NON-ROAD MOBILE MACHINERY

The Council reached  unanimous political agreement on  its common position on
the proposal  for a Directive  harmonizing the measures  to be  taken against
the  emission of gaseous and particulate  pollutants from internal combustion
engines to be installed in non-road mobile machinery.

The  common  position  will  be  adopted  formally  when  the  text has  been
finalized; it  will then be sent to the European Parliament, which will carry
out a second reading under the co-decision procedure.

The Directive proposed lays  down, inter  alia, emission standards and  type-
approval  procedures  for  engines   to  be  installed  in   non-road  mobile
machinery.   It will contribute to the completion of  the single market while
protecting human health and the environment.

The machinery in question includes, inter alia, the following equipment:

-   industrial drilling rigs, compressors, etc.;

-   construction  equipment  including  wheel  loaders,  bulldozers, crawler
    tractors,  crawler  loaders,  truck-type  loaders,  off-highway  trucks,
    hydraulic excavators, etc.;

-   agricultural equipment, rotary tillers;

-   forestry equipment;

-   self-propelled agricultural vehicles (except tractors);

-   material-handling equipment;

-   fork-lift trucks;

-   road-maintenance  equipment   (motor  graders,  road  rollers,   asphalt
    finishers);
-   snow-plough equipment;
 
-   ground-support equipment in airports;

-   mobile cranes.

Neither agricultural  nor forestry tractors  are covered  by this  Directive;
they will  be dealt  with  in a  separate  proposal to  be submitted  by  the
Commission.

The proposal lays  down limit values  for the main pollutants  which must  be
achieved  in two  stages and in steps  depending on the  power of the engines
concerned.

The limit values  under Stage I  must be  achieved between  30 September 1998
and  31 March 1999  and  those under  Stage II  between  31 December 2000 and
31 December 2003, depending on the category of engine.

Nevertheless,  for  each  category  Member  States  may  postpone  the  above
requirement for two years in respect  of engines with a production date prior
to the above dates.

The  emissions  of  carbon  monoxide,  the  emissions  of  hydrocarbons,  the
emissions of  the  oxides  of  nitrogen  and the  emissions  of  particulates
obtained shall for Stage I not exceed the amount shown in the table below:

       Net           Carbon       Hydrocarbons     Oxides of    Particulate
      power         monoxide                       nitrogen          s 

       (P)            (CO)            (HC)           (NOx)
       (kW)          (g/kWh)        (g/kWh)         (g/kWh)         (PT)
                                                                  (g/kWh)

  130 \< P < 560        5,0            1,3             9,2           0,54

   75 \< P < 130        5,0            1,3             9,2           0,70
   37 \< P < 75         6,5            1,3             9,2           0,85 

The maximum quantities for Stage II are as follows:

       Net            Carbon       Hydrocarbons    Oxides of  Particulates  
      power          monoxide                       nitrogen

       (P)             (CO)            (HC)          (NOx)         (PT)
       (kW)           (g/kWh)        (g/kWh)        (g/kWh)       (g/kWh)

  130 \< P < 560         3,5            1,0            6,0           0,2

   75 \< P < 130         5,0            1,0            6,0           0,3
   37 \< P < 75          5,0            1,3            7,0           0,4

   18 \< P < 37          5,5            1,5            8,0           0,8

The reductions thus achieved in the present emission levels  are estimated at
29%  for  hydrocarbons,  nearly  50%  for  oxides  of nitrogen  and  67%  for
particulates.

The Council and the  European Parliament will decide  by the end of  the year
2000 on a proposal  which the Commission will submit  before the end of  1999
which  will aim at a further  reduction in emission limit values, taking into
account  the global availability of  techniques for controlling air-polluting
emissions from compression-ignition engines and the air-quality situation.

Unlike  the  Commission proposal,  the  common  position does  not  set  up a
Community  framework  for the  tax  incentives that  the Member  States might
introduce.

The engines  covered by this  proposal for a Directive  have not  so far been
subject to any  emission standards.  The atmospheric  pollution caused by the
diesel  engines of such  non-road machinery  is, however,  relatively high as
regards  oxides of  nitrogen  and  particulates.    In  fact,  in  1990  such
pollution  represented 7%  of the  NOx emissions  and 1%  of the  particulate
emissions  generated  by  human  activity  in  the  European  Union,  or  the
equivalent  of 37%  and 33%  of  the emissions  from diesel  engines  in road
vehicles respectively.

NOx  cause acidification  and  ozone  formation.   Particulate  emissions are
harmful or mutagenic and therefore recognized as a serious health risk.

DIRECTIVE ON THE PLACING OF BIOCIDAL PRODUCTS ON THE MARKET

The Council  reached a  unanimous political  agreement on  a common  position
concerning  the Directive  for the  placing  on  the market  and  the use  of
biocides and their active substances.

The Permanent Representatives Committee was  instructed to finalize the  text
of the  common position  with a  view to  its adoption,  as an  A item, at  a
forthcoming meeting.

It will  then be  forwarded to  the European  Parliament, for  second reading
according to the co-decision procedure.

The aim of the Directive is to  set up a harmonized approach for  authorizing
biocides  throughout   the  Community;  it  complements   existing  Community
legislation on similar  products (e.g.  pesticides) and thus  puts an end  to
fragmentation of the internal  market for chemicals.   A Community action  is
needed in order to ensure a proper functioning of the internal market  and to
guarantee at  the same time a  high level  of protection for  humans, animals
and the environment.

The  Directive will  cover approximately  14 000 products and  their more  or
less 400 active  substances, ranging  from products for  hygiene purposes, to
disinfectants, wood preservatives, rodenticides, insecticides, etc.

Following  the basic principles  - one  authorization per  product and mutual
recognition  throughout the Community -  the Directive establishes harmonized
authorization    procedures     including    simplified    procedures     for
frame-formulations, low-risk biocidal products  and commodity substances.  It
introduces  a new concept  into Community  law: the  principle of comparative
assessment  which  envisages to  eliminate  in the  long term  more dangerous
substances if alternative substances exist.

The  Directive also contains common principles for the evaluation of biocidal
products:  any risk arising from the use of  a biocidal product shall have to
be identified on  the basis of  data resulting from testing.   Following  its
overall evaluation, a biocide shall or shall not be authorized.

Finally, one of the concerns of the Directive is to try to avoid  duplication
of or unnecessary testing on animals.

A COMMUNITY  STRATEGY TO REDUCE  CO2   EMISSIONS AND IMPROVE  FUEL ECONOMY  -
COUNCIL CONCLUSIONS

"1. The Council  welcomes the  approach for a  strategy put  forward by  the
    Commission   in  its  communication  for  reducing  CO2  emissions  from
    passenger  cars  and  improving fuel  economy.   Taking  account  of its
    conclusions      of      15-16 December 1994,      9 March 1995      and
    22-23 December 1995, it reiterates the importance which it attaches to a
    Community initiative in this area.  Community  action in this area  will
    also  support   work  presently   undertaken  in  the   context  of  the
    international efforts  for combating  climate change within the  mandate
    decided  upon at  the  First Conference  of  the Parties  to  the United
    Nations Framework Convention on Climate Change (Berlin 1995).

2.  The  Council  affirms the  medium-term  objective  to  reach  an average
    CO2-emission  value for  newly registered  cars  in  the European  Union
    corresponding to 120 g CO2/km which is roughly equivalent  to an average
    consumption  of 5 l/100 km for  petrol cars and 4,5 l/100 km  for diesel
    cars.  This means  a significant reduction of  the present level  of CO2
    emissions.   The aim is to reach this objective by 2005.  The Council is
    of  the opinion  that achievement  of this  will  require the  immediate
    establishment of intermediate  emission objectives in a phased  approach
    demonstrating substantial  progress which should be the subject of close
    monitoring.   Should it appear that it is not  possible fully to achieve
    the objective by 2005,  the phasing could  be extended,  but in no  case
    beyond 2010.

3.  The Council is  of the opinion that  only a comprehensive and consistent
    strategy will  be able  to ensure  that the  average  CO2-emission-value
    target mentioned above will be  met and further progress has  to be made
    in reducing fuel consumption in the longer term.

4.  The  Council  believes  that  the  priority  actions,  proposed  by  the
    Commission, consisting of an agreement with industry in combination with
    market  incentives  and  consumer  information,  are an  important  step
    forward in this  context.   It agrees that  a strategy for reducing  CO2
    from cars should, in the short term, be based on these priority actions.
    The Council considers that measures for reducing CO2 emissions should be
    coherent  with other environmental objectives, in particular air quality
    objectives including  tropospheric ozone, and  acidification, and should
    not compromise traffic safety.

    The Council is  concerned about the possibility  that the approach for a
    strategy proposed by the Commission may in  the end not be sufficient to
    ensure the attainment  of the average CO2-emission-value  target set out
    in paragraph 2 above.

    The Council believes, therefore, that:

    -   the priority actions as mentioned above should  be implemented within
        the shortest  possible timescales,  and  calls on  the Commission  to
        start to undertake the necessary steps;

    -   the effectiveness of the strategy should  be evaluated regularly and,
        therefore, the establishment  of a  monitoring system  is of  crucial
        importance.

5.  Furthermore,  the Council  is of  the opinion  that the  strategy could,
    where  appropriate, be supplemented by certain other measures, including
    traffic management schemes, which,  inter alia, might aim at influencing
    driving     behaviour,    at     shifting    traffic     towards    more
    environmentally-friendly  modes of transport, including public transport
    as  advocated in  the Commission's  green paper entitled  "The Citizens'
    Network",  and  at  addressing other  sources of  CO2  emissions  in the
    transport sector.

    The Council invites the Commission to consider such  measures, to report
    to the  Council  at  the  latest in  1997,  and  to make  proposals,  if
    appropriate,   on  these  issues  within  the  shortest  possible  delay
    thereafter.

    If  it appears  that the  strategy  would not  be effective  enough, the
    Commission will study additional measures including the effectiveness of
    binding CO2-emission limit values, and, if appropriate, present relevant
    proposals to the Council.

6.  The Council asks the Commission to begin without  delay discussions with
    the automobile  industry on an agreement  for reducing  the average  CO2
    emissions of new cars sold in the European Union.

    Such an  agreement should seek  to commit  the industry in the  European
    Union  as a whole, as well  as importers, to make the major contribution
    to  the  achievement of  the CO2-emission-value  objectives  set  out in
    paragraph 2 above.

    The Council requests the Commission to take into account in particular:

    -   the  importance of an ambitious  EU-wide commitment which corresponds
        to the objective mentioned above;

    -   the importance of intermediate targets which provide the basis for  a
        monitoring of the agreement;

    -   agreements already existing at national level;

    -   the  importance  of  contributions  from  each  car  manufacturer  in
        reducing fuel consumption.

    The Council invites the  Commission to report to  it on the  progress of
    its  discussions with the industry not later than the end of 1996.  With
    a view to  these discussions, the Commission is  invited to draw on  the
    advice of a group of experts from Member States.

    To encourage a  broader discussion in the  Council on the conditions for
    agreements  with  the  industry in  the field  of  the  environment, the
    Council invites the Commission to come forward as  soon as possible with
    the communication on this subject announced in its work programme.

7.  The  Council stresses the importance of an  EU-wide monitoring system on
    the  development  of  the  average  CO2  emissions  of  new  cars  sold.
    Therefore, a transparent  monitoring system should be established  which
    would enable monitoring of the progress achieved, in  particular, by the
    implementation of the agreement with industry.  

    This monitoring system  should function autonomously from the  agreement
    with industry and be based on data provided by the competent authorities
    in the Member States.  Monitoring should be done in cooperation with the
    automobile  industry  and  importers,  and  provide for  regular  public
    reports on the progress  made.   The Council invites  the Commission  to
    present a proposal for a monitoring system not later than June 1997.

    In the  meantime, the Council recommends  Member States  to provide  the
    Commission   with   the   necessary   data,   according   to  Commission
    Directive 93/116/EC,  allowing the Commission to start such a monitoring
    system in 1998.

    The Council recommends the Commission to elaborate as soon as possible a
    proposal for extending  Directive 88/1268/EEC, as amended by  Commission
    Directive 93/116/EC,  to vehicles running  on other fuels which  are not
    yet covered by existing Community legislation.

8.  The  Council  agrees  with  the Commission  that  measures to  influence
    consumer  behaviour  will  be  required  to  support and  complement  an
    agreement with  industry.    Considering  that a  CO2-emission  consumer
    information  system is  an important  and  useful  measure to  influence
    consumer choice, the Council welcomes the Commission's intention to come
    forward with a proposal in this sense before the end of 1997.

9.  The Council considers that an  increase of the minimum  excise duties on
    road fuels  constitutes an  important element in  an efficient  strategy
    aiming at  the reduction of CO2 emissions in the transport  sector.  The
    Council invites the Commission to take account of  this consideration in
    its proposal for a revision of Directive 92/82/EEC in 1996.

10. The  Council recognizes  that other  fiscal  measures can  contribute to
    achieving   cost-effective   improvements   in  the   fuel   consumption
    characteristics  of  the  vehicle  fleet.    The   Council  invites  the
    Commission to  continue the  study it is  currently carrying  out of the
    different car taxation systems applied in the Member States, with a view
    to identifying the consequences of these systems on the reduction of the
    CO2 emissions and to report back to  the Council before June 1997 at the
    latest.

    Furthermore, the Council invites the Commission to study the possibility
    of establishing  a reference  framework  for  fiscal incentives  in  the
    context of the agreement with industry.

11. The   Council  invites   the  Commission   to  regularly   evaluate  the
    effectiveness  of  the  implementation  of  the Community  strategy  for
    reducing CO2 emissions from  passenger cars.   To this end, and also  in
    the light of  the Community's commitments in the  context of the  global
    strategy on climate change and the overall CO2-monitoring mechanism, the
    Council asks the Commission to report regularly, in particular on:

    -   the development of the reduction in average CO2 emissions of  the new
        cars sold based on the monitoring system to be established;

    -   the  progress  made  by  the  automobile  industry   in  meeting  its
        commitments under the agreement with industry;

    -   the  measures  taken at  both  Community and  Member  State level  to
        improve vehicle  fuel economy,  including especially in  the area  of
        economic instruments;

    -   the impact of the strategy on the market;

    -   the impact of  the strategy on  Community objectives relating to  air
        quality,  including tropospheric ozone,  and acidification, and other
        environmental aspects of transport;

    -   the   coherence  of   the   strategy   with  Community   legislation,
        particularly on road safety;

    -   the  technological development,  inter  alia,  on  the basis  of  the
        result of the task force "Car of tomorrow".

12. With a view  to considering  more ambitious CO2-emission  objectives for
    passenger cars in the longer term, the Council invites the Commission to
    present it  with  a  report,  not  later  than  2000  on  the  basis  of
    fuel-efficiency  potentials generated  by future  technological progress
    and on  their economic  feasibility and,  if appropriate,  proposals for
    achieving such objectives."

SUSTAINABLE DEVELOPMENT - COMMUNITY POLICY AND ACTION PROGRAMME

The  Council had  a debate  on  the proposed  review of  the  so-called fifth
environmental action programme, approved in the beginning of 1993.

The  Council  endorsed the  general strategy  of  the  Commission's proposal,
giving some orientations in view of future in-depth discussions.

The proposal for a review  does not modify the approach but aims  at focusing
it on  certain priority  areas (i.a.  integration of  the environment  policy
into  other   Community  policies,   extension  of   instruments  to   assure
sustainable development,  more efficient Community  legislation) and  certain
horizontal issues meant  to accelerate  the implementation  of the  programme
(i.a.  improved  statistical information,  sensibilization  of  industry  and
consumers, promotion of local and regional initiatives).

COMMUNITY STRATEGY ON CLIMATE CHANGE - COUNCIL CONCLUSIONS

"1. The Council welcomes the positive role played by  the European Community
    and the Member States in the Berlin Mandate Process up until AGBM-3.

    It  notes with concern that the Berlin Mandate  Process is not advancing
    as  needed  to  achieve its  intended  objective.    It  reiterates  its
    willingness to  continue to participate  in a constructive and  concrete
    process to finalize a successful protocol at COP-3.

2.  In this  regard, the Council maintains that, in order  to strengthen and
    enlarge   the  Convention  commitments,  a  protocol  or  another  legal
    instrument  should  be   set  up  in  a   combined  approach,  including
    commitments for Annex I Parties regarding:

    -   policies and measures, as well as
    -   quantified  emission  limitation  and   reduction  objectives  within
        specified time-frames.

    These elements are interdependent.

    Furthermore, in  the context of a  protocol, the  Council reaffirms  the
    need to continue to  advance the implementation of existing  commitments
    in  Article 4.1,  by  all  Parties,  in  order  to  achieve  sustainable
    development.

    In this context the Council recalls the Community proposal on a protocol
    structure  submitted to AGBM; and reaffirms its  strong preference for a
    protocol.

    The Council urges COP-2 to support the Community's proposal and welcomes
    constructive contributions from all Parties.

3.  The Council recognizes that the IPCC Second Assessment Report represents
    the  most comprehensive and  authoritative assessment in the  science of
    climate change.

    The Council notes again with concern that the IPCC S.A.R. concludes that
    the  balance of  evidence suggests  that there  is  a discernible  human
    influence on global climate.

    The  Council stresses that these findings underline  the need for urgent
    action at the widest possible level.

    The  Council reaffirms  its belief  that this  report constitutes  a key
    input in  the  process of  defining  and  agreeing  internationally  the
    appropriate next steps towards achieving  the ultimate objective of  the
    FCCC.  It urges COP-2 to endorse the IPCC S.A.R. findings.

4.  Furthermore,  the  Council  underlines  that  the  IPCC  S.A.R.  is  the
    principal reference  document for global  emission reduction objectives,
    for the technical  potential and for cost-effectiveness of  the measures
    which have to be selected  within the defined portfolio of  options.  It
    also recalls  in this context the  valuable contribution offered  by the
    ongoing  work on possible common  action on policies and measures in the
    framework of Annex I expert group, OECD/IEA.

5.  The Council recognizes that, according to the IPCC S.A.R., stabilization
    of atmospheric concentrations of CO2 at twice the  pre-industrial level,
    i.e.  550 ppm, will eventually require global emissions  to be less than
    50% of current levels of emissions; such a concentration level is likely
    to  lead to an increase of  the global average temperature of around 2uC
    above the pre-industrial level.

6.  Given the  serious risk  of such an  increase and  particularly the very
    high  rate  of  change,   the  Council  believes  that   global  average
    temperatures  should not exceed 2 degrees above pre-industrial level and
    that  therefore concentration levels lower than 550 ppm CO2 should guide
    global  limitation   and  reduction  efforts.     This  means  that  the
    concentrations of all greenhouse gases should also be  stabilized.  This
    is likely to require a  reduction of emissions of greenhouse gases other
    than CO2  in particular CH4 and  NO2.  The Council  looks forward to the
    results of  the further technical  paper, including social and  economic
    considerations, on this issue which is due to be completed by  the IPCC,
    at the request of SBSTA, by the end of 1996.

    In this context  the Council believes that  the precautionary  principle
    has to  be  applied,  and  the ad  hoc  Group  is requested  to  explore
    possibilities to stimulate early action along the lines of proposals and
    suggestions made in the context of the protocol negotiations.

    Furthermore,  the Council notes that the IPCC considers that significant
    reductions in greenhouse gas emissions are technically possible, and can
    be economically feasible.   It also notes  that significant "no-regrets"
    opportunities are available; and that there is a rationale, on the basis
    of  potential risk,  for  action beyond  no-regrets at  Annex I  Parties
    level.

7.  The Council  believes that global efforts  require global  responses and
    full participation  of all Parties.   This has to  be based on  a closer
    partnership  between  developed  and  developing  countries:  beside the
    strengthened commitments of developed countries it is important that the
    developing  countries  play their  part  in  producing  and  using  more
    energy-efficient  and lower  carbon-emitting technologies  and products.
    In this perspective, information provided in national communications are
    an essential first step  to involving further all  Parties in the global
    climate change mitigation efforts.

    In  the light of  the Berlin Mandate a  major challenge is  therefore to
    maximize  the cooperative  effort between  all  Parties, the  three main
    elements of such an effort being:

    -   opportunities   to  promote   and  cooperate   in   the  development,
        applications,   diffusion,  including   transfer,  of   technologies,
        practices and processes;

    -   opportunities offered  by the  development of activities  implemented
        jointly;

    -   opportunities to  make programmes and  investments from  multilateral
        development  banks  and   the  private  sector  consistent  with  the
        objectives of  the FCCC, and  the implementation  of Article 4(1)  in
        particular.

8.  Against this background, the Council believes it is  essential that each
    of the  Annex I  Parties -  it being  understood that  the Community  is
    treated   as  one  Party -  agrees  to  set  quantified  objectives  for
    significant  overall reductions  of greenhouse  gas emissions  after the
    year 2000 below 1990 levels, within specified timeframes,  not simply to
    limit the growth of total emissions.

9.  Recognizing that we are now half-way through the Berlin Mandate process,
    the Council urges all  Parties to  renew their efforts  in this  regard.
    The   Community  and  the  Member  States  stand   ready  to  engage  in
    constructive  negotiations with  other Parties  at COP-2 and  beyond, to
    identify   credible  reduction  objectives  and  to  consider  how  such
    objectives can meet the equity requirements of the Berlin Mandate.

10. The  Council stresses the constructive work  done by the ad hoc Group in
    developing  proposals  covering  at  present  policies and  measures  on
    renewable energies,  product energy-efficiency standards, transportation
    and  economic  instruments.   These  proposals  have been  forwarded  to
    AGBM-3,  and the  Council looks  forward to  the  other proposals  to be
    presented to AGBM-4.

11. The Council notes that,  on the basis  of the  latest reports by  Member
    States,  the Community is on course  to return its CO2 emissions to 1990
    levels by the  year 2000, but at the  same time recognizes that  further
    efforts will be necessary to achieve the stabilization objective.

12. The Council notes  that, on the basis of the work already done by the Ad
    hoc Group on  Climate, it is  feasible for the  Community as a whole  to
    reach a  reduction of  CO2 emissions  by 2010  compared to  1990 levels,
    through the implementation of policies and measures identified by Member
    States and the Commission, at national and  at Community level.  Further
    work  is required  for the  assessment of  potential  reductions in  the
    years 2005 and 2020.

13. The Council  confirms that  equitable sharing of  any emission reduction
    objective  by the Community as a whole,  i.e. the burden differentiation
    among Community Member States, is a fundamental element of the Community
    climate  change  strategy  and that  it  should  start with  common  and
    coordinated  policies  and   measures,  as  appropriate.    In   further
    elaborating this issue,  the ad  hoc Group  is requested  to assess  the
    limitation/reduction potential and the cost of  policies and measures at
    Community level,  in addition to those  taken or  envisaged at  national
    level, as an approach to the equitable sharing of the burden.

14. In  this regard, the Council requests Member  States and the Commission,
    in the framework of the ad hoc Group on Climate, further to  develop the
    work  started on quantified emission limitation and reduction objectives
    (QELROs) by:

    -   identifying  the most  relevant  measures at  national  and Community
        level;

    -   estimating  for each  Member State  and the  Community the achievable
        emission  limitation/reduction  and,  to  the  extent  possible,  the
        potential   cost  for  each  policy   and  measure  using  comparable
        methodologies,  including   no-regret  potential   at  national   and
        Community level;

    -   identifying  which  measures  have  to  be  taken  at  national   and
        Community level.

15. In  order  to  monitor  the effects  of  policies  and measures  by  the
    year 2000 and beyond this time horizon, the Council: 

    -   invites  the Commission, assisted by  the Committee established under
        Council Decision 93/389, to evaluate the use of  general and sectoral
        indicators   of  energy  and   CO2  intensity,   and  to   provide  a
        comprehensive  overview  of  different  sectoral  indicators  on  GHG
        emissions available for these purposes;

    -   urges  the Commission  to submit, as  soon as  possible, proposals to
        amend  the abovementioned Decision in order to include the obligation
        to report to the Monitoring Mechanism data beyond 2000.

16. Furthermore, in order to achieve full consistency of policies within the
    Community, the  Council  requests  the  Commission,  as well  as  Member
    States,  to ensure proper coordination  between work in the ad hoc Group
    on  Climate and  other relevant  work, in  particular  regarding energy,
    industry, transport, economic instruments and agriculture.

17. The  Council requests the ad hoc  Group to report about the work done to
    the October Environment Council meeting, in order to be able to adopt in
    December 1996 conclusions  giving substantive guidance for the  Protocol
    negotiations.

18. The Council stresses the importance of the forthcoming second Conference
    of the Parties which should focus the Berlin Mandate process on concrete
    negotiations of  a protocol to ensure  a successful  conclusion of  that
    process  at COP-3.  In this  context, the Council also stresses the need
    for close cooperation with other Parties to the Convention."

TRADE AND THE ENVIRONMENT

The Council held a general exchange of views on the Commission  communication
on trade and the environment.

That  communication, which  the  Commission  submitted  on  1 March 1996,  is
designed to serve as  a basis for defining the European  Community's position
on the topic of  trade and  environment, especially at the  first Ministerial
Conference  of the World Trade Organization (WTO), to be held in Singapore in
December 1996.

CONVENTION ON BIOLOGICAL DIVERSITY

-   Preparation of the third Conference of the Parties

    The Council  President gave an account  of the preparations  in progress
    with a view  to this Conference  which will be held  in Buenos Aires  in
    November 1996.  The Council will discuss this issue in greater detail at
    its meeting in October.

-   Protocol on biosafety

    The  Council adopted conclusions  complementing the  negotiation mandate
    already  given  to the  Commission with  regard  to such  a  Protocol in
    October 1995.   Since then, the Second Conference of  the Parties took a
    decision  (decision II/5)  defining  the  terms  of  reference  for  the
    beginning  of  the  negotiating  process.    Taking into  account  these
    elements,  the  new  mandate  updates  and complements  the  negotiating
    directives of October 1995, as  regards i.a.  the keypoints relevant  to
    the  development  of  the protocol,  its  scope  and  definitions,  risk
    assessment  and  risk  management,  informed  agreement  procedures  and
    exchange of  information, relationship to  international agreements  and
    procedural aspects.

CONTAINED USE OF GENETICALLY MODIFIED MICRO-ORGANISMS

The  Council  held an  orientation  debate on  the  proposal for  a Directive
amending Directive 90/219/EEC on  the contained use  of genetically  modified
micro-organisms (GMOs).

Taking into account  the experience and scientific  knowledge gained over the
last few years  (Directive 90/219/EEC is based on  scientific knowledge  from
the early 1980s), the Commission proposal:

-   updates the scope of Directive 90/219/EEC;

-   provides for a simplified procedure for further technical amendments;

-   modifies the risk-categorization of the contained-use activities;

-   adapts the  administrative procedures  and modification  requirements to
    the actual risk-level of activities;

-   further specifies the containment and control measures to be applied.

The  Council debate focused on the  objectives of the amending Directive, the
amendments  of the scope of the Directive, the basis for risk categorisation,
and the streamlining of administrative procedures.  The detailed  examination
of the proposal will begin under the Irish Presidency.

GENETICALLY MODIFIED MAIZE

The   Council  discussed  the  Commission's  proposal  on  the  marketing  of
genetically modified  maize (Zea mays  L.).   A large  number of  delegations
stated  that  they could  not  support  this  proposal  and  would  like  the
Commission  to withdraw  it; one  delegation was  in favour  and another  one
abstained.   The Presidency concluded therefore that the Council was not in a
position  to act.  The Commissioner announced that, given this situation, she
would  report to her Institution  which would then  decide on the appropriate
course of action.

It  is  recalled that  the  proposal had  been submitted  to  the  Council in
accordance with the  so-called comitology rules, the Commission having failed
to  obtain the necessary qualified majority  in support of the measure in the
relevant  committee.  In this  case, the rules stipulate  that if the Council
does not,  within  three  months (i.e.  before  31 August 1996), approve  the
proposal by  qualified majority  (or  amend  it unanimously)  the  Commission
shall adopt the measures it proposed.

COMMUNITY WATER POLICY
-   COUNCIL CONCLUSIONS

    "The Council recalls the importance which it attaches to establishing of
    a coherent and efficient water policy which  can fact the challenges the
    Community is actually confronted with.

    It therefore  recalls its  conclusions, in  particular those adopted  on
    18 December 1995, outlining  the  principles,  the  objectives  and  the
    specific issues which it  considers the  new approach for  such a  water
    should follow.

    In this  context the  Council welcomes  the Commission  communication on
    this subject, sent  both to it and to the European Parliament, and takes
    note of the guidelines  for a Water Resources  Framework Directive.  The
    Council considers  this communication to constitute one  useful basis to
    develop a new Community water policy.

    The Council  urges the Commission to come  forward as soon  as possible,
    and at the latest by the end  of the year, with  a proposal for a  Water
    Resources  Framework Directive taking due account of the recommendations
    it formulated in its successive conclusions adopted so far."

LEGHOLD TRAPS

The Council heard a report by the Commission on the progress of  the contacts
made  with Canada,  the United States,  the Russian Federation  and any other
non-member countries concerned with a view to the opening of negotiations  on
a  framework agreement on  humane trapping  standards, for  which the Council
had just  adopted Directives (see the  Recommendation adopted as  an "A" item
by this Council meeting).

THE KEEPING OF WILD ANIMALS IN ZOOS

Pending the  delivery  of  the  European Parliament's  Opinion,  the  Council
developed a  position on the  proposal for a  Recommendation relating  to the
keeping of wild animals in zoos.

By zoos the Recommendation means permanent establishments where  live animals
of   species  not  domesticated  in  the  European  Community  are  kept  for
exhibition.

This Recommendation includes  extremely detailed guidelines  regarding, inter
alia,  the care of animals,  safety, species in danger  of extinction and the
educational aspects,  in order  to enable  zoo operators  to achieve  certain
objectives corresponding to the functions of such establishments.

Under the  Recommendation the  Member States should  adopt measures governing
the grant  of authorizations to operate and the inspection  of zoos, with the
aim, inter alia, of guaranteeing that all zoological gardens

-   maintain their animals under conditions providing for their physical and
    psychological welfare;

-   maintain a high standard of animal husbandry;

-   ensure that there is sufficient and adequately trained staff responsible
    for the care of the animals;

-   provide  access for  designated inspectors  to the  premises, equipment,
    animals and records of the zoo at all times;

-   promote  the  conservation  of  wild  fauna  through  research  and  the
    education of the public and, where appropriate, captive breeding.

ESPOO CONVENTION

The Council reached  agreement on the decision  concerning the conclusion, on
behalf  of  the   Community,  of  the  Convention  on   environmental  impact
assessment in a transboundary context (ESPOO Convention).

CONSERVATION OF CETACEANS OF THE MEDITERRANEAN AND BLACK SEAS

The  Council  adopted  a  decision  on  the  participation  of  the  European
Community  in  negotiations   aimed  at  drawing  up   an  agreement  on  the
conservation of cetaceans of the Mediterranean and Black Seas.

This  agreement will complement the  existing one  regarding the conservation
of small cetaceans of the Baltic and North Seas.

STRUCTURED DIALOGUE ON THE ENVIRONMENT WITH MALTA AND CYPRUS

Within  the framework of  the "structured  dialogue" that  forms part  of the
preparation for accession, two meetings were  held, on the eve of the Council
meeting, with the Malta and Cyprus Ministers for the Environment.

Those   meetings  brought   together   Mr Ronchi  for   the   Presidency  and
Mr Zammit Dimech,  the  Malta Minister  for  the  Environment, at  the  first
meeting,  and Mr Petrides, the  Cyprus Minister  for the  Environment, at the
second  meeting.   Mrs Bjerregaard,  a  member  of the  European  Commission,
attended both meetings.

In its introduction  the Presidency stressed the  political aspects (the role
of  the structured dialogue, the  balance between the  dialogue with the CCEE
and   that  with   the  Mediterranean   countries,   the  follow-up   to  the
Euro-Mediterranean Conference).  The  Commission spoke on the legislative and
technical  aspects  and the  actions  already carried  out (in  the financial
field in particular) under EC-Cyprus and EC-Malta cooperation.

Cyprus and Malta both  stressed the  importance that both countries  attached
to such meetings;  both delegations made very detailed  statements concerning
their  legislative and  practical  achievements and  their  expectations with
respect to the Community.

OTHER DECISIONS

(Adopted without discussion.  In the case of  legislative acts, votes against
and abstentions are  indicated.  Decisions including  statements to which the
Council has  decided to grant  the public access are  indicated by asterisks;
the statements in question may be obtained from the Press Office.)

Environment

Framework agreement on humane trapping standards

The Council decided to authorize the Commission to  negotiate on the European
Community's behalf  with Canada,  the United  States, the Russian  Federation
and any other non-member  country concerned  a framework agreement on  humane
trapping standards.

The  purpose of  the  framework  agreement contemplated  would  be to  define
humane trapping standards for  traps intended for the killing or  catching of
wild  mammals,  in  particular  the  species specified  in  Regulation  (EEC)
No 3254/91, in order to avoid a ban on imports after 31 December 1996.

Assessment  of the  effects of  certain public  and private  projects on  the
environment

Following   the   agreement  of   principle  reached   at   its   meeting  on
18 December 1995 the  Council adopted,  by a  qualified majority, the  German
delegation  voting  against,  a  common  position  on  the  proposal for  the
amendment  of  Directive 85/337/EEC  on  the  assessment  of  the effects  of
certain public and private projects on the environment.

That  Directive is regarded as  one of the main  Community instruments of the
prevention of environmental damage at source.

The amendments  contemplated  are  the  fruit  of the  experience  gained  in
implementing the Directive and  also take  account of the undertakings  given
in  connection with the  Convention on  environmental impact  assessment in a
transboundary context, which the  Community and  the Member States signed  in
Espoo on 25 February 1991.

In  practice the common position is  intended to clarify and extend the scope
of the Directive as regards, in particular,

-   the types of project for which impact assessment is mandatory and

-   the  types  of  project  for  which assessments  are  not  automatically
    mandatory but  which are the subject  of case-by-case  decisions by  the
    Member State  concerned  (Annex II to  the  Directive),  for  which  the
    Directive lays  down criteria to be taken into account  for the purposes
    of such decisions.

It is also intended to  render more precise and enhance  the information that
must be provided  by the  developer and to  increase the cooperation  between
the Member States  concerned through projects with  transboundary effects, on
the basis of the provisions of the Espoo Convention in particular.

The new provisions should enter into force on 31 December 1997.

Dangerous substances - Eighth amendment of Directive 67/548/EEC

The   Council    adopted   the    proposal   for    a   Directive    amending
Directive 67/548/EEC  for the eighth time as the European Parliament had made
no  amendments  to  the  common  position.    The Directive  deals  with  the
approximation  of  the   laws,  regulations  and  administrative   provisions
relating  to  the  classification,   packaging  and  labelling  of  dangerous
substances.

The amendment in question is in  the context of the consolidation in progress
of the  aforementioned basic Directive.  It simply replaces the "EEC" mark to
be found in certain places in the enacting terms of that  Directive with "EC"
in order  to adapt it to Article G of the  Treaty on European Union.  It also
grants a  transitional period to  economic operators to  allow them to  adapt
the labelling of dangerous substances bearing those marks.

Landfill of waste

The Council,  aware of  the fact  that the European  Parliament rejected  its
common position  at its  sitting on 22 May 1996,  noted that it  did not have
the  majority  required  for  it  to  act  in  accordance with  the  relevant
provisions of the Treaty (the co-decision procedure).

It therefore  invited the  Commission to submit to  it as soon  as possible a
proposal   containing  suitable  provisions   for  effectively   meeting  the
requirements of  Directive 75/442/EEC on  waste and  to take  account of  the
work already carried out.

It should be recalled that the aim of the Directive on the  landfill of waste
was to provide for measures, procedures  and guidance to prevent or reduce as
far  as possible  negative  effects  on the  environment,  in particular  the
pollution  of surface  water,  groundwater,  soil and  air,  as well  as  the
resulting risks to human health, from landfilling of waste.

Flavourings intended for use in foodstuffs*

The Council  agreed to  accept the  European Parliament's  amendments to  its
common  position of 23 November 1995.  Accordingly it adopted, by a qualified
majority,  the  French delegation  abstaining,  a  Regulation laying  down  a
Community procedure for flavourings intended for use in foodstuffs.

The main provisions of the Regulation are as follows:

Initially,  the  Member States  will  send the  Commission national  lists of
flavouring   substances  which,  in  accordance   with  the  basic  Directive
(88/388/EEC), may  be used  within their  territories.   The Commission  will
then have a year  to draw  up a register  of the substances  of which it  has
been notified, which will receive mutual recognition.

Within  ten  months of  the  adoption of  the register  a  programme  for the
evaluation of the substances listed  in it will be adopted.   The Commission,
which will be  assisted by the  Standing Committee on  Foodstuffs, will  then
have five years  to draw up,  on the basis of  the scientific  evaluations, a
"positive  list"  of the  flavourings  used at  Community level.   Substances
which present no  risk to the  health of the  consumer and the  use of  which
does not mislead him may be authorized.

Until  the adoption of the Community list, i.e. during the mutual-recognition
period,  a  Member  State may  have  recourse  to a  safeguard  clause  if it
believes  that a  flavouring  substance  may constitute  a  danger to  public
health.

Sweeteners for use in foodstuffs

Further  to the agreement  reached at its meeting  on 28 May 1996 the Council
formally  adopted, by a qualified majority, a common position on the proposal
for  a  Directive  amending  Directive 94/35/EC  on  sweeteners  for  use  in
foodstuffs.   The German  and Swedish  delegations voted  against the  common
position.   The text will  be sent  to the European  Parliament for a  second
reading under the co-decision procedure.

This proposal  for a  Directive is  intended to  adapt the  present rules  on
sweeteners to technical progress.

Food additives

The  Council  adopted,   by  a  qualified  majority,  the  French  delegation
abstaining,  a common  position  on  the proposal  for  a Directive  amending
Directive 95/2/EC on food  additives other than colours  and sweeteners.  The
Danish delegation provided an explanation of its vote (see Annex).

The  purpose of the Directive is  to authorize the use as  a food additive of
"Processed Eucheuma seaweed" and allocate it the number E 407a.

ECSC assents

The  Council gave its assent  to the grant of  a loan to TRANSGAS - Sociedade
Portuguesa  de Gàs  Natural  S.A.,  Lisboa, for  the  joint financing  of  an
investment project which promotes the sale of Community steel.

Negotiation  of  guidelines  applicable to  export  credits  for agricultural
products

The  Council  authorized  the  Commission  to  negotiate,  within  the  OECD,
guidelines  applicable  to  export  credits  for  agricultural  and  forestry
products.

The OECD Arrangement on guidelines  for officially supported export  credits,
concluded in 1978, does not, at this stage, cover agricultural products.

The purpose of the negotiations  is therefore to obtain the  inclusion in the
OECD  Arrangement of guidelines on export credits for agricultural and forest
products.

Outcome  of the  WTO negotiations  on financial  services and  on movement of
natural persons

The  Council adopted a Decision  on the conclusion on  behalf of the European
Community, as regards matters  within its competence, of the second and third
protocols  to  the  General  Agreement  on   Trade  in  Services  (concerning
financial services  and the movement  of natural persons  for the purpose  of
supplying services).

These are two areas  in which agreement was not reached  on the conclusion of
the Uruguay Round, further negotiation  on which was decided on in April 1995
on the signing of the Marrakesh Agreement.

It should  be recalled that  these protocols  must be accepted  in Geneva  no
later than 30 June 1996.

ANNEX

Additives to foodstuffs

Explanation of the Danish delegation's vote

"Adopting  the  common  position  on  the   proposed  amendment  of  European
Parliament  and  Council  Directive 95/2/EC  on  food  additives  other  than
colours  and sweeteners, Denmark recognizes the qualified majority in Council
in support of  including food additive E 407  (Processed Eucheuma seaweed) in
Annex I to the abovementioned Directive.

Denmark,  in  accordance  with  the  amendments  proposed  by  the   European
Parliament,  prefers a  number  other  than E 407a  in  order to  distinguish
Processed Eucheuma seaweed from  the already permitted E 407 (Carrageenan) to
a greater extent than obtained by the number E 407a."

***

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