Annexes to COM(2007)379 - Small, clean and competitive - A programme to help small and medium-sized enterprises comply with environmental legislation

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Annex I and II.

- Environmental investments have been identified as one of the main sectors for support under JEREMIE (Joint European Resources for Micro to Medium Enterprises), [22] a new initiative that will enter its operational phase in 2007 and will allow Member States to use Structural Funds to set up (regional) financial instruments for SMEs, including advisory and technical assistance, equity and venture capital and guarantees.

- The currently applicable Guidelines for State aid for environmental protection allow Member States to grant transitional investment aid to help SMEs adapt to Community standards in environmental policy. They also allow investment aid to improve on environmental standards and for investments in energy saving.[23] When reviewing the environmental aid guidelines the Commission will assess whether aid should be authorised for early adaptation to future Community standards instead of aid for adaptation to existing standards, acting thus as an incentive for a proactive behaviour by SMEs towards environmental rules.

- The Competitiveness and Innovation framework Programme 2007-2013 (CIP) [24] is designed to enhance the competitiveness and innovation capacity of the Community and has a strong emphasis on SMEs, who will be the main beneficiaries of the programme, either directly or indirectly. The CIP includes a sub-programme on Entrepreneurship and Innovation to facilitate access to finance for the start-up and growth of SMEs, and includes €430 million for investments in eco-innovation activities. The sub-programme on Intelligent Energy Europe (IEE) will also include €727 million for energy efficiency and renewable energy projects.

- Finally, with the launch of several new or significantly revised EU financial instruments for the period 2007-2013, the European Commission will publish a handbook (in electronic and printed form) setting out new funding opportunities for projects that support improved environmental compliance and performance among SMEs.

5.4. Building local environmental expertise for SMEs

SMEs should be able to find local experts who can answer their questions and tell them about their duties, and the opportunities related to environmental policy. This objective will be pursued with the following actions.

- The Commission will be organising a first series of capacity-building seminars in the Member States in 2007 to start building wherever necessary a network of environmental experts in business support organisations (business associations/Chambers of Commerce/Euro Info Centres/sectoral or district organisations) to help SMEs. The focus of the workshops will be on where to find information, presenting both the legal requirements and the benefits of improved environmental performance, and including a training module on how to provide assistance to SMEs (reactive approach) and how to involve SMEs in environment policy beyond compliance (proactive approach).

- The Euro Info Centres (EIC) Network, and from 2008 the new network in support of business and innovation, integrating the services of EICs and the Innovation Relay Centres (IRCs), will support the efforts of the Commission in creating the adequate local environmental expertise and in implementing the various actions of the Programme by[25]:

- promoting partnerships with public or private organisations, SME associations, and district/sectoral/cluster organisations helping SMEs to take full advantage of the opportunities offered by the Programme and helping them to comply in the most cost-effective way with EU legislation, increasing their eco-efficiency and eco-innovation capacity;

- working proactively with SMEs to explain existing or new environmental legislation affecting them, using the most effective means, including on-site visits, websites, newsletters, seminars, to raise awareness about environmental impacts and the benefits of a proper environmental management system.

5.5. Better communication and more targeted information

The lack of general awareness on environmental issues among SMEs is not disputed[26]. It is clear that this problem needs to be addressed in order to ensure greater awareness of legislation, and as a result increased compliance. Where it exists at all, concern about safety, health and the environment is limited to quite specific overt threats.

- The Commission will establish a new multilingual website, linked to the SME Portal[27], and designed to become a main source of information for SME support networks on EU environmental policy and SMEs, with a related awareness raising campaign . The website will contain general information on existing and forthcoming environmental legislation affecting SMEs, but will focus in particular on matters of interest to SMEs like: implementation, management tools available, funding opportunities, a selection of good practices by sector and geographical criteria, available training, relevant results from the demonstration projects on sustainable production in SMEs recently funded by LIFE-Environment (LIFE III), and links to national initiatives or other sources of information.

- The Commission will develop some operational guidelines to accompany SMEs step-by-step in addressing their main environmental impacts: energy consumption, waste production, management of chemicals, air emissions, and emissions of pollutants into water and soil. These toolkits will take a gradual approach, increasing the level of sophistication according to the sector, and the size and needs of the company, and will use simple non-technical language.

6. CONCLUSION AND WAY FORWARD

This Programme and its implementation will be regularly reviewed by the Commission in collaboration with the Member States, through a network of national "SME & environment" contact points to be nominated by Member States. During annual meetings the network will monitor the implementation of the Programme, exchange knowledge and experience, and guide the approach of the Commission for future initiatives in this field.

The Commission is committed to the implementation of this Programme. "Improving environmental performance and eco-efficiency of SMEs" is also part of the priorities of the "Modern SME Policy for Growth and Employment". The Commission asks Member States, the European Parliament and the Council to:

- endorse this Programme and encourage its rapid implementation through national implementation plans;

- envisage by 2010 a first assessment by the Commission jointly with Member States on the implementation of the Programme, including detailed information on the Compliance Assistance measures undertaken, data on the contribution by SMEs to environmental problems, data on the compliance rate of SMEs with environmental legislation, and recommendations for future actions.


[1] See Presidency Conclusions of the Brussels European Council 8/9 March 2007.

[2] SMEs are enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding ¬ 50 million, and/or an annual balance sheet total not exceeding ¬ 43 million. Recommendation on the SME definition (2003/361/EC) of€50 million, and/or an annual balance sheet total not exceeding €43 million. Recommendation on the SME definition (2003/361/EC) of 6.5.2003.

[3] The Commission Communication ‘Modern SME Policy for Growth and Employment’ (COM (2005)551).

[4] See e.g. SME-nvironment 2005 in http://www.netregs.gov.uk

[5] See A Comparative Analysis of the Environmental Management, Performance and Innovation of SMEs and Larger Firms based on the OECD database , Julien Labonne, 07/2006

[6] Council Directive 96/61/EC of 24.09.1996

[7] Directive 2003/87/EC of the EP and Council of 13.10.2003

[8] R. Fairman & C. Yapp, Making an impact on SME compliance behaviour: An evaluation of the effect of interventions upon compliance with health and safety legislation in SMEs , Kings College London for the Health and Safety Executive 2005, Research Report 366.

[9] Art.3.5 of the Decision No 1600/2002/EC of the EP and Council of 22.07.2002

[10] COM (2005) 24

[11] In support of these actions the Commission presents in the Annex to this Communication a selection of good practices in compliance assistance from 15 EU Member States or OECD countries. The case studies include the assessment of both effectiveness and transferability elsewhere of the initiatives, providing a wide range of concrete examples for public authorities and business support organisations.

[12] See http://ec.europa.eu/governance/better_regulation

[13] 2006 BEST Expert Group report “Reducing Burdens on Industry: Simplifying the Implementation of Environmental Regulation”. http://ec.europa.eu/enterprise/environment/index_home/best_project/intro.htm

[14] Network for Implementation and Enforcement of Environmental Law (IMPEL); http://ec.europa.eu/environment/impel

[15] European Parliament and Council Recommendation 2001/331/EC.

[16] A good example is REACH, the new chemical regulation (Regulation (EC) No 1907/2006 of the EP and Council of 18.12.2006), where a set of practical recommendations for Member States are being prepared on how to set up special REACH helpdesks for SMEs.

[17] Pilot projects have already been successfully carried out. See for instance http://www.life-pioneer.info

[18] See the EU Environmental Technologies Action Plan: http://ec.europa.eu/environment/etap

[19] Article 6, Treaty establishing the European Community.

[20] Council Regulation (EC) No 1083/2006 of 11.07.2006, and Regulation (EC) No 1080/2006 of the EP and Council of 5.07.2006.

[21] Regulation (EC) No 1081/2006 of the EP and Council of 5.07.2006.

[22] See http://ec.europa.eu/regional_policy/funds/2007/jjj/jeremie_en.htm

[23] Aid to SMEs for advisory/consultancy services in the environmental field may be granted under the provisions of Regulation (EC) No 70/2001 of 12.01.2001 on the application of Articles 87 and 88 of the EC Treaty to State aid for small and medium-sized enterprises. Aid for environmental training activities is allowed in accordance with the provisions of Commission Regulation (EC) No 68/2001 of 12.01.2001 on the application of Articles 87 and 88 of the EC Treaty to training aid. Aid of up to €200,000, granted over any period of three years in accordance with Commission Regulation (EC) No 1998/2006 of 15.12.2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid, is not be considered as state aid.

[24] Decision No 1639/2006/EC of the EP and Council of 24.10.2006

[25] See Call for Proposals (ENT/CIP/07/0001) " Services in support of business and innovation ".

[26] For example, 70% of French SMEs admit to be no or little informed about the environmental tools available (EMS, energy certificates, fiscal incentives, etc.) [ADEME 6.2.2007] and 95% of UK SMEs declare that they would like more information/guidance on environmental matters [SME-nvironment 2005, Environment Agency].

[27] http://ec.europa.eu/enterprise/sme/index_en.htm