CGBN Co-ordination Group for Biodiversity and Nature 12th meeting - 29/03/12 Agenda item 2.2 Financing Natura 2000 Commission Staff Working Paper and Prioritised Action Frameworks

Presentation: 1) Staff Working Paper – context and objectives; 2) Investing in Natura 2000 – costs and benefits; 3) EU financing instruments – experience with the current integration approach; 4) Financing Natura 2000 in the 2014-2020 multiannual financial framework; Common Agricultural Policy Structural and cohesion funds Maritime and Fisheries Fund LIFE 5) Prioritised Action Frameworks; 6) Other actions to improve financing of Natura 2000.

1) Staff Working Paper – context and objectives Target 1 of EU biodiversity strategy (nature conservation): 100% improvement in the conservation status of habitats and 50% improvement in the status of species of EU importance by 2020 Actions (among others): Complete the establishment of the Natura 2000 network and ensure good management; Ensure adequate financing of Natura 2000 sites.

State of implementation of Natura 2000 Establishment of Natura 2000 largely complete by end of 2012; SPAs under Birds Directive already largely in place; Most Habitats Directive sites of Community importance (SCIs) in place; 6 years to designate SCIs as special areas of conservation (SACs) and establish conservation measures; SAC deadline now overdue; Many Natura 2000 sites in poor condition – need active restoration.

Staff Working Paper – objectives: Underline strategic importance of investment in Natura 2000; Summarise costs and benefits of Natura 2000 management; Evaluate effectiveness of the current approach; Overview of the relevant provisions in the 2014-2020 financial proposals; Explain strategy to strengthen uptake of Natura 2000 financing in relevant EU funds.

2) Investing in Natura 2000 – costs and benefits In 2010 - overall estimates of financial needs (€5.8 billion/yr); Benefits: Ecosystem services from network of Natura 2000 sites worth between €200 to 300 billion/yr; Natura 2000 stores approx. 9.6 billion tonnes of carbon (equiv. 35 billion tonnes of CO2) valued at between €607 billion and €1,130 billion; Estimated between 1.2 to 2.2 billion visitor days/yr to Natura 2000 - recreational benefits of € 5 - € 9 billion per annum. Key contribution to meeting other EU environmental objectives and targets set by the Water Framework Directive and the Marine Strategy Framework Directives; Natura 2000 is the core element of the future green infrastructure.

3) EU financing instruments – experience with the current integration approach Current approach set out in the 2004 Communication on financing Natura 2000; Article 8 HD – link between delivering conservation measures and EU co-financing Opportunities under all major EU funds; Funding under 2nd pillar of the CAP most important source; Cohesion policy structural funds key for the new MS; European Fisheries Fund not much used; Limited use of FP7; LIFE+ fund is strategically important.

Integration approach - uptake of EU funds for Natura 2000 Difficulties with current coding system (especially for EFF); Substantial uptake of funds for Natura 2000 (axis 2 of rural development, structural funds, LIFE); but Only approx. 20% of Natura 2000 financing needs being met; Lack of strategic planning and management plans or equivalent instruments often an obstacle.

4) 2014-2020 multiannual financing framework Communication on 'A budget for Europe 2020' “At EU level, a strengthened integrated approach using the various EU sectoral funds, ensuring their consistency with the priorities of Natura 2000 action frameworks, together with an enhanced LIFE Biodiversity strand, will provide a strong basis for the new Natura 2000 financing strategy“ Opportunities for funding Natura 2000 related measures clearly specified in all major funds: Common Agricultural Policy; Structural and Cohesion funding; European maritime and fisheries policy; LIFE financial instrument for the environment and climate action.

Common Agricultural Policy (CAP) Greening 1st pillar – 30% mandatory measures; EAFRD under 2nd pillar to support public goods delivered by Natura 2000; Compensation for specific mandatory requirements in management plans or equivalent instruments; Also agri-environment-climate and forest-environment payments to support Natura 2000.

Structural funds and the Cohesion Fund Clearer targeting on Europe 2020 objectives; Particular importance in less developed regions; Opportunities also in more developed regions; Cross-border territorial co-operation between MS; Natura 2000 as the core element of green infrastructure; Co-benefits for climate change mitigation and adaptation from Natura 2000 restoration; Opportunities also under the European Social Fund.

European Maritime and Fisheries Fund (EMFF) Stronger focus on ecosystem based management of fisheries; Support management, restoration and monitoring of Natura 2000; Explicit recognition of link to prioritised action frameworks; Promoting involvement of fishermen and other key stakeholders; Allow compensation to promote aquaculture methods compatible with Natura 2000 protection.

LIFE Regulation LIFE Programme for the Environment and Climate Action (proposed budget of €3.2 billion); "Biodiversity" strand: development of best practices; focus on supporting Natura 2000 sites, especially via integrated projects consistent with Prioritised Action Frameworks; Concrete objectives: to bring 15% of Natura 2000 sites into adequate management, 3% ecosystems restoration and 25% of habitats and species targeted by LIFE projects improved status; To lever other EU and domestic funds through promotion of a more programmatic approach particularly via “integrated projects”.

Timeline │ 16 5th Report on Economic, Social and Territorial Cohesion & public consultation Public Consultation on the SWD on the Elements of Common Strategic Framework Agreement on MFF and adoption of new legislative package Entry into force and adoption of programmes Staff Working Document: Elements of the Common Strategic Framework SWD (2012) 61 final Proposals for Cohesion Policy 2014-2020 Proposal by the Commission for a Multiannual Financial Framework (MFF) Adoption of Europe 2020 Strategy 2014 Nov. 2010 March 2012 2012 – 2013 Oct. 2011 June 21/11/2019 European Union Cohesion Policy │ 16

5) Prioritised Action Frameworks as a strategic planning tool for Natura 2000 financing Article 8 of HD foresees need for Prioritised Action Frameworks (PAFs); PAFs as planning tools: identifying key priorities; providing an integrated overview of how to achieve them; having regard to financing instruments; to assist MS with partnership contracts and OPs for the funds covered by the Common Strategic Framework ; Need to ensure consistency of financing of Natura 2000 under programmes with PAFs; MS establish national/regional PAFs before key programmes.

Proposed format for Prioritised Action Frameworks (PAFs) A. Introductory overview of Natura 2000 network for territory; B. Status of the habitats and species; C. Legal and administrative provisions for protection and management of Natura 2000; D. Current experience with use of EU financial instruments; E. Current estimate of financial needs for management of Natura 2000 for territory; F. Strategic conservation priorities for Natura 2000 for 2014-2020; G. Description of key measures to achieve priorities; H. Monitoring, evaluation and updating.

6) Other actions to improve financing of Natura 2000 Better understanding of the management needs – Natura 2000 biogeographic seminars; Improving recognition of the benefits of investments in Natura 2000 Sharing of experience and expertise - good practice and management guidelines: climate change and Natura 2000; "agriculture and Natura 2000" and "forests and Natura 2000”; Natura fisheries management measures and CFP; Green infrastructure – restoring degraded ecosystems + enhancing ecosystem services. Promoting the use of innovative approaches and market based instruments including private funding

Key challenges……. Council and European Parliament to ensure Natura 2000 financing opportunities presented in COM proposals are retained; Ensure recognition of Natura 2000 financing and PAFs in Common Strategic Framework and Partnership Contracts; MS to submit PAFs to COM before end of 2012 – to be discussed bilaterally and refined/finalised in early 2013; MS to specify their financing needs for Natura 2000 under relevant programmes; To ensure - at MS and EU levels - complementarity and consistency between PAFs and relevant programmes; To use PAFs as foundation for integrated projects for management of Natura 2000 covering areas of their territory.

Contact: Micheal.O’Briain@ec.europa.eu Przemyslaw.Oginski@ec.europa.eu For more information, please consult: http://ec.europa.eu/environment/nature/index_en.htm http://ec.europa.eu/environment