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EU Financial Instruments

Unlike some other government departments (such as health, education or transport) environment ministries are generally not big spenders. The traditional reliance on regulation as the predominant environmental policy instrument, combined with the 'polluter pays principle', has meant that the resources available to environment ministries have been limited. Where spending has been required - as in the provision of infrastructure for water and waste management - often this has been under the control of separate agencies or other tiers of government.

In the EU, the only dedicated source of finance for environmental projects has been the small 'LIFE' programme, focusing on e.g. demonstration projects for clean technologies and the management of sensitive biodiversity sites within the Natura 2000 network. Half of the EU's Cohesion Fund is also earmarked for environmental projects. A wide range of other EU financial instruments under the control of other Commission directorates-general and with objectives other than environmental protection, have nevertheless been a source of finance for a wide range of environment-related projects - and sometimes also a direct source of environmental damage. The EU's Structural Funds, for example, focusing on support for deprived regions and social groups, have been used for the provision of environmental infrastructure, training and the support of networks of practitioners.

IEEP undertakes work in relation to every stage in the budgetary process, with a focus on identifying opportunities for advancing the interests of environmental protection. These stages include: revenue raising; planning strategic expenditure priorities; the process of formally adopting the budget by cabinets and parliaments; implementing spending programmes on the ground; and monitoring and evaluation.

We undertake this work for various clients, including the European Environment Agency, UK government departments and agencies, and NGOs.

For interviews, comment and articles, please contact our policy specialists Camilla Adelle, Peter Hjerp