COHESION POLICY AND SUSTAINABLE DEVELOPMENT Supporting Paper 3 Role of non-Cohesion Policy Instruments Institute for European Environmental Policy (IEEP) Together with CEE Bankwatch Network BIO Intelligence Service S.A.S. (BIO) GHK Institute for Ecological Economy Research (IÖW) Matrix Insight Netherlands Environmental Assessment Agency (PBL) December 2010 TABLE OF CONTENTS 1 INTRODUCTION ................................................................................................................................. 1 1.1 BACKGROUND ..................................................................................................................................... 1 1.2 APPROACH AND STRUCTURE ................................................................................................................ 2 PART I: SYNTHESIS REPORT ................................................................................................................... 6 2 DELIVERING WIN-WINS BY NON-INVESTMENT POLICY INSTRUMENTS ............................ 7 3 THE POTENTIAL FOR CROWDING OUT OF PRIVATE INVESTMENT .................................... 9 4 SUMMARY OF SHORT-LISTED INSTRUMENTS ......................................................................... 11 4.1 REGULATORY BASIS/CURRENT LEGISLATIVE FRAMEWORK .................................................................. 11 4.2 CURRENT DEPLOYMENT IN THE EU, AND TRENDS IN DEPLOYMENT ...................................................... 12 4.3 TYPE/SCALE OF INVESTMENT THAT MIGHT BE INFLUENCED ................................................................. 13 4.4 IMPACTS FROM THE USE OF THE INSTRUMENTS.................................................................................... 13 4.5 BARRIERS, BOTH THE NATURE OF THESE AND HOW THEY MIGHT BE OVERCOME .................................... 14 4.6 BENCHMARKS/INDICATORS TO DETERMINE WHERE INSTRUMENT MIGHT BE USED ................................. 15 4.7 INITIAL THOUGHTS ON IMPLICATIONS FOR THE DESIGN OF THE OPERATIONAL PROGRAMME ................. 15 5 CONCLUSIONS ................................................................................................................................. 17 PART II: THEMATIC ANALYSIS PER THEME ..................................................................................... 19 6 TRANSPORT ...................................................................................................................................... 20 6.1 GENERAL INTRODUCTION .................................................................................................................. 20 6.2 DELIVERING WIN-WINS BY NON-INVESTMENT POLICY INSTRUMENTS ................................................... 26 6.3 COHESION POLICY TRANSPORT INTERVENTIONS AND CROWDING OUT PRIVATE INVESTMENT ................ 26 6.4 SUMMARY OF POSSIBLE INSTRUMENTS THAT CAN REDUCE OR REMOVE WIN-LOSSES ............................. 29 6.5 ASSESSMENT OF THE USE OF GREEN PUBLIC PROCUREMENT ................................................................. 30 6.5.1 Regulatory basis/current instructional framework .................................................................... 30 6.5.2 Current deployment in the EU, and trends in deployment ......................................................... 30 6.5.3 Type/scale of investment that might be influenced ..................................................................... 31 6.5.4 Impacts from the use of the instrument ..................................................................................... 31 6.5.5 Barriers: Nature and how they might be overcome ................................................................... 33 6.5.6 Benchmarks/indicators to determine where instrument might be used ....................................... 33 6.5.7 Initial thoughts on implications for the design of the OP ........................................................... 34 6.6 ASSESSMENT OF THE APPLICATION OF CHARGES ON THE USE OF TRANSPORT INFRASTRUCTURE ............ 35 6.6.1 Regulatory basis/current instructional framework .................................................................... 35 6.6.2 Current deployment in the EU, and trends in deployment ......................................................... 36 6.6.3 Type/scale of investment that might be influenced ..................................................................... 36 6.6.4 Impacts from the use of the instrument ..................................................................................... 37 6.6.5 Barriers, both the nature of these and how they might be overcome .......................................... 38 6.6.6 Benchmarks/indicators to determine where instrument might be used ....................................... 39 6.6.7 Initial thoughts on implications for the design of the OP ........................................................... 39 6.7 CONCLUDING SUMMARY ................................................................................................................... 39 6.7.1 Alternative means of delivering win-wins ................................................................................. 39 6.7.2 Potential to reduce or avoid crowding out ................................................................................ 40 6.7.3 Use of non-investment instruments to mitigate win-losses ......................................................... 40 The assessment of non-investment policy instruments that could be used to mitigate the win-losses that potentially result from Cohesion Policy funding of transport identified two instruments of potential importance: ........................................................................................................................................... 40 7 BIODIVERSITY ................................................................................................................................. 41 7.1 GENERAL INTRODUCTION: WIN-WINS & WIN-LOSSES FOR BIODIVERSITY ............................................. 41 7.2 DELIVERING WIN-WINS BY NON-INVESTMENT POLICY INSTRUMENTS ................................................... 42 7.3 COHESION POLICY AND CROWDING OUT PRIVATE INVESTMENT ........................................................... 43 7.4 DETAILED ASSESSMENTS OF KEY NON-INVESTMENT INSTRUMENTS: APPLICATION OF BIODIVERSITY RELATED EU REGULATIONS ........................................................................................................................ 43 7.4.1 Current deployment and framework in the EU .......................................................................... 43 7.4.2 Type & scale of investment to be targeted and benchmarks & indicators for successful use. ...... 44 7.4.3 Impacts from the use of the instrument ..................................................................................... 44 7.4.4 Initial thoughts on implications for the design of the OP ........................................................... 45 7.4.5 Barriers, both the nature of these and how they might be overcome .......................................... 45 7.5 DETAILED ASSESSMENTS OF KEY NON-INVESTMENT INSTRUMENTS: APPLICATION OF KEY MARKET BASED INSTRUMENTS FOR BIODIVERSITY ................................................................................................................ 45 7.5.1 Current deployment and framework in the EU. ......................................................................... 45 7.5.2 Type & scale of investment to be targeted and benchmarks & indicators for successful use. ...... 46 7.5.3 Impacts from the use of the instrument ..................................................................................... 47 7.5.4 Initial thoughts on implications for the design of the Operational Programme .......................... 47 7.5.5 Barriers, both the nature of these and how they might be overcome .......................................... 47 7.6 CONCLUDING SUMMARY ................................................................................................................... 48 8 CLEAN ENERGY AND CLIMATE CHANGE ................................................................................. 49 8.1 GENERAL INTRODUCTION .................................................................................................................. 49 8.2 DELIVERING WIN-WINS BY NON-INVESTMENT POLICY INSTRUMENTS ................................................... 50 8.2.1 Energy and climate change mitigation ..................................................................................... 50 8.2.2 Climate change adaptation ...................................................................................................... 51 8.3 COHESION POLICY AND CROWDING OUT PRIVATE INVESTMENT ........................................................... 51 8.4 SUMMARY OF POSSIBLE INSTRUMENTS THAT CAN REDUCE OR REMOVE WIN-LOSSES ............................. 53 8.5 FEED-IN-TARIFFS ............................................................................................................................... 53 8.5.1 Regulatory basis/current institutional framework ..................................................................... 53 8.5.2 Current deployment in the EU, and trends in deployment ......................................................... 54 8.5.3 Type/scale of investment that might be influenced ..................................................................... 56 8.5.4 Impacts from the use of the instrument ....................................................................................