INDUSTRY

Overview                                                      Return to Sectoral Menu

Most industrial policy is not carried out at the EU level, but under the competence of the Member States. The open method of co-ordination, set up by the Lisbon European Council, offers a context in which national policy performance can be discussed, developed and improved.The general principles of EU industrial policy date from the Communication ' Industrial Policy in an open and competitive environment: guidelines for a community approach of October 1990. Its instruments (those of enterprise policy) aim to provide the framework conditions in which entrepreneurs and business can take initiatives, develop their ideas and exploit their opportunities. 12 years later, in December 2002, the Commission published its Communication on ' Industrial policy in an enlarged Europe ' to launch the debate on industrial policy. Recently, however, industry leaders and politicians have expressed their concern about the EU's manufacturing base moving out of Europe to benefit from cheaper labour and lower social costs in third countries such as China and India. To address these fears, the European Council in October 2003 asked the Commission to assess the situation and to present solutions to counteract this trend in order to revive the Lisbon strategy of making the EU the most competitive economy in the world by 2010.

In this context, the Member States set themselves an objective of “creating a solid industrial base”, which must concern traditional and thrust sectors alike, and increasing the importance attached to RD and innovation in all forms as well as to information and communication technologies.

 

The EU’s policy for the industrial sector is based on the following main lines:

  • Improving EU legislation, through the “integrated competitiveness strategy”, which aims to take into consideration, at every stage of regulation drafting, the impact of the different European policies (social, environmental, competition) on the competitiveness of European industry (i.e. REACH), and the “legislate better” initiative (impact assessments, regulatory simplification);
  • Supporting industrial research and innovation, which should in the future be based on two support programmes: the future programme for “innovation and competitiveness”, the “7th FPRTD”, organized around four objectives (support for transnational cooperation, a European Research Council, training and careers of researchers - “Marie Curie”, support for research infrastructures);
  • Taking sectoral realities into account: conclusions of the Council on textiles, monitoring the end of import quotas, high-level group on the automobile;
  • Anticipating and supporting industrial restructuring, in particular through assistance to regions going through economic and social conversion (objective 2 of the structural policy), and through promotion of life-long learning.

 

The IPPC directive


The original IPPC directive has been amended four times since it entered in force. The first amendment reinforced public participation in line with the Aarhus Convention. The second amendment clarified the relationship between the permit conditions established in accordance with the IPPC Directive and the EU greenhouse gas emission trading scheme. The last two amendments relate to changes regarding Comitology procedures and EPER.

The IPPC Directive is about minimising pollution from various industrial sources throughout the EU. Operators of industrial installations covered by Annex I of the IPPC Directive are required to obtain an authorisation (environmental permit) from the authorities in the EU countries.

About 52.000 installations are covered by the IPPC Directive. New and existing installations (which are subject to "substantial changes") have been required to meet the requirements of the IPPC Directive since 30 October 1999. Others had to be brought into compliance by 30 October 2007, key deadline for the full implementation of the Directive.

The IPPC Directive itself is based on several principles including:

  • An integrated approach: the permits must take into account the whole environmental performance of the plant.
  • The permit conditions including emission limit values (ELVs) must be based on Best Available Techniques (BAT)
  • Flexibility
  • The public has a right to participate in the decision making process, and to be informed of its consequences, by having access to various documents.

 

 

After the IPPC directive


The proposal for directive adopted on 21 December 2007 by the Commission (COM(2007) 844 final) aims at increasing the use of "best available techniques" (BATs), in order to ensure that industrial operators use the most cost-effective techniques to achieve a high level of environmental protection. Above all, the idea of the new directive is to strengthen the provisions already in force and reduce industrial emissions by merging the current IPPC Directive and six sectoral directives into a single new industrial emissions directive.

The new text tightens minimum emission limits in certain industrial sectors across the EU, introduces minimum standards for environmental inspections of industrial installations, and allows for more effective permit reviews.

The proposal also extends the legislation to other polluting activities, such as medium sized combustion plants, and is expected to provide significant benefits for the environment and human health. Concretely, the emission reductions achieved at large combustion plants alone should offer net benefits ranging between €7 to 28 billion per year, and reduce premature deaths and years of life lost by 13,000 and 125,000 respectively. It is also reduce administrative costs for authorities and operators (between €105 and €255 million per year).

 

 

Milestones


  • 21 Dec. 2007. Commission adopted a new package to improve the EU policy on industrial emissions (COM(2007) 843 final & COM(2007) 844 final , & SEC(2007) 1679 )
  • 4 July 2007. Mid-term review of industrial policy (COM(2007)374)
  • 31 March 2004. Directives on Green Public Procurement (2004/18/EC & 2004/17/EC )
  • 7 Feb. 2001. Green Paper on Integrated Product Policy (COM(2001)68 final )
  • 17 July 2000. Implementation of the European pollutant emission register (EPER) , (Decision 2000/479/EC)
  • 17 July 2000. Revision of the Community Eco-label Award Scheme (REGULATION (EC) No 1980/2000)
  • 9 Dec. 1996. Directive on the control of major-accident hazards involving dangerous substances, or "Seveso II" (Council Directive 96/82/EC )
  • 24 Sept. 1996 . COUNCIL DIRECTIVE on integrated pollution prevention and control, or "IPPC directive" (96/61/EC)
  • 29 June 1993. Implementation of the EU Eco-Management and Audit Scheme (EMAS) for companies in the industrial sector (EEC No 1836/93)
  • 16 Oct. 1990. Communication Industrial Policy in an open and competitive environment: guidelines for a community approach (COM(90)556)