reformingenvironmentallyharmfulsubsidies.docVIP

Reforming environmentally harmful subsidies for a resource efficient europe Background paper for the second MBI Forum, 20 June 2012, Brussels Authors Sirini Withana Patrick ten Brink With contributions from: Frans Oosterhuis (IVM), Laurent Franckx and Inge Mayeres (VITO), Martin Hirschnitz-Garbers and Lucas Porsch (Ecologic), Tomas Badura, Allan Buckwell, Leonardo Mazza, Stephanie Newman, Daniela Russi, Paul van Dam, Emma Watkins, (IEEP) June 2012 Introduction Introduction to the study The EU has a long-standing commitment to removing environmentally harmful subsidies (EHS). Most recently, the need to phase out EHS is reiterated in the Europe 2020 Strategy and related ‘Roadmap for a resource efficient Europe’ which includes a milestone that ‘by 2020 EHS will be phased out, with due regard to the impact on people in need’ The aim of this study is to support the European Commission in implementing the call in the Roadmap to phase out EHS by 2020. This study will identify key types of EHS that merit reform and provide examples of existing EHS in EU Member States. It will also analyse examples of good practice in the reform of EHS and the lessons learnt from these cases. It will develop practical recommendations to Member States in phasing out and reforming EHS to support the objectives of the Europe 2020 Strategy and the resource efficiency agenda. The aim of this background paper is to inform and stimulate discussions during the second meeting of the MBI Forum on 20 June 2012. Member States are encouraged to comment on the preliminary results of the study which will be presented at the Forum and share their experiences and insights on this issue. The results of the discussions will feed into the final report of the study which will be available in autumn 2012. The wider context The need to reform ineffective or harmful public subsidies has long been recognised and has been a contentious point of discussion fo