The European Parliament adopted by 449 votes to 102, with 41 abstentions, amendments to the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 691/2011 as regards introducing new environmental economic accounts modules.

The matter was referred back to the relevant committee for interinstitutional negotiations.

Purpose of the regulation

Members clarified that the general objective of the Regulation is to provide data that supports the monitoring and evaluation of the Union’s progress of meeting its environmental objectives laid down in Union law as well as its international commitments in this area.

Modules

By 3 years from the date of entry into force of this Regulation, the Commission should present a legislative proposal to develop the following modules:

- energy subsidies including fossil fuel subsidies;

- subsidies or support measures potentially harmful for the environment;

- water accounts (quantitative and qualitative);

- waste account;

- circular material use rate;

- climate mitigation;

- climate adaptation;

- protection and restoration of biodiversity and ecosystems;

- pollution prevention and control;

- resource management expenditure accounts, including critical raw material;

- environmental footprint.

By 18 months from the date of entry into force of this Regulation, the Commission (Eurostat) should submit a report on the monetary valuation of ecosystem services. The report should include an assessment of methodological possibilities and the feasibility of monetary valuation, possible reporting values where those values are missing and possible alternative ways of measuring for Ecosystem services Accounts. The report may, where appropriate, be accompanied by a legislative proposal to amend this Regulation.

By one year from the date of entry into force of this Regulation, the Commission should publish a study analysing the reporting data currently included in this regulation for Climate change mitigation, as well as propose the creation of a dedicated climate adaptation module to ensure that all reporting values to deliver the objectives of the European Green Deal and European Climate Law, the Fit for 55 package and the Net Zero Industry Act are provided by Member States. The study should be accompanied by an indicative timeline for the future development of the modules.

Pilot studies

The Commission should draw up a programme for pilot studies to be carried out by Member States on a voluntary basis in order to develop reporting and improve data quality, establish long time series and develop methodology. The programme should include pilot studies to test the new environmental economic account modules. In drawing up the programme, particular attention should be given to modules producing data on energy subsidies, including fossil fuel subsidies , and ensure that no additional administrative or financial burdens are placed on the Member States.

Data collection

The Commission may, within 3 months after being informed, advise Member States against using a specific innovative approach if it considers that the quality of the data risks not to be sufficient or make recommendations of how to achieve the required quality of the data. It should facilitate the exchange of best practices on innovative approaches among all Member States.

Transmission to the Commission (Eurostat)

By 18 months from the date of entry into force of this Regulation, the Commission (Eurostat) and the European Environmental Agency (EEA) should develop and provide the European Environment Accounts Dashboard with a science-based and freely accessible state-of-play information on data covered by the modules, such as the GHG emission reduction path, taking into account the objectives set in the European Climate law, progress towards biodiversity restoration and the associated investments.

The Dashboard should be updated annually and cover new modules and data available.

In order to achieve the objectives laid down in Regulation (EU) 2021/1119 (EU Climate Act), Member States should submit data regarding climate change mitigation as from 1 January 2025.

The Committee on the Environment, Public Health and Food Safety adopted the report by Pascal CANFIN (Renew, FR) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 691/2011 as regards introducing new environmental economic accounts modules.

The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:

The report stated that it is critical to get relevant and granular data from Member States about their climate, energy and environment investment gaps to make sure that the Union is on the right track to deliver on the European Green Deal objectives with sufficient public and private capital allocated to the Green transition.

Given the urgent need to expand the system of European environmental economic accounts (EEEA) for policy-making and monitoring, the Commission should be empowered to adopt, by means of delegated acts, the new modules listed in this Regulation and to improve and further develop the existing modules set out in annexes to Regulation (EU) No 691/2011.

Modules

By 3 years from the date of entry into force of this Regulation, the Commission should adopt delegated acts to supplement this Regulation with the following further modules:

- energy subsidies including fossil fuel subsidies;

- subsidies or support measures potentially harmful for the environment;

- water accounts (quantitative and qualitative);

- waste account;

- circular material use rate;

- climate mitigation;

- climate adaptation;

- protection and restoration of biodiversity and ecosystems;

- pollution prevention and control;

- resource management expenditure accounts, including critical raw material;

- environmental footprint.

By 18 months from the date of entry into force of this Regulation, the Commission (Eurostat) should submit a report on the monetary valuation of ecosystem services. By one year from the date of entry into force of this Regulation, the Commission should publish a study analysing the reporting data currently included in this regulation for Climate change mitigation, as well as propose the creation of a dedicated climate adaptation module to ensure that all reporting values to deliver the objectives of the European Green Deal and European Climate Law, the Fit for 55 package and the Net Zero Industry Act are provided by Member States. The study should be accompanied by an indicative timeline for the future development of the modules.

The Commission is also empowered to adopt delegated acts to amend the annexes in order to adapt and further develop the modules.

Pilot studies

The Commission should draw up a programme for pilot studies to be carried out by Member States on a voluntary basis in order to develop reporting and improve data quality, establish long time series and develop methodology. The programme should include pilot studies to test the new environmental economic account modules. In drawing up the programme, particular attention should be given to modules producing data on energy subsidies, including fossil fuel subsidies , and ensure that no additional administrative or financial burdens are placed on the Member States.

PURPOSE: to introduce new modules on environmental accounts into the existing legal framework for European statistics on European economic accounts for the environment.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: Regulation (EU) No 691/2011 of the European Parliament and of the Council on European Environmental Economic Accounts establishes a common framework for the collection, compilation, transmission and evaluation of European Environmental Economic Accounts.

Environmental economic accounts are a multipurpose statistical framework bringing together economic and environmental information. They measure the contribution of the environment to the economy and the impact of the economy on the environment in a consistent and compatible way with macroeconomic statistics (national accounts).

Article 10 of Regulation (EU) No 691/2011 lists potential new modules to be introduced at a later stage on the basis of Commission proposals, such as environment-related transfers (subsidies), forestry accounts and ecosystem services accounts.

In order to carry out its tasks under the Treaties, especially those related to the environment, sustainability and climate change, the Union should have relevant, comprehensive and reliable information. In order to better monitor progress towards a green, competitive and resilient circular economy and to monitor progress towards the Sustainable Development Goals in a Union context, additional data is required.

The main objective of the proposal is to extend the scope of the European environmental economic accounts to provide better information for the European Green Deal, a growth strategy that aims to transform the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy.

CONTENT: the proposal adds three new modules to the list of European environmental economic accounts modules: (i) forest accounts , (ii) ecosystem accounts , and (iii) environmental subsidies and similar transfers accounts .

Ecosystem accounts integrate biodiversity and natural capital considerations with mainstream economic questions on resource allocation and sustainability.

Forest accounts specifically measure forest area and its available share for timber extraction and trace their changes over time.

Environmental subsidies and similar transfers accounts identify and quantify domestic fiscal policy measures and non-EU resources that support the Green Deal through economic activities and products, protecting the environment and safeguarding natural resources.

The three proposed modules respond to and are underpinned by international statistical standards: the System of Environmental Economic Accounts (SEEA) Central Framework and SEEA Ecosystem Accounts.

The proposal provides information for the European Green Deal by integrating environmental sustainability considerations for economic policy purposes. The data produced under the Regulation will also contribute to the European Semester's greening initiatives, to the integration of sustainability into all EU policies, and to the monitoring of the United Nations 2030 Agenda for Sustainable Development.

A new provision empowers the Commission to adopt a delegated act to decide on which of the ecosystem services, already included in the reporting tables in Section 5 of Annex IX monetary values, will be reported. The provisions in Annex IX set ecosystem services in physical and monetary units. The ecosystem services in monetary units will be a subset of the ecosystem services in physical units.

The proposal allows Member States to use innovative approaches other than those already foreseen for data collection. It provides for the possibility to request a derogation from data reporting for the three new modules.

Lastly, it updates the areas to be included in the report to the Parliament and the Council on the implementation of the Regulation.