Academic Preparation Kit

15th National Selection Conference of EYP the Netherlands in Rotterdam

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Word of Welcome

European Union Overview

Committee on Foreign Affairs Patrick Lavelle (IE) and Cassie Tingen (NL)

Committee on Human RightsAstrid Vikstrom (SE) and Mighel Molenkamp (NL)

Committee on Economic and Monetary Affairs Laure Steinville (FR) and Midas Boeke (NL)

Committee on Environment, Public Health and Food Safety I Rebecca Smith (FR) and Christine Sheldon (NL)

Committee on Environment, Public Health and Food Safety II Christine Abdulahad (SE) and Fahad Saher (NL)

Committee on Women’s Rights and Gender Equality Anna Zellweger (CH) and Marissa de Swart (NL)

Committee on International Trade Konrad Staeger (CH) and Charlotte de Groot (NL)

Committee on Civil Liberties, Justice and Home AffairsBy Henok Ghebrenigus (NL) & Mike Whyard (UK)

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AFET

DROI

ECON

ENVI I

ENVI II

FEMM

INTA

LIBE

Table of Contents

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Dear delegates,

With the dawn of a New Year and the National Selection Conference only a few wintry weeks away, it gives me great pleasure to proudly present to you your essential Academic Preparation Kit. Within this document you will find all the crucial information that will assist you with your preparations for the upcoming session in Rotterdam, namely your Topic Overviews that have been diligently prepared for by your chairpersons.

A Topic Overview gives you a helpful indication of the key problems, questions and issues you will need to address within your committee. The numerous helpful links throughout should provide you with a solid basis from which to continue your own research. Over the coming weeks use these overviews to help you become familiar with all the topics, establish your thoughts and craft intelligent arguments. As you are aware, the conference in Rotterdam will bring together the finest debaters from across the Netherlands for several days of intense debate in order to establish practical, sustainable solutions to complex and perplexing problems. I strongly advise you to embrace these Topic Overviews; give yourselves the best possible academic foundation to help you stand out from the crowd.

Yours,Ben Brown

President 15th NSC EYP NL14 January 2015, London

Word of Welcome

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The institutional structure of the EU cannot be compared to any other international organisation (e.g. NATO or the UN). It is neither a centralised unity like a nation state, nor does it imitate a relatively loose structure, such as the commonwealth of nations or a confederation like the United States of America it is an organization that is sui generis. The structure is unique and continuously developed. The Treaty of Lisbon marks the last big step in this process.

Main institutions in Brussels and Strasbourg European Council (since 1974) Regular meetings (aka summits, at least four times per year) of the Heads of State/Government + Commission President + President of the European Council + High Representative for Foreign Affairs and Security Policy of the European Union Provides political guidelines, sets general goals and incentives to the further development of the EU and common strategies concerning the CFSP.

European Commission (EC) “Executive” power of the EU (1 Commissioner per Member State, with one being the President of the Commission). Commissioners are appointed by their nation state, approved by the European Parliament and responsible for one issue area (e.g. Connie Hedegaard as Commissioner for Climate Action). The Commission monitors the adherence to the EU aquis communautaire, represents the Union in foreign relations and has the exclusive Right to Initiative.

European Parliament (EP) The first part of the EU’s legislative branch consists of 754 Members of Parliament elected for 5 years by all EU- citizens (over 18 years old, in Austria over 16). The first direct election of the EP

European Union Overview

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was held in 1979, the latest in 2009. The parliament is divided into seven big fractions plus several independent Members of Parliament. It is working either in a big plenary or in its 20 different committees, each responsible for specific issue areas. The Parliament shares its legislative competences with the “Council”. Council of the European Union (Council of Ministers) Also known as “the Council”, structured in issue-specific councils with the respective ministers of the Member States (e.g. Council Justice and Home Affairs with all ministers of the interior). The presidency of the council changes every six months. The “president” in office supplies the different councils with a chairperson except the council on Foreign Affairs, which is presided by the High Representative (Catherine Ashton since 2009). The issue division in the councils is mirrored in the parliamentary committees (e.g. environment, education, economy, budget). The council shares its legislative competences with the EP and holds executive powers, too.

Does the EU pass laws? Not exactly, the European Union can issue several legal acts, however, not all are fully binding for its Member States. The EU has the following legal options to regulate: Regulations, Directives, Decisions, Recommendations and Opinions. Regulations have to be strictly adhered to in all Member States and leave no room for adjustments during the implementation process. Directives provide a framework and give a certain policy direction, leaving the states with more flexibility and room for adjustments. Decisions always address certain recipients and are only valid for those specific countries/people/institutions. Recommendations and Opinions are not formally valid.

The European legislative procedure lasts a bit longer than on a national level. The EC has the exclusive Right to Initiative, the Council and the EP decide if the proposal becomes a legal act after having discussed relevant details. General policy guidelines and statements, especially from the EP, are formulated in Resolutions. They can entail instructions for future procedures as well as regulations, which are formally valid in the Member States. Legal acts passed by the EP and the Council only enter into force after the respective national governments have introduced and implemented it within their national laws. The combined legal heritage of the EU, inter alia including legal acts and contracts is pooled under the term aquis communautaire.

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Important areas of activity - What does the EU do? The EU is engaged in many policy areas and tries to implement its goals together with its Member States. Many options are possible: Either the Union provides money and/or expertise for projects or certain measures or it passes regulations that harmonise laws and norms in Europe and/or gives them a new direction. Furthermore the EU deals with many issue areas, in which it has no competence to regulate, but can nevertheless express visions, requests and warnings in order to provoke the Member States to act. The Union is more and more visible as a single actor and is also able, in case of a consensus, to speak on behalf of Europe within the scope of the CFSP.

Mixed responsibilities: What is the EU allowed to do? The European Court of Justice (ECJ) has been given jurisdiction as the ultimate appellate court to the Member States on issues of European law. EU law always takes precedence over national law. Primary law of the EU is the supreme source of law and consists mainly of the treaties, which set up competences (Art 2 TFEU) and a framework for policies for the different institutions: the Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU). Secondary law includes unilateral acts and agreements by the Legislature of the European Union. The Charter of Fundamental Rights is part of the primary law and legally binding since the Lisbon Treaty. (Art 6 (1) TEU)

Links to general resources about the EU

A comprehensive guide to the European Union (highly recommended):https://www.dropbox.com/s/5ht602gj1b6fdgg/EYP%20DE%20Guide%20to%20the%20Eu-ropean%20Union.pdf

A brief summary of the EU’s history and its goals:http://europa.eu/index_en.htmhttp://europa.eu/about-eu/eu-history/index_en.htm

An introduction to the EU’s institutional framework:http://europa.eu/about-eu/institutions-bodies/index_en.htmhttps://www.youtube.com/watch?v=Av2sI0dHXpQhttp://ec.europa.eu/index_en.htm

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http://www.european-council.europa.eu/the-institutionhttp://www.europarl.europa.eu/aboutparliament/en/00b3f21266/At-your-service.html;jsessionid=D-229FAEC7072E8A245C54D2D3C6CED9E.node2http://consilium.europa.eu/homepage?lang=en

About the European Parliament:http://www.europarltv.europa.eu/en/player.aspx?pid=d556059d-cd4b-40fa-84b6-a3d300b52bde

An explanation of the way the EU makes decisions (ordinary legislative procedure):http://ec.europa.eu/atwork/decision-making/index_en.htmhttp://www.europarl.europa.eu/aboutparliament/en/0081f4b3c7/Law-making-procedures-in-detail.htmlhttp://www.europarl.europa.eu/external/appendix/legislativeprocedure/europarl_ordinarylegislative-procedure_howitworks_en.pdfhttp://www.europarltv.europa.eu/en/player.aspx?pid=2943a9f1-0a1a-4f7c-9fe8-9f82009fa481

An overview of all EU treaties:http://europa.eu/eu-law/decision-making/treaties/index_en.htm

The Lisbon Treaty at a glance:http://europa.eu/lisbon_treaty/glance/index_en.htm

On the EU budget:http://europa.eu/about-eu/basic-information/money/expenditure/index_en.htm

An overview of the policy areas in which the EU is active:http://europa.eu/pol/index_en.htm

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Human rights: The basic rights and freedoms to which all humans are considered to be entitled, often held to include the rights to life, liberty, equality, a fair trial, freedom from slavery and torture and freedom of thought and expression.

Shared Competence: Article 4 of the Treaty of the Functioning of the EU, states that both the EU and its Member States may adopt legally binding acts in the area concerned. However, the Member States can do so only where the EU has not exercised its competence or has explicitly ceased to do so. Energy policy is a shared competence.

Energy Dependency: The EU is highly dependent on energy from abroad, importing 53% of all the energy it consumes. Figures such as these mean that the EU can be vulnerable to external energy shocks. Many Member States are heavily reliant on a single supplier including six who are entirely dependent on Russia for their natural gas1. Common Foreign and Security Policy (CFSP): An EU policy aiming to strengthen the EU’s external ability to act through civilian and military capabilities in conflict prevention and crisis management. To influence policies violating international law or human rights, or policies disrespectful of the rule of law or democratic principles, the EU has designed sanctions of a diplomatic or economic nature.

Common Strategies: The Amsterdam Treaty has laid out a new foreign policy instrument. The European Council - the foreign minister of each Member State - now has the right to define, by consensus, common strategies in areas where the Member States have important interests in common. The Council is responsible for implementing common strategies through joint actions and common positions adopted by a qualified majority. It also recommends common strategies to the European Council.

1 http://ec.europa.eu/energy/security_of_supply_en.htm

“The price of peace”. How should the EU act to reconcile its role as an advocate of human rights, freedom, democracy, equality and the rule of law with the prospect of having to

make deals to ensure safe energy supply with countries that have a questionable human rights record? By Patrick Lavelle (IE) and Cassie Tingen (NL)

Committee on Foreign Affairs - AFET

1. Definition and Keywords

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Common Position: Before EU governments finally agree on a new piece of Union legislation, they usually reach a pre-agreement called a common position. This can serve as a useful marker showing just how far governments have come towards agreeing the terms of a particularly complex piece of legislation.

Trans Adriatic Pipeline: A pipeline project to transport natural gas from the Caspian Sea in Azerbaijan into the European Union using the Adriatic Sea and Italy as a gateway for the rest of Europe. Although the project will diversify energy supplies, the project is controversial because human rights have been violated in Azerbaijan.

2. Relevance of the Topic and Explanation of the ProblemThe EU relies heavily on imported fossil fuels. It is particularly reliant on Russia from whom it imports approximately one-third of its gas and oil supply2. This reliance is particularly acute in many Eastern Member States, such as Estonia, Finland, Latvia, and Lithuania, which are almost entirely dependent on gas from Russia. A large portion of these supplies reach the EU through pipelines through other states such as Ukraine and Belarus, which are also heavily reliant on Russian supplies. Relying this heavily on a single country for energy can be problematic, and given recent developments in Europe’s relationship with Russia, this is an issue which is of increasing concern for the EU. Increased tension raises the risk of supplies being cut to Ukraine and in extension the EU. Furthermore, as the EU seeks to diversify its supply, it finds itself working with governments and companies with questionable human rights records. This proves to be a dilemma for the EU given its role as an advocate for human rights.

3. Key ActorsThe Russian international gas giant Gazprom has a monopoly on Russian natural gas. The Russian government is the majority shareholder and is thus a considerable influence over the company. It holds the world’s largest natural gas reserve and provides energy not just to Europe, but the wider world. Gazprom has previously cut gas supplies to Ukraine in 2006 and 2009 over disputes, with European countries suffering supply disruptions as a result. With EU sanctions imposed on Russia3, notably on the petroleum unit of Gazprom and on Russian oil companies Rosneft and Transneft, EU-Russian relations are at an all time low.

2 http://ec.europa.eu/eurostat/statistics-explained/index.php/Energy_production_and_im-ports 3 http://europa.eu/newsroom/highlights/special-coverage/eu_sanctions/index_en.htm

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The European UnionThe European Commissioner with responsibility for energy and the EU’s High Representative for Foreign Affairs and Security Policy (HR) represent the EU in bilateral negotiations with other countries. The HR is the chairperson for the CFSP. There, the CFSP sets out strategic objectives, interests and positions of the EU regarding foreign policy problems. The problem AFET is facing is part of this process. EU policy on energy is a “shared competence”4 meaning that Member States also retain the right to determine their national energy policies and to lead bilateral energy relations with non-EU countries. However the need for a consistent approach in securing energy is outlined in European treaties5. Other supplier countriesMany of the countries from whom the EU seeks alternative sources of energy have questionable human rights records. For example, the EU has been criticized for seeking to import gas from Azerbaijan, due to reported human and civil rights abuses by the Aliyev regime.

Energy CompaniesEnergy companies are accused of abusing the rights of workers in these supplier countries. For example in 2011 the British government ruled that BP was breaking international rules governing the human rights responsibilities of multinational companies in its operations of the Baku-Tbilisi-Ceyhan oil pipeline, a section of the Euro-Caspian Mega Pipeline6.

4. Main ConflictsThe European Union is known for its firm stance on upholding human rights. In 2012 the EU was awarded the Nobel peace prize because “for over six decades [it] contributed to the advance-ment of peace and reconciliation, democracy and human rights in Europe” 7. Although the EU still strives for preserving human rights all over the globe today, it is facing a struggle between safeguarding human rights and safeguarding the provision of energy supply to the Member

4 The EU and Member States are authorised to adopt binding acts in these fields. However, Mem-ber States may exercise their competence only in so far as the EU has not exercised, or has decided not to exercise, its own competence. 5 http://europa.eu/legislation_summaries/institutional_affairs/treaties/lisbon_treaty/ai0024_en.htm 6 http://www.thecornerhouse.org.uk/resource/bp-violating-human-rights-rules-says-uk-government7 http://www.nobelprize.org/nobel_prizes/peace/laureates/2012/eu-facts.html

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States. Many of the states exporting energy to the EU have questionable human rights practices. Sometimes, the regimes might completely oppose the goals of the EU in relation to democracy, human rights, freedom and the rule of law. But, the EU is dependent on several of these states for sufficient energy supply.Therefore, the EU finds itself in a fundamental struggle between sustaining human rights, democracy, freedom and the rule of law throughout the world, and assuring that each Member State obtains sufficient energy resources. The EU has been dependent on Russian energy resources for a long time. About 30% of the EU’s gas is imported from Russia today. But with the increasing tensions between the EU and Russia that energy source is not guaranteed anymore. The EU is imposing sanctions on Russia which will affect the energy supply. These imposed sanctions are also part of the EU’s strategy towards safeguarding human rights, democracy, freedom and the rule of law. Another example is the new Trans Adriatic Pipeline (TAP) which will pump two trillion cubic meters of gas from Azerbaijan to Europe. It is a key part of the Euro-Caspian Mega Pipeline being built today. Since it will enhance energy security and diversify gas supplies for several European markets, the TAP project is supported by the European institutions and seen as a “Project of Common Interest” and a part of the Southern Gas Corridor. However, questions have been raised about the possible autocratic regime of Azerbaijan. Human rights watch8 argued that the recent elections in Azerbaijan have been undemocratic and corrupt, resulting in dictatorship. Also freedom of expression has been violated repeatedly9 . Additionally, some EU Member States have been importing crude oil from regions where ISIS has been active. Possibly, the money raised through these means may end up in the hands of ISIS10. The tense relations with Russia have caused the EU to question where its energy resources come from but, the problem stretches further than Russia as there are many examples of energy trading partners with questionable human rights practices. Therefore, the question AFET will be answering is crucial; what general stance should the EU take on the fundamental dilemma between profitable energy resources and trading with questionable human rights protectors?

8 Human Rights Watch (HRW) is an international non-governmental organization that conducts research and advocacy on human rights.9 http://www.hrw.org/world-report/2014/country-chapters/azerbaijan10 http://www.theguardian.com/world/2014/nov/19/-sp-islamic-state-oil-empire-iraq-isis

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5. Legal FrameworkWith increased tensions between the EU and Russia, the EU has been proposing resolutions and suggestions for changing the energy import system. In March 2014 the European Council proposed conclusions about what the next steps should be regarding energy supply to the EU11. The European Council stressed that the EU should work together in solving the problem, depending more on the Member States rather than non-member states. The European Council wants a 10% increase in interconnection of the single market, focussing on the resources the EU has to offer. It furthermore calls on the European Commission to conduct a comprehensive plan for the reduction of EU energy dependence, through diversification of its energy supply. Furthermore, the EU has a large influence in human rights guidelines12 which should be followed when trading with non-Member States. Currently, private companies in the EU are not legally required to ensure that the proceeds of their trade do not end up in the wrong hands. Although the EU has set strict guidelines regarding Fair Trade of goods, there is no legal obligation for companies to ensure that human rights are not being violated in places where their energy resources derive from.

Since the Treaty of Amsterdam13 , the Common Foreign and Security Policy is able to use a new foreign policy instrument called the common strategy. Here, the European Council settles on a common strategy addressing a fundamental problem in foreign policy because the decision has to be unanimous, the Common Strategy is binding for all Member States, making it a very efficient way of determining foreign policy14.

6. SummaryThe question of how to address human rights abuses in other sovereign countries is a troubling dilemma for the EU. As a major trading partner, should the EU take it upon itself to be an advo-cate of democracy, and if so to what extent? How should it balance its needs for a secure energy supply, essential for society’s very functioning, with human rights, which define its core values?

11 http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ec/141749.pdf12 http://eeas.europa.eu/human_rights/guidelines/index_en.htm13 The Amsterdam Treaty is an official EU treaty signed in 1997, aiming to overcome contradiction between CFSP objectives and the means available to meet these objectives.14 http://europa.eu/legislation_summaries/institutional_affairs/treaties/amsterdam_treaty/a19000_en.htm

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7. Additional Links and Information for Further Research Interactive Map on the Pipelines through and arround Europe: http://ec.europa.eu/energy/infrastructure/transparency_platform/map-viewer/

Economist article on European energy security:http://www.economist.com/news/briefing/21600111-reducing-europes-dependence-russian-gas-possiblebut-it-will-take-time-money-and-sustained New York Times article on European efforts to overcome reliance on Russian gas:http://www.nytimes.com/2014/10/29/business/energy-environment/europe-strives-to-over-come-its-reliance-on-russian-gas.html?_r=0 EU Energy Policy under the Treaty of Lisbon:http://www.ceps.eu/system/files/book/2011/02/EPIN%20WP31%20Braun%20on%20EU%20Energy%20Policy%20under%20Lisbon.pdf

European Energy Security Strategy:http://ec.europa.eu/energy/security_of_supply_en.htm

FAQ on the EU competences and the European Commission powers:http://ec.europa.eu/citizens-initiative/public/competences/faq?lg=en#q3

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Whistleblowing – the disclosure of information related to corrupt, illegal, fraudulent or hazardous activities being committed in or by public or private sector organisations – which are of concern to or threaten the public interest – to individuals or entities believed to be able to create action. Freedom of Information - an extension of freedom of speech, a fundamental human right recognised in international law, which today is understood more generally as freedom of expression in any medium, be it oral, written or printed, communicated through the Internet or any other relatively permanent means. Public Interest - the net benefits derived for, and procedural rigor employed on behalf of, all society in relation to any action, decision or policy. National Security - a collective term for the defence and foreign relations of a state, including the protection of interests of that country. Classified Information - important information that a government deems sensitive enough for it to be protected from unauthorised readers, Transparency - a situation in which business, organisations and institutions act in an open way without secrets so that people can trust that they are fair and honest. 2. Relevance of the Topic and Explanation of the Problem

“Is sunlight the best disinfectant?”: Recent cases of whistleblowers, such as Edward Snowden and Chelsea Manning, revealing classified information to the public have sparked a heated debate about the line between national security in-

terests and freedom of information. What approach should the European Union (EU) take towards whistleblowers from non-EU member states? How can the EU be a safe haven for those that speak up without jeopardising its close ties with

valuable allies? By Astrid Vikstrom (SE) and Mighel Molenkamp (NL)

Committee on Human Rights - DROI

1. Definitions and Keywords

“My sole motive is to inform the public as to that which is done in their name and that which is done against them.” – Edward Snowden Whistleblowing is a not a new phenomena, but because of recent cases attracting media attention, questions about the boundaries and issues arising from the practice of whistleblowing have emerged.

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Whistleblowing is increasingly recognised as an important tool in the prevention and detection of corruption and other malpractice. Corruption often goes unchallenged when people do not speak out about it. Witness accounts offer invaluable insights into corruption, and are powerful tools in the fight against it. From exposing multi-million dollar financial scams to dangerous medical practices, whistleblowers can play a central role in sharing information about malpractice within organisations that are relevant to the public.Nonetheless, whistleblowing is still controversial as the sometimes classified information shared by whistleblowers often presents a threat to the national security of states. Therefore, some national governments - and a handful of organisations condemn whistleblowing on the grounds of it being an irresponsible act by people seeking attention. Other examples of whistleblowing in 2014 have also included misconduct in settling business deals and unsafe hospital practice.

In many countries, blowing the whistle can carry a high personal risk, as a comprehensive legal framework seldom exists to address the issue; particularly where there is little legal protection against dismissal, humiliation or even physical abuse. Controls of information, libel and defamation laws, and inadequate investigation of a whistleblower’s claims may all deter people from speaking out. The Member States of the EU have yet to propose uniform legislation concerning whistleblowers. This also means that if whistleblowers from outside of the EU seek refuge, they would get different treatment in each Member State. Now, the Committee on Human Rights faces the task of suggesting a common approach towards international whistleblowers without harming the EU’s relations internationally. Offering protection to people who might have compromised national security can be problematic when it comes to fostering international relations.

Link:Transparency International ‘Whistleblowing in Europe’: http://whistlenetwork.files.wordpress.com/2014/01/whistleblowing-in-europe-report-november-2013.pdf 3. Key ActorsWhistleblowing affects many stakeholders as the information shared often concerns the public. Whistleblowers often use the media to broadcast their message and websites like WikilLeaks have been utilised in the past. National governments both from within and outside of the EU play a role, as the information subject to whistleblowing occasionally concern their governments and policy makers, and strongly influence their position on this issue.

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Non Governmental Organisations (NGOs) like Transparency International are doing their very best to facilitate reaching a solution to this matter by seeking co-operation with, or giving advice to, national governments and also informing the public. Links: Transparency International ‘What we do’: http://www.transparency.org/whatwedo/ Wikileaks: http://wikileaks.org/ 4. Main Conflicts Looking past the human rights aspect of this issue, there is another central conflict regarding borders. How far can whistleblowing go, and what is most important? Is the public interest of greater significance than national security? How much should the public know: is transparency the way to go? Does the public have the right to know everything - what information are you obligated to share? Other conflicts lay in how different Member States perceive whistleblowers, resulting in differing legislation. But also the relations with partners all over the world, as how the EU deals with whistleblowers from these countries can greatly affect their ties. 5. Legal FrameworkAs mentioned before, the legislation within the EU concerning whistleblowers varies widley - due to the EU’s founding principles of subsidiarity and proportionality, which implies that decisions should be taken at the lowest level possible while still remaining effective, and that the EU may only intervene if it is able to act more effectively than its Member States. However, all Member States are signatories to the European Convention on Human Rights (ECHR), which includes Article 6 Right to a Fair Trial and Article 10 Freedom of Expression. But the latter may be subject to such formalities, conditions, restrictions or penalties as are prescribed by law and are neces-sary in a democratic society, in the interests of national security. Once again raising the question, how far should whistleblowing go? Additionally the European Committee on Legal Co-operation (CDCJ) has made a draft1 on the

1 CDCJ: Draft recommendation on the protection of whistleblowers:http://www.coe.int/t/dghl/standardsetting/cdcj/Whistleblowers/CDCJ%20DRAFT%20RECOMMEN-DATION%20ON%20PROTECTING%20WHISTLEBLOWERS_en.pdf

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protection of whistleblowers which was adopted by the Committee of Ministers. Legal protection of whistleblowers remains very limited within most of the EU Member States. 1 Links:European Convention on Human Rights (ECHR): http://www.echr.coe.int/Documents/Conven-tion_ENG.pdf Relevant Sections: Section 6 Right to a Fair Trial, 10 Freedom of Expression

The Recommendation CM/Rec(2014)7 of the Committee of Ministers to Member States on the protection of whistleblowers was adopted on 30 April 2014. 6. SummaryWhistleblowing has gained increased attention, especially when it comes to the boundaries of it and whether or not to protect those who do it. It is of interest to the public, the media, NGOs and national governments. Conflicts concern different approaches to whistleblowing, ties with partners, and the boundaries of whistleblowing. The Committee of Ministers has adopted a draft for a common approach, as the legal protection of whistleblowers is still very partial in most EU Member States.

7. Further ReadingCouncil of Europe: protection of whistleblowers: http://www.coe.int/t/dghl/standardsetting/cdcj/Whistleblowers/protecting_whistleblowers_en.aspTransparency international: Whistleblowing in Europe: http://whistlenetwork.files.wordpress.com/2014/01/whistleblowing-in-europe-report-november-2013.pdf Ombudsman: what are EU institutions doing to protect whistleblowers?: http://whistlenetwork.files.wordpress.com/2014/01/whistleblowing-in-europe-report-november-2013.pdf Ombudsman pushes for more protection for EU whistleblowers: http://www.euractiv.com/sec-tions/public-affairs/ombudsman-pushes-more-protection-eu-whistleblowers-303761 (Euractiv)Draft by the European Committee on Legal Co-operation (CDCJ): http://www.coe.int/t/dghl/standardsetting/cdcj/Whistleblowers/CDCJ%20DRAFT%20RECOMMENDATION%20ON%20PROTECTING%20WHISTLEBLOWERS_en.pdf

2 Transparency International ‘Whistleblowing in Europe’: http://whistlenetwork.files.wordpress.com/2014/01/whistleblowing-in-europe-report-november-2013.pdf

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European Convention on Human Rights (ECHR): http://www.echr.coe.int/Documents/Conven-tion_ENG.pdfWebsite of Transparency International: http://www.transparency.org/news/feature/whis-tleblowing_in_europe

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“The day after tomorrow”: Economic growth in the EU has slowed down considerably in recent years. According to the limits-to-growth dilemma there will be a day when resources are depleted and striving for more economic growth is no longer an option. How can the EU prepare Europe’s

economy and society for this day? By Midas Boeke (NL) & Laure Steinville (FR)

COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS - ECON

1. Relevance of the topic and explanation of the problemIn 1972, a report titled ‘Limits to Growth’ was published by the Non-Governmental Organisation (NGO) ‘The Club of Rome’. The report, which was the first of its kind, pointed out the limits of environmental resources1. For the past forty years, much scientific and academic focus has been directed to the matter of depletion of these finite resources. Several relevant computer simulations clearly showed that the remaining quantity of resources that we use on a daily basis are getting critically low. Therefore, several questions can be raised. The core issue of this topic is twofold. Firstly, what can be done to move to sustainable and renewable energy? Secondly, it is time for us to start considering other success factors related to the development of societies and the well being of its citizen rather than expanding consumption and ultimately a nation’s Gross Domestic Product (GDP). However economic growth and prosperity is still at the heart of the EU’s decision making, free trade agreements, the ‘Maastricht criteria’ and the Eurozone.

Additionally, there is a lack of commitment to the measures that are being suggested. Information about the issues of finite resources, climate change and the need to integrate renewable resources as a central part of our energy consumption is widely available to the general public, yet is seems that it fails to catch on. Arguably in order for a transition to completely renewable resources to happen, the change needs to be facilitated by technology that makes the process easier.

Some countries have already started segwaying from environmentally detrimental energies to renewable ones. Germany is a good example, as it has taken a pioneering role in the matter. This was recently illustrated by the German energy company E.ON switching to renewable sources entirely by selling off virtually all of its fossil fuel plants. Although other Member States and various

1 William W. Behrens III, Jørgen Randers, Dennis Meadows, Donella Meadows, The Limits to Growth, 1972, http://www.donellameadows.org/wp-content/userfiles/Limits-to-Growth-digital-scan-ver-sion.pdf

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companies have shown interest and support, sincere commitment and broad public support for devoting resources to this issue remains to be seen.

Gross Domestic Product (GDP): The monetary value of all the finished goods and services produced within a country’s borders in a specific time period.

Economic growth: An increase in the capacity of an economy to produce goods and services, compared from one period of time to another. For comparing one country’s economic growth to another, GDP per capita should be used as these take into account population differences between countries.

Finite resources: A resource that does not renew itself at a sufficient rate for sustainable eco-nomic extraction in meaningful human time-frames. An example is carbon-based, organically-derived fuel. Fossil fuels (such as coal, petroleum, and natural gas), are non-renew-able, and therefore considered finite resources.

Limits-to-growth dilemma: According to a computer simulation conducted in 1972, extrapolating economic and population growth with finite resources, our economy will not be able to grow indefinitely2. Recent follow-up studies have confirmed these predictions.3

Eco-sufficiency: A concept requiring a reduction of the level of production/consumption, especial-ly in parts of the world with the highest standards of living. It aims at reducing negative environ-mental consequences through a reduction of the demand for consumer goods4.

Horizon 2020: ‘EU’s biggest Research and Innovation programme ever with nearly EUR 80 billion of funding available over 7 years (2014 to 2020), promising ‘more breakthroughs, discoveries and world-firsts by taking great ideas from the lab to the market’ 5.

2 https://socialsciences.arts.unsw.edu.au/tsw/LIMITS.htm3 http://www.greatchange.org/ov-simmons,club_of_rome_revisted.pdf 4 http://sapiens.revues.org/10225 ‘What is Horizon 2020?’, European Commission, 2013, http://ec.europa.eu/programmes/hori-zon2020/en/what-horizon-2020

2. Key Terms

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Gross National Happiness (GNH): An alternative or addition to GDP, establishing a nation’s development, not judging from well-being in the narrow (economic) sense, but from well-being in the broader sense, like the possibility to engage in social and personal actualisation.

3. Stakeholders- European Commission (EC): As the main executive body of the European Union, the EC is tasked with initiating legislation for a sustainable future.- Member States: The Member States will have to initiate their own legislation in order to comply with the EU’s demands.- Companies: While governments propose legislation, it is businesses like energy produc-ers and industrial manufacturers that will experience the most tangible change, as they are the primary consumers of finite resources.- European Civil Society: As stated in the “Limits to Growth” report, EU citizens will have no other option than shifting their consumption habits in order to keep up sustainable economic growth.

4. Facts and figures 1. If the global consumption of currently known fossil fuel supplies would remain constant, oil reserves will have run dry by 2052. Adjusting for the lack of oil, remaining gas reserves will be depleted by 2060, and coal by 2088 6.2. The first three countries to hit their 2020 Renewable Energy Goals are Bulgaria, Esto-nia and Sweden7. 3. A few Member States are taking the lead in green-energy consumption, such as Germany. The percentage of green energy in the German electricity sector has increased from 6.3% in 2000 to almost 30% in 20148. 4. By 2012, Norway already generated 104.3% of its overall energy consumption through renewable sources9.

6 https://www.cia.gov/library/publications/the-world-factbook/geos/xx.html7 http://cleantechnica.com/2014/03/13/3-eu-countries-already-hit-2020-renewable-energy-goals-youll-never-guess/8 ‘Electricity production from solar and wind in Germany in 2014’, Fraunhofer Institute, Germany. 2014-04-21. p.59 http://ec.europa.eu/eurostat/web/energy/statistics-illustrated (The above 100% could be explained through energy exports or production peaks.)

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5. According to recent polls and despite the economic crisis, 95% of EU citizens say that protecting the environment is a priority and think more can be done. In the same poll, 75% of respondents believe that safeguarding the environment can create economic growth10. 5. Main ConflictsIt appears rather complicated for the EU to propose long-term legislation, since it is hard to divert attention from short-term issues like economic stagnation following the 2007/8 economic crisis. Preparing for “the day after tomorrow”, however, requires commitment and the long-term allocation of resources. This consideration of long- and short-term focus involves not only the EU, but businesses and citizens as well. At the end of the day, it is those stakeholders that will have to actively change their habits, in order for actual change to take place.

Striving for a more environmentally friendly economy results in increased production and development costs for companies, at least in the short term. Keeping in mind that the EU holds the free market principle in high esteem, it needs to find a way to convince companies to take this step, which might diminish their profits for a certain amount of time. In line with this conflict of long-term vs. short-term, the EU must consider ways of measuring and improving quality of life in times when economic growth is no longer an option. While today, GDP is commonly used to indicate economic growth, new indicators like GNH could be used to indicate the EU’s development when GDP is no longer viable, and improve the quality of life accordingly.

6. Legislative BackgroundAt least 60% of the overall Horizon 2020 budget will promote sustainable development. One of the headline targets of Europe 2020 is for expenditure on Research & Development (R&D) to reach 3% of the EU’s GDP, as part of the Innovation Union initiative set up by the European Commission. EUR 80 billion will be allocated to fund R&D activities 11.

The ‘Beyond GDP initiative’ was introduced in 2007. The aim of the initiative is to develop “indicators that are as clear and appealing as GDP, but more inclusive of environmental and social aspects of progress”12. The eagerness of the EC on the matter back then is characterised

10 Eurobarometer survey on the environment, press release of the European Commission, September 201411 Horizon 2020 budget and targets12 ‘Europe’s largest-ever investment in R&D gets underway’, European Commission, December 2013

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by a Communication released two years later, in 2009 13. However, since then, nothing much has been achieved on moving beyond GDP as an indicator. It is not even mentioned in the 2020 EU strategy, although it is commonly accepted that the GDP has countless flaws as an indicator of societal well-being.

Overall, European legislative measures in the area beyond economic growth are scarce at present.

7. Links for further readingWilliam W. Behrens III, Jørgen Randers, Dennis Meadows, Donella Meadows, The Limits to Growth, 1972, http://www.donellameadows.org/wp-content/userfiles/Limits-to-Growth-digital-scan-version.pdfArticle exploring how the EU can move towards a more sustainable policy-making and why such a shift has been/is taking so long, http://www.euractiv.com/sections/sustainable-dev/citi-zens-not-blame-rising-consumption-scholars-say-302129Article on alternatives to GDP and possibilities to measure social progress, http://www.econo-mist.com/blogs/feastandfamine/2013/04/social-progressTED talk by Paul Gilding on infinite growth on a finite planet, http://www.ted.com/talks/paul_gild-ing_the_earth_is_fullTED talk by Graham Hill on how people can be happier with less possessions, http://www.ted.com/talks/graham_hill_less_stuff_more_happiness

13 ‘GDP and beyond : measuring progress in a changing world’, Communication from the Commis-sion to the Council and the European Parliament, 2009

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“Working towards efficiency”: How can the EU promote the transition from the linear “take make, dispose” model to a circular model of economy which aims to rely on renewable

energy, minimises the use of toxic chemicals, and eradicates waste through careful design? By Rebecca Smith (FR) and Christine Sheldon (NL)

COMMITTEE ON ENVIRONMENT, PUBLIC HEALTH AND FOOD SAFETY I - ENVI I

Linear economy: a common economic model where materials are extracted, produced, con-sumed and disposed (“take-make-consume and dispose”). It requires the input of new materials and produces large quantities of waste 1. Circular economy: an economic model in which resources are kept circulating in the economy for as long as possible, for example through re-use, recycling or biodegradation, in order to achieve the full potential usability of a resource. This minimises new resources and waste 2. Technical nutrients: Non-degradable materials. In the circular economy, technical nutrients are designed to be reused and recycled without entering the biosphere3. Biological nutrients: Biodegradable nutrients. In the circular economy, they are designed to re-enter the biosphere safely through decomposition4.

Links:Re-thinking Progress: towards a circular economy: https://www.youtube.com/watch?v=zCRK-vDyyHmIThe circular economy in diagrams: http://avbp.net/?p=2304

2. Relevance of the topic and explanation of the problem The current structure of our economy is one based on a ‘take - make – consume and dispose’ pattern of growth. This linear economy is based on the assumption that resources are abundant,

1 European Commission communication on the circular economy, 20142 European Commission communication on the circular economy, 20143 Marinova, Annandale, Phillimore, “The International Handbook on Environmental Technology Management”, 2006.4 ibid.

1. Definitions and Keywords

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available, easy to source and cheap to dispose of5. It is increasingly clear that this is not the case. The large waste output and need for new materials places a lot of pressure on the world’s natural resources. Together with the increase in global demand for raw materials, this causes considerable scarcity among resources, resulting in rising European market prices. In addition, this pressure results in the degradation and increased fragility of the environment. A circular economy aims to minimise both the pressure on the environment and the economy, as it keeps the resources used within the economy for as long as possible. Reusing the product or recycling the materials, which would also have the result of greatly decreasing waste, does this. The transition to a circular economy has vast economic potential, which has been recognised by the European Commission. Not only would it shield the economy from the high volatility of raw material prices, but also create many jobs, and save the cost of the materials that are re-used. It would also contribute to a more sustainable and durable EU. Although both the public and private sectors support the circular economy model, it requires a fundamental change in the organisation of the economy and of society, and is thus very difficult to implement. It affects product design, business and market models, waste management, as well as consumer behaviour 6. Links:European Commission communication on the circular economy: http://ec.europa.eu/environ-ment/circular-economy/pdf/circular-economy-communication.pdf EU environment video ‘Moving towards a circular economy’: http://www.youtube.com/watch?v=URLP6a6a_wA

3. Key ActorsSupply and demand are fundamental market forces defining the economy. Thus, consumers and businesses are key stakeholders in transitioning to a circular economy, consumers by the products they demand, and businesses by the products they supply.

The environment is a shared competence in the EU, which means that both the EU and Member States can propose legislation in this field. The area of research and technological development is also a shared competence, in that the EU can carry out activities, as long as they

5 European Commission communication on the circular economy, 20146 European Commission communication on the circular economy, 2014

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do not prevent Member States from exercising theirs 7. However, competition rules necessary for the functioning of the internal market are an exclusive competence of the EU8 , which is also an important aspect of the circular economy.

NGOs and civil society also play an important role for the transition to a circular economy. For example, citizen’s organisations can exert pressure on governments by representing wishes of the public which may not be respected by politicians. Many civil society organisations have shown support for environmental protection, and the circular economy in particular.

Links:The Ellen MacArthur Foundation, whose mission is to develop the circular economy: http://www.ellenmacarthurfoundation.org/ Phillips’ transition from a linear to a circular economy: http://www.innovationservices.philips.com/news/philips-transition-linear-circular-economy The European Environmental Bureau’s opinion on the European Commission’s proposal on the circular economy: http://www.eeb.org/index.cfm/news-events/news/not-bad-but-can-do-bet-ter-leaked-eu-proposal-on-circular-economy/ Propositions from Zero Waste Europe on the European Commission’s strategy: http://www.zerowasteeurope.eu/2014/07/press-release-circular-economy-package-puts-europe-firmly-on-the-zero-waste-track-but/

4. Main ConflictsThere is an inherent conflict between the linear and circular model of the economy. The established linear model poses some difficult barriers to the circular economy, such as: market barriers, existing infrastructure, business models, technology, and established behaviour. One example is that prices do not reflect the real costs of resource use 9. These are barriers that will have to be overcome for a transition to a circular economy.

There is a conflict on which strategy to follow to achieve a circular economy. The recent actions taken by the Commission are focused on recycling, which concerns end-products. Some argue

7 Article 4 of the Treaty on the Functioning of the EU, p.53 http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C:2010:083:FULL&from=EN8 Article 3 of the Treaty on the Functioning of the EU, p.53 http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C:2010:083:FULL&from=EN9 European Commission communication on the circular economy, 2014

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that the demands of a circular economy change in all steps of production and consumption, in particular design 10. There are several possible priorities in a transition to a circular economy, and one challenge is setting them.

There are also different possibilities in the implementation, and a conflict between them. The Commission proposal sets targets, which are criticised by both an industry leader11 , saying that it disregards the complexity of material use, and by an economist 12, saying that targets will not encourage the necessary technology breakthroughs.

Links:Article on the risk of the circular economy package being withdrawn from the agenda: http://www.euractiv.com/sections/climate-environment/withdrawal-circular-economy-pack-age-missed-opportunity-sustainable Article criticising the circular economy package: http://www.theguardian.com/sustainable-busi-ness/european-circular-economy-package-fails-radical-note

5. Legal Framework The Seventh Environmental Action Plan (7th EAP 2014 – 2020) was adopted by the European Union, after the 6th EAP ended in July 2012. With this Action Plan the EU seeks to promote sus-tainable growth by developing a more competitive low-carbon economy that makes efficient use of resources. In addition it contains the viewpoints presented in the Roadmap to Resource Efficient Europe presented by the European Commission in 2011.

In 2008, the Sustainable Consumption and Production Action Plan, a dynamic framework to improve energy and environmental performance of product and foster their uptake by consumers, was adopted.

In July 2014 the European Commission presented the communication paper in which the establishment of an EU framework was proposed that combined smart regulation, market-based

10 Joan Marc Simon, coordinator Europe’s zero waste network, quoted in the Guardian http://www.theguardian.com/sustainable-business/european-circular-economy-package-fails-radical-note11 Markus Beyrer in Euractiv http://www.euractiv.com/sections/sustainable-dev/eu-tables-circu-lar-economy-package-zero-landifll-goal-30325912 James Grayson in the Guardian http://www.theguardian.com/sustainable-business/europe-an-circular-economy-package-fails-radical-note

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instruments and incentives to establish a circular economy. This was followed by a proposal in September 2014 for a new directive on recycling. The proposed directive amends three cur-rently active directives on the disposal and processing of packaging, batteries and electronic equipment and therefore ensures high quality recycling and the use of recycled waste as a major reliable source of raw material for the EU.

Links:The seventh environmental action programme: http://ec.europa.eu/environment/newprg/ The sustainable consumption and production action plan: http://ec.europa.eu/enterprise/poli-cies/sustainable-business/environment-action-plan/index_en.htm European Commission communication paper on the circular economy: http://eur-lex.europa.eu/resource.html?uri=cellar:aa88c66d-4553-11e4-a0cb-01aa75ed71a1.0022.03/DOC_1&for-mat=PDF Proposed directive on recycling by the EC: http://ec.europa.eu/environment/waste/target_re-view.htm

6. AcademiaThe follow diagram provides a visual explanation of the circular economy:

Source: European Commission communication on the circular economy, 2014. This diagram shows how different aspects of the economy are linked together, and how the materials need not be disposed after the use of a product, but rather how they can be turned back into resources. It separates in a simple way the different steps of the circular economy. Links: Article with several opinions on the circular economy package http://www.euractiv.com/sections/sustainable-dev/eu-ta-bles-circular-economy-package-zero-landi-fll-goal-303259 The “cradle-to-cradle” approach to the linear economy: http://www.product-life.org/en/cradle-to-cradle

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7. Summary

The transition to a circular economy is a great opportunity, but also a great challenge. With an increase in scarcity of resources, and problems of waste management, a circular model is a solution to both while creating many jobs, increasing GDP and lowering environmental pressure. However, this requires a complete restructuring of the economic system. This is a challenge that the European Commission is attempting to undertake, although their efforts have been criticised for being too timid. What should the EU’s strategy be in changing business and behaviour towards the reuse of resources?

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“The greener mile”: Following the failure of many EU Member States to meet the targets for renewable energy set out in 2001 (2001/77/EC) and 2003 (2003/30/EC) and building upon the European

Commission’s proposed 2030 Climate and Energy Framework, how should the EU proceed to reduce its reliance upon fossil fuels? By Christina Abdulahad (SE) and Fahad Saher (NL)

Committee on Environment, Public Health and Food Safety - ENVI II

1. Definitions and KeywordsEmissions: Environmental emissions are substances released into the air as waste. These emissions are often the result of combustion, manufacturing and natural waste. Many of these environmental emissions are classified as greenhouse gases.

Greenhouse gases: The atmosphere of the earth is filled with greenhouse gases such as water (H2O), methane (CH4) carbon dioxide (C2O) and ozone (O3). Greenhouse gases hold in heat and thereby the name, they work just like a greenhouse, letting the sun’s heat in but not allowing all of it out.

The greenhouse effect: The greenhouse effect is a naturally occurring process and is a result of the fact that greenhouse gases are able to change the balance of the planet. The greenhouse gases are contributing to the heating of the earth and excessive build up of these substances in the atmosphere is causing the climate on the earth to change.

Links: EU strategy for biofuels, Europa.eu, http://europa.eu/legislation_summaries/internal_mar-ket/single_market_for_goods/motor_vehicles/interactions_industry_policies/l28175_en.htm

2. Relevance of the topic and explanation of the problemThe Commission’s projections1 show that with the current policy the EU will have reduced the greenhouse gas (GHG) emissions by 32% in 2030. Thus, to achieve a reduction of 40%, urgent action is needed. The proposal does not provide all the details; some are to be sorted out when the Council and Parliament have agreed on new targets. According to the Commission, renewable energy must continue to play a fundamental role in the

1 European Commission announce 2030 climate, energy framework, International Centre for Trade and Sustainable Development, http://www.ictsd.org/bridges-news/biores/news/european-commis-sion-announces-2030-climate-energy-framework

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transition towards a more competitive, secure and sustainable energy system. This transition will not be possible without significantly higher shares of renewable energy. To the extent that renewables are generated within the EU, they can also reduce the EU’s trade deficit in energy commodities and reduce its exposure to supply disruption and to volatile prices of fossil fuels. Renewables also have the potential to drive growth in innovative technologies, create jobs in emerging sectors and reduce air pollution. Therefore, one of today’s defining challenges is to use fuels that are less polluting, whilst ensuring the security of energy supplies by diversifying fuel sources.

Links:EU strategy for biofuels: http://europa.eu/legislation_summaries/internal_market/single_mar-ket_for_goods/motor_vehicles/interactions_industry_policies/l28175_en.htm

3. Key ActorsOn energy and environmental matters, the European Commission is responsible for ensuring that European law is correctly applied. The Commission also makes sure that the legislation is correctly applied by the Member States once the legislation has been adopted.

When the Commission puts forward a proposal to adopt new laws or amend existing ones, the Council of the EU and the European Parliament starts their scrutinising, in so called “readings” at the same time. The proposal passes through three levels at the Council, at each reading.

Furthermore, another key actor working alongside the civil society in order to advance the European debate is the section for “Transport, Energy, Infrastructure and the Information Society” (TEN). The opinions of TEN are results of close collaboration with the various EU institutions as well as with those organisations representing civil society that are concerned by these issues.

Additionally, the fossil fuel industry plays a fundamental role as a key actor. Fossil fuel companies spent more than EUR 44 million during 2013 lobbying the EU to block action on climate change and are believed to hold back the EU on actions for the environment2.

2 http://www.oxfam.org/en/pressroom/reactions/europe-must-review-climate-targets-after-weak-climate-package-deal

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Links:Summaries of EU legislation on energy:http://europa.eu/pol/ener/index_en.htm More about the European Commission:http://ec.europa.eu/energy/index_en.htmMore about the European Parliament and ENVI:http://www.europarl.europa.eu/aboutparliament/en/00b3f21266/At-your-service.htmlhttp://www.europarl.europa.eu/committees/en/envi/home.htmlMore about the Council of Europe: http://www.consilium.europa.eu/council/how-the-council-works?lang=enMore about the TTE:http://www.consilium.europa.eu/council/council-configurations?lang=en#tteMore about TEN:http://www.eesc.europa.eu/?i=portal.en.ten-sectionMore about the Committee of regions:http://cor.europa.eu/en/activities/Pages/work-of-the-cor.aspxhttp://cor.europa.eu/en/activities/commissions/enve/Pages/enve.aspx#

4. Main ConflictsAccording to climate change experts at Oxfam, the EU relies too heavily on fossil fuels, a major contributor to greenhouse gas emissions. Another aspect to be aware of is that Europe imports half its energy, largely fossil fuels, with Russia being the EU’s top supplier for both oil and gas3. The scale of this dependency is alarming; it leaves the EU vulnerable at times of regional conflicts or stand-offs, and makes it more susceptible to fuel price shocks that hit the poorest the hardest. Thus, the EU is called upon to end its reliance on imported fossil fuels and “home-grown energy” sources including coal and fracking. Several large Member States that have vested interests in maintaining a favourable relation with Russia and whose exports and energy imports depend on such a favourable relation do not allow for a cohesive policy that would have a forceful impact. Member States’ divergent interests, which result from their own preferences, do not cater for the formulation of a collective stance. Shifting the EU’s focus to increasing energy efficiency whilst boosting renewable energy4 could therefore potentially require laborious bargaining and pro-duce political tensions in the discourse. In search of a long-term strategy, the EU’s main task is to

3 http://www.theguardian.com/world/2014/jun/03/ukraine-eu-fuel-energy-crisis-oxfam-europe4 http://euobserver.com/environment/125737

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strike a balance between upholding its values in shaping, executing and building upon the 2030 Climate and Energy Framework.

Links:“Nations talk, but cities act’ on green policies”http://euobserver.com/regions/127018“World must stop emitting greenhouse gases by 2100, report says”http://euobserver.com/environment/126350“World leaders pledge to tackle climate change”http://euobserver.com/environment/125737http://europa.eu/legislation_summaries/energy/european_energy_policy/l27068_en.htm

5. Legal FrameworkIn the fields of environmental affairs both the EU and the Member States have the right to legislate and conclude legally binding agreements. Member States may legislate on a specific issue in this area if the EU has not already done so.

Climate and Energy FrameworkIt is essential for the EU to address the major energy challenges facing us today. The EU have a Climate and Energy Framework in place which covers the full scope of energy sources in order to deliver a low-energy economy, making the energy we do consume more sustainable, competitive and secure.

The 2030 Framework was proposed by the Commission in January 2014 and builds on the experience of, and lessons learnt from the 2020 Climate and Energy Framework. The 2030 Framework also takes the longer term perspective set out by the Commission in 2011 in the Roadmap for moving to a competitive low-carbon economy in 2050, the Energy Roadmap 2050 and the Transport White Paper into account5.

The presented Framework will continue to prioritise and aim towards a low-carbon economy. The objectives are to build a secure and competitive energy system that guarantees affordable energy supplies, reduce our dependence on energy imports and create new opportunities for growth and jobs.

5 http://ec.europa.eu/clima/policies/roadmap/index_en.htm

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A keystone of the Framework is the binding target to reduce EU domestic greenhouse gas emissions by at least 40% below 1990 level by 2030. This part will ensure that the EU is on track towards its aim of cutting emissions by at least 80% by 20506.

2001/77/EC: The Directive on Electricity Production from Renewable Energy Sources An EU directive for promoting renewable energy use in electricity generation. It is officially named 2001/77/EC and generally known as the RES Directive. It took effect in October 2001 and the directive sets national indicative targets for renewable energy production from individual Member States. The EU does not strictly enforce these targets but the Commission monitors the progress of the Member States and do, if necessary, propose mandatory targets for those who miss their goals. These objectives contribute towards achieving the overall indicative EU targets, which are listed in the white paper on renewable sources of energy.

2003/30/EC: The Directive on the Promotion of the use of biofuels and other renewable fuels for transport Officially 2003/30/EC and better known as the biofuels directive, it is a directive for promoting the use of biofuels for EU transport. The directive entered into force in May 2003, and prescribe that national measures have to be taken by countries across the EU aiming at replacing 5.75% of all transport fossil fuels with biofuels by 2010.The directive also called for an intermediate target of 2% by 31 December 2005. The target of 5.75% is to be met by 31 December 2010. The percentages are calculated on the basis of energy content of the fuel and apply to petrol and diesel fuel for transport purposes placed on the markets of Member States; who are encouraged to take on national indicative targets in conformity with the overall target.

2009/28/EC: The National Renewable Energy Plan (NREAPs) The 2009/28/EC, directive requires each Member State to adopt a national renewable energy action plan. These plans sets out a Member States’ national target for the share of energy from renewable sources consumed in electricity, transport, heating and cooling in 2020 for sufficient measures in order to achieve the aims7.

6 http://ec.europa.eu/clima/policies/2030/index_en.htm7 http://europa.eu/legislation_summaries/energy/renewable_energy/en0009_en.htm

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Links:More about the 2020 Climate and energy package: http://ec.europa.eu/clima/policies/package/index_en.htmThe roadmap for moving to a low carbon economy in 2050: http://ec.europa.eu/clima/policies/roadmap/index_en.htmThe energy roadmap 2050:http://ec.europa.eu/energy/energy2020/roadmap/index_en.htmTransport white paper:http://ec.europa.eu/transport/themes/strategies/2011_white_paper_en.htmThe 2009/28/EChttp://europa.eu/legislation_summaries/energy/renewable_energy/en0009_en.htm 2003/30/EC

6. AcademiaThe EU aims to get 20% of its energy from renewable sources by 2020. Renewable sources of energy are essential alternative to fossil fuels. More renewable energy will make it possible for the EU to cut greenhouse emissions and make it less dependent on imported energy. A boost in the renewable industry could furthermore encourage technological innovation and employment in Europe8. But in order to reach the target of 20% the EU wants to focus efforts on the electricity, heating and cooling sectors and on biofuels. When it comes to the transport sector, which is almost exclusively dependent on oil, the Commission hopes that the share of biofuels in overall fuel consumption will be 10% by 20209.

7. SummaryReducing the reliance on fossil fuels and solving the problem of global warming is not an easy task. These issues present the EU with an inconvenient truth. All the measures, such as switching from oil and coal to other fuels, will require effort and inevitably cost money. However, many of these very much-needed changes will actually save money and make us more efficient and pro-ductive at the end of the day. After all, how should the EU continue to reduce its dependence on fossil fuel? Additionally, what kind of action is needed to be taken in order to protect the interests of the Union?

8 http://ec.europa.eu/energy/renewables/index_en.htm9 http://europa.eu/legislation_summaries/energy/renewable_energy/index_en.htm

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“Tipping the scale”: the ambitious targets set out by the European Commission for the number of women represented among executive staff have not been met. A 2012 draft directive is now stuck between the European Parliament and the Council of Ministers,

what measures should the EU take to tip the scale and make more room for women on the boards of European companies? By Anna Zellweger (CH) and Marissa de Swart (NL)

Committee on Women’s Rights and Gender Equality - FEMM

“The European Union has been successfully promoting gender equality for over 50 years. However, there is one place where we have not seen any progress: company boardrooms” -Viviane Reding, Commissioner of Justice

1. Relevance and explanation of topicIn 2012 the European Commission launched a proposal for a directive which was aimed at en-suring gender equality amongst board positions within companies on a pan-European scale. The current situation across Europe presents itself as follows. With 60% of all university graduates being female, women are still largely outnumbered when it comes to filling leading positions in the corporate sector of the EU. The latest statistics of 2014 state that a mere 18.6% of the board members of the largest publicly listed companies in the EU are women. Ac-cording to the main initiator of this debate, commissioner Viviane Reding, this ignorance towards the skills of highly qualified women constitutes a waste of talent and a loss of economic growth potential1. Currently, there are only 5 countries, as shown in the graph below, within the EU where women account for at least a quarter of board positions of major corporations. This shows that momentarily none of the Member States are close to reaching the main goal of the draft directive, which demands at least 40% of all board positions to be held by women by the year 20202,3

1 http://europa.eu/rapid/press-release_SPEECH-12-702_en.htm?locale=en2 http://ec.europa.eu/justice/newsroom/gender-equality/news/121114_en.htm#Press3 http://ec.europa.eu/justice/gender-equality/files/gender_balance_decision_making/131011_women_men_leadership_en.pdf

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2. Measures in placeThe main measure that has been initiated towards solving the issue of gender inequality in leading corporate positions of European companies is the aforementioned draft for a directive launched by the European Commission in 2012. The main objective of this directive is that by 2020 all publicly listed companies in the EU (excluding Small and Medium Enterprises) must have allocated at least 40% of non-executive board positions to the under-represented sex. This quota is meant to expire in 2028, thereby serving as a short term solution. The directive states that companies will have to come up with individual and self-regulated strategies in order to achieve the required percentage, with annual reports on the progress made. Furthermore, Member States will have to come up with adequate sanctions for companies in breach of the directive. So far regulations concerning this issue have been made on a national level and this directive aims at unifying all corporations of the European market under one regulation to which all must abide. However, so far this directive has remained a proposal as it is yet to be accepted by the European Parliament1 and the European Council. In other words since the directive was proposed, little has been done in order to pass it into law and implement it.

Further include the Women’s Charter which was adopted by the European Commission in March 2010 in which it renewed its commitment to attaining gender equality and the resulting Strategy for Equality between Women and Men 2010-2015. The strategy lays out six key areas under which it works towards attaining the goal of fostering equality between women and men. Finally, one should mention the European Institute for Gender Equality, which is an EU agency aimed at supporting the EU and its Member States in promoting gender equality in many aspects.

When considering measures in order to tackle this issue it is also vital to consider those that are legally non-binding. The “Women on the Board Pledge for Europe” launched by Viviane Reding in 2012 was an attempt at encouraging publicly listed companies to voluntarily sign a pledge to increase women’s presence on their boards to 30% by 2015 and to reach 40% by 2020. Although this campaign was not successful and its principles were later incorporated in the draft directive, measures like these are vital in considering alternatives to the directive2.

1 The most recent response of the EP to the directive dates back to 2013 http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+REPORT+A7-2013-0340+0+DOC+XML+V0//EN 2 http://europa.eu/rapid/press-release_MEMO-11-124_en.htm

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3. Key TermsGender Equality - result of the absence of discrimination on the basis of a person’s sex in opportunities and the allocation of resources or benefits or in access to services4.

Gender Quota - a legally specified proportion of a certain gender that need to be employed, for example on company boards or public office.

Glass Ceiling - invisible but real barrier through which the next stage or level of advancement can be seen, but can not be reached by a section of qualified and deserving employees. Such barriers exist due to implicit prejudice on the basis of age, ethnicity, political or religious affiliation and/or sex5.

Gender pay gap - (GPG) represents the difference between average gross hourly earnings of male paid employees and of female paid employees as a percentage of average gross hourly earnings of male paid employees6.

Board of Directors - A group of individuals that are elected as, or elected to act as, representatives of the stockholders to establish corporate management related policies and to make decisions on major company issues. Such issues include the hiring/firing of executives, dividend policies, options policies and executive compensation7.

4. Facts and figures1. In 2012 just 1 in 7 board members (13.7%) at Europe’s top companies was a woman8. 2. Currently the European average share of women in leading positions of the largest listed European companies lies at 18.6%3. Latvia is currently leading in closing the gender gap with women holding 31.4% of leading positions whilst women in Malta cover a mere 2.6% of board positions.4. A study conducted by McKinsey & Company showed that companies with the most gender diverse management teams had 17 % higher stock price growth between 2005 and

4 http://ec.europa.eu/justice/gender-equality/glossary/index_en.htm5 http://www.businessdictionary.com/definition/glass-ceiling.html6 http://ec.europa.eu/eurostat/cache/metadata/EN/tsdsc340_esmsip.htm7 http://www.investopedia.com/terms/b/boardofdirectors.asp8 http://ec.europa.eu/justice/gender-equality/files/womenonboards/wob-factsheet_2014_en.pdf ( Facts 1-3)

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2007 compared to the industry average and that their average operating profit was double the industry average between 2003 and 20059.

5. Key ActorsSo far whether or not to implement measures to assure gender equality in board positions has been decided upon by the individual Member States. There are several countries that have implemented laws concerning the issue such as Belgium, where a law was passed in 2011 stating that by 2012 all state owned companies, by 2017 all listed large companies and by 2019 all small and medium businesses must have at least one third of each gender represented in board positions10. The proposed directive would be the first pan-European measure, legally binding Member States and large corporations to assure gender equality amongst board positions.

Besides the EU and national governments, the companies themselves also play a big role in en-suring gender equality across board positions. In 2012 Credit Suisse issued an extensive report on “gender diversity and corporate performance” in which they analysed the performance of companies with gender balanced boards compared to those who did not. In their report they demonstrated the higher success rates of the first mentioned and further encourage all companies to assure gender balance amongst board positions. “Over the last six years companies with at least some female board representation outperformed those with no women in terms of share price performance”11 . Further examples are the studies conducted by Ernst and Young12 or the Deutsche Bank13 .

In a further aspect, one should consider the work being done by non-governmental organisations such as the European Women’s Lobby (EWL). The EWL’s mission is to promote gender equality in all aspects of life across the EU. Amongst several missions they have also made “women in

9 http://ec.europa.eu/justice/newsroom/gender-equality/opinion/files/120528/women_on_board_progress_report_en.pdf10 http://ec.europa.eu/justice/gender-equality/files/womenonboards/womenonboards-fact-sheet-be_en.pdf11 https://www.credit-suisse.com/newsletter/doc/gender_diversity.pdf“share price” is the price of an individual share of a company. 12 http://www.ey.com/Publication/vwLUAssets/ey-women-on-boards-pov-july2014/$FILE/ey-women-on-boards-pov-july2014.pdf13 https://annualreport.deutsche-bank.com/2013/ar/stakeholders/staff/diversity.html

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decision-making” one of their top priorities14. On a European and also international level there are many more NGOs and campaigns such as the recently launched “HeforShe”15 campaign aimed at promoting gender equality in all areas including promoting more women in board positions.

Finally attention should be turned to the actual focus of this issue: the women qualified for and interested in board positions. As described above the phenomenon of women being held back from advancing within companies is commonly described as the glass ceiling. This term is often related to prejudices, however, the cause for the absence of gender equality on corporate boards can be due to tradition, education or social background. Organisations such as Women on Boards UK (WOB UK)16 or the European Women on Boards (EWOB)17 have made it their mission to identify all women interested and qualified in holding a board position and to support them on their way by demanding more transparency, building networks and offering seminars and workshops to inform both the women and companies about the benefits of a gender balanced board.

6. Key Questions1. What has lead to the underrepresentation of women in board positions? 2. Has the directive taken the right approach? Is a short term quota the solution? 3. What other methods can you think of that would assure more gender equality in leading positions of European companies?4. Seeing as the directive has been “stuck” between the European Parliament and the European Council for over 4 years, should it and its principles be further pursued through further legislative measures, initiatives or should one concentrate on alternative non-binding measures such as campaigns? Does one exclude the other or are they compatible?

7. Helpful links1. Description of the European Strategy for Equality between Women and Men 2010-2015http://ec.europa.eu/justice/gender-equality/2. “Women and men in leadership positions in the European Union 2013” (Especially consid-er chapter 1, 2.3 and the list of figures)

14 http://www.womenlobby.org/our-work/women-in-decision-making/?lang=en&afficher_footer=oui#menu_footer15 http://www.heforshe.org/16 http://www.womenonboards.co.uk/about/17 http://www.europeanwomenonboards.eu/

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http://ec.europa.eu/justice/gender-equality/files/gender_balance_decision_mak-ing/131011_women_men_leadership_en.pdf 3. Report issued by the UN on a study concerning the gender inequality in leading positions. (Especially consider chapter 3) http://www.un.org/womenwatch/feature/women_leadership/On-line_discussion_report_Women_in_Leadeship_Roles.pdf 4. Fact sheet concerning Gender Balance on corporate boardshttp://ec.europa.eu/justice/gender-equality/files/womenonboards/wob-factsheet_2014_en.pdf 5. Document on EU’s latest developments concerning women on boards.http://www.herbertsmithfreehills.com/-/media/Files/PDFs/2014/JIB-FL2811Dec2013In%20Practice%2024.pdf6. TED Talk by Sheryl Sandberg on why we have too few women leaders. http://www.ted.com/talks/sheryl_sandberg_why_we_have_too_few_women_leaders

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1. Key terms Transatlantic Trade and Investment Partnership (TTIP): A free trade agreement currently being negotiated between the EU and the US. The aim is to create economic growth and jobs on both sides by removing trade barriers1. Comprehensive Trade and Economic Agreement (CETA): An EU-Canada treaty that was finalised in September 2014. The agreement is yet to be approved and ratified. Once it enters into force, it will be the EU’s first agreement with another highly industrialised country to facilitate market access for goods, services and investment by abolishing almost all trade barriers2. CETA is expected by some to serve as a blueprint for TTIP3. Trade Barriers: Tariffs: Tax on imports of a certain product or services. Transatlantic tariffs are compara-tively low (on average 3%), but still impose costs4. Non-tariff barriers (NTBs): NTBs are generally defined as policy measures other than ordinary customs tariffs, that can potentially have a negative effect on international trade. In the context of TTIP, the relevant NTBs mainly consist of differences in regulations and standards5. For instance, both the EU and the US have their own systems for ensuring consumer protection. In the automotive industry, for example, the EU and the US do not recognise each other’s 1 European Commission, ‘About TTIP’, http://ec.europa.eu/trade/policy/in-focus/ttip/about-ttip/2 European Commission, ‘Comprehensive Trade and Economic Agreement (CETA)’, http://ec.euro-pa.eu/trade/policy/in-focus/ceta/3 Euractiv, ‘Commission ISDS report: Fireworks for the new year’, http://www.euractiv.com/sec-tions/ttip-and-arbitration-clause/commission-isds-report-new-years-firework-3107644 European Commission, ‘United States’, http://ec.europa.eu/trade/policy/countries-and-re-gions/countries/united-states/5 European Commission, ‘Questions and Answers’, http://ec.europa.eu/trade/policy/in-focus/ttip/about-ttip/

Committee on International Trade - INTA“Make it rain”: Since July 2013, seven meetings have been arranged to negotiate a Trans-atlantic Trade and Investment Partnership (TTIP) between the European Union and the USA to facilitate trade between two of the world’s biggest trading blocks. As the the negotiations have been unsuccesful so far, what should the negotiation guidelines be when it comes to environmental and social sustainability? By Konrad Staeger (CH) and Charlotte de Groot (NL)

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standards so that cars proven safe for sale on one side have to pass further tests or be adapted to meet extra specifications on the other side. It has been estimated that the cost of dealing with these NTBs can add the equivalent of tariffs of 10-20% to the price6. Investor-to-State Dispute Settlement (ISDS): ISDS is a mechanism to resolve disputes between investors and states arising under a trade agreement. This frequently involves arbitration instead of litigation in national courts. This protection is contained in bilateral and multilateral investment treaties as well as in a number of free trade agreements. ISDS mechanisms are very common, albeit exposed to certain criticism (see footnote 14 below).

2. Key questions

1. What are the advantages and disadvantages of TTIP, taking into account the needs of Europe’s businesses, citizens and consumers as well as the environment?2. Should the EU engage in further negotiations for TTIP? Should the European Commission provide for further transparency of the process and if yes, how?3. If yes, what should the EU’s negotiations guidelines be?4. Should TTIP include ISDS provisions? If yes, how can the protection of foreign investors be balanced with the right of states to regulate for legitimate purposes?5. Which fields should be included or excluded from TTIP? 6. How can the EU ensure an adequate level of protection in the fields of product and food safety, labour laws and environment in the long term?

3. Stakeholders

- The Directorate-General for Trade of the European Commission (DG Trade) negotiates on behalf of the EU. The negotiators’ mandate are outlined by the Council’s negotiation directives for TTIP.7 - The US Trade Representative (USTR) represents the US government in the TTIP negotiations8. - The governments of the EU Member States pursue their national interests in the Council (which might not necessarily coincide with those of the European Commission).

6 http://ec.europa.eu/trade/policy/in-focus/ttip/questions-and-answers/7 http://data.consilium.europa.eu/doc/document/ST-11103-2013-DCL-1/en/pdf8 USTR, ‘Transatlantic Trade and Investment Partnership T-TIP’, http://www.ustr.gov/ttip

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- Several non-governmental organisations (NGOs) have taken a strong stance against TTIP. Amongst many reasons, these NGOs mainly perceive TTIP as a threat to democracy and protection standards in the fields of product and food safety, labour laws and environment protection.- A committee of EU citizens launched a European Citizens’ Initiative (ECI) against the negotiation mandate for TTIP and against a future ratification of CETA9. - The European businesses (enterprises and investors) are strongly in favour of TTIP and expect strong positive impacts for both businesses and consumers10.

4. Social relevance of the topic and main conflictsProponents of TTIP submit that the agreement would increase economic growth and create jobs – in particular by reducing the costs for (and increasing) access to the US market (also for smaller companies)11 , which would in turn result in cheaper goods and services for European consumers. An independent study mandated by the European Commission expects significant gains for both the EU and the US, namely an increase of GDP of EUR 68–119 billion (EU) and EUR 50–95 billion (US)12.

Regarding environmental and social sustainability, the conflict revolves around the question of whether TTIP would result in reduced standards of protection in product and food safety, labour laws and the environment. In this context, it is relevant that TTIP is intended to constitute a “living agreement”, providing for enhanced cooperation between regulators through a Regulatory Cooperation Council13.

9 The European Commission refused to register the initiative on the grounds that both requests fell outside of the Commissions’ power (http://bit.ly/1rLcw5o). The committee gathered the signatures nonetheless as a ‘self-organised’ ECI. See: https://stop-ttip.org/?noredirect=en_GB10 Business Europe, ‘Why TTIP matters to European Business, http://bit.ly/1A6ezU811 European Commission, ‘Helping smaller firms’, http://ec.europa.eu/trade/policy/in-focus/ttip/about-ttip/helping-smaller-firms/12 Centre for Economic Policy Research ‘Reducing Transatlantic Barriers to Trade and Invest-ment – An Economic Assessment’, p. 95, http://trade.ec.europa.eu/doclib/docs/2013/march/tra-doc_150737.pdf For a summary by the European Commission see: http://trade.ec.europa.eu/doclib/docs/2013/september/tradoc_151787.pdf13 Karel De Gucht, former Trade Commissioner, ‘Transatlantic Trade and Investment Partnership (TTIP) – Solving the Regulatory Puzzle’, http://europa.eu/rapid/press-release_SPEECH-13-801_en.htm

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The inclusion of an ISDS mechanism is arguably the most debated aspect of TTIP. Views differ whether ISDS is an adequate form of security for foreign investors14 or an undemocratic restriction of a state’s right to regulate in the public interest taking place in non transparent proceedings15. Some expect that the threat of ISDS claims could lead to a “regulatory chill” – legislators foregoing the adoption of legitimate regulatory changes for the environment, health, or natural resources, whilst others hold that such a “regulatory chill” cannot objectively be observed16. Given the strong public interest in the issue of investment protection and ISDS in the TTIP, the European Commission opened a public consultation on the issue in March 201417, which received very substantial interest18. The European Commission has yet to publish the results, however, certain stakeholders published their answers in advance19. During the ongoing negotiations, the European Commission and the Council have been criticised for its lack of transparency20 , to which the European Commission answered with a public relations effort.21

For a contrary view see: Corporate Europe, ‘TTIP: Covert attacks on democracy and regulation’, http://corporateeurope.org/sites/default/files/ttip_covert_attacks.pdf14 The European Commission sought to address criticism of ISDS mechanisms in several factsheets: http://trade.ec.europa.eu/doclib/docs/2013/november/tradoc_151916.pdf; http://trade.ec.europa.eu/doclib/docs/2013/october/tradoc_151791.pdf15 For a critical stance on the ISDS mechanism in CETA, see Corporate Europe, ‘Trading Away Democracy’, http://corporateeurope.org/sites/default/files/trading-away-democracy.pdf16 See Prof. Tietje’s study for the Dutch government: ‘The Impact of Investor-State Dispute Settlement (ISDS) in the TTIP’, http://bit.ly/1oamhuq17 European Commission, ‘Online public consultation on investment protection and investor-to-state dispute settlement (ISDS) in the Transatlantic Trade and Investment Partnership Agreement (TTIP)’, http://trade.ec.europa.eu/consultations/index.cfm?consul_id=17918 A total of 149,399 replies were submitted, see: European Commission, “Preliminary report (sta-tistical overview)”, http://trade.ec.europa.eu/doclib/docs/2014/july/tradoc_152693.pdf19 For a critical assessment provided by a group of law professors, see: http://www.kent.ac.uk/law/downloads/ttip_isds_public_consultation_final.pdf20 http://www.euractiv.com/sections/trade-industry/ttip-negotiating-mandate-finally-declassi-fied-30907321 European Commission, ‘Transparency in TTIP’, http://youtu.be/gno9v4qmthw; European Com-mission,’Upholding Standards in TTIP’, http://youtu.be/cPh_e-qecYk

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5. Facts and Figures

Together the EU and the US account for more than 50% of world GDP in value, 41% of GDP in purchasing power and one third of world trade flows22. The European Commission expects that “an ambitious TTIP deal would increase the size of the EU economy around €120 billion (or 0.5% of GDP) and the US by €95 billion (or 0.4% of GDP)”23 .

The EU and the US are important trade partners for each other24. Foreign direct investments (FDI): In 2012, the EU’s FDI amounted to EUR 1655 billion, making the EU the biggest investor in the US, whilst the US invested EUR 1526 billion in the EU. In 2013, The EU exported EUR 288 billion worth of goods to the US, while the US sold goods worth EUR 196 billion to the EU. In 2013, the EU exported almost EUR 159 billion worth of services to the US, whilst the US exported services worth EUR 146 billion into the EU.

6. Legal Framework

The European Union has exclusive competence in the field of trade (common commercial policy) pursuant to Article 3(1)(e) of the Treaty on the Functioning of the European Union (TFEU). For most trade issues, international agreements are negotiated by the European Commission on the basis of a mandate by and in collaboration with the Council and require subsequent approval by both the Council (with qualified majority except where specified) and the European Parliament (Article 207(3) and (4) TFEU)25. Depending on the scope of TTIP, the latter could require unanimous approval by the Council (under Article 207(4) TFEU) and, in any case, is likely to constitute a mixed agreement (mixing EU and Member State competences), requiring adoption or ratification by all Member States and thus increasing the latter’s veto powers26.

22 Business Europe, ‘Why TTIP matters to European Business’, see above footnote 9, p. 44.23 European Commission, ‘[TTIP –] The Economic Analysis Explained’, p. 2, http://trade.ec.europa.eu/doclib/docs/2013/september/tradoc_151787.pdf24 European Commission, ‘United States’, http://ec.europa.eu/trade/policy/countries-and-re-gions/countries/united-states/25 See also European Commission, ‘What did the Lisbon Treaty change?’, http://trade.ec.europa.eu/doclib/docs/2011/june/tradoc_147977.pdf26 House of Commons Library, ‘Transatlantic Trade and Investment Partnership’, p. 14, www.parlia-ment.uk/briefing-papers/sn06688.pdf

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The negotiations were initiated in June 2013 and at the time of writing, seven rounds of negotiations have been completed27.

7. Research terms and links

Research termsTTIP; CETA; ISDS; trade barriers; tariffs; non-tariff barriers (NTBs); investment arbitration, investor-state arbitration; regulatory cooperation; social and environmental sustainability in trade.

Research links (in addition to the footnotes above)Detailed explications and further documents can be found on the TTIP website of the European Commission: http://ec.europa.eu/trade/policy/in-focus/ttip/For additional outline of TTIP and an example of a Member State perspective, see the report of the EU Committee of the UK’s House of Lords: http://www.publications.parliament.uk/pa/ld201314/ldselect/ldeucom/179/179.pdfFor the opponents’ view including further links and videos, see the website of the European Citi-zens’ Initiative against TTIP and CETA: https://stop-ttip.org/?noredirect=en_GBFor an updated collection of EurActiv articles, see: http://www.euractiv.com/topics/ttip. Regard-ing the ISDS mechanism, see the EurActiv special report: http://www.euractiv.com/files/eurac-tiv_special_report_-_ttip_and_the_arbitration_clause.pdf38Degrees [an organisation opposed to TTIP], ‘What is the Transatlantic Trade Investment Part-nership?’, http://youtu.be/Y4OQeekSD6sEuranet Plus, ‘TTIP - good or bad? Hot debate between Philippe Lamberts and Peter Chase’ (vid-eo), http://youtu.be/TBpcvyVgIgA

27 European Commission, ‘Resources [on TTIP]’, http://ec.europa.eu/trade/policy/in-focus/ttip/resources/#negotiation-rounds

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“What happens abroad stays abroad”: In light of EU companies’ and their subcontractors’ increasingly illegal and immoral practices in developing countries, how can the EU ensure that they are held legally and morally accountable for their actions affecting the environ-

ment and workers? By Mike Whyard (UK) and Henok Ghebrenigus (NL)

Committee on Civil Liberties, Justice and Home Affairs - LIBE

1. Definitions and key words:

REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals. A legislative framework on chemicals of the European Union (EU) making industry responsible for assessing and managing the risks posed by chemicals and providing appropriate safety information to their users1.

Corporate Social Responsibility (CSR): A management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders.

International Labour Organisation (ILO): A United Nations (UN) agency dealing with international labour issues and worker safety standards.

Subcontractor: An individual or business hired by another individual or business, called the general contractor, to perform a specific part of a larger project, often with the aim of lowering overall costs. An example is a phone manufacturer using a company abroad to produce certain parts.

Outsourcing: The process by which a general contractor hires a subcontractor and the term can apply to contracts with domestic and foreign parties.

2. Relevance of the topic and explanation of the problem:At present, European companies are generally able to take less regard of their moral and legal obligations to the environment and workers in developing countries. This is due to the reduced

1 European Commission, REACH,http://ec.europa.eu/enterprise/sectors/chemicals/reach/index_en.htm.

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level of legislation that exists outside of Europe and the EU and the inability of foreign governments to enforce regulations that exist. Heavily publicised examples of this include the 2006 Ivory Coast toxic waste dump and the 2013 Savar building collapse.

The EU has a vested interest in foreign governments being able to uphold the same level of ethical and environmental standards. This interest stretches further than just the will to export European values. Criminal organisations such as the Italian ‘Ndrangheta’ have been known to profit immensely by dumping toxic waste in the lawless waters off the coast of Somalia, thereby financing further operations back home.

Furthermore, companies that are part of aggressive and competitive industries are increasingly outsourcing labour to subcontractors in developing countries. The responsibility for upholding ecological and ethical principles ultimately belongs to the companies and they must act independently of any EU legislation. With a lack of an incentive for companies to do so, the EU is faced with the task and responsibility of ensuring that they can be held accountable.

With the EU unable to enact or enforce legislation outside of its borders, solving this problem is very difficult. The EU does not wish to push corporations to take their business elsewhere away from Europe entirely, but prides itself on upholding high moral and environmental standards. How can the EU ensure that European companies remain globally competitive, while their actions are consistent with European ethical values?

3. Stakeholders:European companies need to stay globally competitive and adhere to EU regulations on work-er safety and environmental standards inside EU Member States. Luckily, EU Member States are generally very well equipped to enforce these regulations. In an effort to remain competitive, mitigate costs or risks, or to utilise a wide range of skills, companies often outsource production to third world countries. These countries often have laxer regulation than the EU, or lack the infrastructure needed for local regulatory agencies to enforce them. Companies have remained reluctant to change their policies regarding the environment or worker safety until prompted to do so by consumers, most often after publicised scandals.

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4. Main conflicts:The EU must walk the tightrope of attempting to create a positive economic environment where companies are able to flourish and maintain profit margins so that the EU can remain economically stable, whilst ensuring that corporations from within EU Member States are not abusing human rights and damaging the environment, regardless of where these violations take place. Moreover, having one set of stringent rules in place for corporations’ activities within the EU, which are then absent for any business that takes place overseas, only goes to encourage these companies to globalise their workforces. Consequently, this could potentially reduce the size of business operations within the EU. Additionally there is the question of how much legal and moral responsibility general contractors in Europe have of the actions of their subcontractors abroad. It is sometimes argued that it is up to the authorities in the respective countries to ensure safe workplaces and healthy environments.

5. Legislative background and legal framework:In October 2002, the European Commission launched the EU Multi-Stakeholder Forum on CSR. A second communication was published in 2006. In this paper the Commission defines CSR as ‘a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis’.

In response to the Commission’s communication, the European Parliament voted on a resolution in which it urges the EU executive to extend legal obligations to some key aspects of corporate accountability. In their resolution, which was passed by a large majority in plenary, Members of the European Parliament called on the Commission to re-think its position on CSR and involve all stakeholders in the process. Civil society organisations, mindful of the resolution, sent a letter to the Commission asking for swift action. But the EU executive reaffirmed in March 2007 its long-held stance that CSR is a uniquely voluntary measure which ‘should not be regulated at EU level’.

Links and further research:Summary of debate on CSR: http://www.euractiv.com/socialeurope/csr-corporate-social-re-sponsibility/article-153515.

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Copy of letter from civil society organisations from across Europe to members of the European Commission: http://www.corporatejustice.org/IMG/pdf/CallAction_CSO_CSR.pdf

The UN Guiding Principles on Business and Human Rights2 were proposed by UN Special Rep-resentative on Business & Human Rights John Ruggie, and endorsed by the UN Human Rights Council in June 2011. They provide an overview of what transnational corporation and states can do to ensure the human rights of their workers are respected.

The European CSR Award Scheme is supported by the European Commission and awards busi-ness and nonbusiness partnership projects that focus on sustainability: http://www.europeancs-rawards.eu/.

6. Academia:- Jonathan P. Doh and Terrence R. Guay, ‘Corporate Social Responsibility, Public Policy, and NGO Activism in Europe and the United States: An Institutional-Stakeholder Perspective’ in Jour-nal of Management Studies, 43:1 (January 2006)- Article on companies dumping ‘E-waste’ in developing countries. A practice that is of questionable legality: http://www.theguardian.com/global-development/2013/dec/14/tox-ic-ewaste-illegal-dumping-developing-countries. - On why the creation of an international work safety standard is necessary and how it can help worker safety all over the world: http://www.asse.org/assets/1/7/VP_1014.pdf. Economist on CSR: http://www.economist.com/node/10491077. - Guardian on working conditions in clothes factories in India: http://www.theguardian.com/world/2010/aug/08/gap-next-marks-spencer-sweatshops

7. Summary:The EU is a body which holds certain moral values highly. The EU cannot be seen to be giving the green light to corporations which are based within Europe that have poor standards when it comes to human rights for workers and environmental concerns overseas. Furthermore, the differing rules and regulations abroad and the inability of foreign governments to enforce them can have very negative effects in Europe. The EU does not, however, possess the capacity to pass or enforce pieces of legislation outside of its geographical boundaries; companies must act independently in some cases. Can the EU encourage or insist upon levels of Corporate Social Responsibility for the businesses which fuel the entire European economy? How can the EU hold a company accountable for their actions affecting the environment and their workers? 2 The UN Guiding Principles on Business and Human Rights, http://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf