Financing Natura 2000 for Financial Framework 2014-2020

Opportunities for financing Natura 2000

Overview of main provisions in Commission proposed Regulations relevant to Natura 2000 for next multiannual period 2014-2020 and examples of use under current funds for different conservation measures for Natura 2000 sites

First draft version of 29 March 2012.

Introduction

Natura 2000 is the cornerstone of EU nature and biodiversity policy. The aim of the network is to ensure the long-term survival of Europe's most valuable and threatened species and habitats. It is comprised of Special Areas of Conservation (SAC) designated by Member States under the Habitats Directive[1], and also incorporates Special Protection Areas (SPAs) designated under the Birds Directive[2].As an EU wide network, Natura 2000 is based on the principle of solidarity between Member States; i.e. while the main responsibility for financing Natura 2000 lies with the Member States, Article 8 of the Habitats Directive explicitly links the delivery of necessary conservation measures for Natura 2000 to EU co-financing.

The Commission has set out clearly its views on the importance of Union funding for biodiversity and nature protection in the next multiannual financial framework in its Communication on 'A budget for Europe 2020'[3](and the environment and climate policy fiches[4]) n which it clarifiedthat “the effective management and restoration of Natura2000 protected areas is central to attainment of the EU 2020 biodiversitytarget of halting and reversing the decline of biodiversity in the EU. And also that "at EU level, a strengthened integrated approach using the various EU sectoral funds, ensuring their consistency with the priorities of Natura 2000 action frameworks, together with an enhanced LIFE Biodiversity strand, will provide a strong basis for the new Natura 2000 financing strategy”.

The integrated approach was chosen to ensure that the management of the sites is part of wider land and water management policies, to allow Member States to set priorities and to develop policies and measures which reflect their national and regional specificities, and to avoid duplication and overlap of different EU funding instruments and the administrative complication and transaction costs which would be associated with such duplication. Following this approach opportunities for funding Natura 2000 have been included ineach of the relevant EU funds for 2014-20 financing period, including sectoral proposals on cohesion funding[5], the common agricultural policy[6], European maritime and fisheries policy[7] and the LIFE[8] financial instrument for the environment and climate action.

In order to ensure a better use of the opportunities available for managing Natura 2000 sites under EU funds, particular attention will need to be paid to more strategic multi-annual planning approach to Natura 2000 financing. Article 8 of the Habitats Directive already foresees the need to develop a ‘Prioritised Action Framework’ when designating sites as SACs. Developed at national or regional level, these action frameworks can provide a useful planning tool to strengthen the integration of Natura 2000’s financial requirements intoother relevant EU financial instruments.

This document aims to identify the most relevant opportunities for EU co-financing of Natura 2000 in the 2014-20 funding period. It focuses on the main EU funding instruments that will apply during these years, including:

-structural funds (European Social Fund (ESF) and European Regional Development Fund (ERDF))

-Cohesion Fund

-European Agricultural Fund for Rural Development (EAFRD)

-European Maritime and Fisheries Fund (EMFF)

-Programme for the Environment and Climate Action (LIFE+).

By providing a general overview of the scope of assistance from different financing instruments the document provides a first orientation which funds could be relevant for nature conservation. Where possible it also provides examples of investments in Natura 2000 which have been financed by EU funds so far and which could serve as an inspiration for authorities and beneficiaries in the next programming period.

1. Structural funds and Cohesion Fund

Structural and cohesion fundswill continue to be central to delivering a wide range of measures linked to the effective management of Natura 2000 as well as wider green infrastructure. These funds can support restoration and conservation measures, preparation and implementation of Natura 2000 management plans, for instance through improving the knowledge base (e.g. by mapping habitats or migration corridors), monitoring and capacity building of the management authorities. They are also suited to support investments in sustainable tourism, awareness-raising, training and education as well as communication and information activities relating to Natura 2000.

This is in line with the clearer targeting of cohesion policy spending to deliver Europe 2020 objectives. The opportunity to contribute to key objectives of smart, sustainable and inclusive growth and high levels of employment, climate action and resource efficiency linked to investments in Natura 2000 as a core element of green infrastructure will need to be fully exploited. Multiple benefits will need to be secured, including co-benefits for climate change mitigation and adaptation from restoration of Natura 2000 areas. This source of financing will remain particularly important for less developed regions. This is due to higher allocations from cohesion policy to poorer regions as well as to the percentage of land covered by the network and their crucial importance as biodiversity hot spots. This funding will be highly relevant to them to provide economic development and jobs in harmony with conservation objectives of the Natura 2000 sites.

On the other hand, in more developed regions, where for historic reasons many habitats and species are in a worse conservation status than elsewhere, investments in nature and biodiversity might be warranted as well. Despite important earmarking for other thematic objectives under regional policy there will be opportunities to finance Natura 2000 also in these regions. In addition, structural and cohesion funding provides possibilities for cross border territorial co-operation between Member States in the management of Natura 2000.

1.1European Regional Development Fund (ERDF)[9]

The main task of the ERDF is to contribute to reinforcement of economic, social and territorial cohesion by redressing the main regional imbalances through support for the development and structural adjustment of regional economies, including the conversion of declining industrial regions and regions lagging behind. In this context the ERDF shouldin particular support the investment in growth and sustainable jobs development.

Within the scope of the ERDF support (article 3 of ERDF regulation proposal) fall also investments to support small and medium-sized enterprises (SMEs), investments in infrastructure providing basic services to citizens in the areas of energy, environment, transport, and information and communication technologies (ICT), investments in social, health and educational infrastructure and in R&D.

In line with the Commission proposal the ERDF willsupport the following investment priorities which could directly contribute to Natura 2000 management:

-Article 5(6) protecting the environment and promoting resource efficiency:

(d) protecting biodiversity, soil protection and promoting ecosystem services including Natura2000and green infrastructures;

Additionally, there may be potentialopportunities for Natura 2000 from financing the following investment priorities:

Article 5(1) strengthening research, technological development and innovation:

(a)enhancing research and innovation infrastructure (R&I) and capacities to develop R&I excellence and promoting centres of competence, in particular those of European interest;

(b)promoting business R&I investment, product and service development, technology transfer, social innovation and public service applications, demand stimulation, networking, clusters and open innovation through smart specialisation;

Article 5(3) enhancing the competitiveness of SMEs:

(a)promoting entrepreneurship, in particular by facilitating the economic exploitation of new ideas and fostering the creation of new firms;

(b)developing new business models for SMEs, in particular for internationalisation;

Article 5(4) supporting the shift towards a low-carbon economy in all sectors:

(a)promoting the production and distribution of renewable energy sources;

(e)promoting low-carbon strategies for urban areas;

Article 5(5) promoting climate change adaptation, risk prevention and management:

(a) supporting dedicated investment for adaptation to climate change;

(b) promoting investment to address specific risks, ensuring disaster resilience and developing disaster management systems;

Article 5(6) protecting the environment and promoting resource efficiency:

-Article 5(10) investing in education, skills and lifelong learning by developing education and training infrastructure;

-Article 5(11) enhancing institutional capacity and an efficient public administration by strengthening of institutional capacity and the efficiency of public administrations and public services related to implementation of the ERDF, and in support of actions in institutional capacity and in the efficiency of public administration supported by the ESF.

Examples of projects aimed at management of the Natura 2000 sites co-financed from ERDF:

Project: Integrated River Management of the Weser Estuary: re-naturalization and river basin management [10]

The project area comprises the complete Weser river estuary containing 5,000 ha of wetlands(3 SCI’s & 3 SPA’s). The main conservation objectives of the project are to maintain: 1) The ecological dynamics typical for estuary habitats; 2) The function of the Weser as a migrating corridor for Sea and Freshwater Lamprey and a spawning area of Twaite Shad; and 3) The important breeding and feeding areas for protected birds in the Wadden areas as well as in the coastal zones. Achievement of these three conservation objectives is threatened by different types of human impact, which over time have decreased the natural estuary dynamics. Additionally, intensive use of the WeserRiver is putting extra pressure on the ecosystem. To find a better balance between the natural processes and the various human activities, the Bremish Senator for the Environment issued the development of an integrated management plan for the Weser. The goals of this management plan are: 1) Amelioration of the unfavourable conservation status of the habitat type “estuaries”; 2) Create legal certainty for the use of the estuaries; 3) Interdisciplinary planning through active participation of all user groups; 4) Cross boarder collaboration with the Land Lower Saxony (common plan) and the federal waterway administration; and 5) Increase the competitiveness of “Bremen” and “Bremerhaven” through better working conditions, living conditions and university study conditions. The project is being implemented between 2007 and 2013 and is 50% funded with€2.5 million from the European Regional Development Funds (ERDF) and 50% funded by the BremenState. At this moment, the planning process to establish an Integrated Weser Management Plan is ongoing, and will be presented at the end of 2009. The plan will meet the concerns of different economic stakeholders within the estuary. It is also being drawn up to fit with the implementation of the European Water Framework Directive. Contributions from different user groups are made in a joint planning group in coordination with government agencies in a 24 working group, to avoid later conflicts and to increase efficiency. There is little experience in Germany of using ERDF funds to set up integrated management plans, so this process could be of interest to other national and international initiatives. Since the process only started very recently, it is too early for an evaluation.

For further details about the project see Annex 2, Management planning, 7 Consultation – public meetings, liaison with landowners.

Project: Preparation of Natura 2000 Management Plans in Poland[11]

This ERDF project has been funded to prepare management plans for 406 Natura 2000 sites in Poland. Each plan will set out the conservation objectives and measures required to maintain and restore the site in a good conservation condition. It will also aim to propose management solutions for the threats and perceived conflicts between conservation and economic development. The plans will be developed in close collaboration with local stakeholders and Local Cooperation Groups will be set up for this purpose. The budget of the project is ca €6.5 million with co-financing by ERDF.

For further details about the project see Annex 2, MANAGEMENT PLANNING, 5. Preparation of management plans, strategies and schemes (including scientific studies and investigations needed for planning and implementation based on solid knowledge)

Project: KRAJINA Traditional use of Habitats in Natura 2000 on either side of the Hungarian-Slovenian border[12]

The Natura 2000 sites of Őrseg, Goričko and Mura form a continuous ecological landscape of high biodiversity value extending over 420 km2 across the border between Hungary and Slovenia. Recognising the need for a common management approach, this ERDF project was launched to manage the Natura 2000 sites and develop a sustainable landuse model for the whole area based on the natural, economic and social potentials of the area. This will be achieved through a range of activities. The EU habitats and species will be mapped and machinery will be bought to help restore degraded grasslands (some of which will also be purchased via the project). Criteria for nature-friendly agriculture will be developed in discussion with local farmers and new agricultural and touristic products will be developed, accompanied by a local trademark to help promote local products. A range of awareness raising material and tourism brochures will also be produced to raise the profile of the region as a top nature friendly destination.

Project: Ecological restoration of Comana Wetland[13]

The Natura 2000 site Comana Wetland is situated in Giurgiu County, Romania. Located along a major bird migration route, this complex system of reeds, meadows, lakes and forests provides excellent conditions for many endangered species such as the squacco heron or ferruginous duck. However, water management measures taken before 1990 have caused the area to become overgrown and desiccated, leading to a serious drop in wildlife numbers. The aim of this ERDF project is to restore the wetland to its former glory by improving the flow of water and ensuring the effective management of the different habitats. At the heart of the project lies the construction of a dam with a sluice which will allow large parts to be re-flooded. The project will be accompanied by an awareness raising programme and long term monitoring programme.

For further details about the project see Annex 2 ONGOING HABITAT MANAGEMENT AND MONITORING 12. Conservation management measures – maintenance and improvement of habitats’ favourable conservation status

Project:Developing ecotourism activities in the Zahorie region (SK)

The main goal of the project was to develop eco-tourism activities in protected areas in Zahorie (Morava flood-plain area) region. The project provides a good example of increasing awareness of the importance and benefits of Natura 2000 sites among the general public. In addition, the project successfully contributed to the management objectives of the site by developing low impact sustainable tourism activities. The conservation benefits are related to raising environmental awareness as well as for increasing the popularity of nature conservation.

Project: Action plan for the conservation of the Egyptian vulture and conservation measure for lesser kestrel, black kite and res kite [14]

The “Area delle Gravine” (26,740 ha, Puglia Region – Italy) is characterised by a few parallel canyons separated by agricultural land and steppe habitats. Holm Oak (Quercus ilex) and the Macedonia Oak (Quercus trojana) forests are important habitats. A Management Plan is for the area currently being approved. Major management challenges include: 1) Favouring the reproductive success of species of community interest and reducing / eliminating disturbance factors; 2) Implementing and managing a system of raptor feeding stations; 3) Fire prevention

and forest conservation activities; and 4) Conservation of the pseudo-steppe habitat. The main

conservation objectives are: to return the Red Kite (Milvus milvus) as a breeding species; contribute to the future conservation of the Egyptian Vulture (Neophron percnopterus),and to influence the drafting of the Management Plan for the SCI/SPA “Area delle Gravine. The project, which took place in 2003-2008, was 100% funded by ERDF funds, with a total of €352,170. The actual effort that was made to meet the above-mentioned objectives were: 1) Restocking of Egyptian Vultures through a “hacking” technique; 2) Radio-satellite tracking and a raptor feeding station; 3) Monitoring of the bird species; 4) Analysis of landscape spatial structure with regards to the distribution of species of conservation interest (Stone Curlews and Larks); 5) Wildlife surveillance; and 6) Awareness raising activities among the local population. Major benefits of the project were the restocking of the Egyptian Vulture population, and the acquisition of detailed knowledge on the conservation status of several raptor and passerine species. Besides that, the amount of visitors to the local reserve has increased by 30%. Another important benefit was increased awareness of the site’s importance by the local population and schoolchildren. The most successful features of this project are: firstly, the collaboration and willingness to cooperate with other agencies, institutions, private individuals and environmental associations. A good example of this is the cooperation between Birdlife Italy and the Municipality of Laterza. Secondly, the use of Structural Funds to meet some of the obligations of the Birds Directive is relatively uncommon but has been very useful and has increased the potential for future integration between Regional Operational Programme funds and the goals of Natura 2000.

European territorial cooperation (ETC)

In the proposal for a regulation on specific provisions for the support from the European Regional Development Fund to the European territorial cooperation (ETC) goal the Commission proposed that the investment priorities under the ETC cover measures specified in Article 5 of the ERDF Regulation. Additionally, the ECT will support sharing of human resources, facilities and infrastructures across borders under the different investment priorities, as well as the following investment priorities which could be relevant for management of cross-border nature sites:

-Article 6:

(a) under cross-border cooperation:

(iii) developing and implementing joint education and training schemes (within the thematic objective of investing in skills, education and lifelong learning);