Transcript Advocacy

The interface between the Business World
and the EU Institutions
Jean Claude LAHAUT
3 February 2011
Overview
1. Challenges ahead: image and competitiveness
2. The European chemical industry and Cefic
3. The EU Institutions and the legislative process
4. Advocacy and communication
2
“Worst” EU lobbying awards 2010
1. Goldman Sachs and derivatives lobby group ISDA: for aggressive
lobbying to defend their financial weapons of mass destruction
2. Hedge fund and private equity lobby groups AIMA and EVCA: for
deceptive lobbying to block regulation of damaging speculation in the
financial sector
3. Royal Bank of Scotland: for secretly lobbying in Brussels and for exploiting
contacts by headhunting former EU Commissioner Verheugen as advisor
4. ArcelorMittal: for lobbying on CO2 cuts under the Emissions Trading
Scheme
5. BusinessEurope: for aggressive lobbying to block effective climate action in
the EU while claiming to support action to protect the climate
3
Image of Industry
% (more) positive
85
76 - Telecom & Electronics
75
73 - Food
66 - Pharmaceutical
65
64 - Automobile
62 - Electricity
55
59 - Average of all Industries
49 - CHEMICAL
45
42- Petrol & Oil
38 - Nuclear Energy
35
25
1996
1998
2000
2002
2004
2006
2008
2010
Source : Cefic PES 2010
4
The Chemical Industry…
100
% respondants
79 should face tougher control
75
61 is an industry I accept
50
49 deserves to be trusted
35 is an industry I would work for
25
1994
1996
1998
2000
2002
2004
2006
2008
2010
Source : Cefic PES 2010
5
Number of “pieces of legislation”* on environment
and safety issued by the European Union (1990 –
2009)
%
1953
1792
1620
1488
1227
Hazardous
Substances
(49,8)
982
829
665
466
307
Safety (17,0)
551
366
Waste (14,4)
Air Pollution (13,7)
Water Pollution (5,1)
1990 1992 1994 1996 1998 2000 2002 2004 2006 2007 2008 2009
* Directives, Decisions and Regulations
Source: Federchimica
23
Examples of legislations affecting the
chemical sector
 REACH Regulation
 Energy policy / ETS
 RoHS Directive
 Environmental Liability Directive
 IPPC: North/South differences
 Biocides
 Soil legislation
Our call for better (coherent) regulation
7
This is Cefic
• Representing 29.000 chemical companies in Europe
• 28 National Chemical Federations across Europe
• Over 600 direct Company Members from Europe
• More than 30 Associate Company Members from around the world
• 21 European Affiliated Associations
• Operates 104 Sector Groups focusing on 120+ product families and over 60 Strategy
implementation and Issue Teams dealing with the industry’s horizontal issues (REACH,
International Trade, Energy, Research & Innovation, …)
• About 4500 industry experts from companies and federations participate in the CEFIC
groups.
• Close cooperation with the other regions in the world through ICCA
9
Key Figures
 Contributes to 24% of the
World’s chemical sales,
 Represents 29,000 companies
(96% SMEs),
 Employs 1.2 million people,
 Generates € 449 billion of
revenues,
 Creates a trade surplus of € 42.6
billion.
Source: Cefic Chemdata International
9
Geographic Breakdown of World
Chemical Sales
EU Chemical industry losing share in fast growing global market
10
Cefic PRIORITIES
Importance
Sustainable
Development:
Competitiveness
Chemicals Safety
REACH
Implementation
Innovation
ETS
IED
Strategic
Operational
October 2010
Urgency
11
12
High Level Group on the Competitiveness
of the European Chemical Industry (2009)
Recommendations on :
Innovation and Research
10
Regulation
3
Human Resources
3
Energy & Feedstock
5
Climate Change Policy
5
Logistics
5
International Competitiveness & Trade
8
39
13
Sustainability as a strategic choice for
global challenges
Health &
Nutrition
9 billion people will
67% of the world
Construction
&
live on earth by
population will live
Housing
in cities by 2025!
2050!
 How can we guarantee
food and water supply
for everyone?
 What are possible benefits and contributions
of plant science?
Energy &
Resources
50% more
primary energy
needed in 2030!
 What is
the ideal energy mix
of the future?
 How big is the stake
of renewable energy?
 What does future
architecture look like?
 Which materials
are needed to make
energy consumption
more efficient?
1.2 billion cars
Mobility &
Communication will drive on earth
by 2020!
 How can we reduce
emissions and fuel
consumption ?
 What will future cars
be made off ?
14
Current and Future Greenhouse
Gas Emisions in the World
Russia
1,500 2000 214
North America
6,700 8,300 890
Europe
4,000 4,500 1,600
Japan
1,200 1,200 204
China
5,100 11,400 2800
India
1,100 3,300 3,300
Africa
800 1,400 3,980
Latin America
900 1,600 1,568
Austrial
New Zeeland
Corea
900 1,100 151
2005: CO2 emissions (million tonnes)
2030: projected CO2 emissions without climate policies (million tonnes)
2050: greenhouse gas emissions allowed under 2 tonnes/capita scenario (million tonnes)
Source : Go for Growth, BusinessEurope, 2010
15
Europe’s Innovation Challenge
Europe
US
1,8%
Japan
2,7%
3%
18%
16%
35%
23%
40%
39%
R&D Expenditure (% GDP)
Source : Go for Growth, BusinessEurope, 2010
% world patents
with tertiary education
16
31
18
19
World Business Council for Sustainable
Development: Vision 2050
• Business-as-usual outlook to 2050
« The story is one of growth in populations and consumption
compounded by inertia stemming from inadequate
governance and policy responses.
The result is degradation of the environment and social
stress. »
• Vision:
« In 2050, some 9 billion people live well, and within the limits
of the planet »
20
12
Audiences
Advocacy
Communication
Advertising
Decision
makers
Interested
audiences
Public opinion
3 EU Institutions
27 Member States
Industry
Stakeholders
Media
« Society »
22
Cefic environment
EU society (500 M, >27 MS)
Trade
unions
Business
&
Industry
Value
Chain
EU & National
Institutions
Political parties
Academia
Scientific
World
and other
stakeholders
NGOs
&
consumers’
23
Main EU institutions
European
Commission
=
EU general interest
European
Parliament
The Council
=
=
Member States
EU citizens
Advisory Bodies
Economic and
Social Committee
Judiciary authority
Committee of
the Regions
The European
Court of Justice
24
EU decision-making process
Green Paper
White Paper
Inter-service
Consultation
Formal Proposal
Commission
European Parliament
Council
Economic and
Social Committee
for opinion
Committee of
the Regions
25
A complex decision-making
Commission
Council (Member States)
European parliament (parties, rapporteurs)
Comitology (Commission + Council + Parliament)
26
Commission President José Manuel Barroso
7 Vice-Presidents
Catherine Ashton High
Representative of the Union for
Foreign Affairs and Security
Policy
Viviane Reding Justice,
Fundamental Rights and
Citizenship
Joaquín Almunia Competition
Siim Kallas Transport
Neelie Kroes Digital Agenda
Antonio Tajani Industry and
Entrepreneurship
Maroš Šefčovič InterInstitutional Relations and
Administration
7 services
Communication
European Anti-Fraud Office
Eurostat
Historical Archives
Joint Research Center
Publication Office
Legal Service
19 Commissioners
JanezPotočnik Environment
Michel Barnier Internal Market
and Services
Karel De Gucht Trade
John Dalli Health and Consumer
Policy
Máire Geoghegan-Quinn
Research, Innovation and Science
Günther Oettinger Energy
Olli Rehn Economic and Monetary
Affairs
Andris Piebalgs Development
Androulla Vassiliou Education,
Culture, Multilingualism and Youth
Algirdas Šemeta Taxation and
Customs Union, Audit and AntiFraud
27 Cabinets
36 Directorates
General
Maria Damanaki Maritime affairs
and fisheries
Kristalina Georgieva International
Cooperation, Humanitarian Aid and
Crisis Response
Johannes Hahn Regional Policy
Connie Hedegaard Climate Action
Štefan Füle Enlargement and
European Neighbourhood Policy
László Andor Employment, Social
Affairs and Inclusion
Cecilia Malmström Home Affairs
Dacian Cioloş Agriculture and
Rural Development
Janusz Lewandowski Financial
Programming and Budget
Secretariat General
27
Council of Ministers – number of
votes per country
Germany, France, Italy and the United Kingdom
29
Spain and Poland
27
Romania
14
Netherlands
13
Belgium, Czech Republic, Greece, Hungary and Portugal
12
Austria, Bulgaria and Sweden
10
Denmark, Ireland, Lithuania, Slovakia and Finland
7
Estonia, Cyprus, Latvia, Luxembourg and Slovenia
4
Malta
3
Total:
345
“Qualified majority” needed for many decisions: 255 votes and a
majority of member states
28
The European Parliament
736 MEPs
7 political groups
+
27 non-attached
members
Administration
Bureau
1 president : Jerzy Buzek
14 vice-presidents
5 quaestors
35
Interparliamentary
Delegations
1 Secretariatgeneral
10 directoratesgeneral
20 Committees
29
A Regulation for the « Guinness Book »
• 150 pages of legislative text
• 1.000 pages in annexes (+ thousands of pages of TGD)
• eight weeks of Internet consultation (32 non EU states responded)
• about 50 Business Impact Studies
• 2 Council Formations (Competitiveness and Environment)
• 10 EP Committees (Hughes Procedure with three committees)
• about 50 rapporteurs and shadow rapporteurs
• almost 5.000 amendments
• huge media interest and strong pressure from NGOs
30
Opportunities for Chemical Industry
 Unique opportunity to get a more coherent,
reliable and lasting framework at EU level
 Strong visibility in media and public discussion
to address benefits of chemistry
 Restore trust in chemical industry
 Foster role of trade associations
 Align membership on one-voice policy
 Enhance credibility vis-à-vis legislators
 Prepared to pro-actively address future issues
31
General political context
 Public concern about environment-health related
aspects on the rise
 Focus of green and environmental NGOs shifting
from production to products
 Broad and increasing media interest for HSE
issues (specifically in some countries like UK and
F…)
 National and EU legislators under pressure to
address these concerns (precautionary principle)
32
For the chemical industry
 In all current and future political/legislative
initiatives chemical substances are targeted
 Chemical substances are under attack through
their use downstream (substances in articles)
 From single substances to more complex
preparations (« toxic cocktail »)
 Long term effects in low doses on vulnerable
populations
33
Advocacy lessons
 Listen to concerns of actors involved and take them serious
 Early co-operation between issue owner and advocacy and
communication is key
 Technical knowledge and « sound science » are not winning
arguments per se
 Emotional and political aspects often more important (EP)
 Clearly define who does what and at what level
 Involve the parts of the network needed, including the
relevant sector groups and affiliated org.
 Stay focused on priorities and key messages
 Build strong alliances with other sectors and DU
 Build media campaign as early as possible to prepare the
ground for advocacy
 Speak with one voice
34
Long term approach
Anticipation
Early warning
Processing
Advocacy
Decision
Reputation
35
Prioritisation table – June 2010
Urgency
Importance
1
2
3
A
B
C
ETS comitology: list of
exposed sectors
including indirect
emitters
ETS comitology:
Auctioning rules
Crisis recovery
REACH implementation
(review of annexes,
candidate list, etc.)
Innovation
ETS comitology :
Benchmarks
Soil
CLP – ATP comitology
Nanomaterials
NEC directive review
Drinking water
directive
Indoor Air Quality
ETS for NOx and SO2
Endocrine Disrupters
Biocides
RoHS
Falsified Medicines for
human use
SCP comitology
Green Public
Procurement
Energy Labelling
Health & Environment
AP
Energy tax directive
FP8
Seveso II
Animal Testing
REACH review
(scope)
36
Roles
PC
Strategy
SIG
Implementation
NAB / ISB
political assessment
Consistent Messaging
Communication
Advocacy
Informed citizens, Business, Industry,
Unions, NGOs, Academics, Consumers …
Media (advertising)
Segmented but not personalised
Institutions (rules)
Negotiation (sales)
37
Personalised
Coordinate
Advocacy/Communication
C
O
N
S
I
S
T
E
N
C
Y
Advocacy = time-limited
Advocacy
Advocacy
tailor-made
messages
Advocac
y
focussed
messages
Communication =
continuous
38
Target
Programme Councils
Communication
Advocacy
39
Coordination (COGO)
Issue management
(position paper)
Distance to
reduce
Communication
(one pager)
Distance to
reduce
Advocacy
(status report)
40
Timeline 2009-2010 – Energy & HSE
yellow first reading, orange second or final reading, blue comitology – red box = event
ISSUES
Nov
Dec
Jan
ETS comitology
Auctioning rules to
CCC
Exposed sectors
Scritiny by the EP
Exposed sectors
vote EP
Auctioning
rules Vote
CCC
Renewables
comitology
Sustainability
(regulatory) cttee
start work?
Mar
April
Auctioning
rules to EP
for scrutiny
May
June
Review
codecision
COM to adopt
regulation
July
Aug
Sep
Bench
marks
vote
CCC
proposal to be
launched by
new COM?
NEC
Security of Gas
supply
1st reading
ongoing
ETS for NOx
and SO2
Study ongoing
Vote ITRE
cttee
Study results
Possibly
decision to
draft new
legislation
Energy Tax
Directive
COM proposal
possible
COM proposal
possible
Water scarcity
and droughts
proposal to be
drafted by new
COM
Drinking water
Feb
impact
assessment in
preparation still
ongoing
COM
proposal?
Waste: sewage
sludge
Second online
COM consultation
Second online
COM
consultation
IPPC
Council common
position
EP start 2nd
reading
Soil
1st reading pending
until Spanish
presidency
Seveso II
Stakeholder
consultation
Crisis recovery
EP temporary
committee start
work
Plenary
vote
COM
proposal?
Vote in ENVI
Informal
Trialogues
Plenary vote
COM proposal
41
Oct
Advocacy : one voice policy
Cefic
National alliances
EU Alliances
Companies
Federations
42