Explanatory Memorandum to COM(2013)312 - Copernicus Programme

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dossier COM(2013)312 - Copernicus Programme.
source COM(2013)312 EN
date 29-05-2013
1. CONTEXT OF THE PROPOSAL

Copernicus is the new name of the European Earth Observation Programme, GMES (Global Monitoring for Environment and Security). Copernicus or rather its predecessor was established as an EU programme by the GMES Regulation (EU) No 911/2010. It covers all the activities for ensuring an uninterrupted provision of accurate and reliable data and information on environmental issues and security matters to users in charge of policy making, implementation and monitoring, in the EU and its Member States. Copernicus aims at providing Europe with a continuous, independent and reliable access to observation data and information. The EU investment aims at filling the observation gaps, providing access to existing assets and developing operational services.

Copernicus is structured in six Services: Marine, Atmosphere, Land and Climate change monitoring as well as support to Emergency and Security. Copernicus uses data from satellites and in-situ sensors such as buoys, balloons or air sensors to provide timely and reliable added-value information and forecasting to support for example, agriculture and fisheries, land use and urban planning, the fight against forest fires, disaster response, maritime transport or air pollution monitoring.

Copernicus also contributes to economic stability and growth by boosting commercial applications (the so-called downstream services) in many different sectors through a full and open access to Copernicus observation data and information products. It is one of the programmes to be delivered under the Europe 2020 strategy for smart, sustainable and inclusive growth and it was included in the industrial policy initiative of Europe 2020, given its benefits to a wide range of Union policies.

Responsibility for funding the exploitation and the renewal of space infrastructure developed with EU and intergovernmental funds cannot be optimally achieved by individual Member States because of the costs incurred. In the field of space-based observation for operational meteorology, European States have pooled their resources to develop and exploit meteorological satellites in the framework of the European Organisation for the Exploitation of Meteorological Satellites (EUMETSAT). European States also developed demonstrators of environmental satellites either through the European Space Agency (ESA) or through national space agencies. They could not, however, find a way to co-operate with regard to the funding of sustained operational programmes in the field of environmental monitoring. The need for continuing such observations is becoming critical, considering the increasing political pressure on public authorities to take informed decisions in the field of environment, security and climate change and the need to respect international agreements.

For the services with a pan-European and a global coverage, Member States cannot sufficiently achieve the objectives of the proposed action, as the inputs from different Member States have to be aggregated at European level. The provision of other services (e.g. emergency maps or thematic land monitoring maps of a more limited geographical scope) can be better achieved at EU level for two reasons. First, a more coherent and centralised management of input data, from space based or in-situ sensors will allow for economies of scale.

Secondly, a coordinated provision of Earth monitoring services at Member State level helps to avoid duplications and enhances the monitoring of the implementation of EU environmental legislation on the basis of transparent and objective criteria. Only comparable information produced at Member State level will make it possible to ascertain an effective implementation of environmental legislation which in many cases addresses truly borderless and therefore international problems.

Moreover, action at European level will create economies of scale leading to a better value for public money. Action at EU level thus leads to a clear added value.

Since the beginning the overall funding allocated to its development by the EU and ESA has reached over €3.2 billion. A large part of the GMES budget was dedicated to the development of observation satellites: the Sentinels. This was done through a contribution from the Commission of € 738 Mio to the ESA’s GMES Space Component programme (GSC).

Until the end of 2013, Copernicus is funded by the FP7 Space theme and the GMES and its Initial Operations programme. As Copernicus will be ready to enter in its operational phase, a new Regulation is required from 2014 onwards. In line with the objectives of the Communication “A Simplification Agenda for the MFF 2014-2020”[1], this new Regulation will better define the governance of the programme, in particular the role of the Commission, the objectives of the programme and indicators which will allow an effective monitoring of its implementation and ensure a smooth transition from the current activities. The proposed Regulation includes as well provisions for the establishment of proportionate financial procedures in particular for the large part of the programme to be implemented indirectly. In the context of simplification and “smart regulation”, it should be noted that Copernicus aims at enhancing the quality of legislation by providing evidence-based monitoring tools.

In its Communication entitled “A Budget for Europe 2020”, (COM (2011) 500 final of 29.06.2011) the Commission indicated that given the limits of the EU budget, it was proposed to fund GMES outside the multi-annual financial framework in the period from 2014 to 2020. This proposal was rejected by the Parliament in its resolution P7_TA(2012)0062 of 16 February 2012. The European Council conclusions of 7-8 February 2013 on the Multi-annual Financial Framework (MFF) foresee that the programme should be financed under sub-heading 1a of the financial framework, with a maximum level of commitments of EUR 3,786 million (2011 prices) to be laid down in the MFF Regulation.

1.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS



Since the creation of the European Commission's GMES Bureau in 2006 a rolling process of stakeholders' consultation has been in place on GMES. This consultation process, launched with the Communication entitled “GMES: from concept to reality”[2], led firstly to the adoption of the 2008 Communication entitled 'GMES: we care for a safer Planet'. Further consultation was carried out in order to prepare the Commission proposal for a Regulation on the European Earth monitoring programme (GMES) and its initial operations (2011-2013) i and the Communication entitled 'Global Monitoring for Environment and Security (GMES): Challenges and Next Steps for the Space Component'[5].

Since the entry into force of the GMES Regulation in 2010, the consultation of Member States and users has continued through the new governance bodies set up by the Regulation itself: the GMES Committee and the User Forum composed of public user representatives.

The consultation has confirmed the interest and need for the Copernicus Programme and – now that it is indeed becoming an EU programme – it now focuses on different design options, in particular for the Copernicus Services. Stakeholders have indicated that the uninterrupted and guaranteed availability of the information coming from the Copernicus Services is the cornerstone for the success of the programme and for its benefits to fully materialise.

An impact assessment was made in 2011 and the main conclusions were published in Document SEC (2011) 867 final of 28.06.2011, which accompanied the Commission's proposal on the Multiannual Financial Framework, COM (2011) 500. The impact assessment has now been adapted and the recommendations of the Impact Assessment Board have been taken into account. What has changed since 2011 is the political consideration of the usefulness of funding the Copernicus programme in the MFF. The Commission therefore considers that it is now time to make a formal proposal.

It should be noted, however, that this proposal had to be readjusted to the amount agreed under the ceiling of Multiannual Financial Framework, which cut the initial proposal of the Commission by over 2 billion EUR. In order to preserve the service delivery, the Commission had to cut new developments in the space component to renew and modernise the observation capacity. ESA will take over responsibility for the development of the next generation of the Sentinels.

The question of ownership of the Copernicus space component assets is important and cannot be considered in isolation from the rights and responsibilities that such ownership confers upon the owner. The owner has the fullest possible rights including the right of use, transfer and disposal.

In determining whether to accept ownership of the space component assets, two phases need to be distinguished: During the first phase, i.e. the present Multi-Annual Financial Framework, the EU was only a contributor to an ESA programme at a rate of some 30% and was lacking the funds to assume a leading role in shaping the space component of Copernicus. Moreover, the EU funds were largely FP7 appropriations and were not designed to fund an operational programme on a permanent basis. The EU was therefore unable to assume ownership during this phase. The second phase will begin with the next Multi-Annual Financial Framework. It brings about a fundamental change in that the EU will now be able to fund 100% of most parts of the Copernicus space component, including the ground segment and the cost of operations of the satellites.

In this new context, as referred to in Article 19, the ownership of the satellites will need to be reviewed. The Regulation foresees the option that the EU or a specifically designated body or fund could take over the ownership from ESA. In view of an ownership transfer, options will need to be assessed, taking account relevant factors including the operation of the satellites; legal ownership of the data; data access conditions; and the value of the assets. These options will only be considered if disadvantages of EU ownership seem to outweigh its advantages. The transfer of ownership from the EU could only be exercised by means of a delegated act.

The option of a data purchase scheme could also be considered.

2.

LEGAL ELEMENTS OF THE PROPOSAL



Having regard to Article 189 of the Treaty on the Functioning of the European Union, the proposal is for a new Regulation of the European Parliament and the Council establishing the Copernicus Programme. It focuses on the following main aspects

Change of name into Copernicus;

Governance of GMES in its operational phase, with a view to allowing the Commission to delegate activities to a number of operators;

Funding over 2014-2020.

3.

BUDGETARY IMPLICATION



The financial statement accompanying this proposal for a Regulation sets out indicative budget appropriations, which are compatible with the multiannual financial framework 2014 – 2020, with a maximum level of commitments of EUR 3,786 million, in 2011 prices, equivalent to EUR 4,291 million in current prices.

4.

5. OPTIONAL ELEMENTS


The Commission may adopt delegated acts in order to achieve certain objectives set out in the proposal.