5th Annual Conference, Vinkeveen, 24–25 October 1997
of the European Environmental Advisory Councils EEACSelf Regulation within Society
Hardcopies of the Proceedings are available at the Focal Point
Conclusions and Recommendations
Final revision 14-Jan-1999 ISBN 1-85716-444-X
European Environmental Advisory Councils provide independent advice to regional and national governments on a wide range of issues including societal, scientific, international, sustainable and long-term aspects of environmental policy goals.
At the Fifth Annual Conference of European Environmental Advisory Councils (24–25 October 1997 in Vinkeveen near Amsterdam), experiences and views regarding self regulation were exchanged and discussed.
Advisory Councils in principle support self regulation as a process that can contribute towards the achievement of environmental targets. The views of those Councils represented at the Fifth Annual Conference follows.
What is Self Regulation?
Self regulation strengthens the involvement of societal groups and individuals in the improvement of the environment and conservation of nature.
The European Environmental Advisory Councils describe self regulation as:
All (partly) voluntary individual or group activities that contribute to the realization of a common interest within conditions agreed with, or provided by, a government or sometimes non-governmental organization.Self regulation can arise from direct interactions with business partners, landowners, consumers, non-governmental organizations (NGOs) and governmental bodies. It can also result from anticipating market-led, technological, cultural, political or environmental developments.
Cooperation in rural areas, voluntary agreements, in-company environmental management as well as voluntary consumer schemes provide good examples of self regulation in environmental management.
It is important to understand that cooperation does not by definition imply self regulation. Self regulation can be limited to the implementation of specific plans; it may also extend to the formulation of self-regulatory targets. Self regulation, however, always functions within a framework of legal, economic and cultural conditions.
Establishing and Stimulating Self Regulation
Political-administrative cultures differ throughout Europe as do the environmental problems being faced. This will strongly influence the range and extent of self regulation. With an increased move towards deregulation, however, it becomes essential to test and use new implementation methods such as self regulation. Among the various forms of self regulation voluntary agreements play an important role, because they can – but not necessarily – offer a more effective and equitable method of environmental management and one that can engender wider public support.
It is important for governments to stimulate and facilitate self regulation whenever considered superior to direct regulation or economic instruments. Institutional arrangements and the design of instruments of environmental policy, both nationally and at a Community level, should not impede self regulation. Rather, they should provide for an appropriate framework for self regulation.
Self regulation can be stimulated and facilitated through:
- raising the level of participation in the formulation, implementation and review of policy;
- raising the level of expertise by education, pilot projects, demonstration projects and research;
- providing financial facilities such as project subsidies;
- explicit communication about policy targets that will be realized through direct regulation unless these targets will be reached through self regulation;
- reorganizing the institutional structure to better accommodate for self regulation.
Making Self Regulation Work
Instruments that encourage self regulation must be regarded as an integral part of the comprehensive regulatory system. Self regulation should not simply be launched as a last resort if all other means fail, but only when the conditions for its success are met. In any case, a careful evaluation of the environmental goal envisaged and the conditions for success as compared with alternatives such as direct regulation and economic instruments is necessary.
At the moment it is unclear to what extent particular forms of self regulation, such as voluntary agreements, are compatible with existing national legislation and Community directives. The uncertainty about juridical drawbacks of entering into agreements and other instruments of self regulation discourages measures of self regulation that otherwise would be taken. Self regulation must be in conformity with legislation such as competition law. If self regulation cannot be adapted to existing legislation, or legislation revised to accommodate self regulation, self regulation will not be a feasible option.
Free riding can also be a serious problem in voluntary agreements, but once the market leaders have entered into the agreement experience has shown that most or all parties will follow their lead. Free riding could be further reduced if government can make the agreement binding for the entire sector concerned. However, apart from other policy considerations, this may also discourage recourse to self regulation.
There are general principles that promote the success of self regulation:
- good analysis of the scope of self regulation and its alternatives;
- establishing the support of all stakeholders specifically by providing for participation in the negotiation process;
- the process should be transparent and relies on the openness of all partners;
- established environmental goals;
- clear deadlines with established reporting and monitoring systems;
- clear sanctions, should the self-regulatory agreement not succeed.
Systematic scientific knowledge concerning many aspects of self regulation is still lacking. Better understanding of the conditions for failure and success is essential to establish effective self regulation. There are distinct differences in appreciation of self regulation in the various countries of the European Union. These differences need to be understood in order to realize the reasons for failure and success.
Further research into self regulation is therefore recommended. This should include:
- analysis of the conditions that promote effective self regulation given the diversity of target group and environmental problems;
- evaluation of effective methodology;
- the establishment of pilot or demonstration projects.
Self regulation should be assessed both on its technical results (effectiveness, efficiency, administrative costs) and on basic principles of sound governing (proportionality, legitimacy, public participation, equity). Assessments should not be limited to the interaction between government and enterprises but should also involve interaction with NGOs, such as the environmental movement, and consumer organizations with local groups.
The European Environmental Advisory Councils recommend that these considerations are taken into account when formulating, implementing and reviewing environmental policy and in deciding on research priorities. A working group has been established by Advisory Councils to further develop the concept of self regulation and establish an inventory of self-regulatory experience and knowledge.
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