Green Paper on Market-based Instruments
Enclosed is JNCC's response to a consultation from the EU Commission, based upon the use of Market-based Instruments (MBIs). Submitted in July 2007.
Summary of key points
- JNCC supports the use of market-based instruments (MBIs) as
part of the overall policy package required to protect the natural
environment and sustain the European Union (EU) economy. MBIs
that place an appropriate and transparent price on environmental
externalities should be a fundamental element of Member State and
EU policies in order to correct market failures, and to encourage
- MBIs are cost-effective, and support the EU’s growth,
competitiveness and employment goals under the Lisbon Strategy.
MBIs are also desirable on social equity grounds.
- MBIs need to be designed carefully and combined with other
instruments to achieve environmental objectives.
- The use of MBIs in the EU must be undertaken in the context of
the aims of the Habitats Directive, and other relevant
- We support the Commission facilitating information exchange
through an EU Forum on MBIs to allow Member States to learn from
- We encourage the Commission to support future work on MBIs with
appropriate assessments of environmental values.
- We strongly support the reform of perverse,
environmentally-harmful subsidies in the EU.
- We encourage the Commission to investigate the potential for
and limitations of introducing systems of biodiversity offsets and
habitat banking at EU level. We encourage the Commission to explore
opportunities for greater use of payments for ecosystem services at
the national, EU and international scales.
- The use of a cross-border emissions trading scheme to address
air pollution would require a full assessment of the implications
for biodiversity, including long-range effects.
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Please cite as: JNCC Consultation 0709, (2007), Green Paper on Market-based Instruments, Submission by the Joint Nature Conservation Committee