EU environmental policy has led to economic investments that have clearly benefited the health of people and ecosystems. But there are still important unresolved environmental issues in Europe, in particular climate change, loss of biodiversity and air pollution in urban areas.

Appropriate implementation and enforcement of existing EU policies will further benefit the environment. To achieve the EU’s long-term strategic environmental goals, new policies should focus on clean, low-CO2 technology (in energy generation, industry and transport) and a better balance between EU financing of agricultural production and nature conservation. Exerting pressure for giving an appropriate economic value to the sustainable use of natural resources remains the main challenge for EU environmental policy in the years ahead. 

These are the main conclusions of the report ‘Outstanding Environmental Issues’ carried out by the Netherlands Environmental Assessment Agency (at the RIVM) in co-operation with the European Environment Agency. The report, whose purpose it is to inform the new European Commission and Parliament, evaluates the EU’s environmental and policy track record and outlines future challenges. It was produced on request of the Dutch presidency of the EU. 

Investments in low-CO2 technology require improved market prospects
Climate policies have so far been effective with respect to renewable energy, reduction of non-CO2 greenhouse gases, and improved energy efficiency in buildings. Indeed, without these policies, emissions in the EU-15 would have been some 5% above current levels. As a result of these policies and other factors, greenhouse gas emissions in the EU-25 are now several percent below 1990 levels. However, an EU-wide emission reduction of 25-40 % over the next 20 years is necessary to meet the EU’s target of restricting global warming to 2oC. Ongoing investments in Europe’s energy, industry and transport sectors offer considerable potential for CO2 reduction. However, tapping into this potential depends on improved prospects for a large, stable market for low-CO2 technology. 

To achieve a healthier environment, traffic pollution must be further reduced
In Western Europe, EU environmental policy has resulted in relatively clean and healthy surroundings. For example, air pollution from transport has declined, despite a significant increase in traffic. This is the result of highly effective European emission standards. Nevertheless, between two and eight percent of the total burden of disease in the EU-25 can still be attributed to environmental factors. And transport, which causes poor urban air quality and noise nuisance, makes a major contribution to these risks. 
 
Halting the ongoing loss of biodiversity requires additional financial resources
The ongoing exploitation of land and water is reducing biodiversity in the EU. It seems unlikely that the target to halt further loss of biodiversity by 2010 will be met, as pressures such as the growth of infrastructure, intensive agriculture and serious overexploitation of fish stocks remain. 

The recent reform of the CAP has improved conditions for agricultural production within ecological constraints. Now Member States have to make a priority of seizing the opportunities created by CAP reform. This can speed up the fairly slow progress towards the targets for a number of EU directives such as the nitrates and water framework directives. 

The CAP reforms do not guarantee that large areas of agricultural land with a high nature value, which are currently being farmed extensively, will be preserved. Higher levels of funding and better targeting of financial resources for these areas can make an important contribution to slowing down biodiversity loss. 

Is space in Europe becoming a scarce commodity?
Reversing biodiversity loss requires land that would otherwise be used for productive purposes. Alongside this claim, we expect to see increases in food consumption, energy-crop production, infrastructure and built-up areas, and also in the need to adapt to climate change. An assessment of the long-term sustainability of future claims on land use is needed to clarify whether the various policies that lay a claim on land use are in balance. This might constitute a first step towards the better integration of land-use policy into EU sectoral policies.