GOTHENBORG, Sweden, June 18, 2001 (ENS) - European leaders adopted the bloc's first ever sustainable development strategy at their summit meeting in Gothenburg on Saturday.

"Sustainable development - to meet the needs of the present generation without compromising those of future generations - is a fundamental objective," the heads of government of the 15 European Union nations declared. "That requires dealing with economic, social and environmental policies in a mutually reinforcing way," they said.

Swedish Prime Minister Goran Persson hosted the summit in Gothenborg. (Photos courtesy Swedish Presidency)

Under the strategy, member states will have to develop national sustainability plans. Major European Union policy proposals will include sustainability impact assessments, and European Union institutions will improve internal policy coordination between different sectors.

Progress will be reviewed annually, with the aid of "headline indicators" to be developed before next spring's European Council summit in Barcelona, Spain.

The leaders declared that "clear and stable objectives for sustainable development will present significant economic opportunities." They anticipate the new emphasis on sustainability will "unleash a new wave" of technological innovation and investment, generating growth and employment, and they invited industry to take part in the development and wider use of new environmentally friendly technologies in sectors such as energy and transport.

"Getting prices right" so that they better reflect the true costs to society of different activities would provide a better incentive for consumers and producers in everyday decisions about which goods and services to make or buy, the leaders said.

But for the most part, a long series of specific actions proposed by the European Commission have not been taken up by European Union leaders.

On climate the heads of government "reaffirm" the European Union's commitment to the Kyoto climate Protocol and to "work to ensure" it enters force by 2002. They also reaffirm a "determination" to meet targets for increasing renewable energy generation.

Under new guidelines for funding trans-European transport networks, the strategy calls for priority funding for public transport, railways and inland waterways.

The strategy "notes" the Commission's intention to propose a framework ensuring that by 2004 the price of using different modes of transport "better reflects costs to society."

Newly re-elected British Prime Minister Tony Blair at the European Council summit

The 15 nation bloc must manage resources better by ensuring the common agricultural policy contributes to "environmentally sustainable production methods," including organic production, renewable raw materials and biodiversity protection.

Public health should be protected by a new European Union chemicals policy before 2004 which should ensure substances "do not lead to a significant impact" within a generation.

Responding to the strategy today, EU Environment Commissioner Margot Wallström expressed disappointment that leaders had not been "more specific on concrete actions." Still, she called the strategy a "big step forward" for putting the environmental dimension of sustainable development on a par with the economy and social issues.

All the Commission's proposals "remain on the table," she insisted.

One particular area where heads of government had "missed an opportunity for political leadership," said the commissioner, was their failure to endorse a proposal for the EU to commit to specified cuts in greenhouse gases beyond the Kyoto Protocol first commitment period of 2008 to 2012.

A spokesperson for Swedish Environment Minister Kjell Larsson said the European Union Presidency had also wanted more "targets and timetables" but that it had to tone down its ambitions because of delays in the Commission. "It's a fact that they had 18 months from the Helsinki summit, and we only got it a month ago," she said.

In the field of external relations, a key decision at the European Council was to open up European Investment Bank lending for selected environmental projects in Russia. The EU leaders noted with concern the situation of the independent media in Russia. "Freedom of speech and pluralism in the media are essential democratic principles and core values for a genuine EU-Russia partnership," the EU leaders declared.

Sustainable development requires global solutions, the EU heads of government stated.

In addition to incorporating sustainable development as an objective in international agreements, the EU should promote issues of global environmental governance and ensure that trade and environment policies are mutually supportive, the leaders said.

The European Union's Sustainable Development Strategy forms part of the bloc's preparations for the World Summit on Sustainable Development scheduled for Johannesburg, South Africa in September 2002.

The Union will seek to achieve a "global deal" on sustainable development at the Summit.

The European Commission, which is the EU's executive branch, undertakes to present a communication no later than January 2002 on how the EU is contributing and should further contribute to global sustainable development.

In this context, the EU reaffirmed its commitment to reach the United Nations target for official development assistance of 0.7% of Gross Domestic Product as soon as possible and to achieve concrete progress towards reaching this target before the World Summit on Sustainable Development.

This European Council meeting is the last major event of the Swedish Presidency. On July 1, the six months rotating Presidency of the European Union passes to Belgium.

{ENDS Environment Daily contributed to this report. Environmental Data Services Ltd, London}

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