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1. In relation to the development, at an appropriate level, of effective market-based and other economic instruments as a means of implementing policy, special attention will be given to:

(a) environmental accounting;

(b) examining constraints on the introduction of economic instruments and identifying possible solutions;

(c) the use of environmental charges;

(d) identifying subsidy schemes which adversely affect sustainable production and consumption practices with a view to their reform;

(e) encouraging the application of the concept of environmental liability at Member State level;

(f) voluntary agreements which pursue environmental objectives while respecting competition rules;

(g) encouraging the use of fiscal instruments to achieve environmental objectives, inter alia by considering possible legislative initiatives in this area during the course of the Programme and continuing the study of the potential wider benefits of such instruments, notably in the context of the general economic objectives of the Community, such as employment, competitiveness and growth.

2. In relation to horizontal instruments, the priority objectives of the Community shall be:

(a) to examine, inter alia in the light of the Commission proposal of 25 March 1997 on the assessment of the effect of certain plans and programmes on the environment (9), how the environmental impact of policies, plans and programmes in the Community and, where relevant, Commission proposals for programmes and Community legislation can be assessed;

(b) to develop approaches to environmental impact assessment for plans and programmes, and to promote the development of methodologies, training and guidance material for assessments of both projects and plans and programmes;

(c) to consider the extension of the Environmental Management and Audit Scheme to areas of activity other than manufacturing industry;

(d) where appropriate, to promote standardisation in relation to environmental issues and to strengthen the integration of environmental aspects in the framing of industrial standards;

(e) to develop criteria to assess the compatibility of existing Community policies and instruments, including financing, with the requirements of sustainable development;

(f) to review the Community's public procurement rules so as better to incorporate environmental considerations into their application, while safeguarding fair competition.

3. Priority will be given to improving the use of the Community's own financial support mechanisms as a means of promoting sustainable development. This implies better integration of environmental considerations, including the protection of nature, and an evaluation of the impact of these mechanisms on the environment as a means of improving the quality of support action from an environmental and economic point of view.

4. The Community will pursue its current efforts to ensure the full realisation of the potential that new techniques and technologies offer in terms of sustainability in sectors such as agriculture, food processing, chemicals and pharmaceuticals, environmental clean-up and the development of new materials and energy sources.