IOGP Europe joined BusinessEurope in industrial permitting task force

Brussels, 29 February 2024

IOGP Europe was invited by BusinessEurope to participate in a task force created to analyse processes for industrial permitting in the EU.

Throughout 2023, IOGP Europe participated in the Industrial Permitting Task force set up by Business Europe. The aim was to analyze processes for industrial permitting in the EU. The project was rolled out in different phases:

1. First, Business Europe conducted a survey of companies to identify the primary obstacles or gaps within the industrial permitting system, as recognized in practical scenarios.
2. Then, IOGP Europe conducted, through the Environment and Blue Economy Expert Group a GAP analysis to examine the different European legislations that regulate industrial permits.

A total of 13 EU legislations were analyzed on the basis of 13 parameters, considering the following criteria:

• Recognised similarities and coherences between the requirements for each
  parameter for each legislation;
• Clear inconsistency between the requirements demanded for each parameter by each legislation;
• Differences identified between the requirements demanded for each parameters by each legislation;
• Not covered / not applicable / missing points;

➢ The results showed the following:

• 25% similarities
• 11% inconsistencies
• 29% of differences
• 35% of requirements not covered

Adding the identified inconsistencies together with the identified differences, we obtain a total of 40% representing the gaps/obstacles that a project developer may face when applying for an industrial permit.

IOGP Europe recognized that while in practice the inconsistencies are solved by the text of the regulation, this same solution requires the permit applicant to solve each step through the text of 13 different regulations, having to comply with the conditions and requirements established on each of them. We now understand why the process of applying for an industrial permit to develop an energy production activity is so time consuming.

3. Lastly, IOGP Europe conducted a comparative analysis between the industrial permitting process in the USA and in China, with the objective of understanding their regulatory framework. The outcome is not so different from that of the EU, but that there are advancements in the preparation stage prior to the permit application, making the application process for an industrial permit in these jurisdictions more expeditious than that of the EU.

The results can be found in the recently published ‘Licence to transform: SWOT analysis of industrial permitting in Europe - a BusinessEurope survey' at Business Europe’s website.

We believe a European harmonized approach to permitting is needed.

How? The European Commission should set up a high-level expert group to deliver within 12 months a set of 'next level' recommendations to reform industrial permitting in the EU.

Less re-permitting -> more competitiveness.