The specific objective of LIFE-Environment was to contribute to the development of innovative techniques and methods by co-financing pilot and demonstration projects.

The LIFE regulation EC 1655/2000 defined five areas eligible for funding:

• land-use development and planning
• water management
• reduction of the environmental impact of economic activities
• waste management
• reduction of the environmental impact of products through an integrated product policy

LIFE-Environment also financed preparatory projects aimed at the development or updating of Community environmental actions, instruments, legislation or policies.

LIFE-Environment did not finance research or investment in existing technologies or infrastructure. The purpose of the programme was to bridge the gap between research and development results and their large-scale application. To this end, demonstration projects based on the results of projects which had been supported under past or ongoing technological research and development programmes were encouraged.

The European Union allocated approximately €300 million for LIFE-Environment for the period 2000-2004 ("LIFE III"). The rate of Community co-financing was up to 30% for projects generating substantial net revenue, and up to 50% in other cases. In September 2004, LIFE III was extended for a further two years (2005-2006), with an additional budget of €137 million to cover LIFE-Environment.

50 LIFE-Environment projects in 14 countries were selected for funding following the last call for proposals under LIFE III. For more information, please read the latest press release on LIFE-Environment.