What is policy coherence?

Introduction

Over several decades, complex multi-level and multi-sector policy landscapes have unfolded. This has resulted in a situation where current policy frameworks at the EU and (sub)national levels are fragmented. Policies addressing specific sectors, activities or problems also often directly or indirectly affect other sectors and problems. Multiple policies apply simultaneously to specific (sector) activities or (parts of) problems. Since the policies are often developed by different authorities, within different contexts, and for different purposes, the policies can contain overlaps, gaps, weaknesses, and inconsistencies.

Policy coherence refers to how well different policies work together. Coherence can be defined as the extent to which policies strengthen each other by promoting synergies or reducing conflicts between objectives and measures both in design and during implementation. In policy landscapes with low coherence, the achievement of multiple objectives may be difficult, and trade-offs often need to be made.

Provided that there is a high level of coherence, policies can also positively reinforce one another by creating synergies that facilitate achieving multiple objectives. At a minimum though, a policy should not hinder progress towards achieving other policies’ objectives and targets.

Horizontal and vertical coherence

Policy coherence can be assessed within the same governance level (horizontal coherence) or across different governance levels (vertical coherence) (Figure 1).

Figure 1 Illustration of vertical and horizontal coherence

Horizontal coherence refers to how well policies at the same governance level work together, for example between different EU policies. Horizontal coherence can be assessed between policies within the same policy area , for instance between different EU water and wastewater policies. Horizontal coherence can also be assessed between policies from different policy areas, such as water and agricultural policies, or renewable energy and biodiversity policies.

When policies addressing specific sectors, activities or problems also often directly or indirectly affect other sectors and problems, an assessment of horizontal coherence can help identifying excessive burdens, overlaps, gaps, inconsistencies, implementation problems, and/or obsolete measures. Understanding horizontal coherence can also help identify potential synergies across policies and policy areas that could be strengthened to improve overall policy performance.

Vertical coherence refers to how well policies are aligned between different governance levels, for example EU and national level policies. Vertical coherence is key to ensure successful multi-level policy implementation. Assessing vertical coherence may involve assessing whether national policies are coherent with specific EU Directives. All EU directives need to be transposed into national legislation. This means that EU Member States must incorporate the EU rules into national law. Even though Member States have some flexibility in the way they transpose the EU laws, they should ensure coherence with the original directives. After transposition, the EU policies become effective at the national level. However, it may mandate activities at sub-national level, creating a vertical coherence challenge, for example between municipal and national policies.

Assessing vertical coherence may also involve assessing whether national policies are in line with the broader policy ambitions and objectives, such as those in the European Green Deal, or the more recent EU Oceans Pact, or international policies such as the UN Sustainable Development Goals (Figure 1).

Examples

An example of horizontal coherence within the same policy area would be assessing the EU Water Framework Directive towards the EU Habitats Directive. Such an assessment would show how aligned the Water Framework Directive and the Habitats Directive are in their objectives and measures to protect biodiversity and achieve good ecological status of water bodies.
An example of horizontal coherence across different policy areas would be to assess EU Water Framework Directive and Habitats Directive with EU policies on food or energy production, like to the Common Agriculture Policy and Common Fisheries Policy, or the Renewable Energy Directive.
An example of vertical coherence would be assessing national legislation against the EU Water Framework Directive to see if the country is implementing river basin management plans in line with EU requirements.

The role of policy coherence in the achievement of multiple objectives

Both horizontal and vertical coherence are important factors contributing to the joint achievement of different policy objectives and measures. Low coherence limits the effectiveness of policies when transposed to lower levels of governance. It also increases the probability of making trade-offs that negatively affect achieving multiple policy objectives. On the other hand, where coherence is high, policies can positively reinforce one another by making use of synergies that facilitate achieving multiple different policy objectives. At a minimum, coherence should ensure that one policy does not hinder progress towards reaching other policies’ objectives and targets.

Example

The Renewable Energy Directive III has set the target to expand the EU’s offshore wind energy capacity to 60 GW by 2030. This will require the expansion of offshore wind energy installations, with potential consequences for biodiversity and ecosystems. At the same time, the Nature Restoration Regulation sets out objectives to protect 20% of European seas and restore degraded marine ecosystems. Due to the possibility for exemptions from biodiversity-related policies in order to accelerate offshore wind energy development, there is a risk that offshore wind energy is driven forward at the expense of biodiversity protection and ecosystem restoration.

However, offshore wind energy installations can create new habitats for marine species like crustaceans and fish. Including requirements to apply nature positive designs in offshore wind energy installations could therefore contribute positively to biodiversity objectives while delivering on renewable energy targets and climate change mitigation action.

Policy coherence across the policy cycle

Policy coherence plays a role at several stages of the policy cycle (Figure 2). At the policy formulation and design stage, policy coherence is one of the five criteria to be assessed in an impact assessment. Impact assessments aim at anticipating the potential outcomes of different policy alternatives. In the EU, this process is guided by the Better Regulation guidelines (see further Better regulation guidelines and tools).

At the policy evaluation stage, policies are retrospectively evaluated to determine how well the policy has performed towards its intended outcomes. Coherence is included in this evaluation. This final evaluation will inform the policy review process. Policy evaluation at the EU level also follows the Better Regulation guidelines, with evaluations and fitness checks as supporting tools.

The guidance in this handbook is relevant for the assessment and understanding of coherence both before policies are adopted and during the process of implementation and evaluation.

Conclusion

To sum up, policy coherence is important. Policy coherence needs to be ensured and strengthened particularly during policy formulation and design processes as well as under policy implementation. High levels of policy coherence can have a positive effect on the achievement of policy objectives, and will lead to desirable policy outputs, outcomes and impacts. However, several factors can affect levels of policy coherence at the policy formulation and design phase and the policy implementation phase (Figure 3). These factors are explained in the handbook (Understanding reasons for policy (in)coherence).

Figure 3 The role of policy coherence for the achievement of policy impacts