DOCSLIB.ORG

Environmental Liability in Europe

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Environmental Liability in Europe A GUIDE TO Environmental Liability in Europe SPONSORED BY FC_SRELG11 1 15/04/2011 11:34 Untitled-2 1 14/04/2011 14:49 ENVIRONMENTAL GUIDE [ STRATEGIC RISK ] FOREWORD 2 | Introduction The ELD brings consequences ENVIRONMENTAL LIABILITY IS 4 | Germany nothing new in Europe. Yet A two-tier system makes life European risk managers still diffi cult for risk managers aren’t seeing the need to buy a standalone environmental 6 | France insurance product. Many are The Bouches-du-Rhône disaster happy to seek out extensions in illustrated the cost of pollution their general liability policies to cover risks introduced by the Environmental Liability Directive (ELD). 8 | United Kingdom A number of environmental disasters have occurred Firms are still burying their in Europe since the ELD passed into law. France’s head in the sand over the ELD Bouches-du-Rhône oil spill received a great deal of media attention, yet the take-up of environmental insurance 10 | Spain & Portugal products remains low. And in the case of the Hungarian Cover is mandatory but fi rms toxic spill, the government fears cracking down on the still lack awareness company involved for political and economic reasons. Neither incident has provided particularly accurate data for 12 | Eastern Europe what constitutes environmental liability or shown how The fall-out from the toxic spill regulators will approach the subject in a post-ELD world. So, as risk managers mull the consequences of a 14 | Scandinavia major incident, insurance could start to look like the right Why Scania won’t buy ELD cover option. But the decision might not be le in their hands for much longer. The European Commission is considering 16 | Resolving a claim introducing a Europe-wide mandatory fi nancial protection The environment’s true value scheme. Companies may have to buy insurance or fi nd another way of reserving cash to pay for the clean-up if 18 | Buying the right cover they cause damage to the environment. Assessing the impact of the ELD Nathan Skinner is editor of StrategicRISK 20 | Conclusion More data is needed before ELD take-up will increase Editor Nathan Skinner Events logistics manager SPONSORED BY Editor-in-chief Sue Copeman Katherine Ball Market analyst Andrew Leslie Publisher William Sanders Group production editor Áine Kelly tel: +44 (0)20 7618 3452 Deputy chief sub-editor Laura Sharp Managing director Tim Whitehouse Business development manager Donna Penfold tel: +44 (0)20 7618 3426 Production designer Nikki Easton Group production manager To email anyone at Newsquest Tricia McBride Specialist Media Senior production controller please use the following: Gareth Kime fi rstname.surname@ Head of events Debbie Kidman newsquestspecialistmedia.com Strategic RISK 1 01_03_IntroFword_SRELG11.indd 1 15/04/2011 10:36 ENVIRONMENTAL GUIDE [ INTRODUCTION ] operators are required to take Do you know preventative measures in the event of an imminent threat of environmental the consequences of damage. This proactive approach contrasts with established environmental law, which is mainly concerned with environmental liability? repairing the damage a er the event. Focusing on the fi nancial repercussions of Financial drivers pollution, the Environmental Liability There is still much uncertainty surrounding the operation and Directive brings much-needed clarity enforcement of the ELD, particularly in terms of fi nancial penalties for polluters. This is understandable given how ITHOUT QUESTION, THE wide-reaching it is geographically and W Environmental Liability Directive with respect to the liabilities created, so (ELD) is a signifi cant development in only time will tell as the law is allowed to environmental law, but we must be ‘bed in’ across the EU. mindful not to focus solely on this most One key driver behind enforcement recent legislation and ignore existing law, will be the resources available to the which is well regulated in many regulators. Unfortunately, tough economic territories. These laws still exist and will times see public bodies reducing staff still be enforced alongside the ELD, not numbers, which will only weaken their replaced by it. In some EU member states, ability to enforce new regulations. however, the position is very diff erent, as The economic climate may also be less well-developed environmental law responsible for government reluctance in means the ELD has meant a more enforcing environmental regulations too fundamental change. strictly. The need to help industry out of What the ELD does do well is focus recession means a heavy-handed far more attention on the consequences approach to enforcement may not be the of environmental damage, particularly right way to go at this time. with respect to natural habitats and Regardless of enforcement activity, protected species, which we may call changes in legislation are a positive ‘biodiversity’. Indeed, the introduction of driver in companies’ growing awareness complementary and compensatory of their environmental responsibilities, remediation costs is testament to this which is coupled with an increased focus core focus, and demonstrates how the on corporate responsibility across the fi nancial consequences of environmental board. Reputational risk is certainly a big damage for the polluter will be more part of this as customers, shareholders, severe under the new regime. The investors and other stakeholders will introduction of strict liability is another increasingly look at environmental important development, replacing the performance when making decisions. need to prove fault or negligence for While companies may be more aware many ‘regulated’ industry sectors. of environmental risk, recognition of the The ELD also looks closely at consequences – despite the legislative preventing incidents in the fi rst place, as drivers – is questionable. Many will 2 StrategicRISK 01_03_IntroFword_SRELG11.indd 2 15/04/2011 10:36 associate such risks with large-scale pollution events, such as that which SUMMARY occurred in the Gulf of Mexico last year. The Environmental Liability Directive This focus on severity means businesses, regardless of type and size, • The ELD focuses on the consequences of environmental overlook their own environmental damage and recognises the need to expand existing laws. exposures, plus it must be remembered • Financial provision for environmental damage is a rapidly that fi nancial consequences for each developing requirement in the EU, and companies should company are relative. Indeed, the costs protect their business regardless of legal requirements. of remedying environmental damage • Demand for environmental insurance has risen in line with may easily be absorbed by one risk awareness. organisation, but could threaten • Economic conditions mean many organisations cannot the solvency of another. aff ord to assess environmental risks or take out insurance – but they cannot aff ord the uninsured losses either. Covering yourself One very important development championed by the ELD in particular is other EU territories, but of late has the concept of fi nancial provision for focused on ‘operational’ environmental environmental damage. While this risks: those that companies face as a initiative is still in its infancy across the result of their ongoing business activities. EU and has without doubt been slowed The goal here is that this type of by the current economic downturn, it is a insurance be considered in the same way signifi cant change and presents good as other lines, like public liability or opportunities for the insurance industry. property. Insurance is seen by many as the most There is room for development, but obvious and arguably effi cient solution to specialist insurers in this sector have satisfy fi nancial provision requirements. made signifi cant strides in making this Transferring the fi nancial type of insurance accessible and consequences of environmental risks to aff ordable for all organisations, the insurance market should be a key irrespective of size or industry sector. consideration for companies whether Certainly, environmental risk insurance legislation encourages it or not. While is not exclusively for large multinational many organisations are unlikely to act corporations; a wide range of entities unless forced to by legal or contractual from small family-run fi rms to global requirements, it is evident that as organisations have adopted this level of awareness of environmental risks has risk management. developed, so too has demand for Current economic conditions are environmental insurance solutions. making it diffi cult for many to assess Companies that appreciate the environmental risks or indeed purchase importance of such risks and the need to adaquate insurance protection, but manage them strategically also recognise companies must ask whether they are that environmental insurance can be an able to aff ord the consequences of effi cient and eff ective means to support uninsured environmental events. SR this strategy. The environmental insurance market Wayne Harrington is UK and Ireland is well established in the UK and many manager of environmental risk at ACE Strategic RISK 3 01_03_IntroFword_SRELG11.indd 3 15/04/2011 10:36 ENVIRONMENTAL GUIDE [ GERMANY ] In this environmental KEY ADDITIONAL state, the polluter LIABILITIES FROM THE ELD • Operators have to report any always pays pollution incident – it is a criminal off ence not to do so. But a ‘patchwork of regulation’ makes • Strict liability – fault or Germany a tough place for risk managers to negligence is not a prerequisite
Load more

Recommended publications
  • Synthesis and Applications of Inorganic Materials Derived from Aluminium Smelting Waste
    Synthesis and Applications of Inorganic Materials Derived from Aluminium Smelting Waste by MD HAIRI, Siti Noor Syazana School of Chemical and Physical Science Victoria University of Wellington A thesis Submitted to the Victoria University of Wellington In partial fulfillment of the requirements of the degree of Master of Science in Chemistry Victoria University of Wellington 2014 Table of Contents Acknowledgements .....................................................................................................................2 Abstract ......................................................................................................................................3 Introduction and literature survey ................................................................................................4 Hungary’s red mud spill 2010 .....................................................................................................8 Problems with red mud .......................................................................................................... 11 Geopolymers as substitutes for Ordinary Portland Cement (OPC) .......................................... 14 Factors influencing geopolymer formation from red mud and red mud mixtures........................ 15 Effect of concentration of alkali activator .............................................................................. 16 Solid/liquid ratio .................................................................................................................... 18 Geopolymers
    [Show full text]
  • CRITICAL METALS HANDBOOK Critical Metals Handbook
    CRITICAL METALS HANDBOOK Critical Metals Handbook Edited by Gus Gunn British Geological Survey Keyworth Nottingham UK Published in collaboration with the British Geological Survey This work is a co-publication between the American Geophysical Union and Wiley This edition first published 2014 © 2014 by John Wiley & Sons, Ltd This work is a co-publication between the American Geophysical Union and Wiley Registered Office John Wiley & Sons, Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK Editorial Offices 9600 Garsington Road, Oxford, OX4 2DQ, UK The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK 111 River Street, Hoboken, NJ 07030-5774, USA For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com/wiley-blackwell. The right of the author to be identified as the author of this work has been asserted in accordance with the UK Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher. Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book.
    [Show full text]
  • Eastern Europe & Central Asia
    REGIONAL Eastern Europe BRIEFING & Central Asia Business & human rights in Eastern Europe & Central Asia – A round-up of recent developments April 2013 Contents 1. Introduction ............................................................................................................................. 2 1.1. About this briefing ................................................................................................................................ 2 1.2. About the Resource Centre .................................................................................................................. 2 1.3. Company responses in Eastern Europe & Central Asia ........................................................................ 3 1.4. Research missions in Eastern Europe & Central Asia ........................................................................... 4 2. Key concerns .......................................................................................................................... 4 2.1. Workplace health & safety ................................................................................................................... 4 2.2. Impact of pollution on health ............................................................................................................... 5 2.3. Concerns associated with projects funded by development banks ..................................................... 6 2.4. Discrimination......................................................................................................................................
    [Show full text]
  • Web Environment, Community
    BBC News 11 October 2010 Last updated at 19:14 GMT Hungary: Toxic spill factory chief executive arrested There are fears of a second rupture of the alumina plant's reservoir The chief executive of the industrial plant at the centre of the toxic sludge spill in Hungary has been taken in for questioning by police. The arrest of Zoltan Bakonyi was announced by the PM Viktor Orban. Mr Orban also said the company would be temporarily nationalised and that those responsible for the disaster should bear the financial consequences. Eight people have so far died from the 4 October spill near Ajka in the west of the country. About 150 people were also injured after up to 700,000 cubic metres (24.7m cu ft) of toxic by-product from the production of alumina burst from a storage reservoir. The residue has covered an area of 40 sq km (15.6 sq miles) and the contamination has spread into the region's waterways. EU help Engineers and disaster relief workers, aided by volunteers, have been racing to finish an emergency dam to contain an expected second spill from the reservoir. Click to play Environment State Secretary Zoltan Illes: "2.5 million cubic metres of red mud is pushing that wall" EU experts are helping the Hungarians with the emergency dam, as well as assessing the longer-term impact of the spill on the ground water and the soil. They are also examining the potential airborne health hazard posed by the mud drying out. Speaking to parliament, Prime Minister Orban blamed "human negligence" for the spill.
    [Show full text]
  • An Environmental Catastrophe and Its Incorporation Into the Environmental Engineering Curriculum at the University of Pannonia
    3rd WIETE Annual Conference on Engineering and Technology Education 2012 WIETE Pattaya, Thailand, 6-10 February 2012 An environmental catastrophe and its incorporation into the environmental engineering curriculum at the University of Pannonia A. Utasi†, Á. Rédey†, E. Horváth†, R. Kurdi†, J. Kovács†, E. Domokos†, T. Yuzhakova†, Zs. Kovács†, V. Somogyi†, Cs. Katona‡, P. Bui†, V. Csom† & K. Lászlóné‡ University of Pannonia, Veszprém, Hungary† ÖKORET Spin-off Share Company, Veszprém, Hungary‡ ABSTRACT: Red mud storage, Cassette No. 10, ruptured on 4 October 2010 during the daytime in Hungary. About one million cubic metre of red mud sludge burst and covered a territory of about 1,017 hectares. The caustic sludge flooded the surrounding settlements and polluted the nearby Torna stream, which flows through the Marcal and Raba rivers into the Danube. The red mud sludge exhibits alkaline properties, therefore, this environmental disaster resulted in an extremely serious situation. Immediately after the catastrophe, the University of Pannonia, Veszprém, Hungary, set up an emergency response team to carry out environmental monitoring and to devise red mud sludge clean up technologies. This paper deals with the results of the environmental monitoring and the emergency measures taken and with the incorporation of this very serious event in the environmental impact assessment course programme. The key issues of the disaster, the history and the life cycle of the red mud reservoir are explained in detail. The processing and reutilisation of the red mud in order to avoid events like this are also dealt with. I NTRODUCTION R ed mud sludge is a solid waste by-product of the Bayer bauxite processing works and it is highly basic with a pH of about 12-13.5 (sometimes up to 14) [1].
    [Show full text]
  • Civil Society in Hungary Rixer.Pdf
    www.schenkbuchverlag.de Ádám Rixer CIVIL SOCIETY IN HUNGARY A Legal Perspective SCHENK VERLAG PASSAU Expert reviewer Csáki-Hatalovics Gyula Balázs (dr. iur., Ph.D.) Linguisctic proofreading Oláh László The manuscript of this volume was closed at 1 September 2014 Die Deutsche Bibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliographie; detaillierte bibliographische Daten sind im Internet über http://dnb.ddb.de abrufbar. ISBN 978-3-944850-44-3 © Schenk Verlag GmbH, Passau, 2015 All rights reserved Table of Contents List of Abbreviations 9 Preface 11 PART I – InTRODUCTION 13 1. Possible ways of capturing the problems in connection with the civil/nonprofit sphere in Hungary. The issue of the method. 15 1.1. The significance of jurisprudential approaches 15 1.2. Dangers of reviews strictly based on legal instruments 16 1.3. Beyond law and legal sciences 17 1.4. Beyond multi- and interdisciplinarity: the new aspects of social studies 19 2. The main objects of the present work, aims and antecedents 20 2.1. Introduction 20 2.2. The scientific antecedents of the present work 21 2.3. The main characteristic of the researches done on the development of the civil society 24 2.3.1. The effect of the civil/nonprofit sciences on the itemized regulations and the practice of governmental bodies 25 3. General characteristics of civil/non-profit law 26 3.1. Types of regulations on civil/non-profit sector 26 3.2. The role of law in the civil/non-profit social subsystem 27 3.2.1. The possible direction of legislation 28 3.2.2.
    [Show full text]