The Regional Environmental Reconstruction Program For

T he Regional Environmental Reconstruction Program for South Eastern Europe (REReP) The Regional Environmental Reconstruction Program for South Eastern Europe (REReP) The Regional Environmental Center for Central and Eastern Europe (REC) is a non-partisan, non-advocacy, not-for-profit organisation with a mission Building a Better Environment for the Future to assist in solving environmental problems in Central and Eastern Europe (CEE). The Center fulfils this mission by encouraging cooperation among non-governmental organisations, governments, businesses and other environmental stakeholders, by supporting the free exchange of information and by promoting public participation in environmental decision-making.

The REC was established in 1990 by the United States, the European Com- mission and Hungary. Today, the REC is legally based on a Charter signed by the governments of 25 countries and the European Commission, and on an International Agreement with the Government of Hungary. The REC has its headquarters in Szentendre, Hungary, and local offices in each of its 15 beneficiary CEE countries which are: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, FYR Macedonia, Poland, Romania, Slovakia, Slovenia and Yugoslavia.

Recent donors are the European Commission and the governments of the United States, Japan, Austria, Canada, Czech Republic, Croatia, Denmark, Finland, France, Germany, Hungary, the Netherlands, Norway, Slovakia, Switzerland and the United Kingdom, as well as other inter-governmental and private institutions.

The Regional Environmental Reconstruction Program for South Eastern Europe (REReP) The European Commission THE REGIONAL ENVIRONMENTAL CENTER Directorate-General Environment for Central and Eastern Europe The Regional Environmental Reconstruction Program for South Eastern Europe (REReP) Building a Better Environment for the Future

Edited by JENNIFER BRASWELL

Szentendre, Hungary OCTOBER 2000

THE REGIONAL ENVIRONMENTAL CENTER for Central and Eastern Europe in cooperation with the European Commission Directorate-General Environment and the Stability Pact for South Eastern Europe About the REC

The Regional Environmental Center for Central and Eastern Europe (REC) is a non-partisan, non-advocacy, not-for-profit organisation with a mission to assist in solving environmental problems in Central and Eastern Europe (CEE). The Center fulfils this mission by encouraging cooperation among non-governmental organisations, governments, businesses and other environmental stakeholders, by supporting the free exchange of information and by promoting public participation in environmental decision-making.

The REC was established in 1990 by the United States, the European Commission and Hungary. Today, the REC is legally based on a Charter signed by the governments of 25 countries and the European Commission, and on an International Agreement with the Government of Hungary. The REC has its headquarters in Szentendre, Hungary, and local offices in each of its 15 beneficiary CEE countries which are: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, FYR Macedonia, Poland, Romania, Slovakia, Slovenia and Yugoslavia.

No part of this publication may be sold in any form or reproduced for sale without prior written permission of the copyright holder

ISBN: 963 8454 87 3

Published by: The Regional Environmental Center for Central and Eastern Europe Ady Endre ut 9-11, 2000 Szentendre, Hungary Tel: (36-26) 311-199, Fax: (36-26) 311-294, E-mail: [email protected], Website: http://www.rec.org/

Printed in Hungary by ProTertia

This and all REC publications are printed on recycled paper or paper produced without the use of chlorine or chlorine-based chemicals TABLE OF CONTENTS

Acronyms and Abbreviations 4

Foreword 5

Introduction 7

Map of the Region 8

Environmental Profiles 9 Albania 11 Bosnia and Herzegovina 21 Bulgaria 33 Croatia 41 Kosovo 49 FYR Macedonia 57 Romania 67 Yugoslavia 77

Regional Environmental Reconstruction Program Framework Document 87 Program Summary 89 Program Background 93 Program Priorities 97

Annexes 113 Annex 1 Joint Statement by the Ministers 115 Annex 2 Terms of Reference 117 Annex 3 NGO Statement 119 Annex 4 REReP Task Force Contacts 121

THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM 3 ACRONYMS AND ABBREVIATIONS

BTF Balkans Task Force NEAP National Environmental Action Plan CEE Central and Eastern Europe NCESD National Center for Environment and Sustainable Development (Bulgaria) CH4 Methane NGO Non-Governmental Organisation CO Carbon monoxide NEPF National Environmental Protection Fund (Bulgaria) CO2 Carbon dioxide NH Ammonia COPS Convention of Parties 3 NIHP National Institute for Health Protection DG-ENV European Commission DG-ENV – Environment, (FYR Macedonia) Nuclear Safety and Civil Protection NMHC Non-methane hydrocarbons DU Depleted Uranium NO Nitrogen Oxide EBRD European Bank for Reconstruction and Development NO Nitrogen Dioxide EC European Community 2 NO Nitrogen Oxides (non-specific) ECE Economic Commission for Europe (UN) x MOE Ministry of Environment EDC Ethylene dichloride MEW Ministry of Environment and Water (Romania) EEA European Environment Agency PAHPolyaromatic hydrocarbon EIA Environmental Impact Assessment PCB Polychlorinated biphenyl EIONET European Environment Information and Observation Network PEPA Priority Environmental Projects for Accession EU European Union REC The Regional Environmental Center for Central and Eastern Europe GDP Gross Domestic Product REReP Regional Environmental Reconstruction Program GNP Gross National Product for SEE HCl Hydrogen Chloride REWI Regional Environmental Inspectorate (Bulgaria) IPCC Intergovernmental Panel on Climate Change SEE South Eastern Europe IUCN International Union for Conservation of Nature and SIDA Swedish International Development Agency Natural Resources/World Conservation Union SIEI Sofia Intiative on Economic Instruments KLA Kosovo Liberation Army SO Sulphur Dioxide MAC Maximum Allowed Concentration 2 SO Sulphur Oxides MEW Ministry of Environment and Waters (Bulgaria) x UN United Nations NASEM National System for Environmental Monitoring (Bulgaria) VCM Vinyl Chloride Monomers NATO North Atlantic Treaty Organisation VJ Yugoslavian Army NEA National Environment Agency (Albania) VOCVolatile Organic Compounds

4 THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM FOREWORD

Foreword

Environmental reconstruction in the countries of efforts by the Stability Pact to contribute to an early South Eastern Europe (SEE) is an important dimension of integration of the SEE countries into the political and Stability Pact concerns. There can be no long lasting sta- economic mainstream of Europe, should contribute to bility in SEE without adequate planning and reconstruc- greater awareness of environmental concerns by both tion of an often damaged environment. On one hand, policy makers and the wider public. The adequate the recent history of the region with its succession of management of the environment, as reflected in the wars has affected the environment. On the other hand, projects of REReP, has to be an integral part of this neglect of environmental matters by past governments effort. I am confident that the successful implementa- has often adversely affected the environment as an tion of the REReP can contribute significantly to a bet- important element of the region’s socio-economic tissue. ter life of future generations of the SEE countries. I am therefore pleased that the Regional Environ- mental Centre for Central and Eastern Europe decided Bodo Hombach to publish the documents of the Regional Environmen- Special Coordinator of the tal Reconstruction Program for South Eastern Europe Stability Pact for South Eastern Europe (REReP). This programme, which is part of the wider

THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM 5 6 THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM INTRODUCTION

Introduction

This report provides an outline of the challenges, the REReP Task Force, has prepared this report. This goals and scope of the Regional Environmental Recon- activity has been part of the work program of the REReP struction Program for South Eastern Europe (REReP), Secretariat — which is supported by the Ministry of which has been designed and endorsed by the Minis- Environment of the Netherlands, the Ministry of Envi- ters of Environment of the six South Eastern European ronment of Italy, the European Union, and the Hungari- (SEE) countries that are currently party to the Stability an-American Fulbright Commission — and draws on the Pact for South Eastern Europe: Albania, Bosnia and work of many individuals and institutions. The report Herzegovina, Bulgaria, Croatia, Macedonia and Roma- has been prepared by Jennifer Braswell, in coordination nia. Yugoslavia has been invited as an observer during with Mihail Dimovski, REReP Program Manager, and the development of the program, and there is a contin- Dragana Tar, REReP Project Coordinator. The Secretariat ued hope that it will be fully integrated into the REReP has been supported by many people, notably Andrew process in the near future. Murphy at the European Commission, Directorate Gen- The first section of this report gives an overview of eral Environment, and Ronald Dreyer at the Office of the the environmental situation in each SEE country, within Special Coordinator of the Stability Pact. Additionally, the framework of the priority areas identified as a part of the assistance of Sylvia Magyar, Tom Popper, Olinka Gji- the REReP. These environmental profiles are followed gas and Jerome Simpson in the REC Information Ser- by a presentation of the REReP program itself, as drafted vices Department, has been essential to the production and agreed upon by a collective effort of the SEE envi- of this publication. ronmental ministers in March of 2000. The REReP docu- The country chapters of this report draw on papers ment describes the program’s underlying concepts, pri- prepared by on-going REC initiatives in SEE, namely ority areas of activity and implementation strategy. the Strategic Environmental Assessment report (sup- As the primary environmental component of the ported by the Swedish International Development Stability Pact, the REReP program reflects the commit- Agency) and the Sofia Initiative on Economic Instru- ment of the governments of South Eastern Europe to ments (supported by the Danish Environmental Protec- integrate environmental considerations into all aspects tion Agency). of the reconstruction process. Similarly, the program’s The REReP document, as presented here, is the regional approach and its emphasis on cross-border product of several regional consultation meetings activities reflect a recognition that the transboundary among the environmental ministries of the SEE countries character of environmental resources can generate last- — and is an articulation of the concepts, priorities and ing cooperative management regimes among the SEE activities that the ministers themselves have defined and countries and can thus contribute to building stability agreed upon as the basic tenets of the REReP program. in the Balkans in the long-term. These “environmental reconstruction” activities are As a process for creating international policy, the envisaged to be carried out over five years, with an ini- REReP is also driven with a cooperative mechanism, tial “quick-start,” two-year phase to begin immediately. known as the REReP Task Force, that is co-chaired by Ultimately, the spirit of cooperation that has an elected SEE country representative and a represen- sparked and guided the development of this program tative from the European Union. The leadership pro- by the SEE governments — while in itself an achieve- vided by Toni Popovski, Minister of Environment of ment — reflects the universality of the value of envi- Macedonia, and Jean-Francois Verstrynge, Deputy ronmental resources and heralds a new era of agree- Director-General of the EC’s DG-Environment, has ment and partnership among the Balkan countries. It is been essential to the successful development of the hoped that this cooperative spirit can guide the people REReP program as a comprehensive environmental of the SEE region on a path toward a peaceful, stable strategy for the SEE region. and sustainable future. The Regional Environmental Center for Central and Eastern Europe (REC), which serves as the Secretariat for

THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM 7 MAP OF THE REGION

BELARUS

POLAND

GERMANY

UKRAINE CZECH REPUBLIC

SLOVAKIA

AUSTRIA MOLDOVA

HUNGARY SLOVENIA ROMANIA CROATIA

BOSNIA AND HERZEGOVINA

YUGOSLAVIA BULGARIA Black Sea

ITALY Adriatic FYR TURKEY Sea MACEDONIA

ALBANIA

GREECE

8 THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM Environmental Profiles

Albania ■ Bosnia and Herzegovina ■ Bulgaria ■ Croatia ■ Kosovo ■ FYR Macedonia ■ Romania ■ Yugoslavia ■

THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM 9 10 THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM ENVIRONMENTAL PROFILE: ALBANIA

Environmental Profile: Albania

BASIC INFORMATION YUGOSLAVIA Population in 1999 estimate (millions) 3.3 Population in 2025 projection (millions) 4.3 Population Density – 1996 (inhabitants/1,000 hectares) 1,241 CROATIA Total Area – 1997 (1,000 hectares) 2,740

Shkoder ENVIRONMENTAL DATA Lezhe Forest Cover – total 1995 (1,000 hectares) 1,046 Agricultural Land – total 1994 (1,000 hectares) 702 FYR MACEDONIA 3 Durres Renewable Water Resources – 1998 45 km Adriatic Number of Protected Areas – 1997 25 Sea Tirana Percentage of Land Protected – 1997 2.8 ALBANIA

MACROECONOMIC INDICATORS GDP – 1999 estimate (millions LEK) 499,420 GDP per capita –1999 estimate (USD) 1,089 GDP per capita – 1998 (USD, Purchasing Power Parity*) 2,796 GREECE ITALY Inflation – 1999 -1.0 (change in year-end retail/consumer price level – percent) Unemployment – 1998 (Percentage of labour force) 17.8 050100

kilometers

GDP IN PREVIOUS YEARS 1997 1998 1999 2000 estimate projected GDP (millions LEK) 341,716 460,631 499,420 534,879 GDP per capita (USD) 687 902 1,089 na Inflation (change in 42.1 8.7 -1.0 3.0 year-end retail/consumer price level – percent) Unemployment rate 14.9 17.8 na na (Percentage of labour force)

Sources: EBRD Transition Report, May 2000; “World Resources 1998-1999,” joint report by WRI, UNEP, UNDP, World Bank; *Purchasing Power Parity calculation based on EBRD and World Bank PPP rates, “World Development Indicators,” 2000.

THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM 11 12 THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM ENVIRONMENTAL PROFILE: ALBANIA

Environmental Profile: Albania

Environmentally, however, Albania has a wealth of Introduction natural resources, with 6 national parks, 25 World The Republic of Albania lies on the western Conservation Union (IUCN)-categorised protected seaboard of the Balkan Peninsula and is one of the areas of environmental significance (together totalling smallest countries in Europe, with a population of 3.3 over 76,000 hectares), and a particularly rich spectrum million (1999) and a territory of 28,748 square kilome- of biodiversity, including approximately 3,200 flora tres. Of this total land area, 36 percent is forested, 15 per- species and 756 fauna species. (Qirjo, 2000) cent is pasture, 24 percent is agricultural land and 4 per- The country is also well known for its high diversity cent is covered by lakes. Mountain ranges stretch along of ecosystems and habitats. Within its territory there are the northern, eastern and southern frontiers, while in the maritime ecosystems, coastal zones, lakes, rivers, ever- west, lowlands extend inland from the coast for more green and broadleaf bushes, broadleaf forests, pine than thirty miles. It is this lowland region that harbours forests, alpine and sub-alpine pastures and meadows the majority of the country’s agricultural resources, as and high mountain ecosystems. well as most of the large, aging industrial structures that The recent unrest in SEE had the greatest impact on were established under the communist regime and now Albania’s natural resources during the 1999 conflict in the are quickly falling into disrepair or ruin. This low lying neighbouring territory of Kosovo. During this time, over area is also the most densely populated in the country, 500,000 refugees entered Albania and were encamped in and includes the Albanian capital, Tirana, which has a large settlements that developed in the protected areas population of about half a million. (Qirjo, 2000) along the border. This situation resulted in increased Culturally and linguistically, the Albanian people are pressure on water supply and treatment systems in these unique among their neighbours in SEE. The Albanian areas, as well as direct damage to the local ecosystems. language shows no close relationship to any other language spoken on the Balkan peninsula, nor to any other language group within the Indo-European family — though Albanian is itself Indo-European in origin. It The Framework for is believed that the ethnic Albanians, who make up 91 Environmental Policy percent of the population, are the descendants of an Illyrian tribe that lived from the 2nd Century BC in what and Management is today central Albania. (Young, 1997) Politically, the country was isolated during much of Current Environmental Conditions this century under the authoritarian, independent com- After World War II, during the four decades of the munist regime of Enver Hoxha — from 1941 until his Hoxha regime, the exploitation of natural resources and death in 1985 — and then under the less stringent lead- raw materials was carried out in Albania without consid- ership of Ramiz Alia, from 1985-1991. eration for the limits of possible utilisation, and without In the 1990s, amid the democratic changes that were regard to industrial effluents treatment and urban waste taking place throughout Central and Eastern Europe disposal. Unfortunately, the change of political systems (CEE) and SEE, Albania experienced a period of eco- in 1991, has not improved the environmental situation nomic and political hardship characterised by incom- to-date. New environmental issues have arisen, only to plete financial reforms, a stagnant privatisation pro- add to inherited problems that remain to be solved. At gram, an underdeveloped banking system, corruption present, the most affected environmental components in public administration and widespread tax evasion. In are the soil, inland waters, forests and coast. 1997-1998, this situation reached crisis levels with the failure of fraudulent “pyramid” investment schemes that Soil, Forests, Agricultural Land resulted in the loss of approximately USD 1.2 billion in The economic crisis of 1997-98 had a negative citizens’ savings. (Panariti, 2000) impact on the forests and related ecosystems in Albania.

THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM 13 ENVIRONMENTAL PROFILE: ALBANIA

Soil erosion — associated with poorly maintained ter- underground water pollution — if no adequate protect- races, overgrazing of livestock, and illegal deforestation ing measures are to be implemented. — is a widespread phenomenon, with about 20% of Albanian territory currently exposed to strong erosion Water of more than 30 tons per hectare per year. Massive areas Albania is one of the richest countries of Europe in of lumber clear-cutting (2,450 hectares) were evidenced water resources, though its consumption is comparative- in 1998 alone. In the past two years there have been 41 ly quite small. The national aquatic network comprises cases of forest fires — presumably related to poor rivers, underground waters, lakes, lagoons, and seas. The forestry management practices and covering a surface rivers of Albania are characterised by a high average of 7,000 hectares — and 601 cases of fires on pastures, water flow of 1,308 cubic metres per second. The amount covering a surface of 3,700 hectares. (Qirjo, 2000) of solid matter within the river water is extremely high, In response to this situation and the lack of financial the average value being 1,650 kilograms per second. sources in the field of forestry, the Albanian government (WRI, 1998) passed law no. 8302: “For the management of incomes generated in state owned forests and pastures” in 1998. Contamination of surface and underground waters is This law established a special earmarked fund — inde- widespread. In a great majority of rivers there is a notable pendent of the state budget — which could be used deficit of dissolved oxygen. Generally, in these cases specifically for forestry and watershed management, ero- high values of chemical oxygen demand (COD) and of sion prevention, protection of forest and pasture flora and biological oxygen demand (BOD) are also observed. fauna, maintenance of forest roads, scientific forestry During 1997 and 1998, 3,340 and 12,450 tons, respec- research and facilitation of tourist and recreational activi- tively of liquid wastes were discharged into rivers, water ties. Though this fund has successfully generated rev- reservoirs, and lakes. The greatest part of these wastes enues for the General Directorate of Forestry and Pasture resulted from the countries main industries: cement, over the past two years, significant improvement in the leather, ceramics, mechanical, textile, and wood process- capacities of the relevant environmental institutions and ing. (Hewett, 1995) authorities will be necessary for the realisation of Additionally, the oil and gas processing industry improvements in the land degradation trends that are still accounts for about 22 percent of overall liquid waste. For rapidly occurring. (Panariti, 2000) example, the Gjanica River, in which the waters of oil Regarding agriculture, there has been very little elab- extraction and processing are discharged, is among the oration of sectoral policies that integrate environmental most polluted in the country — with a phenol content of issues, which may be attributed to the fragmentation of 2.62- 3.64 milligrams per litre, COD 131-157 milligrams agricultural economies and the lack of long-term strate- per litre and BOD 42 milligrams per litre, all of which are gies in Albania in recent years. The situation is more prob- levels far above the established standards. (Qirjo, 2000) lematic in hilly and mountainous areas, where development policies have never been outlined. Moreover, in the Air mountainous areas, and even in the lowlands, ownership The last decade was characterised by a rapid conflicts trigger the abandonment of farming and weaken increase in the number of vehicles in Albania, which the awareness of environmental issues. caused a significant increase in the country’s share of air Fertiliser and pesticide consumption in agriculture pollution caused by transportation, particularly in large during the last decade has declined in Albania, presum- urban areas. The carbon monoxide content in urban air ably due to an increase in poverty among farmers, and today a decrease of soil pollution by chemicals is evi- is expected to rise in the future, as the number of cars dent. Fertiliser requirements are estimated at 380,000 continues to grow rapidly. The same is true for the so- tons per year — 150,000 tons of which consist of nitro- called “greenhouse gases” CO2, NOx and CH4 gen, 210,000 tons of which are phosphorous and 20,000 Additionally, the energy production sector is a large tons of which are made up of potassium. But in 1998, source of pollution in Albania. The thermo-power sta- the amount used was 125,000 tons, of which 25,900 tions in operation have discharged 1,650 tons of ashes tons were urea, 48,700 tons were ammonium nitrate, into the air, 500,000 tons of wastewater, 7,100 tons of 50,000 tons were phosphate fertilisers, and 400 tons SO2, 14,2000 tons of CO2 and 1,320 tons of dust during were potassium fertilisers. Similarly, pesticide use has 1997-98. (Hewett, 1995) also declined in recent years, and a 20 percent decrease In some areas of the country (in particular the cities in pesticide imports has been observed between 1997 of Elbasan and Fushe-Kruje), cement producing plants and 1998. (WRI, 1998) cause extreme air pollution, as they discharge great These figures imply that any future increase of fer- amounts of particulate matter into the atmosphere, tiliser or pesticide consumption to fully meet the agri- amounting to up to 10 percent of their overall produc- cultural demand would lead to an increase of soil and tion. (Qirjo, 2000)

14 THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM ENVIRONMENTAL PROFILE: ALBANIA

Biodiversity1 TABLE 1 Based upon existing knowledge, Albania has a rich diversity of flora and fauna with about 3,200 flora species Share of Albanian state budget and 756 fauna species, respectively. Approximately 30 allocations for the environment percent of European flora occurs in Albania, including 27 State budget plant species and 150 sub-species that are endemic in (ABL 1,000) Total Environment Albania and another 160 plant species that are sub- endemic in Albania, Yugoslavia and Greece. The high 1994 46,146,000 49,340 forests of Albania are the habitat for large game, such as 1995 86,068,000 39,359 the brown bear, wild boar and others, and also fowl 1997 126,388,000 16,337.9 species, which flourish in virgin forests. 1998 148,919,000 30,931 There are a number of globally threatened species in 1999 148,318,000 42,000 Albania, since at least 72 vertebrate and 18 invertebrate species of global importance have at least a portion of 2000 152,370,000 53,880 their habitats and population in Albania. For some of them (Pelecanus crispus, Phalacrocorax pygmeus, Salmo letnica and Acipenser sturio), Albania is of criti- sion of EU financial assistance in all relevant areas. cal importance. Continued institutional capacity-building, macro-eco- The main endangered types of ecosystems and habi- nomic stabilisation and accelerated structural reforms tats in Albania include marine systems (medium and remain a main prerequisite for successful participation of infralittoral level), coastal ecosystems (sand dunes, Albania in the Stabilisation and Association Process. delta rivers, alluvial and wet forests, lagoons and coastal In the post-communist period — since the 1990s — lakes) and terrestrial systems, such as alpine pastures taxes and levies have been reintroduced in Albania and and meadows, continental and glacial lakes and oak now constitute the primary source of revenue for the and conifer forests. state’s budget. The main taxes applied are the various national and local levies, excise taxes, customs duties, personal income and small business taxes and value Economy added taxes. A constant decline in tax revenues in The Albanian economy is still heavily affected by the recent years is linked to low wages and a general lack late-’90s economic and political crisis, which resulted in of confidence in state institutions. (Panariti, 2000) soaring inflation of 17-18 percent, a budget deficit that grew to 12 percent of gross domestic product (GDP), Economic and Regulatory Instruments and a drop in growth as the GDP declined by 7 percent for Environment2 in 1997 in real terms. Although GDP growth resumed in Regarding environmental financing, there is no histo- 1998 and 1999 at a rate of 8 percent per annum, in part ry of environmental taxes in Albania, with the exception due to restructuring and reform within the economy, of excise taxes on motor fuels and vehicle taxes, which unemployment — which peaked at 17.8 percent in 1998 generate revenues for the central budget. (REC, 2000) — continues to be a major concern. (EBRD, 2000) Recognising the need for environmental invest- Though integration into the European Union (EU) is ments, however, the National Environmental Agency clearly a large part of the current political agenda in (NEA) has recently prepared a draft document regard- Albania, and several recent laws on privatisation and tax ing the establishment of an environmental fund, which reforms have been passed to bring the national economy will soon be forwarded to the government for approval. closer in line with EU standards, there are still several The framework Law on Environmental Protection pro- basic problems in the country today that continue to vides that income from license tariffs and fines for non- hamper full association with the EU and its Member compliance with the law should create a small fund that States. These include: problems related to low institu- could be used for pollution cleanup, landscape rehabil- tional capacity at all levels of government; instability of itation, environmental monitoring, environmental governance; sub-standard functioning of basic civil research projects, support for NGOs, EIA studies, etc. administration and rule of law; difficulty in establishing a Since the Albanian taxation system is unified, any envi- Free Trade Area with the EU, due to the relative impor- ronmental tax or charge can be introduced only by tance of revenues from customs duties (EU represents amending the law “On Taxation System.” (Qirjo, 2000) more than 90 perecent of imports); and the general Even today, command and control instruments weakness of the Albanian economy with its current high dominate Albanian environmental policy. dependence on foreign aid. (Panariti, 2000) In addition, The revenues from non-compliance fines and any association perspective would necessitate an exten- administrative licensing process are much too small to

THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM 15 ENVIRONMENTAL PROFILE: ALBANIA

fund important environmental projects. Under these cir- BOX 1 cumstances, different environmental projects have been implemented in recent years within the framework of First steps in environmental the national program for research and development, institution-building in Albania: totally funded by the state budget and managed by the Ministry of Education and Science. In 1991, the staff of Committee of Environmental pro- As long as earmarked environmental funds are tection consisted of only three persons whereas today, scarce and poor, foreign aid currently remains the main the present National Environmental Agency consists alternative for financing environmental activities in the of 70 employees with the following structure: near future. For long-term environmental management •The Chairman; in the country, there is a need for the development of •The Directorate of Air & Water Quality and clear environmental financing mechanisms, and the Waste Management; strengthening of domestic environmental institutions for their implementation and management. •The Directorate of Nature Conservation and Soil Rehabilitation; •The Directorate of Project Implementation; REReP Priority Areas in Albania •The Directorate of Service Organisation and Human Resources; 1. Legal, Political and Institutional Framework •The Section of Legislation, Foreign and Public Relations; Governmental Agencies •Twelve Regional Environmental Agencies The 1991 establishment of the Committee of (Environmental Inspectorate bodies), in twelve Environmental Protection (CEP) as the main govern- Prefectures — the major administrative units of mental body responsible for environmental issues, Albania. under the authority of the Council of Ministers, represents the first serious institutional step in managing environmental issues in Albania. Since its establish- tory procedures for environmental permits; 3) to collect ment, several laws have entered into force, local envi- and elaborate data on the state of the environment at ronmental agencies have been created, and some mon- district and regional levels. And finally, at the inter-min- itoring programs and environmental projects have been isterial and ministerial levels, there are other institutions implemented. (Hewett, 1995) of public administration and scientific research that are The transformation of the CEP into the NEA in 1998 responsible for the administration, research and moni- is one of the most important steps in the path of envi- toring of the environment and the country’s natural and ronmental institution strengthening and capacity build- biological resources. (Qirjo, 2000) ing in Albania to-date. Being under the authority of the The Ministry of Agriculture and Food, for example, Council of Ministers, the NEA now has more institutional power, increased authority, and much more adminis- is one of the national institutions with important envi- trative and legal ability to act on environmental issues. ronmental responsibilities, including the administration, The duties and the responsibilities of the NEA protection, monitoring and inventorying of biodiversity. include: defining the governmental strategy in the field The previously mentioned General Directorate of Forest of environment; organising and coordinating environ- and Pastures (GDFP) within this Ministry is responsible mental protection on a national scale and proposing for the management and administration of Protected concrete steps to be undertaken for the protection of the Areas and National Parks and of wildlife and game air, water, soil, biodiversity and genetic wealth of the hunting in the country. Recently, a Project country; cooperating with relevant ministries to approve Environmental Management Unit (PEMU) was estab- the admissible limits of gaseous, solid and radioactive lished within the GDFP. Its duties are to monitor the pollutant substances discharged into the water, air and implementation of mitigation measures recommended soil, as well as the admissible levels of harmful and toxic under the environmental impact assessment (EIA) substances in hazardous wastes; and serving as the process of the Forest Management Project. The General national focal point for different international environ- Directorate of Fisheries administers the resources of mental organisations, activities and issues. (Qirjo, 2000) marine aquatic fauna — and of the freshwaters in areas Similarly, the Regional Environmental Agencies where there is fishing and aquaculture. (Qirjo, 2000) (REAs) at the prefecture level have three principal In spite of the successes in establishing this strong duties: 1) To control and enforce the environmental institutional structure, weaknesses still exist in the legal framework; 2) to follow and implement prepara- capacity and functioning of these environmental bod-

16 THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM ENVIRONMENTAL PROFILE: ALBANIA

ies. In particular, the local and central staff of most envi- Also, since the development of the NEAP, different ronmental management institutions in Albania lack sectoral development strategies have been formulated training on the internationally accepted inter-discipli- and adopted. However, some of them — such as those nary methodologies for addressing environmental on agriculture, energy, privatisation, forestry, as well as problems, as well as capacity for drafting and imple- other important national policy documents — were pre- menting viable environmental laws and regulatory pared and approved without any prior environmental frameworks. Additionally, the management authorities analyses, according to the guidelines of the NEA. The and inspectorate bodies lack viable funding sources for integration of environmental protection with the formu- equipment and training to adequately inform environ- lation and approval of sectoral policies, plans and pro- mental decision-making at all levels. grams still remains a serious challenge for all decision and policy makers in Albania today. Environmental Policies The NEAP (National Environmental Action Plan), pre- Legal Framework pared in 1993 on the basis of the National Environmental The first basic law on the environment was Strategy, aims at the integration of environmental protec- approved in 1967. Nevertheless, the development of a tion measures into the development programs of the eco- modern environmental legal system based on democra- nomic and social sectors. The NEAP constitutes a detailed tic principles began only in 1991. analysis of this strategy and has defined tasks for min- Within the legal framework, the two most important istries and institutions whose activity have an impact on acts playing a role in the activity of the NEA and in the the environment. The ministries responsible for NEAP field of environmental protection are: implementation are: the Ministry of Public Economy and 1. The framework Law “On Environmental Protection” Privatisation, the Ministry of Food and Agriculture, the of January 1993. This law addresses: prevention and Ministry of Health, the Ministry of Public Works, the reduction of pollution; sustainable management of Ministry of Transport and the National Committee for natural resources; avoiding their over-exploitation; Tourism Development. (Panariti, 2000) information recording and provision on pollution Since the development of the NEAP, several differ- levels for every physical and juridical private or pub- ent specific environmental policy documents have been lic person; binding provisions to carry out the envi- prepared, including: ronmental impact assessment procedures; and inte- 1. The National Water Strategy, established in 1996, gration of the polluter-pays-principle. defines national priorities and necessary institution- 2. The Decree of the Council of Ministers, 1995 “On the al structures for NEAP implementation. It identifies tasks that Ministries, Research Institutes and physical short-, medium- and long-term priorities regarding and legal persons have in regard to Environmental the completion of a legal framework, establishment Monitoring.” This Decree obliges some central spe- of institutional structures and different investment cialised institutes to deal with environmental moni- projects related to sustainable water management. toring of the air, water and soil and to supply NEA 2. The National Waste Management Plan, which with relevant data every three months. (Qirjo, 2000) identifies landfills as the most suitable treatment Additionally, a number of important environmental method for the coming decade at least. laws and regulations have been approved since 1991, 3. A National Biodiversity Strategy and Action such as draft laws “On air protection,” “On gaseous Plan, which was elaborated in 2000, and defines emission standards” and “On Environmental Impact national priorities and necessary institutional Assessment,” as well as an updated draft regarding envi- changes for the implementation of the Convention ronmental monitoring in Albania. In 1999, the “Public on Biological Diversity. This document has been Access to Environmental Information” draft law and two forwarded to the government for formal approval. draft laws “On Nature Conservation” and “On Protected 4. A “Program on Coastal Zone Management in Areas” were prepared. The latter two embody the oblig- Albania,” was initiated during 1993-1996 as a coop- ation for the preparation of management plans for all of eration between the Albanian Government, UNEP, the country’s parks and protected areas. (NEA, 1998) the World Bank and the EU. The main objectives of In spite of the strong efforts that have been made the program were: 1) biodiversity protection in the toward the improvement of the environmental legal sys- coastal areas of Albania, including the marine habi- tem, there are still gaps — particularly regarding nature tats, fresh and intertidal waters; 2) development of protection and biological and landscape diversity — tourism and of recreational activities; and 3) institu- which need to be addressed in the near future. In additional strengthening of the institutions responsible tion, the existing legal system is not always clear regard- for coastal management in Albania. (Qirjo, 2000) ing environmental authorities. In some cases the laws

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indicate overlapping responsibilities, and they often offer to increase their capacities. However, due to problems contradictory language on specific issues. This situation — such as lack of financial and material resources, low has created confusion with respect to: establishing the member participation, insufficient coordination of joint proper competencies among regulatory bodies; ensuring activities among NGOs, difficult economic conditions that adequate environmental reviews are conducted for and political instability in the country (particularly dur- new enterprises; collecting fines for environmental usage ing and after the crisis of 1997) — the environmental (only 10-20 percent were collected for lumber cutting in movement is still weak in Albania and its impact on 1997, and in enforcing sanctions in the case of environ- society and the general public is limited. (Qirjo, 2000) mental damage or non-compliance with the law. (NEA, 1998) It is clear that capacity-building regarding the implementation and enforcement of environmental laws 3. Environmental Consequences will be a priority for Albania in the near future. of Armed Conflict In addition to domestic environmental laws, interna- The crisis in Kosovo affected Albania mostly tional law in the form of multilateral environmental agree- through the flow of refugees into the country (amount- ments have an important influence on Albania’s domestic ing to about half a million), military troops operating in environmental legal structure and the international Albania as aid distributors and, only slightly, by the mil- responsibilities imposed on the Albanian State. It has only itary incidents in villages on the Kosovo-Albania bor- been since 1991 that new steps have been taken to sign der. The major impacts of the recent war in Kosovo and ratify international environmental agreements. These have been the destruction of soil fertility and structure, include: the 1991 Espoo Convention on Environmental damage to national parks and protected areas and Impact Assessment in a Transboundary Context; the 1992 waste water and sewage problems. Helsinki Convention on the Protection and Use of The huge number of refugees caused difficulties for Transboundary Watercourses and International Lakes; the the water supply situation of the country, thus decreas- 1992 Convention on Transboundary Effects of Industrial ing the water supply for urban areas. There was no Accidents; and the 1995 Ramsar Convention on the sewage water treatment in any of the refugee camps Conservation of Migratory Species of Wild Animals. Most that were established in Albania, and sewage discharge recently, in 1998, Albania became one of the 35 countries into inappropriate areas, especially from tented camps, who signed the Aarhus Convention on Access to created major problems of soil pollution and infiltration Information, Public Participation in Decision-Making and of polluted water into the underground water table. Access to Justice in Environmental Matters. (Qirjo, 2000) This will remain an important environmental and health Though these international agreements impose a problem in the northern part of the country for several binding responsibility on Albania (as a party) to imple- years. (UNEP, 1999) ment their respective principles domestically — the level Considering the small percentage of agricultural land of real implementation in Albania remains low. This may in Albania, one of the main environmental impacts of be attributed to a limited financial ability of Albanian the construction of refugee tent camps is agricultural soil government officials to travel and participate in the damage. Some hundreds of hectares of soil have lost ongoing international processes surrounding these their function as arable land because of the concrete and agreements, but it is also undoubtedly due to a general gravel layer used for camp surfacing in Durres, Elbasan lack of training and education among Albanian legislators and decision-makers regarding these agreements, and Lezhe. This problem is more recognisable in the dis- their underlying environmental principles and the tricts where massive tent camps have been constructed. means for effective implementation at the national level. In Durres, in the Hamallaj area, camps occupied approximately 100 hectares of agricultural land, which has been covered by concrete and gravel to a depth of 60 cen- 2. State of Environmental Civil Society timetres. In Elbasan, a six hectare area may require 10- In Albania there are 60 environmental NGOs, all 15 years to recover. At the camp in Lezhe (Shengjin), established after 1991, of which about 25 are active. 2,000 cubic meters of gravel have been used to cover a (REC, 1997) Their assumed role is to promote public 1.3-hectare area. (Qirjo, 2000) awareness and participation in the protection of the nat- Land mines and unexploded munitions continue to ural environment and the sustainable development of damage the environment on the northeast border with local communities. During the past decade, environ- Kosovo (Tropoja-Kukes). The number of casualties mental NGOs in Albania have greatly increased their from landmines is still growing, and 125 people have scope of activity and number of projects, with the sup- reportedly died since the end of the conflict. port of foreign and national donors. Gradually, their The impact of the refugees on protected areas has activity has spread throughout the country, and a forum been quite visible, especially in the western part of of environmental NGOs has been established in order Albania along the Adriatic coast. A number of protected

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areas had refugee camps built within them — such as 5. National Environmental Priorities Rrushkull and Divjaka — or have been adversely affected by the felling of trees or pollution of water sources. The Environmental Clean-up Among the many environmental problems facing Durres camp in Rrushkull, with an area of 14.5 hectares, Albanian authorities and decision-makers today, past was built within a hunting reserve, where it caused con- industrial pollution is perhaps the most critical. Much of siderable damage to fauna. Other sites were set up near the production activities of the past regime were con- wetlands, within protected areas. One of the biggest ducted for decades with disregard for environmental human environmental problems has been solid waste dis- protection criteria. In particular, hazardous wastes from posal. In districts which have no landfill sites, waste dis- these production activities, including a large chemical posal has been carried out along the rivers. (Qirjo, 2000) production industry, are currently stored at neglected The problem of illegal tree cutting was also aggra- sites under very poor conditions. vated following the Kosovo crisis, as the demand for timber inside Kosovo is increasing. Uncontrolled cut- Waste ting occurs even inside the Protected Areas. Most of this Industrial waste disposal practices in Albania fall far cutting was done to provide timber for industry and short of fulfiling environmental protection requirements. construction. Fir and pine forests have been most dam- In general, industrial solid waste disposal is not consid- aged by this activity because of their high quality and ered an important part in the chain of industrial process- high selling price on the uncontrolled market. es, and waste is simply dumped in sites not far from the industrial enterprises producing them. Measures regard- 4. Cross-Border Environmental ing the final disposal of these wastes are rarely taken. In addition, no monitoring of the impact of these wastes on Resources/Sources of Regional Cooperation the environment is carried out. Transboundary lakes such as Shkodra (Skadar), In the years between 1995-96, some 1.1 million tons Ohrid (see Environmental Profile: Macedonia), and of solid industrial waste was generated, mainly from Prespa are primary points of flora and fauna exchange chromium and copper ore dressing plants in the north- with other SEE countries. ern part of the country — at sites like Bulqize, Kraste- Particular focus for cooperation has been placed on Bater, Fushe-Arrez, Reps and Kurbnesh. (Qirjo, 2000) Skadar Lake, which lies between Montenegro and During the crisis of 1997, the amount of solid waste Albania, and is the largest lake on the Balkan Peninsula discharge into the environment was lowered by 50 per- and one of the most important wildlife habitat sites in cent with respect to the previous year, as the rate of pro- Europe. It currently harbours over 45 species of fish duction itself fell considerably. In the following year, (including several highly threatened species), many types however, industrial production was reactivated in some of unique and endangered aquatic vegetation and serves sectors, and the amount of solid waste discharged into as an essential International Bird Area (IBA) in Europe, the environment increased again to pre-1997 levels. Waste prevention at the source, recycling and recov- hosting over 250 registered waterfowl and waterbird ery policies are not yet practiced in Albania. A matter of species — including 73 migratory nesting species, and concern has been the inventory of hazardous chemi- many endangered and rare birds such as Pygmy cor- cals, stockpiled after the closure of the main heavy and morants and Dalmatian Pelicans. (REC Bulletin, 2000) chemical industry plants. There are about 1,620 tons of A project has recently been launched (as a part of chemicals stored in 12 enterprises and among them 60.2 the REReP program) to develop and strengthen the tons are of a hazardous nature, such as cyanides, mer- environmental management regime at Lake Shkodra by cury salts etc. About 800 cubic metres of sodium arsen- facilitating cooperation between the various govern- ate solution are stored in the Nitrogen Fertilizer Plant in ment officials in both Albania and Montenegro to devel- Fier, under poor conditions. op a unified management plan for the lake. Rather problematic is the situation regarding stocks Additionally, initial steps have been taken to develop of expired pesticides, amounting to about 1,000 tons. similar programs for lakes Ohrid and Prespa. On About half of this quantity is no longer usable. This sit- Thursday, Sept. 7, 2000, the current chairman of the NEA, uation presents a serious environmental and health risk Maksim Deliana, met with Toni Popovski, the minister of to the populations that are now moving to inhabit areas environment of FYR Macedonia, in Pogradec, Albania. near contaminated sites — such as the town of Durres, The two signed a Memorandum of Understanding that which is located close to a former chemical plant. will serve as a cooperation agreement between the two nations on environmental matters. The environmental Infrastructure, Utilities: Health leaders agreed that their nations would participate in Unfortunately, infrastructure improvement and/or joint efforts to promote the sustainable use of natural extension have not accompanied the population boom resources and to protect Lakes Ohrid and Prespa. in urban areas. On the contrary, the country’s infra-

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structure has continued to deteriorate since the economic crisis. Illegal construction has also accompanied NOTES the urbanisation and transition process all over Albania. Not limited just to cities, this phenomenon has also 1 The primary resource for this section is the Strategic Environmental Assessment: Albanian Country Report, prepared by a team of experts affected coastlines, natural parks and protected zones. in Albania — led by Mihallaq Qirjo, Director of the Regional Due to old land ownership, compensation programs Environmental Center, Albanian Country Office, on behalf of the along the coastline, in particular, both legal and illegal Swedish International Development Agency (SIDA) — in the spring of 2000. Team specialists included: Prof. Dhimiter Haxhimihali (Tirana constructions — following no environmental study — Univeristy); Assistant Prof. Arqile Berxholi (Geographical Research are being erected in some of the most beautiful and Center), Dr. Tatjana Kotobelli (Albanian National Environmental important parts of the country for tourism. Agency), and Dr. Ferdinand Bego (Association for Birds and Mammals The negative impacts on the environment of the Protection, Museum of Natural Sciences). degradation of existing infrastructure, coupled with the 2 This section draws primarily on Key Indicators for Economic increase of poorly planned, illegal construction, are Instruments in Albania, a working paper prepared by Dr. Narin Panariti for the Sofia Initiative on Economic Instruments at the unavoidable and evident. Albania now faces serious Regional Environmental Center for Central and Eastern Europe (REC), problems associated with solid construction waste, fail- in the spring of 2000. ing sewage systems that discharge sewage water into the open environment, damage to the drinking water network, loss of drinking water through old and damaged pipelines, as well as accidental mixing of the drinking REFERENCES water with sewage water. All of these factors threaten the EBRD (2000): Transition Report Update, May 2000, London, UK. health of the population at-large, as well as contributing Hewett, J. (1995) ed.: European Environmental Almanac, Institute for to the loss of green areas, parks and biodiversity. European Environmental Policy, Earthscan Publications Ltd, London, UK. Additionally, the urban infrastructure in general is a new major concern throughout Albania. Since the early National Environment Agency (NEA) (1998): Report on the Status of Environment, 1997-1998, Tirana, Albania. 1990s, the country has undergone a difficult and intensive process of urbanisation, which is neither organised Panariti, N. (2000): Key Indicators for Economic Instruments in Albania, working paper for the Sofia Initiative on Economic nor financially supported by the government. Massive Instruments, Regional Environmental Center for Central and Eastern movement of people within the country, which was Europe (REC), Szentendre, Hungary. spawned by a post-communist policy allowing free Qirjo, M. (2000) ed.: Strategic Environmental Assessment: Albanian population movement, has resulted in rapid artificial Country Report, background report prepared for the Swedish population growth in the largest urban areas, where International Development Agency (SIDA) by the Regional employment and higher living standard opportunities Environmental Center for Central and Eastern Europe (REC), are higher. The capital of the country has grown by 30 Szentendre, Hungary. percent since 1990 and become a metropolitan area that The Regional Environmental Center for Central and Eastern Europe (REC) contains 18 percent of the country’s total population — (2000): The Bulletin, Volume 9, Number 3, June 2000, Szentendre, Hungary. thus becoming one of the “environmental hot spots” of the country. The actual carrying capacity of these The Regional Environmental Center for Central and Eastern Europe (REC) (2000): Database on Environmental Taxes and Charges in CEE, booming urban areas in terms of housing, infrastructure Szentendre, Hungary. and employment has been exceeded. The Regional Environmental Center for Central and Eastern Europe (REC) (1997): NGO Directory: A Directory of Environmental Non-governmen- Transport tal Organisations in Central and Eastern Europe, Szentendre, Hungary. The development of the transportation system will UNEP BTF (2000): . undoubtedly be a priority for Albania as the process of UNEP/UNCHS Balkans Task Force (BTF) (1999): The Kosovo Conflict: transition continues. The need for adequate integration Consequences for the Environment and Human Settlements, UNEP, of environmental assessment and strategic planning in Geneva, Switzerland this sector will therefore be among the nation’s envi- World Resources Institute (WRI) (1998): World Resources: A Guide to ronmental priorities in coming years. Already, the total the Global Environment, 1998-99, Oxford University Press, NY, USA. number of vehicles per capita is increasing annually Young, A. (1997): World Bibliographical Series: Albania, revised edi- and the impact on the air quality is likewise multiplying. tion, Clio Press, Oxford, UK. Additionally, the number of old model trucks, which operate on outdated technology, is quite high. The issue of fuel combustion technology, therefore (rather than the quality of fuel) will be a focus for environmental policy-makers in the near future.

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Environmental Profile: Bosnia and Herzegovina

BASIC INFORMATION CROATIA Population in 1999 estimate (millions) 4.3 Population in 2025 projection (millions) 4.3 Bihac Banja Luka Population Density – 1996 (inhabitants/1,000 hectares) 711 Brcko Total Area – 1997 (1,000 hectares) 5,100 REPUBLIKA SRPSKA Tuzla Jajce ENVIRONMENTAL DATA BOSNIA AND Forest Cover – total 1995 (1,000 hectares) 2,710 HERZEGOVINA Agricultural Land – total 1994 (1,000 hectares) 800 Sarajevo REPUBLIKA CROATIA SRPSKA Renewable Water Resources – 1998 na FEDERATION Gorazde Number of Protected Areas – 1997 5 Mostar Percentage of Land Protected – 1997 .5

Adriatic MACROECONOMIC INDICATORS Sea YUGOSLAVIA GDP – 1999 estimate (millions KM) 8,110 050100 GDP per capita – 1999 estimate (USD) 1,027 kilometers GDP per capita – 1998 (USD, Purchasing Power Parity*) na Inflation – 1999 (change in year-end consumer price level – percent) Federation of Bosnia and Herzegovina (FBiH) -1.0 Republika Srpska (RS) 14.0 Unemployment – 1998 (Percentage of labour force) 40.0

GDP IN PREVIOUS YEARS 1997 1998 1999 2000 estimate projected GDP (millions KM) 5,936 6,860 8,110 10,000 GDP per capita (USD) 815 928 1,027 na Inflation (change in year-end retail/consumer price level – percent) Federation of Bosnia and 13.6 1.8 -1.0 3.0 Herzegovina (FBiH) Republika Srpska (RS) -10.0 5.6 14.0 8.0 Unemployment rate 37.0 38.0 40.0 na (Percentage of labour force)

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Environmental Profile: Bosnia and Herzegovina

in reconstructing infrastructure, restoring basic services Introduction and putting into place measures such as common vehicle Bosnia and Herzegovina is a mountainous country registration and a single currency that ensures freedom of located in the south-west of the Balkan Peninsula, with movement throughout Bosnia and Herzegovina. a population of 4.3 million in 1999 and a highly forest- Problems still exist, however, which hinder the ed territory of 51,000 square kilometres. The central and country’s movement toward stable self-governance. In southern landscape of the country is dominated by the particular, the country’s constitution — which was Dinaric Alps, which mark the convergence of three dis- established by the DPA — creates an incredibly com- tinct ecological zones: Mediterranean, Balkan and plex internal political structure. The country is divided Central European — while plains and plateaux in the into two distinct “Entities,” the Federation of Bosnia and north flank the Sava River. (EBRD, 2000) Herzegovina and Republika Srpska. These entities are The last decade in Bosnia and Herzegovina was both subdivided into different configurations of local dominated by political and economic changes brought authorities with varying levels of decision-making about by the dissolution of former Yugoslavia. The power. The Federation of Bosnia and Herzegovina is years between 1989 and 1991 were characterised as a subdivided into ten cantons, while Republika Srpska is time of transition (throughout former Yugoslavia) from divided into larger, less powerful “municipalities.” As a a centralised to a market economy, including the liber- result of the divergent governmental structures in the alisation of prices, and the privatisation — or often clo- two Entities, policy differences between the two parts sure — of inefficient, public enterprises. of the country are still a major issue. In 1991, the international recognition of Bosnia and The difficulties resulting from this situation are fur- Herzegovina as an independent and sovereign state spawned a four-year war between the three primary eth- ther exacerbated by problems associated with outmod- nic/religious groups in the country: Serbian/Orthodox, ed models of governance, which foster corruption and Bosnian/Muslim and Croatian/Catholic. The war includ- patronage, undermine the collection of public revenues ed an extended siege on the country’s capital, Sarajevo, and limit employment-creating investment. Private and and resulted in the vast destruction of public structures, foreign investment is far below what could be expected private residences and the utility infrastructure. The war in a more open and supportive environment, and as a also caused the disruption of all governmental and eco- result, estimates of unemployment — official plus “hid- nomic systems, tragic human loss and the displacement den” — are as high as 49 percent in the Federation of of large portions of the population. Bosnia and Herzegovina, and 60 percent in Republika The signing of the Dayton Peace Agreement (DPA) in Srpska. (Seremet, 2000) December 1995, ended the violent conflict in Bosnia and The environmental policy within each Entity also Herzegovina, and an international military peacekeeping reflects the distinct ideologies and conservative views of force (known as SFOR) was deployed to guarantee a con- those in power at the Entity-level. Taxation, customs tinued measure of stability in the country — which today controls and sectoral programs are governed by the is reassuringly peaceful. By mid-2000, it is expected that Entity rather than the State, and are often inconsistent the SFOR military presence will be reduced further from between the two Entities. In addition, each canton in the an initial 60,000 troops to 19,500. (Seremet, 2000) Federation also has its own government structure, as At the end of the war, an international civilian body well as its own social and economic development poli- mandated with implementing the DPA was also created to cies and strategies. This complex situation has serious oversee general governance in Bosnia and Herzegovina implications for efficient resource use and compatibility and to encourage new economic life to return to the coun- of environmental policies and programs. Moreover, sep- try. Known as the Office of the High Representative arate funding mechanisms in sectors such as health and (OHR), this body is currently made up of economists, legal environment threaten to derail attempts to reform ser- specialists and civil administrators from all over the world. vices and to integrate environmental and human health Under the OHR, great progress has been made since 1995 considerations into overall decision-making.

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Finally, this current political structure in the country of uncontrolled usage, which was as high as 1 kilogram has seriously impeded the return of refugees and inter- of pesticide per 1 hectare of cultivable soil. During the nally displaced people to their pre-war homes. This war, agricultural production was reduced to a figure of problem will continue to face legislators and decision- 0.25 hectares per person. Soil was thus spared from pes- makers in Bosnia and Herzegovina for years to come, ticide contamination, but with reconstruction of industry but there is continued hope that the development of a and agriculture that risk will be renewed. (WRI, 1998) more constructive and open political environment will Development of the agricultural sector generally will positively facilitate this process and open the way for be a top-priority in Bosnia and Herzegovina, as produc- reintegration, investment and a more prosperous future tion of healthy foods is currently a large concern for deci- for Bosnia and Herzegovina. sion-makers in the country. Today agriculture in Bosnia and Herzegovina is characterised by small farms, averag- ing 3 hectares in size, with minimal irrigation systems — so many governmental projects in this area are expected The Framework for in the future to increase overall production. (EBRD, 2000) Environmental Policy The war had a negative impact on agricultural capacity. For example, the number of cattle has drastically and Management been reduced to around half that of the pre-war state, and some areas were hit worse than others. In Sarajevo Current Environmental Conditions Canton there were 29,000 head of cows before the war, Soil, Forests, Agricultural Land and now there are only 2,900 left; the number of sheep History reveals a legacy of poor land management was 60,000, and now there are only 5,000. As a result of practices in Bosnia and Herzegovina. Uninformed min- these losses, Bosnia and Herzegovina farmers are being ing and industrial policies and a low level of farmers’ encouraged to enlarge their cultivable land at the knowledge have caused large losses of land every year. expense of forests and protected areas, in order to return As a result, some 20,000 hectares of so called “techno- to pre-war production levels. (Seremet, 2000) logical deserts” exist in Bosnia and Herzegovina today Forests cover 55.6 percent of the territory of Bosnia with only 1.5 percent of destroyed land being reculti- and Herzegovina. Within the Federation of Bosnia and vated. (Seremet, 2000) Herzegovina, the share of forestland in 1996 was 48.2 Since the war, the situation has worsened, with new percent, and in Republika Srpska it was 51.8 percent. refugee settlements and SFOR camps placing an added This means that forestland covers more than half the pressure on the land. Some of the main problems resulting land surface in Bosnia and Herzegovina. Roughly 20 from the war that are jeopardising the land today in Bosnia percent of forests in Bosnia and Herzegovina are pri- and Herzegovina are connected with landmines and other vately owned, and 5 percent more are expected to kinds of unexploded munitions remaining from the war. It become privatised in the short-term. (WRI, 1998) is estimated that there are currently between 3 and 6 mil- Problems in forestry management arise from anti- lion pieces of unexploded ordnance and more than 16,000 quated legal and administrative systems that do not take minefields on the territory of Bosnia and Herzegovina. the current post-Dayton political structure into account, According to available data, there are 700 tons of explosive minimal enforcement of forestry laws and regulations — materials around the city of Sarajevo alone; and to-date, and the mushrooming of small lumber mills and infor- only 5 percent of that quantity has been removed. mal cottage operations, which are developing without (Kupusovic, 2000) real control and pose serious threats to any attempts at Another major problem that has developed after the sustainable forestry management. As a result, illegal cut- war is that of abandoned, unploughed land. Before the ting and export of raw wood has become the normal war, roughly 27 percent of ploughed land was out of way of doing business in the post-war forestry sector. production. The percentage of uncultivated ploughed land in 1997 was 42.8 percent. This situation has also Water added to the problem of soil erosion, which is estimat- One of the most critical environmental issues in ed to affect nearly 89 percent of the total land area in Bosnia and Herzegovina is water cycle management. Bosnia and Herzegovina today. (Seremet, 2000) Before the war, Bosnia and Herzegovina was the most Land quality is also threatened by the large number polluted former-Yugoslav country in terms of pollution of improperly managed dump sites, growing sponta- of surface and subsurface waters. In all, 47 percent of neously and without any controls. The rural areas are monitored parameters exceeded the limits of Class IV, flooded by different kinds of uncollected — or illegally the lowest. The Bosna and Vrbas rivers were especially dumped — solid wastes, mostly household waste, polluted, as well as the water resources throughout the which also endangers the quality of underground water. Canton of Tuzla — where chemical processes dis- Before the war, pesticides were a great risk, because charged waste directly into watercourses.

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After the war, some improvement in surface water The protected areas and species were as follows: Five quality was observed, due to the temporary cessation of strict reservations, three managing reservations, two industrial operations; however, the concurrent destruc- national parks, 29 special reservations, 16 natural sites, tion or disrepair of many municipal water treatment 195 various natural monuments, seven species of plants facilities caused an increase in problems associated with and 259 species of animals — including 257 bird domestic waste. Presently, only five municipalities in species. (Seremet, 2000) Bosnia and Herzegovina have operating wastewater Bosnia and Herzegovina has a number of documents treatment plants: Clinac, Gradacac, Grude, Ljubuski and listing the flora species found on its territory, but there are Neum. (Kupusovic, 2000) no data on the effects of the war on wildlife. Effective Recent water studies, completed on 2,200 kilometres monitoring is still not in place, though one significant of major rivers, show that only 3 percent of all rivers are achievement has been the publication of the national totally free of pollution and almost 30 percent of rivers botanical Red List, covering the species growing on the are eutrophied or severely eutrophied. Microbiological entire territory of Bosnia and Herzegovina (both Entities). analyses additionally reveal that 32.5 percent of all water This was commissioned in 1990 and compiled under samples are unsafe for drinking. According to estimates, siege conditions during the war, using literature and the percentage of rural population that is supplied with herbarium sources. The Red List was finally published in safe drinking water is significantly less than 32 percent. 1997, and covers all vascular plant groups and comprises Specific data on the quantity of lead, pesticides, nitrates 678 species registered according to the old IUCN threat and other contaminants in drinking water samples is lim- categories. Only recently have steps begun to be taken to ited or not available. (Kupusovic, 2000) protect the habitats of threatened species in Bosnia and Herzegovina. These have primarily been taken through Air the implementation of different internationally financed In 1998, a study by the Independent Bureau for projects, such as the efforts currently underway to protect Humanitarian Issues, revealed that Bosnia and the Hutuvo Blato wetlands. (Seremet, 2000) Herzegovina contributed 32 percent of all of the air pollution in former Yugoslavia. Unfortunately, today no Economy1 other air quality data appears to exist. Aside from indus- Today, Bosnia and Herzegovina is in the process of trial facilities, it can be inferred that exhaust gases from economic reconstruction after the 1992-95 war, with pri- transport vehicles account for a significant proportion vatisation and economic restructuring beginning only in of air pollution. 1998-99. The currency continues to be based on the “con- Evidence also suggests that increased mortality from vertible Deutchmark” (KM). It has been estimated that 60 lung cancer may be related to the aromatic hydrocar- percent of the population of Bosnia and Herzegovina is bons, benzene and other potential carcinogens that are currently living below the poverty level. Unemployment emitted into the air. A major indoor air pollutant in varies between the Entities, with Republika Srpska gener- Bosnia and Herzegovina is “environmental tobacco ally experiencing higher levels, but the current estimated smoke.” The data shows that 75-80 percent of the pop- average is 40 percent (EBRD, 2000). The reported average ulation over the age of 18 smokes. (Seremet, 2000) monthly salary is approximately KM 300. (Seremet, 2000) The government’s overall economic development Biodiversity strategy aims at further developing market institutions Like most countries in SEE, Bosnia and Herzegovina and upgrading the economy’s technological potential possesses rich natural assets and a variety of pristine land- and infrastructure by using foreign loans and foreign scapes. A high mountainous barrier situated against the direct investment efficiently. Though Bosnia and Adriatic Sea has formed a rather specific microclimate Herzegovina does not currently have any agreements hosting a diverse spectrum of biodiversity. The country’s with the EU, the government clearly aims to integrate natural treasures include the pristine landscapes of Bosnia and Herzegovina into the EU political and eco- Klekovaca mountain; Treskavica and Vranica glacier lakes; nomic structures in the future. As a result, a serious the water-falls on the rivers Una and Trebizat; Perucica effort is underway in the country to promote exports native forest, with its representative samples of the endem- and to approximate the body of national legislation ic Balkan species Panciceva spruce (Pices omorica); and with that of the EU — through achieving legal security the Hutovo Blato wetland, at the delta of the Neretva River. and transparency for economic agents. Up to 1990, according to the Law on Protection of In 1997-99, a legal framework for privatisation was Nature (1970), and Law on Protection of Cultural, created. The Framework Law on Privatisation of Historical and Natural Heritage, only 0.55 percent of the Companies and Banks at the State level was enacted on territory of Bosnia and Herzegovina was protected. This July 1998, and in the meantime, both Entities have included 253 areas covering a total of 28,127 hectares. enacted their own Law on Privatisation of Companies.

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The bulk of the privatisation process will begin in mid- ronmental ministries at the Entity level. The result of this 2000, and the majority of state properties should be pri- agreement has been the creation of a joint vatised by the end of the year. In April 1999, the gov- “Environmental Steering Committee,” which has begun ernment announced the list of companies to be priva- the process of harmonising environmental policy objec- tised in the year 2001, including electric energy, com- tives in the two Entities and drafting a unified body of munications, water management, public information, environmental laws for the country. and forestry usage enterprises. The Law on the But major obstacles to this process exist, such as: Restitution of Property to Owners is not yet adopted insufficient legislative frameworks at the national, can- and its proposal is still in the process of discussion. ton and local level; inadequate institutional framework Another major priority in Bosnia and Herzegovina and capacity necessary for the implementation of legis- fiscal policy is to restructure the tax system, so as to lation; inadequate pollution compliance and monitor- minimise arrears, improve the tax administration sys- ing; ineffective coordination between various sectors tem, introduce computerisation and strengthen audit and local and national levels; poor social and econom- procedures. Both Entities are required to harmonise ic conditions for adequate development of environ- their Law on Turnover Tax on Goods and Services and mental policy; and poorly developed economic instru- enforce various macroeconomic policy reforms. ments for environmental financing. In addition, environmental problems have been Economic and Regulatory Instruments exacerbated by the close relationship between polluter for the Environment and regulator, as laws have been poorly enforced The development of environmental policy, including against government-owned enterprises — the major the ability to pay for the public and private use of natural sources of pollution. Because of the direct relationship resources, has given only cursory attention in the post-war between government and companies, it has been diffi- institution-building process in Bosnia and Herzegovina. cult for authorities to publicly admit to environmental Today only a few limited economic instruments are problems, let alone correct them. used to finance environmental management in Bosnia and Enforcing environmental legislation, regulations and Herzegovina. These include: taxes on natural resources; standards is the responsibility of inspectors from the charges on the discharge of pollutants into water and air; departments operating under the appropriate ministry in penalties for exceeding established discharge limits, for each Entity. The enforcement process is largely based on damaging the environment or cutting trees without autho- a system of permits and self-monitoring, with environ- risation; excise tax/customs duty on fuels and cars; and mental inspectors periodically checking emission levels municipal users charges for tap water, sewage, sewage to verify the accuracy of what operators report. Failure to treatment and municipal waste. (REC, 2000) There are no specific indicators for collection effi- report environmental information and pollutant releases ciency, monitoring and transparency of the application without a permit are considered violations subject to of existing economic instruments. Environmental penal action. Inspectors have access to plants and instal- reporting on protection expenditures is insufficiently lations. Operators have to keep inspectors informed, and reliable. These problems are associated with the mod- inspectors can impose penalties if regulations or permit ernisation of economic data. Better co-ordination in the conditions are violated. (Kupusovic, 2000) estimation of expenditure data seems feasible and Unfortunately, a prevalent problem concerning the would increase reliability. institutions in Bosnia and Herzegovina is a general “disre- spect for institutional authority.” This characteristic has been illuminated by many independent surveys that have highlighted the culture of lawlessness, and the prevalence REReP Priority Areas of mafia-style “gangsterism,” which has pervaded Bosnia in Bosnia and Herzegovina and Herzegovina society since the 1992 war. The closely related issue of corruption is a cause of serious concern to 1. Legal, Political international actors in Bosnia and Herzegovina, as well as and Institutional Framework2 for all individuals and corporations who rely upon rule of In this post-war period, Bosnia and Herzegovina is law to protect their rights and professional interests. developing very slowly in economic, political and legal institution building. The development of environmental Policies policy has had very little attention since 1995. But coop- Although the Szentendre Agreement has been signed eration between the two Entities regarding environ- between the Federation and Republika Srpska regarding mental management has improved in recent years, with the creation of unified environmental policy for the coun- the 1998 signing of a memorandum of understanding — try, much of Bosnia and Herzegovina’s current environ- the Szentendre Agreement — between the two envi- mental policy has been created separately within each

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Entity. Each of the cantons in the Federation also has their The only reference in regard to these rights is made in own government structure and distinct environmental, Point 2(b) of this Article, where it says that the citizens social and economic development policies and strategies. enjoy “equal access to the public services,” assuming that Due to its unitary government structure, policy questions one of those services is protection of the environment. in the Republika Srpska are more straightforward than in Chapter IIb of the Constitution, dealing with human the Federation, but the continuing policy differences rights and elementary freedoms, establishes the institu- between the two entities are still a major issue. tion of Ombudsmen of the Federation. However, it does To-date, there is still no environmental policy at the not give any clear duties to the ombudsmen as to the state level, though a state-wide NEAP is expected to be environmental rights of the individuals. completed by the end of 2001. The goal will be to pre- Article 4 (f) of Section III gives the cantons the pare the NEAP in both Bosnia and Herzegovina Entities exclusive responsibility for “regulating local land use, simultaneously, in order to assist the country in the including by zoning.” development of a sound environmental legal and poli- Annex 2 of the Dayton Accords, which addresses cy framework and encourage strong environmental transitional arrangements, has a provision that all the institutions — while ensuring the continued integration laws from the former Socialist Republic of Bosnia and of environmental considerations into the decision mak- Herzegovina that are not inconsistent with the Dayton ing of other sectors in the long term. Constitution may remain in force. This is significant in terms of the environment because the Law on Urban Legal Framework Planning enforced in September 1987 by this provision In Bosnia and Herzegovina, slow legislative has remained in force on the territory of the Federation processes have delayed the development of an envi- of Bosnia and Herzegovina. ronmental regulatory framework. This has been due to the significant burden on the country’s legislators to Republika Srpska enact a large volume of new legislation in the current The Constitution of Republika Srpska was adopted in period of economic and political reform — and due to November 1994. It has since undergone a series of the fact that environmental legislation is not viewed as amendments. Republika Srpska is a centralised unitary a priority issue in the country. In some cases, problems state. Local administration exists only at the municipal have arisen because of a lack of capacity among legis- level. The Republic is responsible for ensuring environ- lators to draft high quality environmental laws, as well mental protection and the municipalities, in accordance as the fact that frequently, consultations with relevant with the law, take care of meeting specific needs of citi- stakeholders were carried out at a late stage. zens in environmental protection (Article 102.5). A citi- The General Framework Agreement for Peace in zen’s right to a healthy environment is incorporated in Bosnia and Herzegovina (the DPA) placed the administra- Article 35: “a person has the right to a healthy environ- tion of justice into the hands of the two Entities, leaving ment. Every person shall be bound, in accordance with Bosnia and Herzegovina without any possibilities to estab- the law and his/her own capabilities, to protect and lish a judicial system, and therefore law enforcement, at improve the environment.” According to Article 59, “the the state level. Consequently, Bosnia and Herzegovina is a use and exploitation of property of special cultural, sci- state with two quite separate legal systems and two judi- entific, artistic or historical significance, or significant for ciaries that rarely meet at the central level. Access to justice the protection of nature or the environment, may be for citizens of Bosnia and Herzegovina therefore still stops restricted against a full compensation to the owner.” at entity borders. This is true for doing business as well as Article 64 states that the “Republic shall protect and for environmental concerns. encourage the following: rational use of natural resources, with the view of protecting and improving the General Legislation quality of life and protecting and reviving the environ- The Federation of Bosnia and Herzegovina ment to the general benefit” as well as “conservation and The Constitution of the Federation of Bosnia and enrichment of historical, cultural and artistic wealth.” Herzegovina was enacted on March 30, 1994, two years Among the responsibilities of the Republika Srpska before the Dayton Peace Accords. It was brought into Entity, Articles 68.13 and 68.14 (as amended), require alignment with 24 Amendments that were enacted on June the Republic to regulate and ensure “environment pro- 5, 1996. Article 2 of the Constitution, listing all the rights of tection” and a “public information system.” The right to the individual, does not explicitly mention the right to a hold referenda is given indirectly through the National healthy environment, as was the case in the Constitution of Assembly (Article 70.5 of the Constitution). Article 76 the former Socialist Federal Republic of Yugoslavia. The then further elaborates the decision-making process by list of individual rights also does not include either the prescribing that “The President of the Republic, the right to free access to information or the right to petition. Government, every Assembly deputy or a minimum of

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3,000 voters […] have the right to propose laws, other before the war, through bylaws in 1976. They are rather regulations and general enactments.” According to old and 10-15 times higher than actual standards in Article 77, “the National Assembly may decide to make Europe. New standards on air emission were set up by a decision on some issues falling within its competence Canton Sarajevo (bylaw, May 1999). The limitation values after a referendum of citizens has been held.” are harmonised with those in EU countries, though there Republika Srpska is currently completing the draft- are currently no air emissions taxes to enforce them. ing of a new environmental protection law. The OHR is preparing a detailed assessment of the draft law on International Conventions environmental protection for the Federation of Bosnia Bosnia and Herzegovina has not signed any and Herzegovina. Both Entities have indicated their International Conventions that deal with the environ- willingness not to press for the adoption of these drafts, ment since 1992. Only recently, in April 2000, did Bosnia and to await the development of unified legislation at and Herzegovina’s Parliament ratify the Basel and Kyoto the state level. Conventions. In order to allow Bosnia and Herzegovina Due the difficulties in drafting specific environmental to integrate into international processes/activities, there laws in Bosnia and Herzegovina, most of the current laws is an urgent need for assistance in systematic prepara- that govern the use and management of natural resources tion to accede to: the Convention on Biodiversity, the fall within other, related legislation. For example, in the Ramsar Convention on the Conservation of Migratory Federation, the issue of land protection and controlled Species of Wild Animals, the Espoo Convention on usage is generally treated under the Law on Physical Environmental Impact Assessment in a Transboundary Planning, which gives special emphasis to the areas of Context, the Convention on the Transboundary Effects forests and other vegetation, agricultural land of high of Industrial Accidents, the Helsinki Convention on the value or of specific usage, areas endangered by erosion Protection and Use of Transboundary Water-courses or floods, karst, flatlands, degraded forests, soils, etc., and International Lakes and the Aarhus Convention on and endangered areas that require special protection. Access to Information, Public Participation in Decision- Similarly, the two Entities drafted two different “Water making and Access to Justice in Environmental Matters laws” after the war. In the new structure, the elements of — among others. (Seremet, 2000) state authority — the parliament, the governments of the Federation and Republika Srpska and the ministries of agriculture, forestry and water in the two Entities — are 2. State of Environmental Civil Society in accordance with the two constitutions respectively and Among the different actors involved in the environ- are analogous to those existing in the pre-war structure. mental development processes in Bosnia and The difference is essentially the decentralisation of com- Herzegovina, NGOs (61 percent national, 29 percent inter- petencies defined by the establishment of ten cantons in national, 3 percent UN, 3 percent government and 1 per- the Federation, and hence the establishment of three dif- cent other) are also active, though to a diminished extent ferent Water Management Enterprises — two for the compared to pre-war levels. Before the war, environmen- Federation (Water Management Enterprise of the River tal NGOs worked in all of the large urban centres and were Sava Catchment Area and Water Management Enterprise organised on several different levels, from local and of the Adriatic Sea Catchment Area) and one for municipal groups to regional and national associations. Republika Srpska. (Kupusovic, 2000) From the number of several hundreds of environmental Specifically, the current Federation of Bosnia and NGOs in the early 1990s, in 1996 there were only 17 NGOs Herzegovina water law is mainly focused on the estab- registered, and these had no possibility to be active on the lishment and financing of the Public Companies for whole territory of Bosnia and Herzegovina. (REC, 1997) Watershed Areas (PWCAs) for the Sava River and the Most environmental NGOs in Bosnia and Adriatic Sea catchment areas. The Water Law does not Herzegovina today define themselves as grassroots contain sufficient provisions on permits, legal procedures, organisations or as associations of environmental pro- international standards and conditions for water use. In fessionals. They operate on local and regional levels, consequence, it fails to provide an effective basis for and protest actions, education and training are the most water regulation. Its main defects are the strong concen- common activities. Most of them have no paid staff or tration of responsibilities of conflicting interest within the adequate offices and equipment. PWCAs and non-alignment with EU principles, particular- Before the war, NGOs were regularly supported by ly those relating to an integrated environmental approach the government, and their actions and programs were and river basin management. (Kupusovic, 2000) also funded by local governments, municipalities, busi- No effective legislation appears to exist in either nesses and social organisations. However, during the Entity today for the regulation of emissions to the atmos- period of 1992 until 1995, the majority of NGOs stopped phere and air quality. Emission standards were set up operating, although some have survived or were even

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formed during these times. Unfortunately, organisation- Additionally, the vast deterioration caused by the al and financial struggles have allowed these NGOs to four-year war period led to a dramatically lowered ser- realise only a few of the goals listed in their programs. vice level and lack of investments. Reconstruction with Surveys in 1996 and 1999 revealed that more than substantial institutional assistance began three-to-four half of Bosnia and Herzegovina’s environmental NGOs years ago, and there has been considerable progress in were located in the capitals of Sarajevo and Banja Luka. restoring services in many areas. Even though the recon- Most of these organisations have activities in educa- struction of systems has been undertaken, there remains tion/training (242), children/youth (205), civil society significant work to be done on the restoration of the util- (178), information and media (133), health (129), shel- ities to their pre-war status and bringing the level of tech- ter/reconstruction (122), agriculture (89), other (63) and nology to current international standards. Until this hap- de-mining/mine awareness (31). (Seremet, 2000) pens, the environment continues to suffer from leakages In addition to NGOs, social development teaching from sewage pipes and poor wastewater treatment. departments in universities and independent media sources are beginning to play a role in environmental 4. Cross-Border Environmental awareness raising and participation of the public in environmental decision-making. Resources/Sources of Regional Cooperation Recently, some international donors have joined in Bosnia and Herzegovina shares borders with Croatia the support of the third sector in Bosnia and and Yugoslavia, with a very small frontier meeting the Herzegovina. A joint effort of the international donor Adriatic Sea. Its position between these neighbouring community in supporting civil society generally (and countries, means that cross-border resources are highly environmental NGO activities specifically) in Bosnia important for Bosnia and Herzegovina. Rivers — such and Herzegovina would be of an enormous benefit in as the Sava River shared with Croatia, the Drina and building civil society, and securing environmentally Tara Rivers shared with Yugoslavia, and the Neretva sustainable and transparent development of Bosnia and River which drains into the Adriatic Sea — are vital Herzegovina society overall. resources for the country’s energy, drinking water, industry and agricultural production, and must therefore be viably managed by Bosnia in cooperation with 3. Environmental Consequences its sharing riparian partners. of Armed Conflicts Additionally, as a small country, the forestry management practices both within and outside of its borders The war in Bosnia and Herzegovina had many social, can have a large impact on Bosnia and Herzegovina’s economic and health effects, as well as a large impact on environment. Problems such as soil erosion, eutrophica- the natural environment. During the war, poisonous gases tion of water, and increased air pollution can all result if and unidentified ecological toxins were discharged about forests in and around Bosnia are poorly managed and 2,500 times at 200 different locations throughout the coun- forest resources are allowed to degrade. try, and after the war some 16,000 minefields (covering 18 Finally, there are certain areas on Bosnia and percent of the total territory of the country) remained Herzegovina’s border that are of particular importance throughout Bosnia and Herzegovina. (Kupusovic, 2000) as habitats of threatened species. Two such transfrontier While the closure of industrial facilities caused by areas are Lonjsko Polje and the Neretva Delta wetlands the war improved some elements of the environment in areas, which are also protected sites under the Ramsar urban areas — like the quality of water, soil and air — Convention on Wetlands. A part of the Neretva Delta is the felling of about 40,000 grown trees in Sarajevo alone the Hutovo Blato wetland area in Bosnia and to fulfil heating requirements during the war, and the Herzegovina, which lies in the south of Herzegovina, numerous poison gases used during combat, present not far away from Capljina, in an area covering 7,411 new and extremely dangerous hazards for the environ- hectares. Hutovo Blato is a famous settlement for migra- ment. (Seremet, 2000) tory birds — shelter for more than 250 species — and is Although well-meaning, the international communi- soon to be proclaimed a national park. ty has also inadvertently contributed significantly to the Current programs underway seek to strengthen the environmental dilemma in post-war Bosnia and management of Hutovo Blato in cooperation with the Herzegovina. The thousands of foreign SFOR troops management policies and practices in place in neigh- and countless international civilians pose a continuing bouring Croatia. A recent development has been the ini- additional load on an already fragile infrastructure, and tiation of a “twinning” program (under the Ramsar tons of expired pharmaceuticals — an unintended framework) between the Neretva Delta management byproduct of the humanitarian aid campaign — are authorities in Croatia and officials at Hutovo Blato. It is forcing Bosnia and Herzegovina authorities to resort to hoped that this and similar programs will be implement- unconventional (and untested) disposal methods. ed in the near future. (Government of Croatia, 1999)

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5. National Environmental Priorities TABLE 2 Institution and Policy Building Total municipal waste generation Bosnia and Herzegovina is at present a country with per year a complex political structure, and for that reason there are no effective state agencies and institutions govern- Number of Waste generation ing ecology. This lack exists alongside low awareness Population Million kg. of the majority of the population about ecological Total 3,798,500 1.5 issues. The disarranged order of priorities caused by the Urban 3,038,700 1.2 war make it necessary for the country to develop strong, respectable and independent environmental Rural 759,800 0.2 institutions to design and implement environmental Source: Public Health Institute of Federation of Bosnia and Herzegovina management policies and move the country and its citizens closer to achieving long-term sustainable development and a better quality of life. Simultaneous to the sons, out of which there were 21 epidemics of hepatitis, development of strong institutions, there is also a need 15 of diarrhoea and one of typhus. (Kupusovic, 2000) for the drafting of functioning, unified environmental The morbidity of infectious intestinal diseases rose dur- laws and the creation of a harmonised environmental ing the war. In 1991, there were 1,875 cases of hepatitis A regulatory network in the country. Institution-building and 3,411 of diarrhoea, while in 1993 the number of cases and law drafting are thus the highest national priority in reached 21,937 of diarrhoea and 7,421 of hepatitis A. Bosnia and Herzegovina today. Almost the whole territory of Bosnia and Herzegovina was hit by the epidemics. (Seremet, 2000) Initially, these out- Waste breaks could be attributed to waterborne infections, and Waste is a pressing issue today in Bosnia and due to water shortages and improper sanitary conditions, Herzegovina. Solid waste collection services are cur- they were transmitted to the larger population. rently unreliable or nonfunctional in some parts of the These health concerns place questions of water sup- country (especially in Republika Srpska), and disposal ply and waste treatment as another major concern for is a continuous problem in most cantons and munici- Bosnia and Herzegovina decision-makers. palities. As a result, illegal dumping has become widespread throughout the country. Transport Also, it is important to underline that: The transport sector exerts a serious influence on all • Thousands of tons of waste and garbage have not components of the environment and health in Bosnia and been handled for years even in some urban areas Herzegovina, and will be a priority for environmental pol- (only recently has the EC addressed this issue icy in the future. Many vehicles in the country are old and through the PHARE Programme). do not meet current international environmental standards, while the increasing number of new cars poses an •Bosnia and Herzegovina has accumulated tons of additional threat to local air quality (84.837 vehicles are humanitarian aid in pharmaceuticals past their expira- registered in the Canton of Sarajevo alone). It is speculat- tion dates. These are quite simply waste materials, for ed that a focus on improving the public transportation which there are still no adequate disposal facilities. facilities in the urban areas in Bosnia and Herzegovina • Solid waste disposal (municipal, medical, toxic and will reduce some of these pressures, though it is clear that hazardous waste) sites are limited and all wastes are construction of roads, phasing out leaded fuel, and mod- combined. ernising the car fleet will be on the policy agenda. • Except in the Sarajevo Canton, there is no inventory of hazardous waste. (Seremet, 2000) NOTES Infrastructure, Utilities: Water 1 This section draws primarily on Key Indicators for Economic In 1990 in Bosnia and Herzegovina, 25.4 percent of Instruments in Albania, a working paper prepared by Dr. Tarik water samples were contaminated by microorganisms, Kupusovic, for the Sofia Initiative on Economic Instruments at the while chemical contaminants were found in 33.3 percent Regional Environmental Center for Central and Eastern Europe (REC), of water samples. This data shows that, even before the in the spring of 2000. war, Bosnia and Herzegovina was among the countries 2 The primary resource for this section is the Strategic Environmental with a high percentage of waterborne infectious morbid- Assessment: BiH Country Report, prepared by a team of experts in Bosnia and Herzegovina – led by Nesad Seremet, director of the ity. From 1986-1990, there were 37 outbreaks of water- Regional Environmental Center, Bosnia and Herzegovina Country borne intestinal infectious diseases, with 2,310 sick per- Office, on behalf of the Swedish International Development Agency

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(SIDA) – in the spring of 2000. Team specialists included: Mrs. Sanda Midzic, B.Sc. Civil Engineering Faculty (Waste, Policy, Legislation), Mr. Branko Vucijak, M.Sc. Applied Mathematics – Hydro-engineering Institute (Economic Instruments, GIS, database management, etc.), and Dr. Osman Slipicevic, Public Health Institute of the Federation of Bosnia and Herzegovina (Environment & Health).

REFERENCES EBRD (2000): Transition Report Update, May 2000, London, UK. Ramsar Convention Bureau (1999): National Report prepared for the 7th Meeting of the Conference of the Contracting Parties to the Ramsar Convention on Wetlands, . Kupusovic, T. (2000): Key Indicators for Economic Instruments in Bosnia and Herzegovina, working paper for the Sofia Initiative on Economic Instruments, The Regional Environmental Center for Central and Eastern Europe (REC), Szentendre, Hungary. Seremet, N. (2000), ed.: Strategic Environmental Assessment: Albanian Country Report, background report prepared for the Swedish International Development Agency (SIDA) by the Regional Environmental Center for Central and Eastern Europe (REC), Szentendre, Hungary. The Regional Environmental Center for Central and Eastern Europe (REC) (2000): Database on Environmental Taxes and Charges in CEE, Szentendre, Hungary. The Regional Environmental Center for Central and Eastern Europe (REC) (1997): NGO Directory: A Directory of Environmental Non-governmental Organisations in Central and Eastern Europe, Szentendre, Hungary. World Resources Institute (WRI) (1998): World Resources: A Guide to the Global Environment, 1998-99, Oxford University Press, NY, USA.

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Environmental Profile: Bulgaria

BASIC INFORMATION

Population in 1999 estimate (millions) 8.3 ROMANIA Population in 2025 projection (millions) 7.5 Population Density – 1996 (inhabitants/1,000 hectares) 766 Ruse Total Area – 1997 (1,000 hectares) 11,055 Varna YUGO- SLAVIA Black BULGARIA Burgas Sea ENVIRONMENTAL DATA Sofia Forest Cover – total 1995 (1,000 hectares) 3,240 Agricultural Land – total 1994 (1,000 hectares) 4,219 Plovdiv

Renewable Water Resources – 1998 18 km3 FYR TURKEY MACEDONIA Number of Protected Areas – 1997 49 GREECE 0 50 100 Percentage of Land Protected – 1997 4.4 kilometers

MACROECONOMIC INDICATORS GDP – 1999 estimate (millions BGL) 22,227 GDP per capita – 1999 estimate (USD) 1,459 GDP per capita – 1998 (USD, Purchasing Power Parity*) 4,726 Inflation – 1999 6.2 (change in year-end retail/consumer price level – percent) Unemployment – 1998 (Percentage of labour force) 16.0

GDP IN PREVIOUS YEARS 1997 1998 1999 2000 estimate projected GDP (millions BGL) 17,055 21,577 22,227 24,960 GDP per capita (USD) 1,230 1,477 1,459 na Inflation (change in 579 1 6.2 na year-end retail/consumer price level – percent) Unemployment rate 13.7 12.2 16.0 na (Percentage of labour force)

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Environmental Profile: Bulgaria

sion funding programs made available by the EU, such Introduction as the ISPA program, and it also benefits from more Bulgaria is located on the eastern flank of the than 10 twinning projects in several areas. Balkan Peninsula, with a coastline of 370 kilometres on This pre-accession process forms the backdrop for the Black Sea and a northern bordered marked primar- all environmental policy-making in Bulgaria today. A ily by the lower Danube River. The total area of the special governmental body, known as Working Group country is 110,948 square kilometres, and, with a pop- 22, has been established within the Bulgarian govern- ulation of 8.3 million, it is one of the largest countries ment to overview the integration process and to review in SEE. (WRI, 1998) all new legal instruments that are developed by the Due to its size, its wealth of natural resources and Ministry of Environment and Waters (MEW), in order to its relatively stable political history, Bulgaria enjoys a ensure that they conform with relevant EU regulations more advanced level of institutional and policy devel- and directives. opment than the neighbouring countries to the west — At present, the main task of the MEW is the devel- and has been spared from some of the most severe opment of a new governmental environmental strategy, effects of the armed conflicts that have taken place in which will determine the main environmental priorities SEE in recent years. for the country, set guidelines for action and define the In 1996, the Bulgarian economy experienced a deep optimal implementation measures that should be taken crisis caused by poor macroeconomic policy-making, in the future. The new strategy will also include sectoral an intensive and difficult phase of privatisation and programs for air, water, waste, soil, nature protection, external pressure from the market crashes and political radiation and noise. instability throughout the SEE region. The new government, which took over in 1997, succeeded in stabilising the situation, but continued problems, such as blocked trade routes due to the 1999 war in Kosovo — which The Framework for also reduced investor confidence in the region — have Environmental Policy left the Bulgarian economy in a period of slow, but steady recovery. and Management Fortunately, Bulgaria is currently completing the Current Environmental Conditions phase of privatisation of industry, which began in 1992, under the Privatisation Law of that year. In fact, the Soil, Forests, Agricultural Land process is now largely finished for small and medium- About 1 million hectares of land in Bulgaria are sized enterprises; and the privatisation of large compa- thought to suffer from medium to severe erosion nies, with the help of a special governmental (Hewett, 1995). In addition, the deposit of air pollution Privatisation Agency, will soon be completed — includ- into the soil from metallurgical plants is causing severe ing the privatisation of large utility, transport and sew- contamination in many areas. According to 1996 infor- erage companies in 2000. (UNECE, 2000) mation, 393 hectares of soil have been damaged by As early as 1977, Bulgaria began to take preparatory mining, primarily for coal. Other statistics from that year steps for integration into the EU, and since that time, reveal that deposits of heavy metals in soils near metal- Bulgaria has been accepted as a candidate for EU acces- lurgic sites are at a level that is potentially dangerous for sion. Today, the bulk of the work related to future acces- human health. sion to the EU is focused on creating the necessary legal It is also feared that elevated concentrations of and policy frameworks, building the requisite institution- heavy metals in forest soils are a cause of the increased al capacities and assessing the costs involved as well as defoliation that has been evident in recent years. Of the potential sources of funding. (UNECE, 2000) Bulgaria’s total land area, forests cover around 35 per- Currently, Bulgaria has access to various pre-acces- cent and are primarily in mountainous areas. In the

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period from 1960-1990, timber production fell and Air large-scale forestation resulted in a 17 percent increase According to recent figures from the MEW, total in the proportion of conifers in Bulgaria’s forests emissions of air pollutants in Bulgaria have decreased in (Hewett, 1995). However, the increased heavy metal the years from 1990-1998, with levels of SO2 and NO2 content in the soil, coupled with increased acid rain, has emissions decreasing in this period by 37.7 percent and raised concerns for the quality and sustainability of 38.2 percent. Total emissions in 1998 were estimated at: many species, including silver fir and oak, of which 1,251,000 tons of SO2, 223,000 tons of NO2, 650,000 tons over 35,000 hectares have died back since 1990. of CO and 434.02 tons of polyaromatic hydrocarbons. In addition, agricultural practices, such as over-fer- (UNECE, 2000) tilisation, which has been predominant from the 1960s, Despite the recent emissions reductions, air pollu- have led to severe acidification of agricultural soils in tion continues to be a problem in major industrial cen- Bulgaria. While agricultural production still accounts for tres and urban areas in the country. The principal over 10 percent of the country’s net material product, sources of industrial emissions generally are thermal power plants, chemical plants, metal works, fertiliser the use of artificial pesticides has dramatically factories and oil refineries. In urban areas, the primary decreased since 1995 — due to the high cost of imports pollution sources are domestic heating, fuelled by coal and the subsequent increase of organic fertilises — and or lignite and motor vehicles. it is believed that the acidification situation is currently Emissions of heavy metals into the air is also a con- improving. (UNECE, 2000) cern for Bulgaria’s air quality. Total emission of lead, based on 1998 measures, is estimated at 250.78 tons per Water year, while cadmium and mercury levels are 14.87 and Annual water flows in Bulgaria are estimated at 4.5 4.69 tons per year respectively. Industry and automobile billion cubic metres for groundwater, 0.93 billion cubic transport are the main sources of lead pollution (emit- metres for thermal and mineral water springs, and 10.7 ting 55 percent), while almost a third of cadmium emis- billion cubic metres for rivers. The river network in sions result from small combustion facilities at local Bulgaria — dominated by the Danube River — totals heating stations. (Hewett, 1995) 19,761 kilometres in length, and drains into the Black Air quality and emissions standards are based on the Sea and, ultimately, the Aegean Sea. (Hewett, 1995) 1996 Clean Air Act and are fixed by the Ministry of Health Water quality is poor in the lower reaches of many and the MEW respectively. Recent studies, however, have major rivers, including the Danube, Maritza, shown these standards are exceeded in many industrial Provadiiska, Iskar and Struma — with pollutants often areas — such as at the petrol refinery at Burgas, the cop- measured well above permitted levels. Sources of this per smelter near the Pirdop monitoring station, and the contamination include chemical plants and mines; “Maritza-Iztok 2” thermal power station. (UNECE, 2000) sewage, 55 percent of which is untreated; intensive live- It is therefore a matter of top priority in Bulgaria to reform the energy sector — via the recently developed stock farms; and agrochemicals from agriculture. These national strategy on energy development and efficiency sources also contaminate groundwater, which consti- and the National Energy Efficiency Program — as well tutes about 60 percent of the country’s drinking water. as to reconstruct and modernise the nation’s industrial (WRI, 1998) and transport sectors. Drinking water standards are defined under the new 1999 Water Act, and the monitoring of water quality Biodiversity generally is overseen by the National Institute of Bulgaria is a country of high biological diversity, Hydrology in collaboration with the Institute of Health. with 3,350 vascular plant species, 250 of which are A recent study of water quality shows a 20 percent rate endemic, and over 700 vertebrate species — including of non-conformity to national standards, which are 90 mammal, 360 bird, and 52 amphibian and reptile comparable with EU standards. (UNECE, 2000) species. (Hewett, 1995) A large portion of drinking water from alluvial Bulgaria’s protected areas cover between 4.3 per- reservoirs is closely approaching the current limit for cent and 4.5 percent of the total territory, including nitrates, which presumably results from poor agricul- three national parks, 10 nature parks, 55 reserves and tural practices in the country’s large irrigated plains. over 500 other areas currently protected under the This issue, combined with deteriorating water distrib- country’s Nature Protection Act. ution networks and a low level of waste treatment in All types of ecosystems outside the protected areas the country, will undoubtedly place water resource are currently under serious pressure from human activ- management high on the country’s environmental pol- ities. The National Biodiversity Conservation Program icy agenda. (NBCP) has identified a number of specific threats to

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ecosystems, such as conversion of recently reconstitut- TABLE 3 ed forest land to agriculture land; uncontrolled forest cutting, which is also taking place in national parks like Environmental expenditures by Vitosha; changes in spatial planning; and an increase in source of financing construction as economic conditions improve. Source of Financing Percentage of total financing Improving the protected area network in Bulgaria for environmental expenditures has been identified by the 1998 report on Conservation 1997 1998 and Biodiversity in Bulgaria as a top priority — along with improving territories and landscapes, development 1. State budget (including 2.3 2.2 of stronger conservation legislation and policy, aware- state budget transfers ness raising on conservation issues and implementation 2. Environmental funds 7.3 12.7 of the Convention on Biodiversity through membership (including extra-budgetary in the Pan-European Ecological Network (PEEN). funds) (UNECE, 2000) 3. Municipal budget 7.0 8.0 (excluding state transfers)

1 4. Enterprises own 83.4 77.2 Economy resources and loans In response to the economic challenges arising in 1996, the government continues to maintain sound eco- Source: REC, SIEI, 2000. nomic policies, which are underpinned by a currency board. Tight fiscal policy has limited the general gov- ing the market economy fully competitive. (UNECE, ernment budget deficit to BUL 214 million (0.9 percent 2000) Pursuing this goal will help to raise living stan- of GDP), while government continued to pursue struc- dards and reduce unemployment and poverty, and it is tural reforms on a wide front. consistent with Bulgaria’s aim to join the EU, for which During this time, the government accelerated privati- membership negotiations have already begun. sation schedules, and brought the isolation program for After the largest divestiture in Bulgaria’s history in commercial enterprises to a successful conclusion. The 1999, the government has now entered the last year of government also initiated sweeping reforms in the ener- privatisation of non-infrastructure assets. (EBRD, 2000) gy and transportation sectors, including the restructuring By the end of 1999, 77.5 percent of state-owned assets of large state monopolies, while continuing to strength- had been privatised, excluding infrastructure, which en the financial sector by selling state banks to strategic constitutes 48.7 percent of total assets. This year will see investors and by further improving banking supervision. The macroeconomic outcomes in 1999 are a testament the completion of large scale enterprise privatisation, to the success of these governmental measures. While the the divestiture of residual shares in enterprises that have continued shocks kept economic activity subdued in the been privatised, and further mass privatisation. first half of 1999, output rebounded strongly in the third Regarding the large enterprises, there remains an attrac- quarter, and GDP growth for the year is now estimated at tive pipeline of major assets ready for sale in 2000, 2.5 percent. Toward the end of the year, higher food and notwithstanding the strong progress in 1999. energy prices raised inflation from earlier, exceptionally The environmental considerations taken in the pri- low levels, though average inflation during the year vatisation process include environmental auditing, remained moderate, at 6.2 percent. The external current which is carried out for all enterprises in the process of account deficit widened markedly in the first half of 1999, privatisation. The audit includes a financially viable pro- but was contained to an estimated 5.2 percent of GDP for gramme for bringing the operation in compliance with the fall, as exports started to recover after mid-year. environmental standards, a plan for monitoring done by Confidence in the currency remained strong, with gross the company and a remediation programme for past official reserves at USD 3.2 billion and the fiscal account at environmental damages. These documents are part of USD 1.4 billion at the end of 1999. (EBRD, 2000) the privatisation contracts and provide realistic oppor- Firmly committed to maintaining macroeconomic tunities for taking into account the environmental stability and advancing reforms, the government will requirements in the process of structural reforms. continue to conduct economic policies in the framework of the three-year adjustment and reform program Economic and Regulatory Instruments (July 1998-June 2001), which the IMF supports under an for Environment extended arrangement. In the process of transition to a free market econo- The main medium-term goal remains to achieve my, economic instruments — which can allow environ- annual GDP growth of at least 4-5 percent, while main- mental problems to be addressed more quickly, more taining a stable macroeconomic environment and mak- effectively and/or in a more cost-efficient manner —

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have gained importance in the environmental policy of municipalities in preparing local policies and inform the Bulgaria. Economic instruments include: fiscal instru- public on the state of environment. The Executive ments, like pollution taxes, input taxes, product taxes, Environmental Agency conducts environmental moni- export taxes, import tariffs, tax differentiation, invest- toring, data collection and the annual publication of ment taxes credits, accelerated depreciation and subsi- environmental statistics. (UNECE, 2000) dies; financial instruments, like subsidies, soft loans, grants, location incentives, subsidised interest, revolv- Environmental Policies ing funds, sectoral funds, ecofunds and green funds; The development of local and regional programs for and market creation mechanisms, like emission trading. environmental protection is well underway in Bulgaria Bulgaria has experience with pollution charges and as a part of the pre-accession process. Bulgaria is cur- taxes, non-compliance charges “environmental fines,” rently targeting the development and strengthening of product charges (e.g., on gasoline), tax differentiation EIA, environmental audits and environmental manage- or exemption (e.g., lower taxes for unleaded gaso- ment policies as a means to actively encourage the inte- line/petrol and tax relief for environmental equipment gration of environmental considerations into enterprise or investment), but the entire potential of economic activities in the country. instruments is not used in Bulgaria to-date. In the field of air management, the following strate- In 1992, a National Environmental Protection Fund gies and programs have been developed: was established. Until the end of 1996, the tax on imported cars was the main source of income for the •national strategy and action plan on energy devel- fund, but in 2000, this tax has been substituted by a tax opment and energy efficiency to the year 2010; on tires. In 1998, the fund possessed BUL 53,521 million • national program and action plan on “Environment and invested in environmental projects worth BUL and Health”; 44,498 million. (REC, 2000) Additionally, at the end of 1995, Bulgaria and •national program on energy efficiency; Switzerland signed a Debt for Nature Swap agreement, • national program on phasing out ozone-depleting the funds from which were placed in a National Trust substances; Ecofund. The wider goal of the fund is to manage • national action plan on climate change. finances aimed at environmental protection that are provided from international sources. The fund is cur- In the area of water management policy, the follow- rently in the process of trying to attract additional ing strategies and programs have been developed: donors, but so far without success. (UNECE, 2000) • the 1997 strategy for integrated water management; • the 1999 Water Act; REReP Priority Areas in Bulgaria •the National Water Economic Plan; • river basin management plans. 1. Legal, Political Perhaps the most significant development resulting and Institutional Framework from these is the creation of a river basin management Governmental Agencies scheme, based on the French model. Implementation of In 1991, Bulgaria adopted a new constitution, which this scheme will occur in three stages: 1) assessment, includes two articles (15 and 55) that relate to environ- information collection, law drafting and institution mental protection. The country is divided into nine building; 2) enforcing the water law; 3) transfer of regions and 274 subregions, which have responsibilities authority to basin institutions. for local water supply solid waste disposal, and sewer- In the area of nature protection, Bulgaria has devel- age. The main environmental management authority in oped the following: Bulgaria at the national level is the MEW, which was • the National Biodiversity Conservation Program established in 1997 and replaced the former Ministry of (NBCP); Environment, the National Water Council and the Geology Committee. The MEW is responsible for devel- •the Biodiversity Conservation Strategy; oping national environmental policy, managing protect- •a five-year Action Plan on Conservation of ed areas, protecting water resources and issuing permits Biodiversity; on the use of mineral and other resources for industry. •management plans for large protected areas. (Hewett, 1995) Under the MEW, there are 15 regional Inspectorates Future preparation of management plans for all 689 for Environment and Water, who serve to ensure the protected areas are also high on the agenda, but will be implementation of environmental legislation, assist the a question of time and financial support. (UNECE, 2000)

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Legal Framework ployment levels, declining living standards and high The new Environmental Protection Act (EPA), inflation, which place an increased burden on individu- adopted in 1997, incorporates some earlier decrees (on als in society, often at the expense of social activity. environmental auditing, and certification of experts, for Additionally, changes in the political and economic example) and significantly aligns the country’s EIA leg- arena have pushed environmental protection into the islation with that of the EU Directive on EIA. The EPA background, which has decreased the level of resources also created environmental inspectorates at the local available for NGO activities and has dramatically level and introduced increased fines for cases of viola- slowed the annual creation of new environmental tion of the legislation. (UNECE, 2000) NGOs, the number of which has dropped to eight per This new legislation holds the state liable for past year. (REC, 1997) environmental damage, the extent of which is deter- Geographically, over half of all environmental mined by a special analysis conducted during the pri- NGOs in Bulgaria are located in Sofia, the country’s cap- vatisation process. Remedial measures for past damage ital, and operate on the national level, with a much are thus written into the privatisation contracts and are smaller proportion operating on the regional or local undertaken by the enterprise, with funding from the levels. The primary problems for Bulgarian NGOs today state. These funds will ultimately be paid from the state are: insufficient funding, lack of access to information environmental fund, but currently a provisional credit and communication networks, organisational weak- arrangement exists as part of an agreement with the nesses, and low capacity in fundraising and implement- World Bank. (Stoytcheva, 2000) ing environmental projects (REC, 1997) Additionally, since 1995, new legal instruments have been enacted in all sectors of environmental protection, including waste, water, air and protected areas. In par- 3. Environmental Consequences ticular, the Law on the Reduction of Harmful Impact of of Armed Conflict Waste on the Environment was passed in 1997; the For Bulgaria, the consequences of the recent con- Water Act was adopted in 1999; the Clean Air Act was flicts in SEE are primarily associated with increased adopted in 1998; and the Law on Plant Protection was transboundary pollution generated from the 1999 adopted in 1997. A Law on Biological Diversity is NATO bombing of Yugoslavia. In particular, remedia- expected to be adopted in 2000. This law would bring tion of damage to the Danube River and the River the Bulgarian legislation on nature protection and bio- Timoc are top post-war concerns in Bulgaria today. diversity into full harmonisation with the EU legislation on the subject. (Stoytcheva, 2000) During the period 1996-1999, Bulgaria has ratified 4. Cross-Border Environmental many international conventions, including the Basel Resources/Sources of Regional Cooperation Convention on the Control of Transboundary Perhaps the greatest potential for cross border coop- Movement of Hazardous Wastes and Their Disposal (in eration in Bulgaria is the establishment of transboundary 1996); the Vienna Convention on the Protection of the protected areas. To date, several regional initiatives to Ozone Layer (in 1997); the Convention on Biological Diversity (in 1998); the Convention on the Conservation create new protected areas have already been proposed of Migratory Species of Wild Animals (in 1999); and the for inclusion in the frameworks of the Protected Areas Danube Convention (in 1999). (UNECE, 2000) Act. For example, there is a proposal to create a “Lower In addition to these agreements, Bulgaria has entered Danube Green Corridor,” which was agreed upon in into many bilateral agreements, including those with June 2000 between Bulgaria, Romania, Moldova and the almost all of its neighbours in SEE. It is currently on the Ukraine. (UNECE, 2000) Similarly, another proposal is to Bulgarian agenda to conclude an agreement with FYR form an agreement between Bulgaria and Romania to Macedonia and Yugoslavia regarding the environmental cooperate on conservation and management of nature problems on the Timoc River, which is polluted by the resources in the Danube River Valley and the creation of mining operations in the town of Bor, while the river water a protected area on Camadinu Island in Romania and is used for irrigation purposes downstream in Bulgaria. Lulaka Island in Bulgaria. Other initiatives include the creation of protected areas in: 1) the Strandja mountains between Bulgaria 2. State of Environmental Civil Society and Tukey; 2) the Balasica mountains between Bulgaria, After the initial growth in the number of environmen- Macedonia and Greece; and 3) the Rhodope and Pirin tal NGOs immediately following the early 1990s political mountain regions between Bulgaria and Greece. There changes in Bulgaria, today there is a noticeable decline in is also discussion of plans to create a “Park of Peace” in public involvement regarding environmental issues. This the eastern Balkan mountains between Bulgaria and decline has also been exacerbated by increasing unem- Serbia. (UNECE, 2000) Additionally, Bulgaria could take

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active part in international conservation initiatives along the coastal zone of the Black Sea. NOTES 1 This section draws primarily on Key Indicators for Economic 5. National Environmental Priorities Instruments in Bulgaria, a working paper prepared by Daniela Stoytcheva and Hania Hristova for the Sofia Initiative on Economic Institution and Policy Building Instruments at the Regional Environmental Center for Central and The elaboration of a new governmental environ- Eastern Europe (REC), in the spring of 2000. mental strategy, and the development of institutional capacity in order to implement it properly, is the top environmental priority for Bulgaria today. The development of closer cooperation between the institutions REFERENCES concerned with inter-sectoral environmental problems Crampton, J. (1989): World Bibliographical Series: Bulgaria, Clio — such as energy, transport, agriculture and industry — Press, Oxford, UK. is seen as a necessary task for the near future. EBRD (2000): Transition Report Update, May 2000, London, UK. Hewett, J. (1995) ed.: European Environmental Almanac, Institute for Waste European Environmental Policy, Earthscan Publications Ltd., London, UK. The development of reliable waste statistics will be The Regional Environmental Center for Central and Eastern Europe (REC) a top priority for the Bulgarian government in the near (2000): Database on Environmental Taxes and Charges in CEE, future. In particular, the focus will be on simplifying Szentendre, Hungary reporting by landfills, developing a source of statistical The Regional Environmental Center for Central and Eastern Europe (REC) (1997): NGO Directory: A Directory of Environmental Non-governmen- information for the generation of cinder and ash by the tal Organisations in Central and Eastern Europe, Szentendre, Hungary. energy sector, undertaking statistical surveys for sludge generation from waste-water treatment and preparing Stoytcheva, D., Hristova, H. (2000) eds.: Key Indicators for Economic Instruments in Bulgaria, working paper for the Sofia Initiative on statistical surveys for the recycling of wastes. Economic Instruments, The Regional Environmental Center for Central and Eastern Europe (REC), Szentendre, Hungary. Infrastructure, Utilities: Energy UNECE (2000): Draft Environmental Performance Review of Bulgaria, Energy efficiency is an extremely important goal for report prepared for the UNECE Committee on Environmental Policy Bulgaria today, and current priority objectives have meeting Sept. 25-28, 1999, Geneva. already been defined for investment in this area, which World Resources Institute (WRI) (1998): World Resources: A Guide to include: reconstructing and modernising the central the Global Environment, 1998-99, Oxford University Press, NY, USA. heating system, increasing the share of natural gas and switching to imported coal of low sulphur content, increasing production of unleaded petrol, and installing filters for heavy metals and persistent organic pollutants in the energy and industry sectors.

Transport Bulgaria’s road network totals over 100,000 kilometres, including over 275 kilometres of motorway, and its rail network extends to 4300 kilometres. Today, there are over 1.3 million cars, 25,000 buses and 126,500 trucks in operation in the country, and continued mod- ernisation of the transportation infrastructure will have a heavy impact on the environment. (Hewett, 1995) Therefore, increased integration of environmental considerations into future transport sector policy will necessary in coming years. Regarding the transport of goods, waterways — such as the Danube River and the Black Sea — play an important role in Bulgaria, accounting for approximately 70 percent of total tonnage moved annually. (Hewett, 1995). A priority of the Bulgarian government will therefore be the implementation of transport vessel standards and water- way usage regulations, in order to improve and maintain water quality standards in the country.

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Environmental Profile: Croatia

BASIC INFORMATION AUSTRIA Population in 1999 estimate (millions) 4.5 HUNGARY Population in 2025 projection (millions) 4.2 SLOVENIA Population Density – 1996 (inhabitants/1,000 hectares) 805 Zagreb

Total Area – 1997 (1,000 hectares) 5,592 CROATIA Osijek Rijeka

ENVIRONMENTAL DATA Forest Cover – total 1995 (1,000 hectares) 1,825 Agricultural Land – total 1994 (1,000 hectares) 1,221 BOSNIA AND HERZEGOVINA Renewable Water Resources – 1998 61 km3 Knin Number of Protected Areas – 1997 26 Adriatic Split Percentage of Land Protected – 1997 6.7 Sea

MACROECONOMIC INDICATORS YUGOSLAVIA Dubrovnik GDP – 1999 estimate (millions HRK) 143,772 ITALY 0 50 100 GDP per capita – 1999 estimate (USD) 4,476 kilometers GDP per capita – 1998 (USD, Purchasing Power Parity*) 6,766 Inflation – 1999 4.4 (change in year-end retail/consumer price level – percent) Unemployment – 1998 (Percentage of labour force) 11.4

GDP IN PREVIOUS YEARS 1997 1998 1999 2000 estimate projected GDP (millions HRK) 123,811 138,392 143,772 153,097 GDP per capita (USD) 4,398 4,833 4,476 na Inflation (change in 3.8 5.4 4.4 3.1 year-end retail/consumer price level – percent) Unemployment rate 9.9 11.4 12.6 na (Percentage of labour force)

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Environmental Profile: Croatia

the country’s institutions and policies, remediating the Introduction damage caused by war, and revitalizing the shaken, Croatia is a coastal country situated in the northwest post-communist economy. During the war, about 40 of the Balkan Peninsula along the Adriatic Sea. The percent of public spending went to defence, leaving no coastline, which extends 1,777 kilometres, makes up room for investment in utilities infrastructure or envi- over one-third of the country’s border; and more than a ronmental management policy. (Verheije, 1996) thousand islands are included in Croatia’s territory, The fighting also had a great physical impact on the which totals 56,538 square kilometres. Croatia lies on environment. Three national parks were damaged, the edge of two major climatic regions — the industrial sites — notably the Sisak refinery and the Mediterranean and the Central European continental Osijek power plant — were destroyed and human set- region — and the territory can be divided into three dis- tlements destroyed. Furthermore, the shift of political tinct areas: the Pannonian plain, the Adriatic highland and public attention to the war resulted in a lack of basin, and the Dinaric mountain range. (UNECE, 1999) activity regarding environmental problems, which esca- Croatia had a population of 4.5 million, according lated exponentially during this time. to a 1997 census, with about 1 million people living in the country’s capital, Zagreb. The country’s rich culture has been influenced by the many peoples who have passed through the region and altered its history over The Framework for the ages, including Greeks, Romans, Celts, Illyrians, Environmental Policy Austrians, Hungarians, Slavs, Byzantines and Moslems. (Zubrinic, 1992) and Management After World War II, Croatia became part of the Current Environmental Conditions Socialist Federal Republic of Yugoslavia, under the leadership of Marshal Josip Broz (Tito), and together Soil, Forests, Agricultural Land with Slovenia, became one of the wealthier republics of In the Pannonian region, soil degradation has tradi- former Yugoslavia. During this period of communist tionally been caused by urbanisation and intensive agri- rule, Yugoslavia preserved its natural assets and devel- culture. The soils of the karstic region, on the other oped its environmental policy quite extensively, when hand, are affected mostly by erosion caused by logging. compared with other countries in the CEE region. The Throughout the country, acidification of the soil is a result was a boom in tourism in Croatia, and a strong problem — caused primarily by transboundary pollu- trend toward integration of the environment into other tants. (Verheije, 1996) sectoral decision-making. (Verheije, 1996) The armed conflict in Croatia had a strong negative In 1990, Croatia proclaimed itself an independent impact on the soil resources in the country, which were republic, and the Serbian population of Krajina rebelled damaged by destruction of buildings and chemical facil- against this by proclaiming its own Serbian Republic of ities, munitions residues, and especially, forest fires. In Krajina, sparking five years of violent conflict within the some areas, the explosions of munitions caused fissures country’s borders. (See Environmental Focus: Yugoslavia in the underground strata that made the level of ground- for more details.) The fighting in Croatia continued from water fall by 1-1.5 metres. There are also concerns about 1991 until 1995 and had a profound impact on both contamination from polychlorinated bihphenyls (PCBs), Croatian society and its environment. The ware caused released during fires at industrial facilities. (UNECE, extensive destruction of property, loss of life and disrup- 1999) And a fire at the Sisak oil refinery left a 1 kilome- tion of economic and social activities. Estimates place the tre by 3.5 kilometre area of soil saturated with polyaro- monetary value of war damages in the country at HRK matic hydrocarbons (PAHs). (Verheije, 1996) 236.4 billion, or USD 37.4 billion. (Croatia, 2000) Other current concerns for the soil are related to waste Today, Croatia is facing the task of reconstructing dumps, which became severely contaminated during the

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1990s with heavy metals (cadmium, lead, mercury), per- metres), followed by Lake Proklansko (11.5 square kilo- sistent organic substances and pesticide and pharmaceu- metres), Lake Vransko (5.8 square kilometres), tical chemical waste — apparently due to neglect and Kopacevsko (3.5 square kilometres) and the 16 famous unmanaged dumping during the war. (UNECE, 1999) Plivtice Lakes (1.9 square kilometres). (UNECE, 1999) All of these contaminants have potential to leach Due to its position and climate, Croatia is prone to into the ground and surface waters to ultimately settle in water damage. In the Danube basin, the Drava, the Sava surrounding soils. and the Kupa have large flood plains. Protective mea- Thirty six percent of Croatia’s territory is forested sures include deliberate flooding, drainage of excess land, but it is estimated that over 50 percent of the moun- water and protection against erosion and torrents. A tain forests are in danger of die-back due to acid rain. total of 1,500 kilometres of protective dykes have been Croatia’s forests are valuable for tourism and recreation built since the early 1990s. uses, climate and water protection functions and production purposes. Unfortunately, excessive and unregulated Air felling of trees during and since the war has caused a Since 1990, air-pollution emissions from stationary and recent annual reduction of forest land by 1,000 hectares. mobile sources have decreased, due to the war and the (Verheije, 1996) Economic forces are also encouraging overall economic recession. During this time, gross energy further exploitation of Croatia’s forest resources. In 1996, consumption has dropped 22 percent, and total emissions Croatia sold 2.9 million cubic metres of timber, which decreased significantly between 1990 and 1997. For exam- represented about 80 percent of total wood production ple, during this period, sulphur dioxide (SO ) emissions in the country that year. (UNECE, 1999) 2 decreased by 55 percent, nitrous oxides (NO ) by 16 per- In addition to forestry, agricultural practices have x also been affected by the economic pressures of recent cent, carbon monoxide (CO) by 44 percent, methane years. Though Croatia’s area of arable land — 0.42 (CH4) by 24 percent, ammonia (NH3) by 35 percent and hectares per capita — exceeds the Western European carbon dioxide (CO2) by 16 percent. Despite these statis- average, a decrease in farming resources, including tics, emission levels are now beginning to rise steadily, manpower, equipment and fertilisers, during the war, with the continued increase in production. (UNECE, 1999) caused a decline in production in the 1990s. Arable land NOx, which is largely associated with motor vehicle in the country is made up of 1.3 million hectares of cul- emissions, was mostly reduced due to the cessation of tivated land, 58,000 hectares of vineyards, 67,000 traffic during the war. The new fleet of cars now emerg- hectares of orchards and 413,000 hectares of meadows. ing in Croatia is 13 percent better equipped, with clean- Despite a decline in fertiliser use, and a dip in pro- er technologies — such as catalytic converters. In addi- duction in the past decade, agricultural practices are tion, SO2 levels in the air have decreased, partly due to often the source of environmental contamination. lower demand and partly due to a 50 percent reduction Intensive crop production and rotation, and the con- in the sulphur content of fuels. A reduction of sulphur centrated use of chemical fertilisers, has lead to soil ero- content in fuel oil of 0.4 percent has been achieved in sion, which has been particularly strong on the coast of oil refineries in the country. Similarly, ammonia emis- Istria, where there is a soil loss of 100-200 tons per sions have been falling gradually since 1990, due to a hectare each year. Pollution of surface and groundwa- decrease in fertiliser use and a smaller scale of livestock ters by nitrates and phosphates caused by livestock is production. (UNECE, 1999) also apparent. Still, Croatia’s agricultural sector is not a Croatia’s per capita emissions are lower than almost serious source of water pollution when compared with all other European countries. Its SOx, NOx and CO2 other countries in the region. (UNECE, 1999) emissions per capita are 80 percent below other CEE countries, like Hungary and Poland, and 70 percent Water below the OECD average. The main sources of air emis- Croatia has abundant water resources amounting to 45 sions in Croatia today are combustion processes and billion cubic meters of renewable water per year. (UNECE, motor vehicles. In 1997, traffic-related pollution 1999) The quality of drinking and groundwater is general- increased in the country by 20 percent, while combus- ly good — but is increasingly endangered by insufficient tion-related emissions fell by 11 percent. This indicates waste-water treatment, illegal dumping and failure to that the transport sector may offer the heaviest pressure implement water quality standards. (Verheije, 1996) to air quality in the future. (UNECE, 1999) The country is a part of the Black Sea watershed, and most of the surface waters drain into the Danube or Biodiversity its tributaries. Only 20 percent of Croatia’s surface water Because of its crescent shape, Croatia has different cli- drains into the Adriatic. There are only 26 natural and matic influences: alpine in the northwest, Mediterranean artificial lakes in Croatia, covering 105 square kilome- in the west and southwest, and continental on its northern tres. The largest natural lake is Vrana (30.2 square kilo- and eastern plains. The northern flatlands, which lie

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between the Drava and the Sava rivers, and the Dinaric gram have been initiated in Croatia and the country’s mountains in the northwest are part of the watershed of economy is showing positive reactions. GDP growth, the Danube River. The karstic coastal area, including the which peaked at 6.8 percent in 1997, slowed but Adriatic islands, are instead barren of groundwater — and remained positive in 1998. (Eurostat, 2000) Tourism, rely entirely on the high precipitation between June and which relies heavily on the natural resources of Croatia, August. (UNECE, 1999) has witnessed a resurgence in recent years and provides These varying climates create several bio-geograph- potential for future economic growth in the coming years. ical regions in the country that contain a great wealth and variety of special flora and fauna. Croatia has Economic and Regulatory Instruments threatened species, such as the agile frog, the otter and for Environment the peregrine falcon. Among the many additional Environmental taxes and charges are not widespread marine species are marine turtles and the monk seal, in Croatia today, and few economic instruments are ear- which is a threatened species prevalent in the Adriatic. marked for environmental investments. However, some Besides its seven national parks, there are over 300 of the country’s excise taxes — which contributed 6.3 specially protected areas all over Croatia, making up 7 percent of the state budget in 1997 — do have a direct percent of the nation’s territory. (Verheije, 1996) effect on environmental resources. Among these, excise During the war, many protected areas and two taxes on motor fuels, tobacco products, motor vehicles national parks were in the occupied territory so their and aircraft may have the effect of decreasing environ- maintenance and protection was precluded for several mentally-harmful consumption. (UNECE, 1999) years — today the reestablishment of management Croatia is one of the countries in the region without institutions and policies and the remediation of some an environmental fund, and the lack of a financing mech- damage that occurred at these sites is high on the gov- anism for environmental investments has been noted by ernment’s agenda. environmental policy-makers. In the context of the development of the country’s National Environmental Economy Action Plan, environmental policymakers have focused As a result of the war, the country’s economy suf- both on enhancing the role of economic instruments and fered extensive structural changes, and of a total of 488 elaborating an environmental financing strategy. municipalities in the Republic of Croatia, 362 have sus- The most developed system of economic instru- tained significant war damage. The total value of direct ments in Croatia is found in the water sector, where a damage caused by war, occupation or war-caused combination of high user prices, extraction charges and expenses stands at DEM 65 billion. Material damage effluent charges generate relatively high revenues ear- accounts for 40.2 percent of the damage, or DEM 26.3 marked for water management (REC, 1999). In addition, billion; war expenses and non-maintenance of proper- water use charges are often levied by municipal gov- ty account for 26.1 percent or DEM 17.0 billion; while ernments to finance investments into land improvement the loss of human life and health accounts for 33.7 per- and drainage systems. Water use charges for house- cent of the damage, or DEM 22.0 billion. In the overall holds are typically between CRK 0.7-1.1 (or DEM 0.20- damage structure, corporate losses total DEM 10.2 bil- 0.30) per cubic metre, and for industrial use the rates lion, whereas those sustained by individuals amount to are 10-30 percent higher — even though a planned DEM 12.9 billion. (Croatia, 2000) charge for industry under the Law on Commercial Also during the war, approximately 1,200 compa- Activities was abrogated in 1998, due to the economic nies suffered direct damage, with 53 of these business- difficulties faced by industry. (UNECE, 1999) es accounting for 64 percent of total damage caused to Additional user charges exist for the generation of Croatia’s economy. Damage exceeding DEM 100 mil- municipal and hazardous waste, the exploitation of raw lion was sustained by Borovo, Vupik, Belje and Belisce, minerals and the forestry sector. A compensation companies located in Eastern Slavonia. The war has scheme has been developed for pollution caused to also caused the loss of some 150,000 jobs, while vast agricultural land, and tree cutting charges are collected areas of agricultural land contaminated by land mines in a fund earmarked to finance reforestation and have been made unsuitable for use. Certain industries aforestation activities. (REC, 1999) have been reduced to one third of their pre-war capac- The Law on Air Quality Protection anticipates that ity, including engineering, the leather and footwear economic instruments will be used to finance air emis- industry, tourism, etc. (Croatia, 2000) sions reductions. A special regulation or a governmen- The tax system has undergone changes in recent tal decision would be adopted to prescribe the years, including the introduction of the VAT in 1998 at a allowances and exemptions from taxation, custom single rate of 22 percent. Today, a Stabilisation Program, duties and other levies for environmentally friendly a voucher privatisation program and a liberalisation pro- activities such as:

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• purchasing equipment/techniques for air emission as well as the Energy Strategy, the National abatement; Environmental Health Action Plan, and the Biological • cleaner technologies/raw materials; and Landscape Diversity Strategy and Action Plan — are still being developed. • developing and using renewable energy sources; Other environmental policies that have been adopt- • waste recollecting and purchasing monitoring ed to-date include: instruments. •the Spatial Planning Strategy Program; These economic instruments were included in the • the Sustainable Agricultural Development Strategy Law on Tax on Turnover of Products and Services, valid (1995); until the end of 1997. However, the current Value- added Tax Law does not foresee such exemptions. Only • The Strategy for the Long-Term Development of a case-by-case exemption from custom duties is possi- Croatian Tourism (1998); ble at this time. (UNECE, 1999) •the Long-Term Plan for the Development of Water Management (1995).

REReP Priority Areas in Croatia Legal Framework After Croatia’s independence, around 900 new laws 1. Legal, Political have been enacted, including many on the environment and Institutional Framework and nature protection. The hierarchy of legal acts is as Governmental Agencies follows: The main instrument for environmental protection is • constitution; the State Directorate for the protection of Nature and the Environment (SDEP), which is in charge of devel- •international treaties approved by parliament; oping general environmental laws and policy, partici- •laws and codes; pating in international environmental cooperation and • presidential decrees; implementing regulations and laws. Notably, water protection and management and radiation protection are • governmental decrees; not part of the SDEP’s responsibilities but are dealt with •by-laws, orders, rule books. (UNECE, 1999) by the State water Directorate and the Ministry of Health respectively. (UNECE, 1999) The 1990 Constitution includes an obligation to pro- In the Parliament, the Town Planning and tect nature and the environment and gives citizens a Environmental Protection Committee, the Maritime right to a healthy environment. After the 1992 UN Affairs, Transport and Communications Committee, the Conference on Environment and Development in Rio de Agriculture and Rural Affairs Committee and the Janiero, the Croatian government passed the Declaration Tourism Committee all deal with environmental issues. on Environmental Protection in the Republic of Croatia. (UNECE, 1999) And in 1994, Croatia enacted the Law on Environmental At the local level, the 415 municipalities, 106 towns, Protection (EPL), which gives the legal basis for regulat- and 21 counties all play a role in environmental man- ing environmental protection. Since then, the following agement, which is regulated under the Law on Local selected environmental laws have come into force: Self-Government (1993). Local Authorities implement • Maritime Code (1994); the national laws, but have the ability to introduce • Water Act (1995); stricter standards and carry out more stringent monitoring programs. (UNECE, 1999) Generally, monitoring is • Law on Air Quality Protection (1995); carried out by the Environmental Inspection • By-law on beach water quality standards (1996); Department and the local environmental inspectors, who are attached to the Physical Planning, Housing and • By-law on limit values of pollutant emissions (1997); Municipal Affairs, Construction and Environmental •Physical Planning Act (1998); Protection Bureau in each county. • Law on Agricultural Land (1998); Environmental Policies • Law on Structure and Competence of the Ministries On the basis of the Environmental Protection Law of and State Administrative Organisations (1999). 1994, the government will propose the environmental Liability for environmental damage caused by pollu- protection and management strategy to the Parliament. tion is also regulated by the Law on Environmental This strategy will form the basis of Croatia’s National Protection. The law on obligations contains provisions Environmental Action Plan. At present this strategy — concerning “ecological lawsuits,” aiming at eliminating

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hazards associated with particular sources of damage. A major concern arose from the fire at the Sisak oil According to this law, the natural or legal person that is refinery, which left the soil in an area of about 1 kilo- found to cause damage is obligated to cover expenses metre by 3.5 kilometres saturated with polyaromatic related to mitigation measures. If no polluter is identi- hydrocarbons. Similarly, the burning of various chemi- fied, the SDEP undertakes the necessary clean-up in cal plants raised concerns, particularly with regard to association with local authorities. (UNECE, 1999) the release of polychlorinated biphenyls, among other On the international level, Croatia has ratified numer- toxins. The end result may have been the leaching of ous environmental agreements, including the Convention these contaminants into the ground and surface waters. on Long-range Transboundary Air Pollution, the During the conflict, the poor ability of authorities to Convention on the Protection and Use of Transboundary manage landfill sites, especially in rural areas, lead to Watercourses and International Lakes, the Convention on widespread contamination of waste dumps with heavy Environmental Impact Assessment in a Transboundary metals and chemical waste from agriculture and indus- Context, the Convention on the Transboundary Effects of try. The short-term effects of this were evident in conta- Industrial Accidents and the Convention on Access to mination of major river flows and contamination in the Information, Public Participation in Decision-making and sea. The long term effects may be leaching into surface Access to Justice in Environmental Matters. (UNECE, 1999) and groundwater sources — which comprise drinking water sources. (UNECE, 1999) 2. State of Environmental Civil Society The conflict also destroyed the infrastructure for Dating back to the beginning of the 20th century, water treatment, including sewage treatment plants. In public environmental initiatives in Croatia have focused the inland areas, the release of untreated sewage has primarily on area protection, especially at the Plitvice likely resulted in the chemical and biological pollution Lakes and the Paklenica National Park. The public’s of underground rivers, which will take years to natural- right to participate in decision-making and to receive ly cleanse themselves. (UNECE, 2000) timely environmental information is even guaranteed In addition to chemical pollutants resulting from the under the 1994 environmental protection law — though fighting, Croatia is still grappling with the problem of problems, such as delayed availability of documents in landmines. Today the number of landmines in the the parliamentary process, are still an obstacle for pub- country is estimated at 1 million, and their precise loca- lic participation in overall decision-making. tion is still mostly unknown. These mines pose not only Environmental NGOs in Croatia began under the for- a threat to human health, but also an environmental mer Yugoslav regime, primarily as societies of experts, danger in the form of emissions of chemicals into frag- and then evolved into politically active organisations that ile ecosystems. (UNECE, 2000) were often made up of locally influential citizens. Today Finally, the war had significant impact on the insti- there are over 200 environmental NGOs in Croatia, most tutional capacity to protect environmental resources in of which are made up of young people and focus on general. This disruption brought the previous develop- environmental awareness raising. (REC, 1997) ments in nature protection and management and eco- To-date, NGOs and government have had only peri- tourism promotion to a halt. Today, institution building odic contacts, with the bulk of the dialogue relating to activities of all kinds will be essential to realise effective documents prepared by the SDEP and press conferences. (UNECE, 1999) But in 1998, the Croatian govern- remediation strategies and to restore earlier stewardship ment founded the Associations Bureau to monitor practices in Croatia in the near future. NGOs and to offer a place where environmental NGOs can find information, data and financial support. 4. Cross-Border Environmental Furthermore, Croatia has signed the Aarhus Convention on Public Participation, Access to Resources/Sources of Regional Cooperation Information and Access to Justice, and its laws and envi- The largest rivers in Croatia are shared watercourses. ronmental management practices will have to be brought The Danube, the Sava and the Drava, which are shared in line with the obligations under this convention. with neighbouring countries, flow over 1,200 kilometres of the country’s surface and are vital resources for its drinking water, industry, and agricultural production. 3. Environmental Consequences Some of the most important Danube flood plains are of Armed Conflict located in Croatia, especially the Kopacki Rit wetlands The 1991-1995 armed conflict in Croatia had serious area, which was been listed as a Ramsar site since 1993, effects on the country’s atmosphere and soil due to fires and lies on the border with Hungary. (Ramsar, 1999) at the Sisak oil refinery, chemical and related industries, Another important wetland nature park is Lonjsko ammunition stockpiles, forest fires and uncontrolled Polje/Middle Sava, which houses threatened waterfowl, exhausts from military vehicles. and is shared with Bosnia and Herzegovina.

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In addition to implementing the principles of the ardous waste in 1998 was about 200,000 tons, and this Ramsar Convention, Croatia currently participates in number is certain to increase. Therefore, hazardous several regional conservation initiatives to protect these waste treatment and management systems will be nec- areas, such as the maintenance of “Geological Bricks” essary in Croatia in the coming years. trans-frontier parks: the Sava floodplain with Bosnia and Herzegovina and the IUCN conservation project at Transport Kopacki Rit, being implemented with Hungary. The total length of roads is expected to grow in the (UNECE, 1999) future as the density of the road network, especially of On the international level, Croatia has a strong inter- motorways, is still insufficient. Croatia is planning to est in cooperating on issues related to the build 1,600 kilometres of four-lane roads during the next Mediterranean, freshwater bodies, such as the Danube, decade, which will undoubtedly have a significant and air pollution reduction. The country actively partic- impact on the surrounding environment. (Verheije, 1996) ipates in international processes, like the “Environment Other transportation centres are expected to be devel- for Europe” process under the ECE, and is a member of oped as well, including nine airports, seven of which are the UN and the Council of Europe. (Croatia, 2000) on the coast, and many Adriatic seaports. Though the Regarding international cooperation on the traffic in Croatian ports dropped during the war — from Mediterranean Sea, Croatia is very active in the 29 million tons in 1987 to 13.8 million tons in 1996 — this Mediterranean Action Plan, which implements the amount is now steadily increasing and will continue to Barcelona Convention for the Protection of the Marine exert strong pressure on the sea and coastal resources in Environment and the Coastal Regions of the the port areas. (UNECE, 1999) The integration of envi- Mediterranean. Croatia acceded to this convention in ronmental considerations into transport sector policies 1993. (UNECE, 1999) will therefore be critical in the coming years.

5. National Environmental Priorities Institution and Policy Building REFERENCES Much of Croatia’s environmental strategies are still in European Bank for Reconstruction and Development (EBRD) (2000): the development phase. A top priority for the govern- Transition Report Update, May 2000, London, UK. ment, therefore, is the completion of these policies and the creation of the institutional arrangements to imple- Eurostat (2000): Statistical Yearbook on Candidate and South-East European Countries, Luxembourg. ment them. This will involve strengthening of inspectorates at all levels, development of environmental Government of the Republic of Croatia (2000): . financing mechanisms to fund environmental activities — and improvement of the cooperation between Verheije, M., Kosterink, P. (1996) eds.: Croatian Environmental Movement After Socialism and War, MilieuKontact Oost-Europa, national and local authorities and the public in decision- Amsterdam, Netherlands. making, in compliance with the Aarhus Convention. Ramsar Convention Bureau (1999): National Report prepared for the 7th Meeting of the Conference of the Contracting Parties to the Ramsar Waste Convention on Wetlands, . Of the total quantity of municipal waste generated, The Regional Environmental Center for Central and Eastern Europe (REC) 63 percent is being disposed of in an official way, which (1999): Sourcebook on Economic Instruments for Environmental Policy leaves 37 percent to illegal disposal. It is estimated that in Central and Eastern Europe, Szentendre, Hungary. there are 800-1,000 illegal waste dumps in the country The Regional Environmental Center for Central and Eastern Europe (REC) today, and a great majority of the “official” dumps are (2000): Database on Environmental Taxes and Charges in CEE, not adequately equipped or managed. (UNECE, 1999) Szentendre, Hungary Industrial waste is also a problem, as only a small The Regional Environmental Center for Central and Eastern Europe (REC) portion of the existing industrial landfills actually have (1997): NGO Directory: A Directory of Environmental Non-governmental Organisations in Central and Eastern Europe, Szentendre, Hungary. operating permits. No landfill for industrial waste is equipped with a system for collecting and treating UNECE (2000): Draft Environmental Performance Review of Croatia, report prepared for the UNECE Committee on Environmental Policy leachate, and only few have basic provisions for visual meeting, Sept. 20-24, 1999, Geneva. entry controls and physical safeguards. (UNECE, 1999) World Resources Institute (WRI) (1998): World Resources: A Guide to The levels of hazardous waste produced by industry the Global Environment, 1998-99, Oxford University Press, NY, USA. are still relatively low after the war, though Croatia has continued difficulties with its disposal and currently Zubrinic, D. (1992): Croatia: an Overview of its History Culture and Science, . exports some quantities of PCBs, galvanic sludges and APO for treatment abroad. The total generation of haz-

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Environmental Profile: Kosovo

BASIC INFORMATION HUNGARY 050100 Population in 1999 estimate (millions) 2.3 Subotica kilometers Population in 2025 projection (millions) na Vojvodina Population Density – 1996 (inhabitants/1,000 hectares) na CROATIA Total Area – 1997 (1,000 hectares) 1,100 Novi Sad ROMANIA

ENVIRONMENTAL DATA Belgrade Forest Cover – total 1995 (1,000 hectares) 430 SERBIA Agricultural Land – total 1994 (1,000 hectares) 577 Renewable Water Resources – 1998 na BOSNIA AND HERZEGOVINA YUGOSLAVIA Number of Protected Areas – 1997 14+ Percentage of Land Protected – 1997 0.5 Novi Pazar Nis

Niksic MACROECONOMIC INDICATORS Pristina MONTENEGRO BULGARIA GDP – 1997 (billion USD) na Cetinje Podgorica Kosovo and Metohija GDP per capita – 1997 (USD) na

GDP per capita – 1997 (USD, Purchasing Power Parity) na Adriatic ALBANIA FYR Sea Inflation – 1997 MACEDONIA (change in year-end consumer price level – percent) na Unemployment – 1997 (Percentage of labour force) na

Source: UNFPA, IOM, Office of Statistics in Kosovo, 1999.

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Environmental Profile: Kosovo

At the first meeting of the REReP Task Force, held July paign — from March 24, 1999-June 10, 1999 — which 6-7, 2000, in Cavtat, Croatia, it was agreed that Kosovo primarily targeted strategic sites in the Republic of should be included as a specific beneficiary of the Serbia, in an effort to deter the continued involvement REReP environmental reconstruction program, due to of Serbian troops, under the leadership of Milosevic, in the particular difficulties with civil administration and the fighting in Kosovo. (UNEP, 1999) post-war remediation in the territory today. During the conflict, about 40 percent of the population fled Kosovo, while about 20 percent were internally displaced. An OSCE report placed the total number of Introduction refugees that had left the country by the end of March The territory of Kosovo (Kosova in Albanian) is 1999 at 862,979. Around 50 percent of these displaced located just south of the Republic of Serbia in the center people went to Albania, while another 25 percent trav- of the Balkan Peninsula. It is a small rural region of elled across the border to FYR Macedonia, and at least 10,887 square kilometres, with about two-thirds of it’s half of these people spent time in refugee centres in 2.3 million people living in villages. (Duijvelaar, 2000) these neighbouring countries. By early June 1999, it is Geographically, Kosovo is in the shape of a basin, estimated that more than 1.4 million people, including which is surrounded by mountains, and divided by a the internally displaced people and about 100,000 Serbs central north-south ridge into two sub-regions of rough- who fled to Serbia, were displaced from their homes in ly equal size and population. Kosovo. (Duijevelaar, 2000) Kosovo has historically been an ethnically mixed On June 10, 1999, a peace agreement was signed region, with the majority of the population in most of among the warring parties, and the NATO bombing it’s 30 municipalities identifying themselves as ethnic campaign came to an end. At this time, a rapid return of Albanian. A few municipalities, however, were tradi- most of the refugees began, and today it is believed that tionally ethnic Serbian, while others remained mixed most of the displaced ethnic Albanians have returned to with other minority ethnicities, including Muslim Slavs, Kosovo. Currently, Kosovo has a clear majority of eth- Turks, Croats and Roma. nic Albanians with only a few municipalities in the In the early 1990s, relations between the Republic of north of the territory harbouring significant Serbian or Serbia and its (then) autonomous region of Kosovo other ethnic populations. worsened when the Serbian President, Slobodan After the war, the territory was placed under the civil Milosevic, initiated changes in the Serbian Constitution authority of the UN Interim Administration Mission in which took away Kosovo’s autonomous status and Kosovo (UNMIK) and is effectively a UN protectorate. introduced so-called “enforcement measures” against the ethnic Albanian majority living in the region. These UNMIK is authorised to exercise ultimate legislative and measures started in September 1990 — and included fir- executive powers until legitimate local authorities are ing all ethnic Albanians working in higher positions in established via a democratic election process. The publicly owned companies and public services, as well NATO security presence, Kosovo Force (KFOR), is as dissolving the Presidency and Assembly of the responsible for overseeing the withdrawal of the autonomous Kosovar government. (Duijvelaar, 2000) Yugoslav forces, ensuring the demilitarisation of In early 1999, the tensions between the Serbian pop- Kosovo and maintaining law and order until a local ulation and the ethnic Albanian population escalated to Kosovo police force and civilian administration are in the point of armed conflict involving military troops place. Kosovo remains nominally a province of the from the Republic of Serbia. The degree of ground fight- Republic of Serbia, within the Federal Republic of ing increased steadily for months and ultimately Yugoslavia. Many ethnic Albanians, however, reject the prompted NATO forces to initiate an air bombing cam- notion that Kosovo is a part of Yugoslavia.

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The environmental impact of the current level of agri- The Framework for cultural activity is low. Fertiliser and agro-chemical use are Environmental Policy low, so there is less pollution of the soil and the under- and Management1 ground water. The level of mechanisation is also low, so that small-scale agriculture with relatively light machines Current Environmental Conditions and mainly handwork remains. The lack of food products from Kosovo itself does, however, force large quantities of Soil, Forests, Agricultural Land imports in order to feed the population. These food imports About 430,000 hectares — of Kosovo’s total 1.1 mil- usually travel quite a distance before arriving in Kosovo. lion hectares — are forested, and 577,000 hectares are The need to transport food results in an increase in CO2, classified as agricultural land. Of the latter, 31 percent are NO and dust emission from trucks and aeroplanes. pastures and about 69 percent of the land is arable. x As with other regions of SEE, a major land-related environmental problem is that of mines and unexploded Water ordnance. In August 1999, the first consolidated database The quality of surface water in Kosovo was formerly of minefields was established. This research showed that monitored by the Hydro-meteorological Institute in there was a low mine density in populated areas in Belgrade. Their data show that most rivers were typically Kosovo, but that the contamination was widespread. one class below the desired level. An example of very Between June 12 and August 30, 1999, during the sponta- clean water is the river Lepenac (Brezovica), and second- neous return of refugees immediately after KFOR’s entry class rivers include Lab (Podujevo and Milosevo), into Kosovo, 232 casualties from mines occurred, of Binacka Morava (Ugljar and Konculj), Nerodimka which 40 were fatal. (Urosevac), Pecka Bistrica, Beli Drim. There are also var- Severe illegal tree cutting during the winter of 1999 ious natural lakes — some of them under protection has increased soil erosion in the mountainous areas and because of their beauty and abundant flora and fauna. destroyed local eco-systems. On the plains, the soil is The water monitoring system is not consistent in quite fertile. But the soil is extremely degraded in the Kosovo today, and there is unsatisfactory water quality in municipalities of Prishtina, Kosovska Mitrovica, Obiliq, the rivers Pecka, Decanska and Prizrenska Bistrica, Erenika Polje and Glogovac — due to open coal pits, disposal of and Kriva Reka. The contamination of surface water from soot, slag, barren soil, heavy metals, discharge of waste towns with household wastes and faecal pollution poses a waters, etc. The total area that is covered by industrial risk to the health of the population downstream. waste dumps and/or is transformed due to open-cast In Kosovo, the general access to safe drinking water, mining extends to over 10,000 hectares. as well as viable sanitation, is the among the poorest in None of the industrial dumpsites are covered, or Europe. Currently 44 percent of the total population has designed to prevent leakage to ground water. In addition, access to the drinking water distribution system and 28 no rehabilitation or re-vegetation of the waste dumps has percent of the population has access to the sewage sys- been carried out, which has a serious impact on the agri- tem. In the urban areas it is more likely that people have cultural activities that occur in the vicinity of these indus- access to these systems. Rural wells are generally in bad trial waste areas. A 1989 sampling of agricultural crops and condition and the water quality is poor. Villages and vegetables in the Mitrovice region — close to the Trepca other settlements have no wastewater facilities whatsoev- mining area — showed that concentrations of heavy met- er, and at most locations, wastewater is being disposed of als in spinach increased in most of the contaminated areas in open channels. This sewage evaporates in warmer by as much as 30 times normal concentration. months, or else seeps into the ground, causing contami- Besides industrial landfills, household waste, as well as nation of ground water and resulting in bad drinking agricultural use, are threats to the soil; however, due to the water quality at the wells. decrease in all production activities in Kosovo since the war, these land degradations are not likely to have increased, Air though the current levels of contamination is unknown. Emissions above the maximum allowable concentra- In Kosovo, the agricultural sector is characterised tion values used to be common in Kosovo in the vicinity mainly by small-scale family farming. The costs of dam- of mining, industrial and energy complexes, such as Polje age and losses to farms during the conflict — including and Obiliq — as well as in bigger towns, such as lost animals, destroyed farm buildings and agricultural Prishtina. The levels of toxic metals were above maxi- machinery — is conservatively estimated at around USD mum allowable concentration in Kosovska Mitrovica. 700-800 million. After the conflict, in the summer of 1999, Direct emissions to the air have decreased, however, agricultural production, which was temporarily interrupt- due to the lessening of industrial activity during the ed, started up again, and wheat production has under- 1990s. Post-conflict, the largest stationary source of air gone a rapid recovery toward the end of 1999. pollution is the power plant outside of Prishtina. It burns

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low quality lignite coal, with emissions as analysed by meant that unemployment among the ethnic Albanians the Institute for Scientific Research and Development of grew rapidly and remained extremely high during the 4.4 milligrams per cubic metre of SO2 and 90-150 mil- 1990s. In 1995, GDP had reportedly fallen to less than ligrams per cubic metre of ash. The lignite that is USD 400 per capita, with unemployment estimated as burned comes from the neighbouring mines, which high as 70 percent. Emigration from Kosovo to neigh- seem to have a relatively low percentage of sulphur. bouring countries was a common survival strategy for UNMIK officials have indicated that the environmental many households, and income from family members component related to the re-start of the power plant living in Western Europe, the US or neighbouring coun- may be postponed. tries supported those staying in Kosovo. Thus a large Air emissions from non-stationary sources come black market and cash economy grew, most notably mainly from traffic. Traffic has been increasing rapidly among the ethnic Albanians. after the conflict — not only because of second-hand After the war, the economic situation is improving in cars being imported into the territory (with or without Kosovo due to the rapid inflow of donor money. number plates), but also because of the large number of Nevertheless, about half of the active population remains humanitarian assistance and military vehicles using unemployed. The average wage for the public sector is diesel and leaded fuel. Local air pollution can be high estimated at DEM 273 per month, and 36 percent of the due to the traffic in the main streets of Prishtina, men state that they are financially supported by a private although, again, no measurement data regarding this is individual, meaning a family member abroad. currently available. The future development of the Kosovar economy will not be easy. Constraints include the large role Biodiversity played by the state in the economic sector in the past, The territory of Kosovo has one national park (Sar the low technological development of industry, limited planina Mt.), two regional parks, 11 nature reserves, working capital for financing investments, insufficient and 32 natural monuments. Nonetheless, only one-half expertise in modern economic and management percent of its territory is under protection. Within this approaches, unclear and unstable political conditions, small space a huge diversity of both species and habi- dependence on international cooperation and finan- tats exists. There are more than 2,000 species of vascu- cial/technical assistance as well as limited tax revenues. lar flora in Sar planina alone. This is about 26 percent So far there is no clear taxation system established in of Balkan and 18 percent of European flora, which Kosovo, though UNMIK introduced a customs, sales places Sar planina at the very centre of European and and excise tax regime on Sept. 3, 1999. The relatively global gene and species diversity. Sar planina is locat- light tax burden has helped the private sector develop ed at the border of southwest Kosovo, northeast of rapidly. New shops, restaurants and small trading com- Albania and northwest of FYR Macedonia. This moun- panies, all of which contribute to the growing amounts tainous area is linked with Prokletije, Durmitor and the of municipal waste, started operating literally within coastal Dinara mountains and represents one of the days of the arrival of KFOR and the rest of the large most valuable centers of endemic biodiversity in the international community in Kosovo. Balkans. In addition to this, Sar planina is included in There are currently around 200 public enterprises in the list of assets proposed for UNESCO natural heritage Kosovo, out of which 66 could be classified as major status and Biosphere Parks. enterprises. These numbers include both industrial The Prokletije Mountains are another important enterprises, such as agro-industry, and public utilities. locale of European and Balkan biodiversity. The whole Although all these enterprises were under so-called region is known for its wealth of vegetation, with over “social ownership” prior to 1989, the current ownership 750 species of alpine vascular flora, of which 18 local situation is less than clear. In many cases, the enforce- and over 100 Balkan endemics are recorded. Spatial fea- ment measures have resulted in competing claims tures that hold protected status are the Rugovska Gorge between the former workforce — claiming that “social and Gazimestan and Grmija forests. ownership” equalled “ownership by the workers” — and various other claimants to ownership, either in the form of shareholding, or through complete integration Economy of the Kosovar enterprise into a Serbian one (as was the Prior to 1989, Kosovo was the least developed part case of Yugobanka). In some cases, the situation is fur- of the Socialist Federal Republic of Yugoslavia (SFRY). ther complicated by commercial contracts or concession During the 1990s the economic situation worsened as a arrangements with foreign companies. Generally speak- result of the political changes and conflicts in the ing, the larger the enterprise, the higher the degree of region. Since most industries were state owned, the complexity regarding the ownership situation. Medium- “enforcement measures” of Milosevic (discussed above) sized companies, such as brick factories and slaughter-

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houses, are essentially local ventures, while at the oppo- Governmental Agencies site end of the spectrum, the huge Trepca mining com- Environmental issues in Kosovo were formerly plex represents a very complicated case of ownership. under the responsibility of the Ministry of Science, The future steps in the privatisation process will Development and Environment of the FRY, which was influence the degree of activity of the large industrial established in 1992, as well as the Ministry of plants in Kosovo. Depending on the new owners and Environment from the Republic of Serbia (RS), which their interest in cleaner production, environmental pro- was established in 1991. tection and sustainable development, the privatisation Today, the UNMIK is the de jure government in issue influences the future level of industrial pollution. Kosovo. UNMIK is a unique operation set up by the This is especially true of the Mitrovica area, where a lot United Nations Security Council to prepare Kosovo for of former “socially owned” heavy industry is located. elections and eventual self-government. UNMIK is responsible for the government of Kosovo, including Economic and Regulatory Instruments environmental concerns. for Environment Toward that end, UNMIK set up a Joint Interim The environmental legislation of Yugoslavia is Administrative Structure in which the international and declared to be valid for Kosovo, even though none of it local staff co-operate. There are 20 departments, which is currently being implemented, monitored or enforced. may be viewed as the current ministries. Each department This also means that no measures for financing envi- is headed by two co-heads, one international and one ronment from economic instruments are embodied in local. The Department of Environment is currently head- the environmental legislation. For the whole of ed by Onelia Cardettini and has five to six international Yugoslavia, no assessment has ever been made on the staff. The local co-head has not yet been appointed. performance of existing economic instruments, but it Today, UNMIK is acting as a transitional administration for the region. UNMIK has clarified the legal situation seems that pricing, taxes and duties in the transport sec- for some specific areas, but none related to environmen- tor need attention. Furthermore, no information is avail- tal issues as yet. Environmental monitoring and enforce- able on the extent to which environmental subsidies ment are not carried out thus far in Kosovo (the former have been used or the potentially negative environ- monitoring institutions and their networks were linked to mental impact caused by subsidies in other sectors, Belgrade institutions), though from May 24, 2000, UNMIK such as transport, agriculture, energy etc. Regulation No. 2000/32 is in effect. This regulation is the Economic instruments, such as air emissions non- basis for the establishment and structure of the compliance fees, water effluent charges, water pollution Administrative Department of Environmental Protection. non-compliance fees, sewage charges and municipal waste user charges are likely to be part of the future environmental legislation in Kosovo — once UNMIK begins Environmental Policies an overview of existing legislation and initiates the first The current international government in Kosovo has stages of implementation, monitoring and enforcement. relegated environmental issues to a later phase of the administration and reconstruction process. Although this is a matter of prioritisation, which in itself is necessary, it has been proven in other former Yugoslav regions that a REReP Priority Areas in Kosovo single focus on economic development without considering environmental matters has had disastrous conse- 1. Legal, Political quences for environmental resources and human health. and Institutional Framework Experiences in countries like Bosnia and Herzegovina, Kosovo resembles the situation in other post-con- for example, reveal that simple choices incorporating flict countries, entities or regions. It is an integrated part principles of sustainable development could have been of the politically complex Balkan region and shares a made along the way, and would have prevented much of history of the socialist system with other CEE countries, the current environmental problems that the country is including those in SEE. Besides this, Kosovo has some now facing — like soil degradation due to years of illegal specific features in which it is unique, including deep- dumping. With a longer-term view, environmentally rooted ethnic hatred, a lack of key socio-economic sound reconstruction activities will reveal themselves to infrastructure and services, a provisional international be more cost-effective and more beneficial over time. government with the enormous task of reconstituting and running a government, the interest expressed by an Legal Framework unprecedented number of assistance and donor agen- UNMIK regulation No. 1, issued by the Special cies and the political and legal ambiguity in which all Representative of the Secretary General, states that the players must operate. laws applicable in the territory of Kosovo prior to March

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24, 1999 shall continue to apply in Kosovo, insofar as age to the structures and ecosystems in Kosovo during they do not conflict with internationally recognised the fighting. Notably, Sar planina National Park was human rights standards. Thus, most of the environmen- affected, since it lies in the south of Serbia, including the tal legislation from before the conflict was valid from the area of Kosovo, and was exposed to both the NATO air moment UNMIK took over the governmental role until strikes and military ground operations. (UNEP, 1999) regulation No. 24 was put into place in early 2000. Kosovo also faces a particular problem related to the Regulation No. 24 established the legal framework use of depleted uranium (DU) weapons during the in Kosovo based on that which was operating in the ter- fighting. According to the available data, NATO forces ritory on March 22, 1989. This means that legislation used special ammunition containing DU in bombing from Yugoslavia is the basis of Kosovo’s legal system military and civilian targets in 100 localities in Kosovo. today, though this legislation cannot be enforced at the The most intensive usage occurred in the regions of moment as there are no operating inspectorates or judi- Prizren, Urosevac, Djakovica, Decane and Djurakovac. cial system (for more information about the legal struc- Uranium belongs to the group of toxic elements and has ture in Yugoslavia, please see Environmental Profile: been classified in the second group of radionuclides of Yugoslavia). very high toxicity. (Duijevelaar, 2000) This type of ammunition is nuclear waste and its use is very danger- 2. State of Environmental Civil Society ous and harmful. The effects on the population are hor- In Kosovo today, relatively few environmental rific because in addition to injuries and the destruction NGOs are active, and estimates put the number at less of body tissue, it causes radiological contamination. than eight. Many existing environmental NGOs were This contamination produces toxic and radiation effects dissolved during the conflict, but activities have been that cause cancer. (UNEP, 1999) taken up by some local authorities, such as in the In addition, Kosovo faces the problem of landmines municipality of Podjeve, which declared itself to as mentioned above. Until all mines are cleared they become the first ecological town in Kosovo. A youth will influence the opportunities for reconstruction, agri- NGO, called Forum, is actively seeking funding for culture etc. environmental projects, and international NGOs and donors have become more interested in environmentally oriented projects. (REC, 1997) 4. Cross-Border Environmental Lack of environmental awareness generally is the Resources/Sources of Regional Cooperation main obstacle for development of environmental civil The primary Cross-Border Resources in Kosovo are: society in Kosovo. Public participation is underdevel- the Sar planina area between FYR Macedonia and oped — even in local decision-making and environ- Albania, and the Prokletije Mountains. mental impact procedures — and public awareness and In the mountainous area at Sar planina National Park, initiative with regard to environmental decision-making on Kosovo’s southwestern border, there is a concentra- is extremely low. This problem is exacerbated by a low tion of the local endemic species, and more than 2,000 level of capacity within UNMIK to educate the public on species of vascular flora — which represents about 26 key environmental issues, as well as a high pressure on percent of Balkan and 18 percent of European flora. the various international organisations currently operat- (Dujivelaar, 2000). This area is linked with Prokletije, ing within the territory to produce fast results at the Durmitor and the coastal Dinara mountains and repre- expense of environmental considerations and involve- sents the Balkan center of endemic biodiversity, and a ment of the public in the organisation’s activities. global center of gene and species diversity. The Prokletije Mountains, another important locale 3. Environmental Consequences of European and Balkan biodiversity, are also known of Armed Conflict for their national treasures, consisting of over 750 The conflicts of 1999 impacted all areas of social, species of alpine vascular flora, of which 18 local and political and economic life in Kosovo. over 100 Balkan endemics are recorded. Spatial features With regard to the environment, the displacement that hold protected status are the Rugovska Gorge, and and movement of vast groups of people, the uncertain- Gazimestan and Grmija forests. (Dujivelaar, 2000) ty of property rights, the dissolution of viable civil Proper monitoring and management of Sar planina administration bodies and the lack of regulations or and the Prolketije Mountains has been difficult during enforcement mechanisms for use of environmental and after the war in Kosovo, and today a concerted resources are perhaps the primary causes of environ- effort is being made to reimplement data collection mental problems in the region today. schemes and to develop a cross-border management In addition, there was a great deal of physical dam- strategy with Macedonia and Albania.

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5. National Environmental Priorities where the road infrastructure is not adapted to the amount of car traffic, so that traffic jams are regular. Waste Soil and air polluted by lead from leaded fuel is Since the 1999 conflict, the main environmental prob- common in Kosovo, due to the relatively low number of lems in Kosovo include all issues related to solid waste cars with catalytic converters. Because of the lack of management and the low development of the water sup- monitoring systems, it is not known how high or low ply and sanitation systems in the territory. Another major the lead pollution is in the main streets of Prishtina. The problem is the absence of monitoring networks for air vehicles used on the roads since the end of the conflict and water, as well as the lack of implemented and are heavier, due to the fact that many military vehicles enforced environmental legislation, and the lack of and heavy assistance trucks are being driven. awareness of environmental issues of the general public. The improvement of the transportation infrastructure will thus be a priority for UNMIK decision-makers Infrastructure, Utilities: Energy as the reconstruction process continues. The current Another major concern for decision-makers in administration system may lack the capacity necessary Kosovo will be the development of the energy sector. to ensure that adequate environmental reviews are per- During the winter of 1999-2000, people tried to heat their formed before any major projects begin. It is therefore houses electrically in cases where the district heating sys- up to the international community to take up the tem failed, thus overburdening the electric system. responsibility of integrating environmental considera- Currently there are no adequate institutions for effi- tions into its investment and aid efforts in the region. cient operation of either the power and district heating systems or the coal-mines: no company structure, no business culture, and no functioning billing and collection service. UNMIK’s Pillar 4 is in charge of the re- NOTES organisation and set-up of the energy system in Kosovo 1 The primary resource for this report is the Strategic Environmental and is now faced with the difficult proposition of find- Assessment: Kosovo Report, prepared by a team of experts in Kosovo ing solutions to it’s energy problems while also not and Serbia — led by Christy Duijvelaar, director of the REC Kosovo causing further environmental harm. Field Office in Prishtina — for the Swedish International Development The environmental impact of the reopening of a now- Agency (SIDA). Team members included: Shkipe Deda in Prishtina and Dragana Tar in Belgrade. defunct thermal power plant in Kosovo, for example, will be emission into the air of CO2, SO2 and dust. When the power plant resumes operation with no additional filters at the same level of 1988-1989, it can be expected that REFERENCES dust is especially going to be an environmental problem Duijvelaar, C. (2000) ed.: Strategic Environmental Assessment: Kosovo again, as it was more than 10 years ago when the maxi- Report, background report prepared for the Swedish International mum allowable concentration value was exceeded over Development Agency (SIDA) by the Regional Environmental Center for Central and Eastern Europe (REC), Szentendre, Hungary. 30 percent of the time. The SO2 concentrations will stay reasonably low as long as there is enough alkaline fly ash EBRD (2000): Transition Report Update, May 2000, London, UK. emitted along with it, and the amount of fly ash (dust) The Regional Environmental Center for Central and Eastern Europe (REC) will decrease when appropriate filters are installed. (1997): NGO Directory: A Directory of Environmental Non-governmen- Regardless, the Kosovar thermal power plants are tal Organisations in Central and Eastern Europe, Szentendre, Hungary. highly inefficient and produce more waste than neces- UNEP/UNCHS Balkans Task Force (BTF) (1999): The Kosovo Conflict: sary for the energy return. The development of a more Consequences for the Environment and Human Settlements, UNEP, efficient energy sector will therefore be a major concern Geneva, Switzerland for decision-makers in Kosovo in the near future. UNMIK Office of Statistics (2000): Internet news message regarding a survey completed with the International Organisation for Migration (IOM), and the United Nations Population Fund (UNFPA), April 26, 2000. Transport World Resources Institute (WRI) (1998): World Resources: A Guide to The road network of Kosovo consists of about 3,800 the Global Environment, 1998-99, Oxford University Press, NY, USA. kilometres of roads, including 623 kilometres of main roads and 1,300 kilometres of regional roads, and the maintenance of this network has been persistently under-funded, resulting in a continuous deterioration of the road system. The number of private cars has increased following the conflict, and the environmental impact of high private car use is usually local air pollution in the form of CO2, CO, NOx and dust, especially

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Environmental Profile: FYR Macedonia

BASIC INFORMATION Population in 1999 estimate (millions) 1.9 YUGOSLAVIA

Population in 2025 projection (millions) 2.5 BULGARIA Population Density – 1996 (inhabitants/1,000 hectares) 855 Kumanovo Total Area – 1997 (1,000 hectares) 2,543 Tetovo Skopje

Veles ENVIRONMENTAL DATA Forest Cover – total 1995 (1,000 hectares) 988 FYR MACEDONIA Agricultural Land – total 1994 (1,000 hectares) 661 Renewable Water Resources – 1998 na Number of Protected Areas – 1997 16 Ohrid Bitola Percentage of Land Protected – 1997 7.1 GREECE

ALBANIA 050100 MACROECONOMIC INDICATORS kilometers GDP – 1999 estimate (millions Denar) 194,571 GDP per capita – 1999 estimate (USD) 1,775 GDP per capita – 1998 (USD, Purchasing Power Parity*) 4,258 Inflation – 1999 2.4 (change in year-end retail/consumer price level – percent) Unemployment – 1998 (Percentage of labour force) na

GDP IN PREVIOUS YEARS 1997 1998 1999 2000 estimate projected GDP (millions Denar) 185,023 193,153 194,571 209,427 GDP per capita (USD) 1,857 1,774 1,775 na Inflation (change in 2.6 -2.4 2.4 na year-end retail/consumer price level – percent) Unemployment rate 36 34.5 na na (Percentage of labour force)

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Environmental Profile: FYR Macedonia

Introduction The Framework for FYR Macedonia is a small country located in the cen- Environmental Policy tre of the Balkan Peninsula. It had a population of 1.9 million in 1999 and an area of 25,713 square kilometres, and Management of which about 25 percent is pastureland, 25 percent Current Environmental Conditions arable land, meadows, vineyards and orchards, 8 percent barren land, 37 percent forest land, 2 percent lakes and Soil, Forests, Agricultural Land 2.5 percent is urban or industrial land. (Stojkovska, 2000) Mountain soil predominates in FYR Macedonia — it Though FYR Macedonia is a country without any accounts for 1,655,227 hectares, or approximately 64.4 coastal borders, it is rich in water resources, most percent of all land, whereas the soil in the valleys notably its great lakes: Ohrid, Prespa and Dorjan. accounts for a total of 916,073 hectares, or 36 percent. After FYR Macedonia became an independent state Approximately 665,000 hectares are arable land, and in 1990, with the break-up of the Socialist Federal approximately 390,000 hectares are lowland pastures or Republic of Yugoslavia, the country began a period of land put to other, non-agricultural uses. (WRI, 1995) social and economic reforms, which involved restruc- The gravest issue threatening soil quality in FYR turing government, privatising large-scale public enter- Macedonia today is erosion, which effects 37 percent of prises, and rewriting macroeconomic policies. During the country’s territory and is caused by poor forestry, the past decade, since the beginning of these reforms, agricultural and land use practices. (Stojkovska, 2000) the country has remained stable and is still experiencing Urban land-use, in particular, has not always been continued, steady economic improvement. Despite this accompanied by adequate infrastructure development, progress, the governmental institutions in FYR and urban expansion has frequently taken place on high Macedonia today are facing problems of low capacity quality agricultural land. According to some estimates, and limited budgets, the result of which continues to be about 0.5 percent of agricultural land is lost to construc- uneven policy-making and even less effective monitor- tion in FYR Macedonia annually. (Stojkovska, 2000) ing and enforcement, particularly in the field of envi- A full decade before FYR Macedonia acquired its ronment. FYR Macedonia has made some unique and independence, its agriculture was already marked by a positive innovations in this area that bode well for the constant moderate increase and a virtually unvarying future. Not least among these was the 1998 establish- 14-16 percent share in the GDP, and according to the ment of an environmental fund, with revenues generat- latest census of 1994, the agricultural population ed by car registration fees. (Avramovski, 2000) accounted for 11.79 percent of the total population, or Regarding the environmental consequences of the 226,498 of the people. (WRI, 1995) recent conflicts in SEE, FYR Macedonia was largely The agriculture sector in FYR Macedonia today spared from the violence that erupted in other former impacts the water resources of the country through the Yugoslav Republics in the early 1990s. It was only dur- 106 different irrigation schemes, which have a capacity ing the 1999 Kosovo conflict, that FYR Macedonia to serve 124,000 hectares. However, due to inefficien- began to experience major war effects. These effects cies in the systems, not more than 80,000 hectares are were primarily associated with the inflow and encamp- successfully irrigated. The irrigation systems consist of ment of hundreds of thousands of ethnic Albanian 17 high dams with a total reservoir capacity exceeding refugees along the FYR Macedonian/Kosovo border. 500 million cubic metres of water and 8,110 kilometres Though these refugees have mostly all returned to of pipes and canals. (Stojkovska, 2000) There are plans Kosovo, the impact that their presence had on the local to increase the capacity of the irrigation system, and two water/waste networks and ecosystems will remain a new dams, Lisiche and Kozjak, are under construction. concern for the FYR Macedonian government in com- Most of the irrigation systems, including those of ing years. (UNEP/UNCHS, 1999) Tikvesh, Bregalnica, Strumica and Lipkovo, which

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account for more than 50 percent of irrigated land, are from unpolluted mountain springs or aquifers and more than 15 years old. about 90 percent of urban settlements have access to Limited analysis has been performed on the non- piped water. There has been a decrease in the occur- point source pollution from agricultural sources and its rence of water-borne diseases in the country, although effects on the water basins is not clearly known. Since there are occasional incidences when water quality 1990, the level of pesticide and fertiliser use has standards are not being met due to disruptions in the declined and it is expected that this will reduce the pol- treatment systems. In 1990, deaths from typhoid and lution load to the groundwater. paratyphoid were 0.1 per 10,000 inhabitants, indicating In the area of forestry management, growing that in most instances the drinking water quality was demand is currently putting pressure on the country’s satisfactory. (Stojkovska, 2000) relatively small forestry resources, which total 905,653 The water systems in the municipalities meet drink- hectares, or 35.2 percent of the country’s area. (WRI, ing water standards, although in the villages, bacteria, 1995) It is anticipated that approximately 15,000 tons of ammonia and nitrates are sometimes found in the water. lumber will be needed annually. A further demand for Toxins were detected in the groundwater in Skopje forestry products from foreign markets will add to this Valley (Drachevo and the oil refinery), and water pollu- problem and will undoubtedly lead to an even greater tion is evident in rivers and in groundwater sources pressure on FYR Macedonia’s forestry resources, as throughout the country. Underground waters in FYR enterprises develop to meet this demand. At this stage, Macedonia have not been examined or determined suffi- the strengthening of forestry management institutions ciently, so it is not possible to calculate their quantity and regulatory enforcement regimes will be essential in with adequate precision, but they have been assessed at order to generate long-term sustainable harvesting approximately 520 x 106 cubic metres. (Stojkovska, 2000) practices and to prevent irreversible damage to FYR Since 1990, the pollution load to the groundwater Macedonia’s forestland. has decreased as the level of pesticide and fertiliser use has declined. Still, there are other threats — such as Water livestock waste, produced primarily in the northeastern Based on data between 1992 and 1994, the total part of the country, which has more farms, slaughter- water resources of the country in a normal year is esti- houses and plants for processing milk, meat and mated at 6.63 billion cubic metres, which is carried in canned food — that affect various rivers in the country the Vardar basin (4.77 billion cubic metres), the today including the Bregalnica, Pchinja, Mavrovica, Strumica basin (0.18 billion cubic metres) and the Crni Zletovska and Berovska. Drim basin (1.68 billion cubic metres). (WRI, 1995) Water from the surface area of FYR Macedonia flows Air along six primary river basins, among which the rivers Air quality problems are limited to major urban Vardar, Crn Drim and Strumica are the largest, with the areas. Specifically, Skopje, Veles, Bitola and Tetovo remaining three basins accounting for only 1.1 percent have poor air quality, which affects about 600,000 peo- of the area of FYR Macedonia. The amount of water ple, or 30 percent of the population of FYR Macedonia. flow ranges from 5 litres-per-second-per-square-kilo- Air pollution in Veles is mainly caused by a lead and metre in the central and eastern part of the country to 30 zinc smelter, which produce high levels of SO2 near the litres-per-second-per-square-kilometre in the water-rich plant and the nearby urban settlement. Between 1990 mountainous zones of western FYR Macedonia. and 1993, the SO2 content in the town exceeded the (Stojkovska, 2000) Due to this uneven distribution of maximum allowable limits 38, 39 and 32 times annual- water in the country, limited water resources can be a ly. In 1994, there were only two such incidents, a fact problem in areas in the central south, where, occasion- that is attributed to lower production at the smelter. ally, water demand for agricultural and household uses Although black smoke is not a major problem, high lev- are not completely met. els of lead, zinc and cadmium were detected in dust There are three large natural lakes on the territory of particles compared to a control area. FYR Macedonia — Dojran, Prespa and Ohrid — as well The air quality in Bitola is affected by the operations as numerous mountain lakes varying in quantities of of a power plant and nearby coal mine. While SO2 is water. Lake waters have limitations in their use for mostly within acceptable limits, black smoke concentra- water supply purposes. Eighteen large artificial lakes tions have annually exceeded allowable limits by 10 to 25 have been constructed in FYR Macedonia, as well as times between 1990 and 1994. A similar problem with SO2 100 small ones (called water accumulations), with a net and black smoke is present in Tetovo in the Polog valley. water accumulation of over 500 million cubic metres. Between 1990 and 1994, the black smoke concentrations Drinking water in FYR Macedonia is generally of have exceeded allowable limits by 16 to 78 times per year. good quality, since most drinking water sources are The pollution in Tetovo is attributed to the metallurgical

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operations of “Jugohrom” (Jegunovce) and heating sys- although nominally protected, it is under threat from tems that use a high content sulfur fuel during the winter. planned developments in the buffer areas. Prespa Lake is The other urban areas where air pollution is present are home to the Ezerani natural ornithological reserve, which Kichevo, Kumanovo, Ohrid, and Prilep. is included in the world Ramsar list. A third lake is Lake Thermal power plants at Bitola and Oslomej gener- Dojran, which has a surface area of 47 square kilometres. ate more than 80 percent of the country’s power. This lake’s hydrological regime has been disturbed in Hydroelectric plants meet the remaining demand. The recent years because of excessive water abstractions due lignite used in these power plants has a low sulfur con- to agricultural practices. Fish and wildlife populations tent (0.5%) and the SO2 emissions are around 2,000 mil- have been dramatically affected as a result; with 109 out ligrams per cubic metre. Although these emissions are of 257 algae species that were previously present in Lake higher than the FYR Macedonian standards, so far there Dojran now proclaimed extinct. (Stojkovska, 2000) has been no strict environmental enforcement. The two thermal plants use filters to efficiently control their par- Economy1 ticles. High sulfur content (2-4 percent) in heavy fuels used by the district heating company in Skopje also FYR Macedonia is still in a period of transition from adds to the air quality problem. a centrally planned to a market-based economy. Since As a result of the air pollution in FYR Macedonia, a becoming independent in 1991, FYR Macedonia was significant statistical correlation between respiratory ill- challenged by quickly declining levels of production, a ness and dust particles has been established. A similar significant drop in investment and declining foreign strong correlation exists between respiratory problems trade. At the same time, the rate of unemployment rose with average monthly concentrations of sulfur dioxide. to 34.2 percent — which was then the highest level in The air pollution problem is most acute in the winter Europe. Despite cuts in consumption and investment, months, due to the effects of temperature inversions. For budget deficits widened because of declining domestic output. Following independence, the growth rate of the instance, in winter 1990, out of a sample of 3,600 chil- economy was negative and the annual inflation rate was dren, about 30 percent had serious respiratory diseases. 10 percent. After a 14 percent devaluation in 1997, a six month wage freeze was introduced to contain inflation- Biodiversity ary pressures. The freeze, which extended to all bud- FYR Macedonia has rich and varied flora and fauna, getary agencies and all enterprises that were not fully because of its terrain and its location at one of Europe’s privately owned, resulted in a drop in real wages by 4 geographical crossroads. It also has a number of percent in 1998. (EBRD, 2000) endemic species, including some very rare ones, like More recently, however, the economy has seen astragalus cerjavski and tulipa marianae; slavia marked improvement. In recent years, annual GDP has jurisicii, ferulago Macedonia and sambucus deboren- been growing steadily, with 2.7 percent growth in 1999, sis. There are 55 known species of fish, 78 mammal and GDP per capita is currently estimated at USD 1,796. species and 330 bird species. (WRI, 1995) A large part of the growth is contributed by the vibrant About 6.6 percent of the area of the state is under some private sector, which accounts for more than 50 percent form of protection through the Law on Natural Rarities of the GDP. (EBRD, 2000) Private sector growth is fur- Preservation. Protected lands include three national parks ther facilitated by the recent initiatives to develop the with an area of 108,000 hectares, three areas with “special legal and regulatory framework to further promote pri- characteristics” that cover 2,338 hectares, 14 special plant vate enterprise. and animal reserves that cover 2,700 hectares and 48 nat- By mid-1998, nearly four-fifths of all previously pub- ural monuments, covering 56,850 hectares. The three licly-owned enterprises had been privatised, primarily national parks, Pelister (9,000 hectares), Galitchica (22,750 as small and medium-sized businesses. There still exist hectares) and Mavrovo (73,000 hectares), are all in forest- several large industrial enterprises with major state ed areas. (Stojkovska, 2000) ownership that remain to be privatised or otherwise liq- FYR Macedonia has three large lakes, the most well- uidated. The government is also currently planning a known being Lake Ohrid, which has a surface area of 357 program to open international tenders for stakes in oil square kilometres, is situated in the southwest, is sur- refineries, telecommunications and energy. rounded by mountains and is home to 146 endemic Today, the pricing policies for energy resources, as species, including the Ohrid trout. A second lake is Lake well as energy tariffs are close to levels that reflect scarci- Prespa, which has a surface area of 320 square kilome- ty and allow for cost recovery. For this reason, the per tres. Prespa is also in the southwest, with Pelister and capita energy consumption is lower in FYR Macedonia Galichitza national parks on either side of it, and is equal- compared to other CEE countries and undervalued ener- ly as scenic, though less well known as lake Ohrid. This gy inputs cannot be considered the main reason for lake has some wetlands on its northern shore, and environmental degradation. Nonetheless, with the

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exception of firewood, the energy prices are controlled ership, sale of land for construction, etc. — is inade- and there should be a move to liberalise these prices so quate for their full implementation. that consumers pay the true value of the resources. This problem is exacerbated by the fragmented struc- The economic reform program that FYR Macedonia ture of the environmental monitoring institutions in the has been implementing provides a unique opportunity country. For example, the Hydrometeorological Institute, to address the main causes of environmental degrada- which takes responsibility over the monitoring of air qual- tion. Lessons learned from the past indicate that envi- ity, and also makes some analyses of water pollution from ronmental pollution and degradation is caused by poli- industry and agriculture, submits its findings to the the cies that favour soft budgets, subsidies and undervalued MoE; while at the same time, a separate Institute for inputs. Low economic efficiency and high energy and Health Protection compiles and collects all of the statistics material intensity are signs not only of economic distor- on regions of polluted drinking waters and air that may tions but also of potential environmental problems. affect human health. Similarly, there are several monitor- Therefore, by eliminating many of the prime reasons of ing agencies which measure radioactivity, including the economic inefficiency during the transition period, addi- Center for Applied Radioisotopes in the Economy, the tional benefits are generated by avoiding economic loss- Institute for Health Protection and the Institute of Physics es due to pollution and environmental degradation. — which is not responsible to the government. The result of this unclear institutional arrangement, is often unnec- Economic and Regulatory Instruments essary confusion regarding the appropriate agency source for Environment for data on a given environmental concern, and the rela- As in other post-socialist countries, there is a legacy tive validity of the data collected by each. in FYR Macedonia of poor economic analysis to support the implementation of environmental standards. During Environmental Policies the years under communism, only a command and con- In 1996-97 the NEAP (National Environmental trol approach was used, and economic instruments Action Plan) was completed. This plan defines policy (fines for excessive pollution) were enforced only in and priority actions and identifies areas that are a threat exceptional cases. to human health and the environment. The NEAP has Today, however, FYR Macedonia is one of the few been prepared with the main policy objectives of among the countries in transition that has established a achieving sustainable development, integrating sectoral budgetary fund for financing environmental activities. policies with environmental policy, implementing the Created in 1998, the revenues for the fund come from car polluter pays principle and user pays principle and registration fees, which generate an inflow of DEM 1.5 ensuring public participation and access to information. million annually. Today the fund has total assets worth The subsequent environmental policies to be devel- MKD 155.6 million or DEM 5 million. In addition the gov- oped under the NEAP will be in compliance with EU ernment is in the process of introducing a scheme of var- standards, in order to allow FYR Macedonia to have ious additional economic instruments to finance pollu- access to trans-European markets. tion abatement and environmental investments. The main goals for environmental policy in the country for the next few years will be: • to improve the quality of the environment in REReP Priority Areas urbanised areas by reducing SO2 pollution by 30 percent and particulate concentrations by 100 per- in FYR Macedonia cent, and by adopting comprehensive solid waste management systems; 1. Legal, Political and Institutional Framework2 • to improve water supply by more comprehensive water resources management and to improve sur- Governmental Agencies face water quality by eliminating discharge of The first, separate Ministry of Environment (MoE) untreated industrial effluent; was established in FYR Macedonia on December 30, •to protect the flora and fauna of the country, espe- 1998. The MoE currently has 81 full-time employees and cially in lakes Ohrid, Prespa and Dojran; 15 persons engaged by means of contracts. As a matter of policy, physical planning strategies • to continue strengthening the environmental man- are regularly prepared by the MoE, which outlines the agement capacity by developing appropriate regula- strategy for land use, settlement patterns, public infra- tions and increasing the capacity of institutions structure and environmental guidelines. However, the responsible for monitoring and enforcement. regulatory framework for enforcement of these plans — One of the issues that is so far unresolved in the pol- including laws regarding property relations, land own- icy-building process in FYR Macedonia is the corre-

62 THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM ENVIRONMENTAL PROFILE: FYR MACEDONIA

sponding roles and responsibilities that should be ing to provide a local debate and forum for solving local assumed among the partners in the process. In particu- problems. There are only a few national organisations lar, the relationship between government, polluters and capable of implementing projects of a national scope, public is not yet clearly defined. Further capacity build- but these are typically information campaigns to raise ing and legislation governing the methods of public general public awareness. (REC, 1997) participation and pollution regulation will therefore Regarding the environmental media in FYR need to be developed as a first step in this process. Macedonia, there is an established special monthly magazine, “Ecology,” that is distributed through prima- Legal Framework ry schools in the country, but has a broader public read- Adopted in 1991, the FYR Macedonian Constitution ership. Also, the MoE will start a one-year intensive clearly sets forth the right of any citizen to a healthy “Public Awareness Campaign for Protection of the environment (Article 43), and at the same time, estab- Environment,” starting in September of 2000, under lishes the responsibility of the citizens for environmen- which all national media organisations will employ a tal protection and improvement. Accordingly, in special journalist who covers only environmental December 1996, the Parliament adopted the Act on issues. This means that all national media sources will Environment and Nature Protection and Promotion. have a special weekly program that covers environ- In the past, environmental issues were regulated by mental issues and events. (Stojkovska, 2000) more than 120 acts and regulations. However, the pro- Recently, the environmental journalist’s pool in FYR visions were generally not implemented and there were Macedonia has established an “Ecological Press Center,” no consistent policies to set priorities. The adoption of to organise training for local media and private stations the new Act on Environment and Nature Protection and that broadcast environmental information to the general Promotion offers a newly consolidated, strategic public. However, this group is itself still in need of approach for dealing with environmental issues. capacity building and training to fully complete this task. The Act on Environment and Nature Protection and There is no special environmental course or devel- Promotion establishes the environmental protection oped curricula for students in primary and secondary system stipulating specific measures, methods, criteria school. It is left to the personal eagerness of the teach- and means for protection of separate environmental ers to develop environmental education within the sub- components. It also establishes an information system ject of biology. Teachers often organise activities such to provide data on the major pollutants, including a reg- as “eco-clubs” or “biological sections,” where interested ister of waste substances, and their storage, usage and pupils can decide voluntarily to expand their knowl- disposal on the territory of the country. edge on the subject. In 1998, the MoE and the Ministry With regard to financing, the Act on Environment of Education have joined the worldwide GLOBE envi- and Nature Protection and Promotion stipulates a spe- ronmental education program, and so far, four primary cial Environmental Fund. The Act also sets forth estab- and five secondary schools have begun running the lishment of a special Inspector’s Office within the GLOBE activities in FYR Macedonia. (Stojkovska, 2000) Ministry of Environment, to monitor and control implementation of the rules and standards pertaining to envi- 3. Environmental Consequences ronmental protection. of Armed Conflict During the military activities in Kosovo/Yugoslavia 2. State of Environmental Civil Society in 1999, there was obvious and visible damage to the In the period before the transition process began, natural and urban environment in FYR Macedonia. The environmental issues in FYR Macedonia were margin- main threats resulted from the refugee camps, which alised, and there was very little public awareness developed along the border with Kosovo and severely regarding environmental conservation or management. impacted the sewage and water systems and the health During this time, pollution was generally perceived as of local communities. Two of these refugee camps were an inevitable effect of economic growth. located very close to the Rasce water spring — which is Since the early 1990s, however, this situation has the biggest drinking water spring in FYR Macedonia, changed dramatically, and today, according to the reg- and supplies water to the country’s capital, Skopje. ister of non-governmental organisations in FYR There is a current concern that this spring may become Macedonia, there are approximately 200 environmental contaminated as a result of improper waste disposal NGOs registered in the country. Many NGOs continue while the camps were active. (REC, 1997) to be active on a local level, mostly focusing on public The government and the UN High Commission on gatherings for cleanup campaigns, tree-planting, Refugees had agreed that the sewage water would be spreading information on environmental status and try- collected and transported to the Struga sewage treat-

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ment station, but this commitment was only enforced 5. National Environmental Priorities between May 10-17, 1999, with a total of 90 cubic metres of wastewater being transported to Struga. After May 17, Waste the treatment station did not receive any water for treat- In the area of waste management, priorities are ment, though it was obvious that sewage water from the defined as the prevention of chromium leachate from the landfill in HEK “Jugohrom,” Jegunovce from reach- Bojane camp was still being taken away every three ing the Vardar river; completion of the “Drisla” sanitary days. On June 7, 1999, the state environmental inspec- landfill in Skopje; and protection and rehabilitation of torate found private individuals dumping wastewater the “Vardariste” landfill in Skopje. into the Vardar River, near the camp, and evidence of a Current national priorities in the area of water qual- good deal of similar illegal dumping has been found. As ity include the need to upgrade the wastewater treat- a result, on May 19, 2000, the Macedonian Center for ment plant at the OHIS factory, to reduce mercury in its International Cooperation (MCIC) started to build wastewater discharged into river Vardar. sewage treatment stations for the village of Radusa. (Stojkovska, 2000) Another war-related problem that may have a seri- Infrastructure, Utilities: Energy ous environmental impact on FYR Macedonia is the dis- Perhaps the biggest environmental priority in FYR semination of radioactivity from the (now confirmed) Macedonia is the reform of the energy sector. The dam- use of DU weapons by NATO in Kosovo during the 1999 age done to the environment — including health effects, fighting. The National Institute for Health Protection damage to agricultural produce, forests, etc. — from fuel (NIHP) performed analyses of the alpha-radioactivity in combustion in electricity plants, heating plants and traf- the air in FYR Macedonia during April, 1999. The analy- fic, is assessed at over a billion and a half dollars per year. ses discovered up to eight times higher concentrations The development of an alternative natural gas sys- of alpha-radioactivity assumed to be a consequence of tem, therefore, is a top priority. The first phase of the the NATO bombing. (UNEP/UNCHS, 1999) gas pipeline system is almost completed. In this phase Further pressure on the environment comes from the the main pipeline has been constructed from the Bulgarian border to Skopje, as well as a part of the main troops and bases of the international military alliances urban networks in the towns or cities en route to the that are still quartered in FYR Macedonia as a result of city of Skopje. With the completion of the gas pipeline, the 1999 war. The bases in FYR Macedonia that were it is expected that the there will be drop of about 60 per- once run by NATO are now occupied by KFOR troops cent in the use of heavy oil in Skopje, mainly in the — the special peace-keeping forces deployed to Kosovo industrial sector, which will have a positive effect on the after the war. During the time that these bases have been air quality. At a later stage, the gas will be distributed to occupied, there have been several major instances of other cities such as Tetovo, Gostivar, Veles and polluting activities, such as bomb disposal in the pro- Negotino, reducing the air pollution in these cities. tected Lake Ohrid, weapons waste disposal in the natural areas and medical waste disposal in unspecified areas. In addition to these threats, experts from the monitoring institutes in FYR Macedonia are concerned that toxic contaminants were released into the air and water NOTES during the bombing of chemical and industrial com- 1 This section draws primarily on Key Indicators for Economic Instruments in FYR Macedonia, a working paper prepared by Ljupco Avramovski, plexes in Yugoslavia, and that these will migrate towards director of the FYR Macedonian Environmental Fund, for the Sofia the country. There is particular concern about the poten- Initiative on Economic Instruments at the REC, in the spring of 2000. tial transboundary effects of the released concentrations 2 The primary resource for this section is the Strategic Environmental of dioxins, furans and polychlorinated biphenyls. Assessment: FYR Macedonian Country Report, prepared by a team of experts in Albania — led by Katerina Stojkovska, director of the Regional Environmental Center for Central and Eastern Europe (REC), 4. Cross-Border Environmental FYR Macedonian Country Office in Skopje — for the Swedish International Development Agency (SIDA). Team members included: Resources/Sources of Regional Cooperation Nedanovski, Pece, M.A., Faculty of Economics, University St. Cyril and The three big natural lakes in FYR Macedonia — Methodius, Skopje, Buklevska Aneta, Agency for Environment, Skopje. Ohrid, Prespa and Dojran — are shared with other countries and the future protection of their ecosystems will depend on the development of cooperative politi- REFERENCES cal relationships among them. Such a cooperative regime would be particularly useful in the case of Lake Avramovski, L. (2000): Key Indicators for Economic Instruments in FYR Macedonia, working paper for the Sofia Initiative on Economic Dojran, which is shared with Greece and is currently Instruments, The Regional Environmental Center for Central and facing damages due to heavy abstraction for irrigation. Eastern Europe (REC), Szentendre, Hungary.

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EBRD (2000): Transition Report Update, May 2000, London, UK. The Regional Environmental Center for Central and Eastern Europe (REC) (1999): Assessment of the Environmental Impact of Military Activities During the Yugoslavia Conflict: Preliminary Findings June 1999, report prepared by REC, Szentendre, Hungary, for the European Commission DG-XI – Environment, Nuclear Safety and Civil Protection. Stojkovska, K. (2000) ed.: Strategic Environmental Assessment: Macedonian Country Report, background report prepared for the Swedish International Development Agency (SIDA) by the Regional Environmental Center for Central and Eastern Europe (REC), Szentendre, Hungary. UNEP/UNCHS Balkans Task Force (BTF) (1999): The Kosovo Conflict – Consequences for the Environment and Human Settlements, UNEP, Geneva, Switzerland. World Resources Institute (WRI) (1998): World Resources: A Guide to the Global Environment, 1998-99, Oxford University Press, NY, USA.

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Environmental Profile: Romania

BASIC INFORMATION UKRAINE Population in 1999 estimate (millions) 22.4 Population in 2025 projection (millions) 21.1 HUNGARY Population Density – 1996 (inhabitants/1,000 hectares) 984 Iasi Cluj-Napoca MOLDOVA Total Area – 1997 (1,000 hectares) 23,034

ROMANIA Timisoara ENVIRONMENTAL DATA Brasov Galati Forest Cover – total 1995 (1,000 hectares) 6,246 Ploesti Constanta Agricultural Land – total 1994 (1,000 hectares) 9,926 Black Craiova Bucharest Renewable Water Resources – 1998 37 km3 YUGOSLAVIA Sea

Number of Protected Areas – 1997 39 050100 BULGARIA Percentage of Land Protected – 1997 4.7 kilometers

MACROECONOMIC INDICATORS GDP – 1999 estimate (millions ROL) 521,735,000 GDP per capita – 1999 estimate (USD) 1,517 GDP per capita – 1998 (USD, Purchasing Power Parity*) 6,089 Inflation – 1999 54.8 (change in year-end retail/consumer price level – percent) Unemployment – 1998 (Percentage of labour force) 11.5

GDP IN PERVIOUS YEARS 1997 1998 1999 2000 estimate projected GDP (billions ROL) 250,480 368,345 521,735 707,864 GDP per capita (USD) 1,395 1,845 1,517 na Inflation (change in 151.4 40.6 54.8 30.0 year-end retail/consumer price level – percent) Unemployment rate 8.9 10.4 11.5 na (Percentage of labour force)

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Environmental Profile: Romania

solidarity — particularly among the country’s minority Introduction communities, like the Hungarians and Saxons in Romania is situated in the northeast of the Balkan Transylvania, and Jewish and Roma populations Peninsula, with an eastern coastline of 245 kilometres throughout the country. (Burhala, 1995) on the Black Sea and a southern border made up pri- During this time, Ceausescu also initiated various marily of the Danube River. The country’s land area of grandiose, wasteful projects that drained the country’s 237,500 square kilometres is equally divided between resources and had disastrous effects for its people. mountains, hills, plains and plateau, and its 22.7 million Some of these projects included: inhabitants are also evenly distributed between urban •the construction of the functionless Danube Canal, (54 percent) and rural (46 percent) dwellings. The opened in 1984; Carpathian mountains cover much of the west and centre of the country, while the south of the country is •the disruptive redevelopment of Bucharest into a made up primarily of fertile lowlands. (Hewett, 1995) new political centre, home to the notoriously The Romanian people are descendants of a Daco- immense “Palace of the People,” built in 1983-9; Roman civilisation, which was formed in 105-6 AD, • the destruction of the Danube Delta through agri- when the Romans conquered most of present Romania, cultural development; including the Transylvanian plateau. (Burhala, 1995) •the unrealised plans to “systematise” Romanian agri- From the 4th to 17th centuries, waves of migrating peo- culture by transferring the inhabitants of 7,000 villages ples, including the Goths, Huns, Avars, Bulgars, Slavs, into poorly constructed concrete apartment blocks; Hungarians, Saxons and Turks swept across this territory, and the modern Romanian language is a Latin-based • and, finally, the paying off of the country’s USD 10 fusion of these diverse influences, resulting in the lin- billion foreign debt in 1989 by selling Romania’s guistic separation of Romania from her immediate food supply and causing widespread food shortages neighbours in SEE. throughout the country. (Burhala, 1995) Today Romania is still influenced by the period of As the population continued to suffer from pro- communist rule, which began in 1948 with the nationali- longed scarcities, tensions and discontent rose until sation of the means of production and the initiation of a 1989, when massive public demonstrations against the planned economy. The government of that time — under government turned into a nationwide uprising that ulti- the political framework of the Romanian Workers Party mately resulted in the ouster — and execution — of and then the Romanian Communist Party — placed Ceausescu on Dec. 23, 1989. (Burhala, 1995) emphasis on industrialisation and large-scale agricultural Since that time, Romania has entered into a period operations. Throughout the communist period, Romania of deep economic and political reform, which has large- was unique in the former East Bloc for its independent for- ly lagged behind that of most neighbouring transition eign policy and its active resistance of Soviet domination. countries. Specifically, a slow process of privatisation, a But domestic policy took a turn away from freedom weak program to restructure state enterprises, an in 1965, when Nicolae Ceausescu came to power as underdeveloped banking sector, falling industrial out- president and leader of the new Romanian Communist put, sluggish agricultural reform and poor tax revenue Party. Often described as a “megalomaniac,” Ceausescu collection are all factors that hindered the reform promoted a cult of personality that was unprecedented process in Romania during the 1990s. (EBRD, 2000) in Romanian history and served as the foundation of a In 1993, Romania entered into a “pre-accession” dictatorship that knew no limits. In 1971, he reintro- agreement for membership in the EU, vowing to har- duced a rigid communist ideology and began nearly monise its economic and social policies as well as its two decades of “neo-Stalinist” repression in Romania institutional and legal framework with that of the EU. that had significant detrimental consequences for the Since that time, accession to the EU has represented a nation’s economy, standard of living and community strategic priority of Romania’s policy, enjoying the sup-

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port of the entire political spectrum as well as of the vast percent of employment. Until a few years ago, the agri- majority of the population. (Embassy of Romania, 1999) cultural sector was marked by strong state intervention In its work toward EU accession, the Romania govern- and a weak land market, but in the 1998 adoption of a ment has begun to take some positive steps, such as the new law on agriculture has facilitated the transfer of development of new legislation covering areas like pri- farming land by accelerating restitution and clarifying vatisation and environment, as well as the transfer of the property rights. (EBRD, 2000) majority of state planning and resource allocation deci- Approximately 45 percent of all agricultural produc- sions to independent commercial companies. (Popovici, tion in Romania is devoted to livestock farming, much 2000) Despite these improvements, however, Romania of which occurs at large-scale complexes producing still needs greater institutional and legal development in pork or beef. These complexes are a major source of order to achieve long-term sustainable economic growth water pollution in some areas. (Hewett, 1995) and fulfilment of the requirements for accession. Among the areas that need strengthening in Romania Water before accession to the EU will be possible, is environ- The majority of watercourses in Romania flow into mental management. The establishment of harmonised the Danube River, which forms a biodiversity-rich delta environmental laws, institutions and regulatory frame- before entering the Black Sea. The total river length is works is therefore a clear priority for the Romanian gov- about 70,000 kilometres and the average annual water ernment today. (Government of Romania, 1999) flow is estimated as 170 billion cubic metres on the Romania faces severe pollution problems concerning Danube, 40 billion cubic metres for surface waters and the air, water and soil. The solutions to these problems will 9 billion cubic metres for groundwater. (Hewett, 1995) involve considerable investment in the medium- and long- It is estimated that more than 6 million tons of pollu- term, from both the state and private sector. Particular tants are discharged into the Romanian river network measures that are needed include the minimisation of every year, and over 85 percent of the river water is waste, the protection and improvement of water quality deemed unfit for drinking. (Hewett, 1995) Much of the and the abatement of industrial and agricultural pollution. contamination results directly from the mining and chemical production industries in the country, and primary contaminants include ammonia, chlorine, hydrogen sul- phide, nitrates and phosphates. Pollution in the ground- The Framework for water system is also extensive, due mostly to agriculture Environmental Policy in rural areas. Ammonia and other livestock wastes are a particular problem in much of the country, and in the and Management south, where irrigation is extensive, nitrates pose a sig- Current Environmental Conditions nificant problem. In addition to industry and agriculture, municipal Soil, Forests, Agricultural Land wastewater has also be shown to be a large source of Soil erosion is a growing problem in Romania, affect- water pollution in Romania today. Wastewater treating over 4 million hectares of agricultural land and caus- ment facilities did not exist for much of the country’s ing an additional loss of 10-15 tons of soil annually. The major cities — including Bucharest, the capital — until erosion is largely due to the extensive use of chemical the 1990s, and many of the facilities now operating fertilisers during the past 50 years, but is also caused by appear to be unsatisfactory. (Hewett, 1995) accelerated clear-cutting of forest land, particularly in the Buzau basin and Vrancea. (Hewett, 1995) Air Forests cover about 27 percent of the total land area Air pollution is a serious problem in Romania today, of Romania, predominantly in the Carpathian moun- contributing to poor local air quality in all urban areas tains. The past 100 years have seen a decline in total for- and an increasing level of acid rain throughout the coun- est cover in the country, and logging has exceeded try. In Bucharest, for example, the total level of SO2 emis- regeneration for much of the 1970s and 1980s. The 1992 sions exceeded 35 micrograms per cubic metre in 1996, European forest survey revealed that 16.7 percent of and over 64 micrograms per cubic metre in Zlatna, with sampled trees had defoliation of 25 percent or more — total particulate concentrations exceeding 140 micro- apparently because of acid rain, drought and other cli- grams per cubic metre in some places, like Ploistoia. matic stresses. Damage is particularly acute in regions (Popovici, 2000) The main sources of emissions are near major industrial zones, such as Baia Mare, Zlatna, petrochemical plants, metalworks, power stations, motor and Copsa Mica. (Hewett, 1995) vehicles and domestic heating, which still depends large- Agricultural land comprises 64 percent of the total ly on low quality coal or high-sulphur gas. land cover in Romania, and agricultural production The metalworks at Baia Mare, Copsa Mica and accounts for approximately 20 percent of GDP and 30 Zlatna, contribute to very high levels of heavy metal

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emissions, such as lead, zinc, cadmium, selenium and rose during that same time to 58.4 percent in 1998, up arsenic. Additionally, the industrial plants surrounding from 58.1 percent the year before. (EBRD, 2000) Bucharest are major contributors to the amount of lead, In 1998 the structure of GDP by main categories of phenols, fluorine and hydrogen chloride that are pre- resources was: industry, with 31.7 percent; agriculture, sent among air contaminants in the city. with 16.0 percent; and services, with 37.8 percent. The Motor vehicles still operate largely on leaded petrol structure of GDP by aggregates of expenditures, in the — which is consumed at a rate of well over twice that of same year was: unleaded petrol — and sulphurous diesel fuel, even • total final consumption: 90.8 percent; though a lead phase-out program began in 1998 in order to meet EU standards. Some economic mechanisms are • gross fixed capital formation: 18.1 percent; currently under consideration to facilitate this change, • net export: -8.5 percent; including using a higher tax for leaded petrol, a higher • and variation in stock, -0.4 percent. (Embassy of tax for vehicles without catalytic converters and subsi- Romania, 1999) dies for cleaner-technology vehicles. (Popovici, 2000) On May 28, 1991, Romania signed the Convention on In the process of trade liberalisation over the past Long-Range Transboundary Air Pollution (1979). This few years, Romania has introduced a package of import convention states that signatories will cooperate to tariff reductions, including reductions on food products, study, monitor and control transboundary air pollution which dropped the average agricultural tariff to 32 per- — though no targets have yet been defined in the coun- cent, from 122 percent in 1996. Since the 1997 inclusion try’s environmental policies. But Romania has not signed of Romania in the Central European Free Trade the 1985 Protocol to that convention, which envisages a Agreement (CEFTA), however, a recent increase in these 30 percent reduction of sulphur emissions — even tariffs has been agreed upon in order to cushion some of though neighbouring countries, such as Czech Republic, the adverse effects on farmers and food processors Poland, Slovakia, Bulgaria, Hungary, Slovenia, Russia resulting from the earlier liberalisation. (EBRD, 2000) and Ukraine have signed it. (Popovici, 2000) Regarding privatisation, progress has been slower in Romania than in most of the transition countries of CEE. Biodiversity At the end of 1996, more than a third of the State Since 1932, protected areas have been steadily iden- Ownership Fund companies were still state owned. tified in Romania in various levels of protection, includ- (EBRD, 2000) To help expedite the process, a Ministry ing natural monuments, national parks, nature reserves of Privatisation was established in 1997. Since that time, and forest reserves. Thirteen national parks, with terri- five large state enterprises have been transformed into tory totalling 492,057 hectares, were identified in 1990 joint-stock companies in preparation for privatisation. alone. (Hewett, 1995) Perhaps the most significant of Among these are the national telecoms operator, Romania’s protected regions is the Danube Delta, Romtelecom, and the electricity company, Renel. which covers 647,000 hectares and is listed under the In addition to facing difficulties associated with pri- Ramsar Convention — to which Romania is a party — vatisation, the current large state-owned companies, as an area of international importance. (WRI, 1998) which are some of the most-polluting enterprises, are Romania hosts several important populations of flora often unable to pay taxes in full. Arrears to the state and fauna, many of which have disappeared in other areas budget were around USD 3 billion, or 8 percent of GDP, of Europe. In particular, the country’s mountain areas and in 1998. (EBRD, 2000) The net effect of this debt is a the Danube delta host species such as lynx, bears, wild decreased level of investment in all sectors — and a goats, hares and great bustards. Additionally, Romania har- marked lack of financial activity in the environmental bours over 3,700 plant species, which is approximately 40 sector in particular. percent of Europe’s total. (Hewett, 1995) Economic and Regulatory Instruments for Environment Economy The implementation of economic instruments for Since 1989, Romania has been faced with the com- environmental financing is high on Romania’s policy plex task of completing a transition from a centrally agenda, in order to encourage polluters to identify con- planned to a market economy. Recent closures of inef- trol measures at low costs and to produce benefits for ficient enterprises have resulted in a decrease in gross the future Environmental Fund. value added in almost all sectors, including industry, The requirements imposed by the process of har- construction and agriculture. In 1998, GDP, estimated at monisation with EU environmental standards under the ROL 338,670 billion, was 7.3 percent lower in real terms Association Agreement is placing particular pressure on than in 1997, though the private sector share in GDP the country’s financial base, thus creating greater pres-

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sure to establish economic financial mechanisms for the REReP Priority Areas in Romania environmental sector. But the efficiency of economic instruments in solving environmental problems in 1. Legal, Political Romania is still limited. (Government of Romania, 1999) and Institutional Framework1 The main contributing factors to this inefficiency include the absence of political will to establish suffi- Governmental Agencies cient tax levels to stimulate investments and compli- The Ministry of Waters, Forestry and Environmental ance, inadequate understanding among policy-makers Protection (MWFEP), reorganised in 1999, is the main of economic and environmental policy integration into decision-making institution on environmental matters the overall economic development program of the in Romania. country, poor monitoring and implementation of regu- As a part of the approximation process to EU stan- lations, low social acceptance and inappropriate cost dards under the Association Agreement, there have been recovery for public environmental services. ten working groups established under the MWFEP for the Sustainable development requires both full-cost pric- elaboration of approximation strategies appropriate to all ing of natural resources as well as adequate access by sectors of the environmental acquis — as well as for the economic agents to financing sources for environmental introduction of laws required for the enforcement of these investment. The funding sources in Romania include: strategies. The working groups comprise representatives from the ministries and institutions closely related to the • national budget funds of the relevant ministries; environmental field. (Government of Romania, 1999) • regional budget funds; In the new administrative structure, local environmental protection agencies aim to take over the recom- • municipal budget funds; mendations of the EC, by setting forth the required units • revenues from charges, penalties and fines; for the development of initiating capability to attend the • revenues from concessions; identification and implementation phases of approximation of the community programs. Hereby there is • revenues from public services; provided the goal of involvement also of environmental • commercial bank loans; agencies to the drawing up of the European environ- •and revenues from privatisation. (Popovici, 2000) mental adoption programs. The control and inspection activities are provided Starting in November 1997, the Romanian Ministry within the ministry by the General Directorate for of Waters, Forests and Environmental Protection initiat- Monitoring and Ecological Control and at the local level ed an action focused on developing economic instru- by the control and inspection bodies within the Local ments — in the air, water and waste sectors — by set- Environmental Protection Agencies. After restructuring, ting up several inter-ministerial working groups, involv- the environmental agencies took over regulation, per- ing representatives from all ministries. mitting and control functions in the water sector. This For the air sector, the new proposed instruments are process aims to simplify the territorial structures under related to: taxes on leaded gasoline, sulphur taxes, emis- the ministry, and to increase the responsibilities of envi- sion charges and reporting requirements. Discussions ronmental agencies in order to promote a more inte- revealed that the advantages of controlling SO2 emissions grated approach to environmental activities within a are large, and the benefits of removing sulphur from decentralised and flexible structure. diesel fuel, coal and fuel oil are far greater than the costs. During the period from 1997-1999, environmental Starting from Jan. 1, 1998, the import duties for cars efforts achieved considerable progress in terms of pol- equipped with catalytic converters are lower than those lution abatement, not only due to the reduction of for cars without, thus compensating the supplementary industrial activity, but also due to the new environmen- costs of the pollution control device. (Popovici, 2000) tal policies undertaken at the central level — by the In the solid-waste sector, a deposit-refund system for MWFEP and environmental units within other ministries lead-acid batteries and a product charges system — — as well as at the local level — by local Environmental imposing fees on tires, for example — has been proposed. Protection Agencies, National Forest Regie, the “Apele For the water sector, the new proposed instruments Romane” National Company (Romanian Waters) and include the increase of existing waste water tariffs, the use the environmental departments of the Ministry of of existing wastewater discharge reporting to create a pub- Agriculture and Food and Ministry of Health. lic information report and the imposition of charges for flood protection and prevention services. The latter aims Environmental Policies to cover costs of flood protection with support from the The European Association Agreement stipulates National Company “Apele Romane.” (EBRD, 2000) that Romania’s development policies must be guided

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by the principle of sustainable development and by There still exist large gaps, however, in the creation of incorporating environmental considerations into eco- laws, regulations and administrative structures in the nomic development. country to adequately enforce these framework laws. The Program for the Adoption of the Environmental Recent legislative measures include the finalisation acquis communautaire refers to the achievement of and submission of bills of legal norms relating to envi- measures leading to the harmonisation of national leg- ronmental impact assessments, public access to envi- islation with that already existing in the EU, as well as ronmental information and participation in the deci- the institutional development required to implement sion-making process. Currently there are also two bills environmental legislation in Romania. The preliminary under consideration in the Parliament regarding air results of programs funded by the EC for legislation har- quality and waste management. monisation, indicate an extension of the deadline for There are also plans to monitor and assess carbon the full transposition of the environmental acquis by dioxide and other greenhouse gases emissions, to com- 2005. The implementation phase, due to the large ply the climate change legislation under the EU Council amounts of investments required, is largely influenced Decision No. 93/389/EEC concerning the creation of a by the economic development of the country overall. community mechanism for the monitoring of carbon A 1997-98 study regarding the approximation dioxide and ozone depleting substances. These mea- process in Romania concludes that the elaboration of sures will facilitate the implementation of the new eco- the Environmental Strategy has been achieved in com- nomic instruments related to carbon dioxide emissions. pliance with general guiding environmental principles, Another important legislative measure that has been including: maintaining and improving human health, provided by the agenda of 1999 refers to the approval sustainable development, pollution prevention, biodiversity conservation, conservation of historical and cul- of the establishment of an Environmental Fund, which tural inherited values, “polluter pays,” “end-user pays” should be in place by 2002. and the promotion of environmental rehabilitation. In 1998, the NEAP was updated in line with the 2. State of Environmental Civil Society Program for the Adoption of the Acquis. Since then, Although the oldest Romanian NGO was founded in activities carried out within this framework include the 1886, most environmental NGOs in Romania developed implementation of various projects with cooperative in the 1990s, as a part of the drive to shift the national input of various ministries, including the Ministry of paradigm from totalitarianism to democracy. Since that Heath, the Ministry of Transport, the Ministry of Industry and Commerce, the Ministry of Agriculture and Food, time, over 200 environmental NGOs have developed in the Ministry of Public Works and Territorial Planning, the country, and they have a achieved a rather high the Department for Local Public Relations and the level of organisational success — with the realisation of Ministry of Waters, Forest and Environmental Protection. at least four nation-wide environmental NGO confer- Since May 1999, the Local Environmental Action ences in the last decade. (REC, 1997) Plan, developed with the assistance of economic oper- Most Romanian Environmental NGOs focus on envi- ators and the representatives of local administration and ronmental education and training (88 percent), envi- civil society, represents an inventory of local environ- ronmental fieldwork (65 percent), nature conservation, mental concerns that have become objectives for inter- pollution prevention, environmental information dis- nal and international funding. semination and public awareness raising (52 percent). Despite significant efforts to strengthen the environ- (REC, 1997) mental policies in Romania, however, there are still large There has been less effort in influencing environ- discrepancies between Romanian environmental stan- mental legislation-building or policy-making, though dards and those of the EU. The main reason for this is the activity regarding these issues has increased since the legacy of an economic system that did not consider envi- development of the 1998 Aarhus Convention on Public ronmental externalities. Specifically, ongoing inefficiency Participation, Access to Information and Access to in the energy sector, and low investment in the environ- Justice in Environmental Matters. mental infrastructure, are concerns that the Romanian gov- The main problems facing Romanian NGOs today ernment must tackle in its policy agenda in coming years. are: lack of financial resources, difficulties involved with official registration under the old law of associa- Legal Framework tions and foundations (law no.21/1924), limited access In the environmental field there is a framework to information and lack of capacity. Training in Environmental Protection Law, passed in 1995, from fundraising and project management are particularly which specific laws — such as the Water Law of 1996 needed among the NGO community in Romania at this and the Forestry Code of 1996 — have been developed. time. (REC, 1997)

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3. Environmental Consequences Infrastructure, Utilities: Water of Armed Conflict The main and dominant problem at present is the inability of industry, agriculture and municipalities to pay Romania has felt very few direct consequences of the for the costs of water management. Therefore, the system armed conflicts in South Eastern Europe. Perhaps the cannot yet be evaluated as environmentally effective and most significant are the impacts of the NATO bombing in cost-efficient. Enforcement and collection of the pay- Serbia on the water resources of the Danube River. (See ments must be given high priority. In the medium and Environmental Profile: Yugoslavia for more details.) longer term, consumers should be able to pay for their water services. It is expected that, once economic stabilisation has been achieved, detailed consideration should 4. Cross-Border Environmental be given to the potential introduction of further pollution Resources/Sources of Regional Cooperation charges, further increases in water tariffs or penalties that The primary cross border resources of interest in will contribute to the clean-up costs of old polluted sites Romania today are water resources, particularly those — which currently constitute an environmental danger to related to the Danube River. The recent mining spills in the water supply and to water quality in Romania. the northwest of the country, at Baia Mare and Baia Borsa, have revealed an urgent need for the establish- Transport ment of cooperative water management regimes, includ- According to EU standards, Romania must limit the ing joint-monitoring efforts. Additionally, Romania and lead content of gasoline to 0.15 grams per litre. The first Serbia share hydroelectric production facilities at the Iron step was achieved in 1997 by lowering the maximum Gates dam on the Danube River. Efforts to coordinate lead content of gasoline from 0.6 grams per litre to 0.32 management of the Danube River generally among its grams per litre, which is still above the limit imposed by riparian states, is already underway, and Romania cur- EU norms. Toward further improvement, the “Action Plan for Reduction of the Lead Content from Gasoline” rently participates in several international processes on (August 1998), has incorporated specific economic this topic. But the continued high levels of contamination measures and separate targets, both for the existing found in the lower Danube indicate that further activity is vehicles as well for newly-registered vehicles. A contin- necessary in this area. ued program of strategic activities to phase-out leaded gasoline will be necessary in order to achieve full com- 5. National Environmental Priorities pliance with EU standards. Institution and Policy Building All national environmental priorities today relate to the process of approximation to EU standards under NOTES Romania’s Association Agreement with the EU. 1 This section draws primarily on Key Indicators for Economic Development of the country’s environmental institu- Instruments in Romania, a working paper prepared by Mihaela tions, monitoring systems, and regulatory agency’s will Popovici for the Sofia Initiative on Economic Instruments at the Regional Environmental Center for Central and Eastern Europe (REC), therefore be a top priority in coming years. in the spring of 2000. Additionally, policy related to the privatisation of forest lands in Romania is a top-priority in 2000. Issues related to property rights on newly privatised land and development regulations — to prevent vast degradation REFERENCES of forest lands — will require resolution strategies in Burhala, F. (1995) ed.: Brief History of Romania, . EBRD (2000): Transition Report Update, May 2000, London, UK. Waste Embassy of Romania (to Japan) (1999): Romania and the EU Only around 9 percent of the nearly 2,000 waste Integration Process, sites in Romania have permits. Municipal waste sites are Government of Romania (1999): Report on the Progress of Preparing thought to receive a wide variety of waste types, includ- for Accession to the European Union Since the Previous Report (August 1998) To-Date (June 1999), Bucharest, Romania. ing industrial waste and sludge. The leaching of heavy Hewett, J. (1995) ed.: European Environmental Almanac, Institute for metals and other toxic chemicals from decaying waste European Environmental Policy, Earthscan Publications Ltd., London, UK. sites, as well as from the tailings around metalworks is The Regional Environmental Center for Central and Eastern Europe (REC) becoming a very serious problem which will require (1997): NGO Directory: A Directory of Environmental Non-governmen- close attention in the country in the near future. tal Organisations in Central and Eastern Europe, Szentendre, Hungary.

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Popvici, M. (2000), ed.: Key Indicators for Economic Instruments in Romania, working paper for the Sofia Initiative on Economic Instruments, The Regional Environmental Center for Central and Eastern Europe (REC), Szentendre, Hungary. World Resources Institute (WRI) (1998): World Resources: A Guide to the Global Environment, 1998-99, produced by World Resources Institute Oxford University Press, NY, USA.

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Environmental Profile: Yugoslavia

BASIC INFORMATION HUNGARY 050 Population in 1998 (millions) 10.4 Subotica kilometers Population in 2025 projection (millions) 10.7 Population Density – 1996 (inhabitants/1,000 hectares) 1,009 Vojvodina Total Area – 1997 (1,000 hectares) 10,200 CROATIA Novi Sad ROMANIA

ENVIRONMENTAL DATA Belgrade Forest Cover – total 1995 (1,000 hectares) 1,769 SERBIA Agricultural Land – total 1994 (1,000 hectares) 4,085

Renewable Water Resources – 1998 na BOSNIA AND YUGOSLAVIA Number of Protected Areas – 1997 27 HERZEGOVINA Percentage of Land Protected – 1997 3.2 Novi Pazar Nis

Niksic MACROECONOMIC INDICATORS Pristina MONTENEGRO BULG GDP – 1997 (billion YUN) 100.6 Cetinje Podgorica Kosovo GDP per capita – 1997 (USD) 1,576 GDP per capita – 1997 (USD, Purchasing Power Parity) na Adriatic ALBANIA FYR Inflation – 1997 18.5 Sea MACEDONIA (change in year-end consumer price level – percent) Unemployment – 1997 (Percentage of labour force) 25.9

Sources: “World Resources 1998-1999,” joint report by WRI, UNEP, UNDP, World Bank; Vucic, V., “Update of Key Indicators of Economic Instruments,” SIEI, REC, 2000.

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Environmental Profile: Yugoslavia

Note: At the time of publication, the results of political Bosnia and Herzegovina, the claim to independence changes in Yugoslavia are still unclear. This report launched violence, and then full-scale war — which therefore presents the situation in the country based on eventually pulled in Bosnian Serbs, Muslims and Croats information available as of October 2000. and became one of the bloodiest conflicts in Europe since World War II. The conflict in the former Yugoslav Republics that raged from 1991-95 was followed by Introduction fighting in the territory of Kosovo in 1999 — which ended after a March 24 to June 10 NATO bombing cam- The Federal Republic of Yugoslavia is a topograph- paign targeting Serbia. The total effect of all of these ically diverse country, situated in the centre of the military activities on the society, economy and environ- Balkan Peninsula. The territory of Yugoslavia — today ment of the current nation of Yugoslavia was enor- encompassing the Republic of Serbia in the north and mous, and will be the primary focus of this report. the much smaller Republic of Montenegro in the south — has a total area of 102,173 square kilometres and a During the 14 months following the end of the NATO population of 10.5 million. (REC, 1999) bombing campaign in Yugoslavia, the international com- Yugoslavia is rich in natural resources — including a munity continued to impose strict economic and political high level of biodiversity — and has legacy of strong sanctions on the country — thus severely inhibiting any environmental management and a developed legal envi- real economic development or environmental remedia- ronmental framework from the past political regime. tion. Yugoslavia was also precluded from formally par- With 300 kilometres of coastline along the Adriatic Sea, ticipating as a beneficiary of any regional reconstruction and 588 kilometres along the Danube River, the country processes, such as those underway as part of the Stability has an essential role to play in some of the primary Pact for SEE, which includes the REReP. shared resource regimes in SEE. (Yugoslavia, 2000) There is currently good reason to hope that the Today, however, the country is undergoing a tumul- change of government initiated by the Sept. 24, 2000 tuous period of political, economic and social uncer- elections in Yugoslavia will help bring an end to the tainty, which had precluded its participation in interna- stagnant situation in the country and renew Yugoslavia’s tional processes since the beginning of 1999. general participation in the international community. In From the years 1945-1991, Yugoslavia was a part of this case, the first tasks for the new government will be to the Socialist Federal Republic of Yugoslavia, which also address the immediate environmental dangers and to included the now independent republics of Slovenia, begin remediating contaminated sites throughout the Croatia, Bosnia and Herzegovina and FYR Macedonia, country. At the same time, there will be a great need to and was united under one government, headed by begin rebuilding all governmental and economic institu- Marshal Josip Broz Tito. Upon Tito’s death in 1980, the tions and to create viable environmental and sectoral fractious nature of this union became apparent as the policies that are relevant to the current situation and can region drifted into a decentralised system with some bring the country’s economy and environment quickly measures of self-governance for Yugoslavia’s six con- back to the pre-war levels of success and quality. stituent republics — Slovenia, Serbia, Croatia, Bosnia, Montenegro and Macedonia, as well as the Serbian province of Kosovo, which is 90 percent ethnic Albanian. The development stirred resentment among The Framework for Serbs, and under the leadership of Slobodan Milosevic, Environmental Policy who was elected as President of Yugoslavia in 1989 and held that office until 2000, a strong sentiment of Serbian and Management nationalism rose as the formerly joined Republics of the 1 Socialist Federal Republic of Yugoslavia began to claim Current Environmental Conditions independence from the federal system. The eleven weeks of NATO bombing, from March 24 In the cases of Slovenia and FYR Macedonia, this until June 10, 1999, were characterised by NATO as a lim- independence came peacefully. But for Croatia and ited military campaign targeting strategic sites with “surgi-

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cal precision,” but the air strikes nonetheless resulted in nants in Box 2.) Pollutants such as heavy oil, PCBs and structural damage to economic and civilian facilities heavy metals were found in the surface soils in the throughout the country. It is estimated that more than immediate area surrounding these damaged facilities. 1,200 aircraft made over 25,000 flights during the NATO Additionally, there are strong fears that much of he pol- campaign in Yugoslavia. During these flights, about lution that was released into the air and the waterways 17,000 attacks were made against designated targets all will also eventually find its way into the soil — perhaps around Yugoslavia, with 700 in one night alone, on May with far-reaching effects — through rainfall or leaching. 14, 1999. (REC 1999). Transportation infrastructure — (UNEP/UNCHS BTF, 1999) including bridges over the Danube River — electric In addition to chemical contaminants, there was also power production centres and chemical/industrial com- physical damage to the soil caused by the 1999 bomb- plexes were among the targets that incurred the greatest ing. In particular, there is evidence of damage to upper physical damage during the bombing. The result of this layers of soil from the impact of military munitions, as structural damage was the emission of various chemical well as deep craters in the humus layer, which will take contaminants into water, air and soil of the local environ- years to recuperate without remediation activities — as ment. Although the pollution was not characterised as a it is believed that the surface layer of soil naturally catastrophe, it has raised serious health concerns for local grows only 0.5-2 centimetres in 100 years. communities — as well as fears that long-term problems Finally, NATO has recently confirmed that the military may result as these contaminants become mobile and operations in Yugoslavia and Kosovo included the use of spread throughout the country’s resource base. DU in some of the munitions fired. DU is a radioactive waste product of nuclear power production, and because Soil, Forests, Agricultural Land of its extreme density and ready availability, it has recent- Forests cover 28 percent (2,858,000 hectares) of the ly begun to be used in military weapons designed to total area of Yugoslavia, and have been increasing in pierce metal. Due to the nature of uranium metal, the volume since the 1960s, with a 4 percent increase from result of an impact of a DU weapon is the formation of 1966 to 1993, presumably due to favourable forestry uranium oxide particles, which are known to be of a size management practices by the former Yugoslav govern- that may be inhaled and imbedded in the lungs. Concerns ment. (UNEP/UNCHS BTF, 1999) about DU are related to both its chemical and radiological Most land degradation in Yugoslavia has traditional- properties. (UNEP/UNCHS BTF, 1999) ly been caused by mining, human waste, transportation and agriculture. However, the reduction of fertiliser use Water in agriculture in the 1990s has led to a decreased chem- Total water resources in Yugoslavia today is 207 x ical pressure on the soil resources in agricultural zones 109 cubic metres — of which, 175 x 109 cubic metres is in the country in recent years. The current spectrum of received from transboundary river networks such as the degraded soil in Yugoslavia is distributed as: 30 percent Danube River, which covers 817,000 kilometres in 17 from open-cast mining, 25 percent from industry and CEE countries, and receives chronic inputs of pollutants traffic, 20 percent from reservoirs, 15 percent from from industry and agriculture throughout the river waste dumps and 10 percent from human settlements. basin. (Yugoslavia, 2000). (Yugoslavia, 2000) It is therefore a vital interest of the Yugoslavia gov- The 1999 military operations in Yugoslavia left the ernment to cooperate with other Danube basin coun- country with unique forms and categories of waste that tries to manage the use of the river’s resources. affect the land today. These include destroyed military It is estimated that groundwater supplies 90 percent vehicles and aircraft and damaged military buildings and of Serbia’s domestic and industrial needs, with 70 per- infrastructure. In addition, unexploded bombs, muni- cent of the country’s drinking water deriving from tions and land mines still litter the landscape of the war groundwater sources. (REC, 1999) zones, posing a special threat to the environment and The quality of surface and ground waters in the citizens. Finding, characterising and safely removing country is controlled by hydro-meteorological institutes these wastes requires highly specialised training, strate- and public health institutes, which have produced data gy and equipment. showing that over the past 30 years, the quality of water Additional threats from the 1999 air strikes in resources in Yugoslavia have dropped considerably, Yugoslavia include the large amount of chemical conta- due to rapid industrialisation processes under the com- minants released into the air, soil and water pathways. munist regime as well as increased urbanisation and This problem is particularly serious at the petrochemical agricultural pressures. plants at Pancevo, the oil refinery at Novi Sad, the man- During the NATO bombing campaign, many contam- ufacturing complex at Kragujevac, and the mining and inants and harmful chemicals were released into the metallurgy centre of Bor. (See full listing of contami- water pathways in the immediate localities of the bomb-

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ing, including oil and its derivatives, polychlorinated BOX 2 biphenyles (PCBs), vinyl chloride monomer (VCMs), ethylene dichloride (EDC), hydrogen chloride (HCl), Contaminants released into the hydroflouric acid (HF) and heavy metals. At the oil refin- environment during the 1999 conflict ery in Pancevo, for example, a wastewater canal that in Yugoslavia drains directly into the Danube River was heavily polluted with mercury, oil derivatives and other harmful chem- • Radioactive pollutants (DU) icals — which undoubtedly reached the Danube River. •Vinyl chloride monomers (VCMs) In particular, after the bombing of the vinyl chloride monomers plant in Pancevo on the night of April 18, • Chlorine (Cl) 1999, more than 1,000 tones of EDC and almost 1,000 •Polychlorinated biphenyls (PCBs) tons of a solution containing 33 percent HCl were • Oil and products from incomplete combustion released directly into the Danube River. Furthermore, about 3,000 tons of natrium hydroxyde (NaOH), and • Soot and particulates tens of tons of liquid chlorine (Cl2) were released. It • Nitrogen Oxides (NOx) also seems highly likely that some quantity of mercury was released into the environment after the destruction • Hydroflouric acid (HF) of the chlorine-alkaline electrolysis plant in Pancevo, • Heavy metals (cadmium, lead, mercury, nickel) where about 100 tons of mercury is stored during the • Ammonia (NH ) plant’s normal operation process. (REC, 1999) 3 Although a flowing river eventually cleanses itself • Ethylene dichloride (EDC) by bottom sediments, toxic substances accumulate in • Natrium hydroxide (NaOH) the sediment and can remain there. If toxins are not • Hydrogen chloride (HCl) degraded, they can be released again by a change in the physical and chemical properties of the water, such as • Phosgene, (CCl2O), Phenol (C6H6O), Styrene alterations engendered by ionic forces, a change in pH, (C8H8) oxidation reduction or the presence of complexing •Polycyclic aromatic hydrocarbons (PAHs) agents. Therefore, there are continued fears that the release of these contaminants during the bombings will have a long-term effect for Yugoslavia and neighbour- One of the dangers of air pollution is the speed with ing countries. (Polic, 1999) which it can affect large populations. After the bombing on the industrial complex and oil refineries in Pancevo and Air Novi Sad, large clouds of contaminants affected the inhab- The principal air pollution sources in Yugoslavia itants of nearby settlements, including Yugoslavia’s capital have traditionally been thermal power facilities, indus- city, Belgrade. Though these clouds were dispersed in the trial processes, vehicle emissions and domestic heating. short-term, the long-term health ramifications of respiring The aging, inefficient energy production network exac- the contaminants from the polluted air is yet unknown. erbates this problem and will remain a challenge for Yugoslavia’s government in coming years. Biodiversity Air quality is monitored through a national network According to IUCN-WMC criteria, the territory of of 25 meteorological stations, 28 urban measuring sites Yugoslavia, together with the mountainous region of and 14 industrial stations. Data from 1997 shows SO2 Bulgaria, represents a European centre of biodiversity emissions in Yugoslavia to be 522,000 tons per year, — one of six in Europe and 153 world-wide. Yugoslavia and emissions of NOx to be 66,000 tons per year. is home to 38.9 percent of the total number of vascular (Yugoslavia, 2000) plant species in Europe, 51.2 percent of European fish During the 1999 bombing, air pollutants in the form species, 74.0 percent of European bird species and 67.6 of toxic substances, such as suspended particles, heavy percent of European mammal species. Protected natur- metals, VCMs, PAHs and PCBs, were released from al features in Yugoslavia, which cover 4 percent of state destroyed industrial facilities. In particular, the damage territory, contain the highest concentrations of plant, to the smelting plant at Bor resulted in the release of a animal and all other species. (REC, 1999) large quantity of SO2 into the atmosphere, which will Montenegro, the southern Republic of Yugoslavia, cause a temporary problem in the immediate area, but has declared itself to be the world’s first “environmental will certainly add to the chronic environmental con- state,” pledging to live more harmoniously with nature. cerns in the country, such as acid rain and future The challenge it has set for itself is a difficult one, with water/soil contamination. industry causing pollution of the air, soil and water —

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and tourist developments along the coast threatening companies that deal with environmental technologies are saltwater estuaries. (REC, 1999) exempt from import taxes on production inputs, and Yugoslavia has nine national parks, located in all of the environmental investments are allowed various corpo- three geographic macro-regions: the Pannonian plains, the rate and income tax benefits — such as exemption from mountainous regions and the coast. These parks include wholesale taxes for energy-saving services or deduction Fruska Gora, Djerdap (the Iron Gate), Kopaonik, Tara, Mt. from corporate/income taxes for environmentally-related Sara, Biogradska Gora, Durmitor, Lovcen and Skadar Lake capital expenditures. (Vucic, 2000) in Montenegro. In addition, the Zlatibor uplands area is a biodiversity-rich grasslands region that has been recommended for designation as a national park. REReP Priority Areas During the 1999 bombings, significant damage was incurred in limited areas of these protected zones — in Yugoslavia including craters in the soil surface, impact-combusted forest fires and the depositing of unexploded ordnance 1. Legal, Political — however, it appears that this damage was localised and Institutional Framework and is fairly minor with respect to the total size and Like most other countries in the CEE/SEE region, envi- functioning of the ecosystems, species and habitats ronmental protection became a priority on the policy included in the country’s entire protected system. agenda in Yugoslavia in the 1970s. This is reflected in the (UNEP/UNCHS BTF, 1999) rather highly developed framework of environmental laws and policies — which were in place under previous regimes in Yugoslavia and have largely been passed on to 2 Economy the current body of laws. For example, at the federal level Initial estimates reveal that the total economic dam- in Yugoslavia today, there is constitutional recognition of age incurred in Yugoslavia during the years of conflict the right to a healthy environment, there is framework was over USD 29.6 billion in depreciation of existing environmental legislation and environmental impact capital, a figure which does not include the opportunity assessment legislation for Serbia and there is an environ- costs associated with the decrease of production and the mental policy statement. (UNEP/UNCHS BTF, 1999) loss of markets for exports. (Vucic, 2000) Unofficial esti- But after the decade of war, economic decline and mates from within the country show that total GDP was political instability in Yugoslavia, environmental man- reduced by 40.7 percent in 1999, resulting in a GDP per agement has clearly been relegated to a very low-priori- capita of USD 975 by the year’s end. Additionally, unem- ty issue for the country’s recent decision-makers. ployment estimates reveal a sharp increase from 25.1 Therefore, as the process of restructuring and reform percent in 1998 to 32.6 percent in 1999. (REC, 2000) begins in Yugoslavia, the strengthening of environmental The recent political changes in Yugoslavia are likely laws and institutions will be a first and immediate need to have a very positive effect on the nation’s economy. for the country in order to ensure that the reconstruction The end of international economic sanctions would be process occurs in an efficient, sustainable manner. one factor that would drastically improve the economic potential of Yugoslavia in the coming years. In addition, Governmental Agencies improvements and reforms in the county’s macroeco- Today, the primary body for environmental deci- nomic policy could result in rapid economic improve- sion-making in Yugoslavia is the Federal Ministry for ments in the short-term. Development, Science and Environment. There are also ministries of environment at the Republic-level in Serbia Economic and Regulatory Instruments and Montenegro. There is however, no single adminis- for Environment trative body, such as an environmental protection Generally speaking, the role of economic instruments agency, which coordinates the monitoring of environ- as a tool in environmental management policy is not fully mental resources and enforcement of environmental recognised in the Republic of Serbia or the Republic of standards and regulations. These activities are rather Montenegro. Despite the fact that the present tax system shared among institutions with authority over various does allow for the introduction of so-called “ecotaxes,” other sectors. (Vucic, 2000) there has, as of yet, been no move to initiate these — at either the federal or republic level. However, one of the Environmental Policies tenets of the national economic strategy refers to the Sectoral legislation on water, soil, air, natural and introduction of economic incentives, with the aim of cultural resources, urban and land planning, and waste influencing market dynamics and investment toward disposal, exist in Yugoslavia and comprise a significant more environmentally-efficient activities. For example, body of laws and regulations. But the practical imple-

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mentation of these laws has been reportedly very weak Protocol on Substances that Deplete the Ozone Layer. during the past decade of economic and political diffi- In 1997, Yugoslavia ratified the United Nations culties. Implementation of international environmental Framework Convention on Climate Change. It has also principles and obligations under global environmental ratified the following UN/ECE negotiated conventions: agreements has been suspended or “put on ice” during Convention on Environmental Impact in a the recent period of economic sanctions imposed on Transboundary Context; Convention on Transboundary the country. (Yugoslavia, 2000) Effects of Industrial Accidents; Convention on the Additionally, access to environmental information Protection and Use of Transboundary Waters and by the public as well as public participation in environ- International Lakes. (REC, 1999) mental decision-making has been very low, presumably Yugoslavia has not yet ratified the 1998 Aarhus due to a lack of environmental data collection tools and Convention on access to information, public participa- information dissemination capacity in the environmen- tion in decision-making and access to justice on envi- tal ministries. The Yugoslav government has recognised ronmental matters. the importance of this issue, however, a fact reflected in a recent project initiated by environmental authorities in 2. State of Environmental Civil Society the country to design and implement “An Integrated Environmental Information System for the Federal The entire NGO community in Yugoslavia was seri- Republic of Yugoslavia.” (UNEP/UNCHS BTF, 1999) ously affected by the war. This is especially evident among environmental NGOs, for whom the dynamic process of forming new organisations — which had Legal Framework been increasing in recent years — came to a sudden The constitution of Yugoslavia was adopted in 1992 halt. (REC, 1999) and gave the basis for environmental legislation. In most cases, the program of existing NGOs have Yugoslavia has many laws, regulations and ratified been cancelled as well, partly because the threat from treaties in the field of the environment, but the real the constant bombing prevented field activities, and impact of federal legislation is currently minimal. An partly due to shortages in available subsidies, problems attempt in 1993 to enact a federal law on the criteria for in power supply and reduction in communications, all environmental protection apparently failed because it of which kept NGOs capacity to a minimum. overstepped the authority of the member republics. Additionally, for the past decade, all forms of media The environmental legislation of the Republic of — including environmental media — in Yugoslavia was Serbia changed from 1989 onwards. Its constitution in limited, and free media ventures were often sup- the environmental field is less progressive than the pressed. There is strong hope that this situation will overall Yugoslavia constitution; it does not, for exam- change in the near future and allow for the develop- ple, recognise the right to a healthy environment and it ment of viable, free and independent media enterprises does not establish the right to environmental informa- in the short-term. This process should be facilitated and tion. The Republic of Serbia’s constitution does, howev- encouraged in the policy agenda of any new govern- er, define environment rather broadly. It also brings all ment in Yugoslavia. (REC, 1999) fragmented environmental legislation together into one framework law and prescribes the funds for financing environmental protection. In the area of compliance 3. Environmental Consequences and enforcement, the framework laws of both the of Armed Conflict Republic of Serbia and the Republic of Montenegro The wars in Bosnia and Herzegovina and Croatia provide for the supervision of inspectors, a complaints between 1991-95, and the 1999 Kosovo conflict, have procedure and strengthened penalties for various envi- greatly affected all aspects of the economy, society and ronmental violations. (REC, 1999) natural environment in Yugoslavia. The environmental International environmental conventions ratified by impacts of these events — which primarily result from the old socialist regime in Yugoslavia include the the NATO bombing of the country in 1999 — are: phys- Convention concerning the Protection of the World ical damage to structures and landscapes, release of Cultural and Natural Heritage; the Ramsar Convention on contaminants from destroyed industrial facilities into Wetlands of International Importance Especially as environmental pathways, remnants or munitions and Waterfowl Habitat; the Convention for the Protection of landmines and potential long-life radioactive residue the Mediterranean Sea Against Pollution and its Protocols; from the use of DU weapons. the Convention on Long-range Transboundary Air Several recent studies have concluded that, while these Pollution and its EMEP Protocol; the United Nations impacts do not represent an environmental catastrophe Convention on the Law of the Sea; the Vienna Convention affecting the Balkan region as a whole, there are nonethe- for the Protection of the Ozone Layer and its Montreal less several environmental “hot spots” that do exist in

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Yugoslavia. These hot spots harbour serious pollution that Water Management/ pose a threat to human health. (UNEP/UNCHS BTF, 1999) Danube River Basin Resources Remediation at these priority sites will, therefore, need to Recent studies have revealed both chronic and war- be a first step in the reconstruction process in Yugoslavia. related pollution of the Danube River in Yugoslavia. Extensive assessment of the sources of industrial pollution to the Danube within the country will be a necessary 4. Cross-Border Environmental first step to improve the quality of water in the Danube. Resources/Sources of Regional Cooperation As a part of this, an appropriate monitoring program — Surface waters that were polluted as a consequence which is based on the existing programs currently in of the bombing belong to the catchment areas of the place in other Danube Basin countries (and the ICPDR) Black Sea, the Aegean Sea and Adriatic Sea. Therefore, — should be developed and implemented. Secondarily, all of the war-related water pollution could have trans- efforts — such as investment in efficient production and boundary effects. Bulgaria and Romania are the coun- waste management technologies — will be necessary to tries directly downstream from Yugoslavia and were the reduce overall industrial and urban pollution of the river most effected by the post-bombing pollution, which in the long-term. (UNEP/UNCHS BTF, 1999) included floating oil slicks released from bombed refineries. (REC, 1999) Nature protection Reservoirs on large rivers, such as Iron Gate I and II Clearance of unexploded munitions should be on the Danube, are in special danger because the undertaken in protected areas, and long-term manage- process of sedimentation is increased due to the slow- ment plans should be prepared and implemented for ing down of the river’s flow. Iron Gate’s reservoirs each of the damaged protected sites. A viable manage- therefore act as collectors of all upstream pollution. ment regime for the national park system should be Dramatic pollution of most rivers in Yugoslavia by developed, to help officials oversee the sustainable use heavy metals, pyralene (PCB), oil, etc., will almost cer- of these areas in the future. Priority should be given to tainly affect the neighbouring “downstream” countries the establishment of the Prokletije mountain region as a of Romania, Bulgaria and Ukraine in the coming days, National Park and the Zlatibor uplands as a Nature Park. months or years. (Polic, 1999) Priority should be given to the formal establishment of the Prokletije National Park between Montenegro, Kosovo and Albania. Creating a shared management NOTES regime and “peace park” between these three regions, can have a significant stability-building impact for the 1 The three primary resources for this section are: whole of the SEE region. • The Assessment of the Environmental Impact of Military Activities During the Yugoslavia Conflict: Preliminary Findings June 1999, prepared by REC Country Office in Yugoslavia and a team of experts. Team members in Yugoslavia included: Asst. Prof. Dr. Radoje 5. National Environmental Priorities Lausevic, Ing. Chem. Miroslav Spasojevic and M. Sci. Dmitar Based on recent assessments of the post-war envi- Lakusic. ronmental situation in Yugoslavia, the following priori- • The UNEP/UNHCS Balkans Task Force (BTF) report: The Kosovo Conflict – Consequences for the Environment and Human ties have been identified. It is hoped that these priorities Settlements, which was published in October 1999. will be included in the agenda of a new government in • FR Yugoslavia Report: The Consequences of NATO Bombing for the Yugoslavia. Environment in Yugoslavia, produced by the Federal Ministry for Development, Science and the Environment in Yugoslavia in Environmental Clean-up February, 2000. Environmental remediation of the identified “hot The juxtaposition of these three assessment reports offers a broad overview of the current environmental situation in post-war spots” of Novi Sad, Pancevo, Kragujevac and Bor will be Yugoslavia via a wide range of independently collected, and most- a top priority for a new Yugoslav government. This will ly complementary, data and analysis. include remediation of surface soils, development of 2 This section draws primarily on Key Indicators for Economic waste disposal plans for each site and determination of Instruments in FR Yugoslavia, a working paper prepared by Valentina potential health effects the contamination may have in Mileusnic Vucic for the Sofia Initiative on Economic Instruments at the the long-term. This should include detailed groundwa- Regional Environmental Center for Central and Eastern Europe (REC), in the spring of 2000. ter studies — and monitoring of drinking water should occur at all damaged sites to determine if there has been any contamination of water supplies.

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REFERENCES Duijvelaar, C. (2000) ed.: Strategic Environmental Assessment: Kosovo Report, background report prepared for the Swedish International Development Agency (SIDA) by the Regional Environmental Center for Central and Eastern Europe (REC), Szentendre, Hungary. EBRD (2000): Transition Report Update, May 2000, London, UK. Government of Yugoslavia (2000): FR Yugoslavia Report: The Consequences of NATO Bombing for the Environment in Yugoslavia, FR Yugoslavia, Federal Ministry for Development, Science and the Environment, Belgrade, Yugoslavia. Lausevic, R. (1999): Overview of Ecological Consequences of NATO Bombing of Yugoslavia, Belgrade, Yugoslavia. Polic, P. (1999): Pollution in the Conditions of This War: Danger of an Ecological Catastrophe, DC Communications Centre, Belgrade, Yugoslavia. The Regional Environmental Center for Central and Eastern Europe (REC) (2000): Database on Environmental Taxes and Charges in CEE, Szentendre, Hungary. The Regional Environmental Center for Central and Eastern Europe (REC) (1999): Assessment of the Environmental Impact of Military Activities During the Yugoslavia Conflict: Preliminary Findings June 1999, report prepared by REC, Szentendre, Hungary, for the European Commission DG-XI – Environment, Nuclear Safety and Civil Protection. UNEP/UNCHS Balkans Task Force (BTF) (1999): The Kosovo Conflict – Consequences for the Environment and Human Settlements, UNEP, Geneva, Switzerland. Valentina, V (2000): Key Indicators for Economic Instruments in FR Yugoslavia, working paper for the Sofia Initiative on Economic Instruments, The Regional Environmental Center for Central and Eastern Europe (REC), Szentendre, Hungary. World Resources Institute (WRI) (1998): World Resources: A Guide to the Global Environment, 1998-99, Oxford University Press, NY, USA.

THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM 85 Regional Environmental Reconstruction Program Framework Document

As endorsed by the South Eastern European Ministers of Environment

Program Summary ■ Program Background ■ Program Priorities ■

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Program Summary

As the secretariat for the Regional Environmental ment and strategic environmental assessment policy Reconstruction Program (REReP) Task Force, the in SEE countries, as well as environmental auditing Regional Environmental Center for Central and Eastern and environmental management systems in SEE. Europe (REC) has prepared this document on behalf of • Development of economic instruments in environ- the countries of South Eastern Europe (SEE). This mental policy, with a particular emphasis on devel- paper describes in detail a Regional Environmental opment of environmental funds. Reconstruction Program for South Eastern Europe for implementation within the framework of the Stability • Membership and cooperation with the European Pact for South Eastern Europe. Environment Agency, joint development of a regional monitoring system and harmonisation of information/monitoring systems and methodologies Priority Components (including bio-monitoring) with European Union EU standards. As per the agreement by the Ministers of Environ- ment of the countries of SEE in Skopje, FYR Macedo- •Strengthening the capacity of the national environ- nia, on Jan. 15-16, 2000, the proposed program consists mental protection agencies and their inspectorates. of the following five priority components: • Development of national information systems. 1. Institutional strengthening and policy development • Strengthening of the capacities for approximation 2. Environmental civil society building of the EU environmental acquis. 3. Emergency assistance for environmental infrastruc- • Development of a regional strategy for hazardous ture and remediation of war damage waste management. 4. Reinforcement of existing cooperative mechanisms •Development of a regional strategy for cleaner pro- and structures and development of regional cross- duction centres. border projects • Support for ratification and implementation of mul- 5. Support to priority national and local environmen- tilateral environmental conventions, with a special tal projects emphasis on the Aarhus Convention and those conventions related to biodiversity issues. These components are described in more detail below. • Establishment of a Regional Biodiversity Forum, development of a regional ecological network and 1. Institutional Strengthening establishment and support of national biodiversity and Policy Development support groups. This component will consist of the following activities: • Institutional Strengthening in Bosnia & Herzegovina • Development of an SEE joint environmental action of the ministries of environment in Republika Srps- plan, which outlines medium- and long-term priori- ka and the Federation of Bosnia and Herzegovina. ties for development of environmental management in the SEE region. 2. Environmental Civil Society Building • Development of a regional investment strategy for This component will consist of the following activities: SEE. •Development of a regional environment press cen- • Assistance to SEE governments in drafting environ- ter for SEE. mental laws. • Development of a strategy for implementation of • Capacity building of environmental impact assess- the Aarhus Convention.

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• Promoting networking and cooperation of environ- an SEE country, chosen on a rotating basis, and the mental NGOs: Establishment of electronic comput- European Commission. The REC will act as the secre- er networks on national and regional level. tariat for this Task Force. •Development of a Balkan centre for sustainable The regular meetings of the REReP Task Force, as development. well as those of the Stability Pact for SEE, will offer a high-level framework in which progress can be moni- • Development and strengthening of NGOs. tored and activities coordinated — both among the SEE • Assistance in the development of environmental countries and within the international donor community. legal advocacy/advisory centres. The individual program components will be implemented in cooperation with the institutions that are already • Establishing a Regional Environmental Emergency active in cross-border projects in the SEE region. Response and Early Warning Centre. The national ministries in each of the SEE countries will take the leading role in identifying projects, select- 3. Emergency Assistance for Environmental ing qualified implementing agencies to carry out these Infrastructure and Remediation of War Damage projects and negotiating the terms of financial support This component will consist of the following activities: for these projects with donors. The REC, as REReP secretariat, will assist in this process to the extent request- • Assessment of the war consequences related to the ed, and if asked by the SEE national ministries, the REC refugee flow to Albania and Macedonia. may also serve as the implementing agency. In imple- • Development of a remediation plan. mentation, emphasis should be given to the involvement of the SEE ministries of environment, and other 4. Reinforcement of Existing Cooperative organisations from the region, as a matter of priority. Mechanisms and Structures and Development The donors will provide funding to specific projects of Regional Cross-border Projects according to their rules and procedures in a coordinat- This component will consist of the following activities: ed manner. In this framework, the implementing agencies will be charged with ensuring the monitoring and • Participation in the International Commission for reporting of the progress and results of the projects. the Protection of the Danube River. This should include regular reporting to the REReP • Participation of SEE countries in ongoing interna- Task Force and to the public. tional processes. • Implementation of priority cooperative projects with a regional dimension. Timeframe The overall implementation of the REReP will be ful- 5. Support to Priority National and Local filed over a period of five years. Activities have been Environmental Projects broken down into short-term “quick start” projects, medium-term and long term projects. Quick start pro- This component will consist of the following activities: jects will be implemented in the first two years and will • Development or revision of National Environmental be followed by the medium- and long-term projects, Action Plans (NEAPs) which will begin in year three and will build upon the • Strategy for development of Local Action Plans achievements of the initial “Quick Start” activities. (LEAPs) • Capacity building of the local municipalities Total Program Budget • Local sustainable development The total budget for the program is estimated at • Elimination of top-priority environmental hazards EUR 70 million over 5 years, apart from the national and local priority projects — though it is clear that this preliminary figure will be expanded as work under this Implementation program progresses. As agreed and endorsed by the SEE Ministers of Environment at the ministerial meeting in Skopje, Macedonia, on March 16, 2000, the implementation of ‘Quick Start’ Projects Budget the Regional Environmental Reconstruction Program At the March 16 ministerial meeting, the SEE minis- will be facilitated by a special Task Force co-chaired by ters of environment identified a list of “Quick Start” envi-

90 THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM PROGRAM SUMMARY

ronmental projects, which should be implemented within the framework of the Stability Pact for SEE in the short term. These projects have been prepared as a “first phase” of work under the REReP, and are currently prepared to be implemented within a two-year period, beginning in 2000. The total budget for the “Quick Start” projects is estimated at EUR 30.2 million over 2 years.

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Program Background

Based on the experiences of transition in the cur- Introduction rent EU candidate countries of the CEE region, it is During the past decade of war, instability and slow clear that short-term environmental investment projects post-communist reform in the Balkans, both the soci- are readily acceptable and useful to governments and eties and the environment of the region have suffered local communities. Experience also shows that signifi- greatly. At this crucial time, when reconstruction efforts cant medium- to long-term benefits can be achieved if are beginning rapidly in the SEE region, it is essential to environmental concerns are properly integrated into undertake a cooperative regional approach, to ensure any reconstruction strategy from the very beginning. that these efforts are carried out in the most efficient and It is imperative that activities focusing on economic effective manner possible. The cooperative regional reconstruction be carried out with a view to long-term approach will also encourage all of the countries in the sustainable development, rather than opting merely for region to develop simultaneously, so they are equally short-term solutions. Therefore, adequate funds for prepared to enter into wider international processes in environmental projects should be earmarked, and the future, including movement toward full integration there is a need to develop and follow environmental into EU structures. Coordination of such cooperative impact assessments (EIAs), strategic environmental activity is at the heart of the Stability Pact for SEE. assessments (SEAs) and viable environmental investment strategies outlining the involvement and respon- Environment sibilities for domestic institutions. One of the issues that is of particular importance to the lives and well-being of the people of the region History today is environmental management and protection. The concept of a regional environmental recon- This issue is also important for the governments of SEE struction program was originally submitted by the REC countries in terms of institutional capacity building and to the European Commission in September 1999 and assimilation to the standards of the EU. was presented by the Commission at the first meeting Work on the environment can facilitate work in other of the Stability Pact Working Table II on economic areas of the reconstruction process because environmen- reconstruction, development and cooperation in Bari, tal issues, which are often transboundary in nature, have Italy, on Oct. 9, 1999. historically been a means of establishing cross-border Inspired by this concept, the Ministers of Environ- cooperation between countries. Thus the issue of envi- ment of the SEE countries met in Skopje, Macedonia, ronment can contribute to the overall aims of the Stability March 15-16, 2000, to call for the development of a Pact, as environmental cooperation is widely recognised detailed REReP for SEE to be implemented under the as a politically neutral issue for which common agree- Stability Pact. At the Skopje meeting, the SEE environ- ments and transboundary networks can be easily formed. mental ministers also endorsed the establishment of a Today, the environment of SEE is seriously neglected REReP Task Force for South Eastern Europe and named and facing pressures from post-war damage, insufficient the REC as secretariat. institutional infrastructure, decaying industrial systems This paper has been prepared by the REC on behalf and a legacy of years of unchecked pollution. Additional- of the SEE countries. It sets forth the REReP (Regional ly, the environmental institutional capacity in the national Environmental Reconstruction Program for South East- and local governments has been seriously weakened and ern Europe), which presents the priorities for environ- environmental civil society in SEE is in crisis. This is indi- mental activities in the Balkan region as endorsed by cated by inadequate legal frameworks, little public partici- the SEE ministers. pation in decision-making, a low number of NGOs and a The REReP has been designed with an eye toward the lack of public awareness — particularly regarding envi- need to assist international donors in coordinating their ronmental issues — throughout the region. environmental reconstruction efforts, in order to prevent

THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM 93 PROGRAM BACKGROUND

duplicity of activities and to maximise efficiency in the Program Rationale process. Toward this end, it is essential that the program be based on the goal of utilising — to the greatest extent Integration into International Processes possible — the structures and resources already existing The activities described in this paper should be con- in SEE, rather than importing expensive equipment and sidered in the context of EU accession. The countries of personnel. Additionally, the use of technologies and the SEE region will be moving closer to the EU and will expertise from the CEE countries, which themselves are seek to work toward full integration into EU structures. successfully emerging from a period of transition and post-communist rehabilitation, should be given priority as a cost-effective means for achieving program goals. Importance of Environment By building on the ongoing initiatives already Strong environmental institutions, infrastructure underway in the Balkan region and relying on the and standards are important elements of assimilation experiences gained from the EU enlargement process and integration into EU structures. Additionally, it is in the CEE region, the REReP programme also presents widely recognised that environmental cooperation is a a number of concrete activities that could contribute to politically neutral issue, which can contribute to the meeting the objectives of the Stability Pact for SEE. establishment of transboundary agreements and coop- In sum, it is widely recognised that work to improve erative networks, and thus can play a leading role in the environment can play a leading role in generating generating stability in the SEE region. regional stability, and environmental cooperation is viewed as a politically neutral issue, which can con- Environment as Catalyst for tribute to the establishment of transboundary agreements Regional Cooperation and cooperative networks in the SEE region. Based on The Stability Pact for South Eastern Europe seeks to this understanding, it is envisioned that the REReP offers foster lasting peace, prosperity and stability throughout an early concrete step to be taken within the framework a region affected by many recent conflicts. Regional of the Stability Pact for South Eastern Europe. cooperation is one of the fundamental instruments to achieve the objective of the Stability Pact. Environmen- tal cooperation can play a very useful role in fostering Background wider regional cooperation and is now recognised as In response to the war activities in Kosovo, the Sta- one of the key regional activities that can contribute to bility Pact for South Eastern Europe was established on the overall aims of the Stability Pact. Experience from other regions in Europe has shown that it has been June 10, 1999. possible to reinforce regional environmental coopera- The Pact seeks to encourage stability through sup- tion in spite of wider political difficulties. This, in turn, port for regional projects and will be implemented has helped to foster wider political dialogue. through Working Tables. A South Eastern European Regional Table has been created, chaired by a special coordinator. This group will coordinate the activities of Geographical Focus three sub-groups: The main geographical focus of the program will be • Working Table on democratisation Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia and Romania. Yugoslavia will be • Working Table on economic reconstruction, devel- included as appropriate. Other EU countries and candi- opment and cooperation date countries in the region will play a role in the • Working Table on security issues implementation of the program by sharing their expertise, technology and experience in regional coopera- This paper has been prepared at the direct request tion and in the EU accession process. of the countries of SEE to develop a comprehensive plan to address the environmental problems of the SEE region. It serves as a follow-up to the discussion paper Environment: Quick Results presented by the European Commission to the first and Long-Term Benefits meeting of the Stability Pact Working Table on eco- As the REC’s experience in CEE demonstrates, nomic reconstruction, development and cooperation in short-term projects that focus on the development of Bari on Oct. 9, 1999. environmental institutions and infrastructure are readily This paper describes in detail the program priorities as accepted by governments and communities and can be identified by the country representatives of SEE countries. quickly shown to have a tangible, beneficial impact on

94 THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM PROGRAM BACKGROUND

the quality of life of individuals. The REC, and the many other cooperating environmental agencies that are currently operating in the SEE region, are well- equipped to immediately begin working with SEE governments to implement such projects. In addition, the integration of environment into the very beginning of the reconstruction process will ensure that all activities will serve to foster the long-term sustainable development of the region. Any reconstruction process of the Balkan region must focus on long-term effects if the goal is to develop stable, democratic and pluralistic societies that are economically viable and able to solve their own problems in the long run.

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Program Priorities

The SEE governments have identified five priority their wish to learn from the experience that other CEE components for the REReP for SEE, each of which con- countries gained during their process of economic tran- sist of various projects. All five components are seen as sition and integration with international structures. The being interlinked, thus forming a comprehensive experiences relevant to the SEE region should be iden- approach to addressing the environmental dimension tified and a process of capacity-building and know- of the reconstruction process in South Eastern Europe. how transfer initiated, with the objective of developing Real, long lasting results will only be achieved if all five a functioning legal, institutional and policy framework. of the following components are fully implemented: Local experts will be involved throughout the entire process in order to develop local capacity. 1. Institutional strengthening and policy This program component offers a method for insti- development tutional and policy development that emphasises 2. Environmental civil society building mutually supportive cooperation among SEE countries 3. Emergency assistance for environmental — while also involving the current EU candidate coun- infrastructure and remediation of war damage tries in CEE — to develop networks to share information, technology and expertise. 4. Reinforcement of existing cooperative mechanisms and structures and development of regional cross-border projects Main Elements of this Component 5. Support to priority national and local envi- The main elements of the Institutional Strengthen- ronmental projects ing and Policy Development component are:

1. Assistance in Policy Development The first element will provide support for the devel- PRIORITY AREA 1: opment of environmental policy throughout SEE. In Institutional Strengthening the short-term, an assessment of the current state of policy development will be carried out in each country, and Policy Development in order to determine the level of preparation of the The existence of proper, credible and democratic national environmental action programs and national institutions is a precondition for smooth integration of environmental investment strategies. Experts will be the Balkan countries into the international community. provided (from the west as well as from neighbouring The experiences of other countries in CEE demonstrate CEE accession countries with recent experience in poli- that strong in-country institutions play a critical role in cy development through transition) to review the exist- determining the success of foreign-aid programs. Addi- ing strategies or help develop new ones, and to assist tionally, the experience gathered within the Environment throughout the process of their adoption by the rele- for Europe Process shows that technical measures, such vant bodies, such as the national government and/or as investment projects, are only successful — or even the parliament. A selected list of priority issues per possible — after sufficient management capacity has country will be identified and recommendations will be been established at various levels within the country. made in terms of the use of relevant policy instruments Regional environmental cooperation between the and in terms of their implementation. SEE countries requires that those countries have strong and functioning environmental institutions. The goal of 2. Assistance in Law Drafting this programme component is to assist the SEE countries The second element will provide support in review- in the development of a sound environmental legal and ing existing environmental laws and regulations and policy framework, and strong environmental institutions. drafting new ones, which will be designed to achieve The countries of the SEE region have expressed approximation with the environmental legislation of

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the EU. Experts will be provided who will: examine the priorities for the development of environmental current state of law development in each SEE country, management in SEE. propose a sequence of laws to be adopted and help • To develop a regional investment strategy for SEE. prepare first drafts of these laws. • To assist the SEE governments in drafting environ- 3. Assistance in Institutional Development mental laws. The third element will provide support in reviewing • To build the capacity of Environmental Impact existing environmental institutions, their effectiveness Assessment (EIA) and Strategic Environmental and their capacity to deal with the environmental agen- Assessment (SEA) policy in the SEE countries, as da. A first step will be an assessment of the functionality well as environmental auditing and environmental of the existing environmental institutions, followed by a management systems in SEE. proposal for a new structure, if necessary. There will also • To develop economic instruments in environmental be the provision of expert advice throughout the estab- policy, with a particular emphasis on the develop- lishment of any new institutions. Particular attention will ment of environmental funds. be paid to reinforcing the implementation and enforcement of environmental legislation, through the network • To promote membership and cooperation with the of inspectorates in the region. Furthermore, a system of EEA, the joint development of a regional monitor- twinning with long-term advisors form Western Europe ing system, and harmonisation of information/mon- or the Accession Countries will be established. itoring systems and methodologies (including bio- monitoring) with EU standards. 4. Reinforce Communication in the Region • To strengthen the capacity of the national EPAs and Another activity that will be essential for increasing their Inspectorates. the capacity of environmental decision-makers in the • To develop national information systems. short-term will be to reinforce the communication between government, NGO’s and other stakeholders in • To strengthen the capacities for approximation of the region. This would be done through the dissemina- the environmental acquis. tion of communication equipment, particularly comput- • To develop a regional strategy for hazardous waste ers, and by developing expertise in the establishment management. and use of information systems. Priority areas may • To develop a regional strategy for cleaner produc- include environmental information systems for the public tion centres. and experts, emergency management and disaster warning systems and environmental monitoring systems for • To support the ratification and implementation of air, soil, water and waste. As the recent REC and multilateral environmental conventions, with a spe- UNEP/BTF analyses of the effects of the Kosovo crisis cial emphasis on the Aarhus Convention and those have shown, electronic systems for monitoring, are conventions related to biodiversity issues. urgently required in many parts of South Eastern Europe. • To establish a Regional Biodiversity Forum, develop a regional ecological network, and establish and 5. Assistance in Environmental Curricula support national biodiversity support groups. Development in Universities • To assist in institution building, particularly in both The final element, which is envisioned for imple- entities of Bosnia and Herzegovina. mentation in the medium to long-term, will provide support to the development of environmental curricula at universities in the SEE countries. Training will be pro- 1.1 Environmental Action Plan for SEE vided to qualified lecturers, and will include study visits to EU and Accession Countries. In addition, teachers The objective of an Environmental Action Plan (EAP) and lecturers will be supplied to selected universities. for SEE will be to integrate environmental concerns into reconstruction and development. With this in mind, the SEE ministers of environment have identified the priority Specific Activities Identified and “quick start” environmental projects that should be Specific activities that have been identified by the undertaken in SEE in the short-term. Among these pro- SEE ministers to fulfil the Institutional Strengthen- jects, special emphasis has been placed on the strength- ing and Policy Development component of the pro- ening of environmental institutions and implementation gram are as follows: structures, on promoting regional cooperation in solving • To develop a Joint Environmental Action Plan for environmental problems and on developing a coherent the SEE region that outlines medium- and long-term investment strategy, in order to ensure that environmen-

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tal projects are carried out efficiently and effectively 1.3 Drafting of Environmental Laws throughout the region. The countries of SEE presented institutional This list will be expanded by the REReP Task Force strengthening and policy development as their first pri- over the next five years, as the environmental needs of ority for environmental reconstruction of their coun- the SEE region change through the process of recon- tries in the ministerial meeting in Skopje, Macedonia, struction. The development of this priority list will on Jan. 26-27, 2000. One of the main activities identi- serve as the Regional Environmental Action Plan fied in this area was assistance to SEE governments in (REAP) for SEE, and the oversight of the implementa- drafting environmental laws, with particular emphasis tion of these priority projects by the REReP Task Force given to legislation related to biodiversity, EIA and and its secretariat, will be a priority over the life of the SEA. Besides these specific topics, other law drafting 5-year environmental reconstruction program. assistance may relate to framework environmental laws, biosafety and GMOs, transport, agriculture, economic instruments, public participation, environmental 1.2 Development of a Regional information, emergency planning and notification, air, Investment Strategy for SEE water, soil and noise pollution, radiation, implementa- The preparation of a broad environmental investment tion and enforcement, and legislative drafting. strategy in the field of environmental infrastructure in the region will be launched in the short-term. Modelled on 1.4 Capacity Building of Environmental the basis of the recently launched Priority Environmental Impact Assessment and Strategic Investment Program for Accession (PEPA) program for Environmental Assessment Policy the EU applicant countries, the main objective will be to give assistance to the SEE countries in designing a com- in SEE Countries mon cost-effective priority investment strategy and pro- One of the most important instruments of modern gram. Such a strategy would also look at the mobilisation environmental protection is the Environmental Impact of resources for implementation, both nationally and Assessment (EIA), and the closely linked Strategic Envi- ronmental Assessment (SEA). There are many interna- from external sources. The program will include the tional regulations requiring that EIAs be performed, in development of common and country investment strate- order to determine the impact that a new activity will gies and the identification of priority project pipelines. have on the environment. Additionally, many western Priority should be given to those investments linked governments are embracing the idea that strategically with the approximation activities, and their will be a approaching a total development process via an SEA particular focus on the sectors requiring heavy infra- program is the most effective means of ensuring opti- structure investments under EU environmental legisla- mal, sustainable development in the long-term. tion: air, water, waste management and industrial pol- In an international context, the most important lution control. agreement on EIA is the UNECE Convention on Envi- The regional dimension should be considered in ronmental Impact Assessment in a Transboundary Con- the development of the country investment strategies. text (Espoo Convention) — which five SEE countries This would imply the need of a careful assessment of have ratified, as well as most Stability Pact donor coun- the transboundary and regional dimension of the iden- tries, including the EC. Regionally speaking, many of tified projects (e.g. the Black Sea and the Danube). the current EIA systems in CEE and SEE are modelled Additionally, the regional environmental investment after the EU directive on environmental assessment of strategy will need to be based not only on cost-benefit certain projects (85/337/EEC). analyses, but also on human health considerations, as In the process of reconstruction, EIA and SEA poli- well as the fulfilment of international conventions. An cy will be particularly important for the SEE countries in the short-term, medium- and long-term. In the short- appropriate link with the reinforcement of existing term, it is essential that the SEE governments have suf- mechanisms and structures for regional environmental ficient capacity to ensure that emergency and “quick cooperation should also be ensured. start” Stability Pact investments are conducted with As some countries in this region (namely Bulgaria proper integration of environmental concerns. In the and Romania) will also benefit from EU and other exter- longer-term — when these governments are them- nal assistance for environmental infrastructure invest- selves overseeing investment and development activi- ments, an adequate link should be established between ties — it will be essential that there is a strong basis of this program and the program for accession countries policy and understanding in place to ensure proper (PEPA). Contact with other international funding institu- environmental planning into the future. tions and bilateral donors will be an essential component This sub-component seeks to promote the develop- of the environmental investment strategy preparation. ment of EIA/SEA policy in SEE by first developing

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EIA/SEA guidelines for SEE, supporting the drafting of ship and cooperation with the EEA; joint development EIA laws, providing training for SEE government author- of a regional monitoring system; and harmonisation of ities, and developing regional and national networks of information/monitoring systems and methodologies EIA and SEA professionals throughout the region. (including bio-monitoring) with EU standards. Additionally, this program sub-component will In order to achieve these goals, working groups made employ similar methodology to develop or upgrade up of SEE country representatives and EEA representa- national Environmental Assessment /Environmental tives will be established to improve understanding and Management Systems (EA/EMS) in SEE to meet interna- mechanisms of the EIONET network. Best practices in tional EA/EMS standards environmental information collection will be introduced, and the harmonisation of methodologies in environmen- 1.5 Development of Economic tal monitoring to EU standards will be pursued and discussed within the aforementioned working groups. Mech- Instruments in Environmental Policy — anisms to improve reporting and dissemination — com- with a Particular Focus on Development pliant with the Aarhus Convention and in respect to “indi- of Environmental Funds cator” monitoring — will be examined. This will also pro- Integrating environmental concerns into economic vide a useful template for local governments wishing to development and sectoral policies is widely regarded as a become part of the EIONET in the longer term. top priority in both developed countries and economies in transition. Experience in both western countries, as well as those in the CEE region, illustrate that in many 1.7 Strengthening the Capacity of the cases well-crafted domestic economic policies and appro- National EPAs and their Inspectorates priate investment strategies can serve to improve the envi- Most of the SEE countries have created an environ- ronment. The introduction of environmental funds, envi- mental protection agency (or equivalent administrative ronmental tax reforms, and the review of existing subsidy body), which includes environmental inspectorates. policies have also been linked with continued economic Today, unfortunately, these EPAs remain weak institu- restructuring and improved economic performance. tions in all SEE countries, and there is a great need to In those countries of SEE, where economic recon- increase their capacities in the field of law enforce- struction and development may proceed quickly in the ment, pollution and environmental damage control and coming years, there will be many possibilities to seize prevention. short-term “win-win” opportunities — such as promot- The activities under this sub-component will seek ing energy efficiency — and to create long-term sus- to strengthen these institutions by first assessing the tainable signals to the economy through sound taxing state of these EPAs and inspectorates within in the and spending policies. As experience from developed legal, institutional and professional context. This work countries illustrates, failing to anticipate these opportu- will be followed by the creation of links with regional nities often proves to be both environmentally damag- networking of other European and regional environ- ing and economically costly later. mental inspectorates and the creation of a regional net- This sub-component seeks to actively support the work of inspectorates representing Stability Pact coun- formation of cross-sectoral, high-level working groups tries. These networks will work together to facilitate to discuss early strategies for green budget reform on information-sharing training sessions, publication of the national level and to reinforce these national efforts training materials, capacity building to implement regu- with the exchange of experience from other countries lations and development of environmental information in CEE and the West. systems (such as PRTRs). Additionally, this sub-component will ideally provide the SEE EPAs and inspec- 1.6 Membership and Cooperation with torates with equipment for monitoring and other sup- the EEA, Joint Development of a Regional plies necessary to realise these goals. Monitoring System and Harmonisation of Information/Monitoring Systems 1.8 Development of and Methodologies (including Bio- National Information Systems Monitoring) with EU Standards National environmental information systems are Accession to the EEA is viewed as an important step based upon electronic tools that support environmen- for the SEE countries in approximating their environ- tal information collection, storage and access for deci- mental practices to the standards of the rest of Europe. sion-makers and, increasingly, the public. These tools Within the framework of EEA accession, SEE coun- not only contribute to informed and efficient decision- tries will aim to achieve the following goals: member- making, but also improve the transparency and accessi-

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bility of governments and facilitate regional multi- 1.11 Regional Strategy for stakeholder cooperation. Employing these tools con- Cleaner Production Centers tributes to EC proposals for a User Friendly Information The basic concept behind Cleaner Production (CP) Society, compliance with the Aarhus Convention, is that, by replacing out-of-date technologies with new EEA/EIONET integration and European security — all ones, businesses can obtain more profitable produc- of which are critical in the SEE Stability Pact states. tion and reduce waste. In addition, the idea of CP The activities under this sub-component will sup- includes an understanding that a change of materials port the implementation of national information sys- used in the process of production — as well as efforts tems within environment ministries throughout SEE via to promote recycling — can be a benefit to both indus- an initial needs analysis and regional workshop, which try and the environment. would bring together experienced users to discuss best The main objectives of this sub-component are to practices and respond to frequently asked questions. establish an appropriate institutional and legal frame- This process will help identify other priorities and will work to promote the CP concept in the field of environ- be followed by an Information Society Technologies mental management in the SEE region, at the level of (IST) implementation and expert forum to exchange state administration and local self-government, over a know-how and “troubleshoot” in partnership with five year period. This sub-component also seeks to build experienced information technology operators, thereby capacities facilitating CP promotion and implementation ensuring maximum benefits. by individual entities — through establishing a system for information sharing, increasing the demand for CP and providing funds for CP implementation. 1.9 Strengthening of the Capacities for In order to reach small- and medium-sized enter- Approximation of the Environmental Acquis prises, it is necessary to establish regional CP facilities. All SEE Stability Pact countries have committed To be effective, these facilities must be supported by themselves to harmonising their environmental legisla- the local state administration and local self-govern- tion with that of the EU, in light of the possibility of ment, local industry and other entities in the SEE future membership in the EU. The EU’s environmental region. Once in place, this network of CP centres will acquis communautaire comprises a complex system be able to provide appropriate conditions for chan- of more than 300 pieces of legislation that will have to nelling EU structural funds in the future. be transposed into national legislation, implemented and enforced in practice. New institutional mechanisms 1.12 Support for Ratification will have to be developed to carry out the complex task of implementing the environmental acquis, and and Implementation of Multilateral this sub-component has an objective of strengthening Environmental Agreements the capacity of the beneficiary countries to handle this Multilateral Environmental Agreements (MEAs) are implementation. Experts from the West and CEE will one of the main means for fixing international environ- conduct an initial needs analysis, followed by training mental norms into binding rules. The countries of SEE sessions and capacity building workshops, assistance have a relatively low rate of accession to MEAs and in policy and strategy development, and — ultimately face obstacles in implementation, due to reduced — assistance in implementation.. resources and fundamental restructuring of authorities and enforcement mechanisms. The objective of this sub-component is to promote 1.10 Regional Strategy for the applicability of relevant MEAs in the SEE countries, Hazardous Waste Management both regionally and on a country-by-country basis, The challenge of hazardous waste management and through a series of activities targeted at authorities and experts. The work will include an assessment phase, transport of hazardous waste is a problem common to followed by an examination of the links between prior- all SEE countries. The Basel Convention on the Control ity environmental issues, as identified by the recipient of Transboundary Movements of Hazardous Wastes countries, and the results of the assessment. and their Disposal is a good basis for dealing with this Specific activities to support the extension of identi- issue. This sub-component will improve the exchange fied priority MEAs may include: of experience and expertise in the area of hazardous waste management in SEE with the ultimate goal of • direct assistance in formulation of legislative and drafting a Regional Strategy on Hazardous Waste in administrative measures to be taken by recipient SEE. This will be done through regional networking countries, including assistance in drafting; and capacity building., drafting the Regional Strategy • white papers and other reports employing a region- and assistance in implementation.. al perspective;

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• capacity-building through exchanges of information ment of a Regional Ecological Network; and the identifi- and experience and subregional conferences; cation of action plans for species (including plants), such • facilitation of contacts with international organisa- as the identification of important plant and bird areas. tions and institutional arrangements; The Regional Forum will meet annually and the National Biodiversity Support Groups will meet twice per year. • and response to requests from recipient countries for specified expertise. The work in this area may include preparatory 1.14 Institutional Strengthening in Bosnia meetings in advance of MOPs and COPs, or assistance and Herzegovina of the Environment in preparation of documentation, such as compliance Ministries of Republika Srpska and the reports. The activities will be conducted in close coop- Federation of Bosnia and Herzegovina eration with convention secretariats and other relevant In the nascent country of Bosnia and Herzegovina bodies in order to maximise effective use of resources. — which today operates under the provisional consti- Biodiversity-related conventions and the Aarhus tution established by the 1995 Dayton Agreement — Convention have been preliminarily identified by SEE the environmental institutions in the country’s two dis- countries as priorities for the region. tinct Entities face enormous obstacles to create, implement and enforce environmental policy. 1.13 Establishment of a Regional Problems such as a non-unified legal structure, lack Biodiversity Forum, Development of of resources in the ministries and insufficiently trained employees are evident in both entities. This sub-com- a Regional Ecological Network and ponent has been included at the request of the Envi- Establishment and Support of National ronmental Steering Committee for Bosnia and Herze- Biodiversity Support Groups govina in order to address these problems and to sup- Many of the biodiversity concerns in the SEE region port the strengthening of environmental institutions cross national borders. The biodiversity sub-compo- and policies in the country. nent seeks to set up a forum that will bring together the main organisations, experts and stakeholders in the region in order to discuss biodiversity issues. The PRIORITY AREA 2: forum will represent the key meeting point for the identification and implementation of a sound common Environmental Civil strategy to address conservation issues. It will help to Society Building feed into the overall REAP. The Regional Biodiversity Forum will establish and An active and sustainable civil society is requisite of a give support to National Biodiversity Support Groups. stable democracy and regional stability and security. These groups will have the double role of bringing the Therefore, support to civil society should be at the heart experiences of each country into the Regional Biodi- of any reconstruction efforts in SEE. This includes a strong versity Forum and of bringing the recommendations of NGO movement, transparent decision-making and open the Forum to the attention of the relevant stakeholders public participation. In general, the existence of a living back in each country. Members of National Biodiversity civil society is viewed as a precondition for a functioning Support Groups will be put into contact with interna- democracy. Therefore, support to NGOs and the develop- tional networks of experts in their specific fields and ment of legislation that supports the process of establish- will also be able to feed biodiversity issues into NEAPs. ing civil society is of the utmost importance for long-term This region-wide collaboration process will allow reconstruction and stabilisation of the SEE region. the identification of possible gaps in the countries in addressing nature conservation, and in the actions taken to integrate these concerns into necessary eco- The Role of Civil Society nomic development plans. This will allow timely reori- Among other things, “civil society” serves the essen- entation of ongoing activities as well as the identifica- tial functions of: tion of new activities to be implemented, according to • Advancing democracy, pluralism and diversity in the results of the previous phases. The Regional Biodi- society under the rule of law. versity Forum will assure a continuous monitoring of the progress made both at regional and at country level. • Promoting and enforcing transparency and Though the initial stage of the forum will identify in accountability in government and the economy. more details its own activities, specific areas of discussion • Creating alternative institutions for serving public have already been identified. These are: the develop- needs.

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• Improving decision-making by including a more effi- Main Elements of this Component cient representation of public and private interests. The main general elements of this component are: • Serving as a link between the individual, the government and the market. 1. Assistance to NGOs Transparency in decision-making and involvement The importance of the NGO sector as an element of of the public are key for increasing public support for civil society should not be undervalued. The prepara- identified solutions. In the same way transparent objec- tion of a civil society is a key element of democracy tive-setting and dialogue with all concerned parties is building and building stability. The involvement of important for maintaining credibility with donors. The NGOs in decision-making and their ability to represent scale of reconstruction efforts will inevitably lead to alternatives to governmental interests on environmen- rushed decisions, and therefore mistakes. In rebuilding tal issues is a key part of the operation of civil society. the countries of SEE, these mistakes can have very seri- In SEE, the NGO assistance element seeks to develop and strengthen environmental NGOs through a variety ous consequences. A maximisation of transparency — of mutually compatible actions, including: even if some processes are delayed — will increase dialogue and therefore public involvement in, and sup- • NGO grants at varying levels, which allow NGOs to port for, viable solutions. carry out smaller projects in the region. In this respect, the ratification and implementation • Provision of organisational, legal and networking of the UNECE Convention on Access to Information, assistance. Public Participation in Decision-Making and Access to • Support for capacity building through training and Justice in Environmental Matters (Aarhus Convention) experience-sharing programs. should be one of the core priorities of the SEE reconstruction efforts. The Aarhus Convention makes the • Development of integrated training publications, link between reconstruction and democratisation. Only curricula and courses. through the guarantee of rights to information and to Additionally, implementing civil society develop- public participation can citizens actually begin to take ment projects has to go hand-in-hand with research control of the way their societies develop and deal with activities, in order to ensure that adequate measures problems. The empowerment of the people also are taken to achieve the expected results. The research requires that there be a fair and efficient system of will feed into the activities described above, so that all administration and a working justice system. projects can be implemented most efficiently, using It is particularly important that the international state of the art methodologies. community supports the development of civil society organisations from the outset of any reconstruction 2. Assistance to the Development of Cross- plan for the Balkans. Without external support, grass- border, Cooperative NGOs and Projects roots initiatives will lag behind the development of The second element seeks to change the pattern of governmental institutions — resulting in a systemic limited cooperation in SEE, which has culminated in imbalance, in which nascent institutions have little conflicts throughout this region. Projects will be sup- need to operate transparently and therefore fall quickly ported which increase cooperation not only among into complacence regarding the lack of public review. environmental NGOs in SEE, but also among these Additionally, including local networks of experts and NGOs and their counterparts in other CEE countries. ordinary citizens in the reconstruction process will Support will be given in the form of: increase the overall efficiency of international assis- •cooperative grants; tance efforts and will produce better results throughout the region by stimulating the identification of common • regional fellowship programs; values, the reduction of conflict and the establishment • support to NGO networking activities (such as hold- of fair practices in governance. ing regional conferences); As noted earlier, the issue of environment can offer • establishment of electronic networks. a means for early cooperation in SEE. Toward that end, this component will address civil society that works specifically within the environmental sector. 3. Assistance to Improve and Expand The term environmental civil society identifies Environmental Information, Media and the activities of individuals and civil society organisa- Awareness Raising in SEE tions whose purposes relate to the promotion of viable This element seeks to promote information sharing, environmental management systems, environmental which is an essential part of a viable civil society. This protection and the sustainable use of natural resources. is envisaged through:

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• the training of journalists; plans, programs or strategies and to develop locally sus- • the creation of an Information Network; tainable initiatives led by NGOs or municipalities. Follow- up actions will then be recommended to solve environ- • the establishment of a visible Information Center at mental problems in the communities, to identify sustain- an internet site for environmental information in the able options for development, to develop fundraising SEE region; proposals and to identify future potential funding sources. • the training of NGOs in communication and raising Businesses should also be involved, especially in the fol- environmental awareness of the public. low-up efforts. These activities will include a multi-stakeholder dialogue and cooperation on issues of common concern. Ultimately the process and the results will help 4. Assistance for the Early Implementation to build stronger and more sustainable local communities. of the Aarhus Convention Additionally, since parliaments and parliamentarians play The fourth element aims at helping central govern- an important role in civil society and environmental pro- ment officials and Local Authorities build capacity and tection, an important element of promoting civil society as improve quality of government decision-making a concept will be to provide assistance to parliamentari- through a more strategic institutional and practical ans to deal with environmental issues. On the basis of approach in light of the possible implementation of the experience in Western countries, activities that help par- Aarhus Convention. Assistance will be offered for liamentarians better understand environmental issues will capacity building in the form of regional experience- be promoted — thus ensuring an adequate representation sharing workshops, local in-country activities and train- of environmental concerns in parliamentary debates. ing for government officials and NGOs to discuss practical aspects of building an efficient system of access to Specific Activities Identified information, public participation and access to justice. Specific activities that have been identified by the A network of government officials responsible for pub- SEE ministers to fulfil the Environmental Civil Soci- lic participation as well as a network of NGOs interest- ety Building component of the program are as follows: ed in working on this topic will also be developed. The activity will increase interest in the implementation and • To develop a regional environmental press centre ratification of the Aarhus Convention and give practical for SEE. guidance for future concrete implementation activities. • To develop a strategy for implementation of the This element would also provide expert support to Aarhus convention. the SEE countries to: • To promote networking and cooperation of environ- •improve the legal framework for access to informa- mental NGOs via the establishment of electronic com- tion and public participation in decision-making in puter networks on the national and regional level. environmental matters; • To develop a Balkan centre for sustainable devel- • produce guides to the Aarhus Convention; opment. • achieve transparency in reconstruction; • To develop and Strengthen NGOs. • create pilot projects on public participation generally; • To assist in the development of environmental legal • develop pilot projects on public participation advocacy/advisory centres. regarding biodiversity conservation. • To develop a regional environmental emergency response and early warning centre. 5. Promoting Civil Society as a Concept The fifth element seeks to promote a wider understanding of the role of civil society among governments, 2.1 Development of a Regional businesses and citizens in SEE. This will be done by first Environmental Press Centre for SEE developing recommendations together with government The media is considered one of the most important officials, NGOs and experts to establish mechanisms for means to educate and raise public awareness to environ- better access to information and public participation, in mental issues and can play a major role in encouraging order to ensure transparency and openness of gover- acceptance (and even advocacy) of tougher environ- nance. Additionally, community development initiatives mental policy. These activities by the media promote will be supported by bringing together NGOs and munici- civil society and sustainable development. However, palities to develop local action plans, programs or strate- environmental reporting is poor in the SEE region, gies for community development. The aim of these activi- because there is a lack of understanding of environmen- ties is to integrate environmental concerns into these tal issues, a lack of experienced environmental journal-

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ists and poor access to environmental information. building an efficient system of access to information, The goals of this sub-component are two-fold: First, it public participation and access to justice; training seeks to establish a regional press center for the whole of for central and government officials and NGOs; and the SEE region, including local information offices in promotion of best practices through pilot projects. each of the countries, to gather and distribute environmental information on a national and regional level. A • Involving NGOs into the process. Activities second goal would be to begin a series of in-country should be undertaken to strengthen the capacity of training workshops for the media, in cooperation with regional NGOs in the scope of implementation of the REC, to educate journalists on environmental issues the Aarhus Convention. To that end workshops, and to provide expert training on how to report on envi- roundtables and other forms of meetings should be ronmental issues. Experienced environmental journalists organised throughout the SEE countries. will be invited to share their know-how and experiences. • Strengthening the capacity of the media/jour- The free services offered by the regional press center would include the following activities: a prelimi- nalists/editors/publishers. The media/journal- nary analysis of journalists existing reporting habits ists/editors/publishers should be assisted in identi- and main constraints to environmental reporting; the fying the key issues related to the environmental collection of information on critical hotspots, legisla- rehabilitation of the region, thereby assisting in the tion, policy, local, national and regional state of the development of environmental civil society. environment monitoring data; provision of NGO litera- • Improving the legal framework and practices ture and educational resources; a question and answer of access to information, public participation information service, accessible via web, e-mail, tele- in decision-making and access to justice in phone, fax and personal visit; a bi-weekly environmental tip-sheet for journalists summarising breaking environmental matters. Support will be given to news stories regarding the region; and a directory and government officials and local experts to identify online database of Stability Pact countries’ environ- concrete legislative measures to be taken. Support mental experts. will then be given to help develop the necessary legislative acts. 2.2 Development of Strategy for • Guides and other publications. Implementation Implementation of the Aarhus Convention of the Convention could be facilitated through developing local language guides and publications The implementation of the Aarhus Convention, which is expected to enter into force in 2001, is consid- addressed to the needs of different stakeholders, ered to be a priority for many SEE countries. Albania, including NGOs and central and local government. Bulgaria, Croatia and Romania are already signatories • Application of the principles of the Aarhus to the Convention and FYR Macedonia has acceded to Convention in the regional reconstruction it. An active campaign is underway in Bosnia and process. Specific activities are needed to promote Herzegovina to accede to the Convention. Yugoslavia the application of the Aarhus principles by the may be eligible to accede to the Convention in the next countries that ratified the Convention. Other activi- few years. Successful strategies for implementation of ties are needed to promote the Aarhus Convention the Convention in the SEE countries will require certain principles, to encourage ratification in the remain- legislative changes; strengthening capacities of NGOs, ing SEE countries. To that effect, the SEE countries as well as government officials at the central and local that have already ratified the Convention should be level; and providing assistance in the practical imple- encouraged to disseminate and share experience mentation of the Convention. Activities will provide a from the implementation of the Convention in their regional framework for assisting the SEE countries in developing and implementing successful strategies at respective countries. the national level — and a forum for discussion and • SEE participation in various international ini- exchange of experience at the regional level. tiatives under the Aarhus Convention. The Possible activities under this sub-component could activities under this project should enable the SEE include, among others: countries to participate in various international ini- • Building capacities for the implementation of tiatives and their follow-up activities under the the Aarhus Convention and relevant national Aarhus Convention — including non-compliance legislation. Activities could include regional expe- mechanisms, development of PRTR systems and rience-sharing workshops on practical aspects of activities under other task forces.

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2.3 Promoting Networking and a preliminary analysis of major stakeholders’ (national Cooperation of Environmental NGOs: and local governments, NGOs, media) environmental and information needs. With respect to information dissemi- Establishment of Electronic Computer nation, centres will demonstrate and promote compliance Networks on National and Regional Levels with the Aarhus Convention. They will therefore also Just as there needs to be better cooperation among encourage public participation in the development of environmental ministries in SEE, cooperation and net- national sustainable development strategies. working among environmental NGOs in SEE also needs development. Platforms for cooperation, such as umbrella organisations, regular meetings or computer networks 2.5 Development and hardly exist. The realisation of this sub-component would Strengthening of NGOs mean assisting SEE environmental NGOs to increase their The involvement of NGOs in decision-making and networking and cooperation among themselves, through- their ability to represent alternatives to environmental out CEE and beyond — to allow them to fully participate issues is a key part of the operation of civil society. The in the building of environmental policy on the European activities envisaged under this sub-component would level. A special emphasis will be given to ensure a good be designed to develop and strengthen environmental flow of information and cooperation with respect to NGOs through a variety of mutually compatible issues of regional importance, such as infrastructure pro- actions, including: jects and transboundary biodiversity issues. • Grant support to NGOs. Financial support for The following activities are envisaged: NGOs would be provided. This would be given at • Selecting of lead NGOs in each SEE country by an various levels, to support the various strata of the independent expert body. NGO movement, and on various earmarked topics, to encourage and support their activities on key •Providing equipment to lead NGOs (server etc.). issues. It is envisaged that funds would be available • Providing equipment to national and regional locally, nationally and regionally (to support NGOs (e.g. modem) if needed. regional cooperation). • Training courses on electronic networking. • Organisational support for NGOs. NGOs require support for their operations. Certain activities would • Exchange programs with other networks in CEE/EU. be targeted around support to improve the NGOs’ •Providing coverage of network experts (WEBmaster external operating environment. One elements etc). would look at support to NGO service centres — to • Upgrade of hardware/software during implementa- make the best use of available resources; to enable tion period. networking conferences and cooperation among NGOs. There would also be an element encouraging involvement in the stability pact through three 2.4 Development of Balkan Centers regional conferences and an element that addresses for Sustainable Development NGOs’ long-term viability or sustainability issues. Improved understanding of sustainable development • Capacity Building for NGOs. NGOs also require can help strengthen policy-making and encourage pub- support at different levels for their internal development. This is best delivered through various capacity lic acceptance of tougher environmental regulations. building initiatives. Training programmes would be This sub-component’s main goal is to establish a net- designed to help the grassroots NGOs; support the work of national sustainable development centres in capacity building of younger environmentalists each of the SEE Stability Pact countries to facilitate the (NGOs and students); and increase crucial NGO work of national Commissions of Sustainable Develop- management skills. ment. (The sub-component’s goal would also be to facilitate establishment of such commissions in the countries, The programme would need to be comprehensive where they don’t exist.) These centres will investigate and the elements would be integrated to support one the national priorities in the countries of the region — another. This will represent an important five-year environmental, social and economic — with respect to investment into the development of civil society in SEE. the principles of sustainable development. The centres will also provide educational workshops on sustainable 2.6 Assistance to the development issues, monitor progress towards sustainable development and promote development of region- Development of Environmental Legal al sustainable development, starting with pilot regions. Advocacy/Advisory Centers Services provided by these centres will be based upon This sub-component would involve support for

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lawyers or their organisations to set up and operate impact, not only at their epicentres, but also in indirect environmental legal advisory service centres, with the ways throughout the region. For example, the movement goal of making such centres sustainable institutions in of displaced people has had a lasting effect on infrastruc- the future. The project will build upon similar experi- ture and landscapes throughout the region, as has the ence in CEE and Newly Independent States (NIS) coun- transboundary movement of chemical and other pollu- tries to strengthen the capacity of environmental civil tants. An assessment of both the direct and indirect dam- society in the use of legal tools for environmental pro- ages of the wars in SEE is needed in order to clearly pri- tection and public participation in environmental deci- oritise the needs for environmental remediation efforts. sion-making. The centres can also provide assistance in legal matters relevant for the operation of NGOs, such as registration, organisation, taxation, etc. The initiative 2. Assessment of the Feasibility of Remediation should also include studies of successes and failures in Measures Throughout the Region the CEE and NIS regions, with particular attention paid Before any emergency investments can be imple- to start-up and to sustainability. A part of the activity of mented, further planning and feasibility work is needed. the centres will be to test the application of the Aarhus Under this activity, a priority programme will be pre- Convention, which recognises that the rights and pared for emergency investments for the whole region opportunities provided in connection with the access — on the basis of the environmental impacts of the to information and public participation must be backed many conflicts that have recently occurred in SEE. Feasi- up by legal and institutional guarantees. bility of each priority project will be assessed and necessary preparations for investment decisions will be made. 2.7 Regional Environmental Emergency Response and Early Warning Centre 3. Remediation at Identified Environmental While not a traditional civil society activity, this sub- “Hot-spots” of War Damage component has been added at the request of the govern- An assessment of the environmental consequences ment of Romania in order to promote the development of the Kosovo conflict has been carried out by the of early response and early warning systems, as well as UNEP/BTF). While the assessment concluded that the public awareness relating to these issues throughout SEE. conflict “did not cause an environmental catastrophe” Taking into account the outdated industrial installa- affecting the SEE region as a whole, it did identify a tions in the SEE region, as well as the increased risk from number of environmental “hot spots” that pose an the pollution accidents such as occurred recently in the immediate threat to human health. Some of these hot Tisza River basin (the accidents in Baia Mare and Baia spots may even pose a threat to neighbouring coun- Borsa), this sub-component will likely focus on key issues tries. The four hot spots are: concerning the reinforcement of the Accidental Emer- gency Warning System (AEWS) throughout SEE. These •the petrochemical plant at Pancevo; activities would include improvement of the operational • the Zastava car plant at Kragujevac; mechanisms of the AEWS and the communication of •the Novi Sad oil refinery; information using the Internet. Additionally, this sub-component would have the goal of identifying mechanisms • the Bor copper mine and smelting plant. for a rapid transfer of information to the public. 4. Facilitation of Priority Environmental Infrastructure Investments in the Region PRIORITY AREA 3: Conflicts in the region have lead to severe under- Emergency Assistance for investments into infrastructure. Well targeted investments for improving environmental infrastructure in selected Environmental Infrastructure and towns of the region will be identified and implemented. Remediation of War Damage Specific Activities Identified Main Elements of this Component Specific activities that have been identified by the The main general elements of this component are: SEE ministers to fulfil the Remediating War Damage component of the program are as follows: 1. Assessment of War Damages in a Wider Regional Context • Assessment of the war consequences related to the refugee flow to Albania and Macedonia. The many conflicts that have shaken the SEE region over the last decade have had a large environmental •Development of a remediation plan.

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3.1 Assessment of the War 2. Encouraging Participation of Consequences Related to the Refugee Environmental Authorities in Flow to Albania and Macedonia International Activities It is expected that in the next five-to-ten years, the This sub-component is to be developed and implemented by UNEP/BTF. representatives of the countries of the region will have difficulties participating in important international events due to a lack of funding. This activity will serve 3.2 Remediation Plan as a support to enable senior environmental officials to This sub-component is to be developed and imple- participate in relevant international activities. The abili- mented by the SEE countries based on the environ- ty of each country to cover their travel expenses will be mental needs in the areas affected by conflict. reassessed at periodic intervals.

3. Assistance in Implementing UNECE PRIORITY AREA 4: and Other International Conventions Reinforcement of Existing The countries in SEE have signed a number of international conventions but their implementation is lag- Cooperative Mechanisms and ging behind. Conventions that need addressing include Structures and Development of the Aarhus Convention, the Bucharest Convention for Regional Cross-Border Projects the protection of the Black Sea, the International Con- vention for the Protection and Sustainable use of the Existing mechanisms and structures have, in the River Danube — as well as the conventions and proto- past, proven to be an important tool for fostering cooperation in SEE, promoting regional environmental pro- cols signed under the auspices of the United Nations jects and attracting funding from international sources. Economic Commission for Europe (the Transboundary However, cooperation in the region has proven to be air pollution convention, the Espoo convention on more difficult today, for a number of reasons. It is Environmental Impact Assessment, the convention on therefore proposed that support be provided for some transboundary waters and lakes etc.). In the context of of the existing mechanisms and structures in the frame- existing regional bodies under these conventions, work work of the REReP. has been going on to support the implementation of the Conventions, but further support may be needed in Main Elements of this Component order to complete the task. The main general elements of this program component are: 4. Assistance in Implementing Projects with Cross-boundary Dimensions 1. Assistance for Participation in It will be most beneficial to foster regional stability if Ongoing International Processes projects that have a transboundary dimension are given (such as ICPDR, BSEP and EEA) priority and particular support. Examples of such projects A first essential element in the promotion of region- include the multi-country cooperative efforts that are al cooperation in SEE, is the inclusion of SEE represen- already underway regarding Ohrid Lake and Lake Prespa. tatives in the international processes that are already underway in the region. This includes providing Specific Activities Identified resources for SEE country governments to appoint Specific activities that have been identified by the Focal Points and representatives to participate in inter- SEE ministers to fulfil the Reinforcement of Existing national bodies, such as the International Commission Cooperative Mechanisms and Structures and for the Protection of the Danube River (ICPDR) and the Development of Regional Cross-Border Projects Black Sea Environmental Programme (BSEP), which component of the program are as follows: have both existed in SEE since the early 1990s. Addi- tionally, the accession countries of the SEE region • To assist SEE countries to participation in the ICPDR. (namely, Romania and Bulgaria) have worked closely • Participation of SEE countries in ongoing interna- with the EEA for several years, in the context of the EU tional processes. PHARE Programme. It would be desirable to widen this cooperation to the whole SEE region, to ensure coher- • Implementation of priority cooperative projects ent monitoring of environmental information. with a regional dimension.

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4.1 Participation in the ICPDR ty of each country to cover their officials’ travel expens- International cooperation for the protection of the es will be reassessed at periodic intervals. Danube River started in 1991 and was then formally completed with the adoption of the International Con- 4.3 Implementation of Priority Cooperative vention for the Sustainable Use of the Danube River in Projects with a Regional Dimension 1994. The administrative and managerial difficulties that were experienced in the first years of existence of Efforts to foster regional stability will benefit greatly the Convention seem to have been overcome by its if projects that have a transboundary dimension are entrance into force on Oct. 22 1999. This led to the set- given priority and particular support. For this sub-com- ting up of the Permanent Secretariat, with a decisive ponent, the ministers of environment of the SEE Stabili- and essential contribution from the EC. ty Pact countries have identified and proposed a list of Present Member States of the EU, candidate coun- priority cooperative cross-border projects. tries and third countries seem to be committed to the protection of the Danube River and to the application of the Convention. PRIORITY AREA 5: Support In order to secure the effective implementation and enforcement of the International Convention, NGOs to Priority National and could play a relevant role. In this context, the Danube Local Environmental Projects Environmental Forum could offer a wide platform of non-governmental organisations to create a common Specific Activities Identified approach in the environmental protection of the Specific activities that have been identified by the Danube River. SEE ministers to fulfil the Support to Priority Nation- The support to the ICPDR should include actions al and Local Environmental Projects component of aiming at assisting in environmental improvement of the program are as follows: the Danube River while promoting the EU environmental acquis communautaire on water management; •Development or Revision of NEAPs. improving working relationship of SEE countries, •Creating a strategy for development of LEAPs. among themselves and with other CEE countries; and • Capacity building of the local municipalities. making ICPDR the catalyst for environmental cooperation among the countries of the region. • Local sustainable development. • Elimination of top-priority environmental hazards. 4.2 Participation of SEE Countries in Ongoing International Processes 5.1 Development or Revision of NEAPs It is expected that in the next five-to-ten years, the representatives of the countries of the region will have NEAPs provide a powerful tool for effective envi- difficulties participating in important international ronmental policy planning and implementation. The events due to a lack of funding. This activity will pro- process of preparing and implementing NEAPs in CEE vide financial support to enable senior environmental — which took place within the framework of the officials to participate in relevant international events. region’s EAP — provided valuable experience. This A basic and ongoing component of this project will be project will build on that experience through: to ensure that the appropriate persons are kept • Regional networking and capacity building. A informed of upcoming international events, with ade- network of senior policy-makers will be established quate lead time to prepare and apply for the travel and regular workshops on environmental policy funds. A regularly updated Environmental Events Data- making and implementation will be organised. The base service will be created and maintained, accessible possibility of merging this networking activity with via electronic means or by post. the network of senior policy makers for the EU This programme sub-component would also environmental acquis communautaire will be stud- involve establishing a fund to provide financial assis- ied, to avoid duplication and to maximise impact. tance for representatives from SEE countries to participate in ongoing international events. This fund will • Assistance in developing new NEAPs. Assis- cover the expenses of travel, allowances and accom- tance will be provided to countries without a NEAP, modation for two representatives from each SEE coun- so that they can develop such a plan and integrate try for attending up to ten meetings each year. The pro- it effectively into the country’s existing environmen- ject will continue over a five-year period, and the abili- tal policies and mechanisms.

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• Assistance in revising existing NEAPs. Assistance 5.3 Capacity Building will be provided to revise existing NEAPs, to adjust of the Local Municipalities to new developments and objectives in the region. The overall goal of this sub-component is to strengthen the capacity of local governments in project 5.2 Strategy for Development of LEAPs preparation. The specific goals of the activities in this sub-com- The overall goal of this sub-component is to build ponent will be to: capacity at community level to address/solve environmental problems by promoting widespread implemen- • assist local governments in identification of bank- tation of Regional and Local Environmental Action Pro- able environmental projects and potential funding grams (R/LEAPs) in the SEE countries. sources; The specific goals include: • provide technical assistance to projects’ packaging: • raising awareness at the local level about the bene- development of pre-investment studies (including fits of LEAP process; engineering designs and financial analyses) for selected projects (minimum 30 projects packaged); • building in-country capacity of individuals who can provide assistance to local projects; • implement a series of training courses (including training of trainers) on project preparation. • providing on-site assistance to regional/local governments. In order to achieve those objectives, the project will In order to initiate a wide LEAP Support Program in undertake the following activities: countries with little or no prior LEAP experience, • establish a project implementation office in a recipi- the following activities are proposed: ent country; •identify in-country partner to co-manage the project • set criteria (in close consultation with national envi- or establish an in-country coordinating body; ronmental agencies) for the selection of projects; • determine scope of LEAP program (on the basis of • set procedures for project identification, selection the existing needs, national priorities, country of consultants for technical assistance, etc.; administrative division, etc.); • maintain close contacts with projects proponents • secure support and participation of the ministry of (local governments) and involve them in major pro- environment and other key national institutions; ject development decisions; • secure and train in-country technical assistance • hire local consultants (when necessary, foreign (LEAP support) team; consultants to cooperate with local consultants) for • prepare in-country training materials; project packaging; • select demonstration regions/communities; • establish locally based steering committees to guide project preparation; •provide assistance to demonstration projects; • establish mechanisms for identification of funding • document and evaluate results of demonstration sources (e.g. donor conferences, periodical submis- projects; sions of a set of projects to funding institutions); • establish a support mechanism for other • undertake activities to strengthen institutional capacity regions/communities to develop R/LEAPs (guid- of local governments in project packaging (e.g. work- ance materials, training, technical support for individual projects, economic incentives, etc.). shops on selected elements of project packaging); The project will build on the existing capacity of the • assume overall responsibility for the project REC (producers of the “Guide to Implementation of management. LEAPs in Central and Eastern Europe,” which was developed by the Institute for Sustainable Communities in cooperation with the REC) and the LEAP Support Teams 5.4 Local Sustainable Development established by the REC. A typical LEAP Support Team A major difficulty faced by practically all SEE coun- consists of 2-3 persons from Central and Eastern Europe tries is the challenge of reconciling social, economic with the extensive LEAP experience, available to pro- and political affordability with the bankability of vide LEAP assistance in other countries in the region The municipal environmental infrastructure projects. Many, availability of the CEE LEAP Support Teams will be if not most, municipalities are not yet considered cred- especially crucial on the stage of building the in-country it-worthy by banks. Many municipalities do not yet LEAP capacity in the countries covered by the project. have the necessary institutional or managerial capaci-

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ties to make optimal use of various financing possibili- The cost for infrastructure development can be estimated ties, including private and public ones. Only a few to be about EUR 2 million for each demonstration zone. countries have promulgated legislation enabling opera- In the initial phase, UNECE will provide overall tion of public utilities on a concessionaire basis. programme co-ordination. The inception report will The main objective of this sub-component is to pro- propose where programme coordination will be locat- mote the introduction of realistic financial plans for waste ed in the medium term. The UNECE’s long-term role water treatment, drinking water supply and solid waste can be that of hosting the programme and acting as the decommissioning for small and medium-sized municipal- co-ordination unit. In any case, the UNECE is ready to ities. The financial support might involve private sector participate in the steering and advising the execution investments assisted by soft loans or revolving funds. of the programme. The sub-component will: • establish intermediaries to assist municipalities of 5.5 Elimination of Top-Priority smaller size in implementing and financing envi- Environmental Hazards ronmental projects; Each of the six SEE countries that participated in the • improve the relevant institutional and legal March 15-16, 2000, ministerial meeting in Skopje, framework; Macedonia, have identified one top-priority domestic • support small and medium-sized municipalities environmental hazard that needs immediate attention. through development of financial skills; • create economies of scope for other projects in the SEE region, through a regional network. The project will be implemented by different groups, such as international financial institutions, national environment ministries and NGOs, and will be managed by a project manager on a regional level. The first meeting will be a scoping meeting, on the basis of draft report. The scoping meeting will select specific demonstration zones and a final inception report will contain the detailed project proposal. The inception report will include the establishment of a forum in each selected demonstration zone. The envisaged partners include: the national association of municipalities; national water associations; representatives of the municipalities in the demonstration zones; local politi- cians; technical and financial experts; potential investors and sponsors; local banks; international financial institutions; members of NGOs and inter-governmental organisations. The intention is to work in close cooperation with the SECI and Stability Pact Busi- ness and Advisory Councils, as well as with Nether- lands Management Cooperation Programme. The budget for the scoping meeting and the preparation of an inception report amounts to EUR 33,000. The total costs of the overall programme depend on the scope, including the number of participating countries and demonstration zones. The preliminary choice of a demonstration zone in Romania is Bistrita County, including the cities of Bistrita, Nasaud and Talmaciu. Other SEE countries have expressed an interest in participating. It must be emphasised that the costs of infrastructure construction should not be borne by the REReP budget, but instead by other sources (private sector investment or credits, e-g. by the European Investment Bank or European Bank for Reconstruction and Development).

THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM 111 112 THE REGIONAL ENVIRONMENTAL RECONSTRUCTION PROGRAM T he Regional Environmental Reconstruction Program for South Eastern Europe (REReP) The Regional Environmental Reconstruction Program for South Eastern Europe (REReP) The Regional Environmental Center for Central and Eastern Europe (REC) is a non-partisan, non-advocacy, not-for-profit organisation with a mission Building a Better Environment for the Future to assist in solving environmental problems in Central and Eastern Europe (CEE). The Center fulfils this mission by encouraging cooperation among non-governmental organisations, governments, businesses and other environmental stakeholders, by supporting the free exchange of information and by promoting public participation in environmental decision-making.