December 2019 COMPLY OR CLOSE How Western Balkan coal plants breach air pollution laws and what governments must do about it This report is endorsed by the following organisations: Research and writing Ioana Ciuta, CEE Bankwatch Network Pippa Gallop, CEE Bankwatch Network Davor Pehchevski, CEE Bankwatch Network Acknowledgements Thanks to those who assisted by providing information and commenting on the text: Viktor Berishaj, Climate Action Network Europe (CAN Europe) Nina Kreševljaković, Aarhus Resource Centre BIH, Bosnia and Herzegovina Aleksandar Macura, RES Foundation, Serbia Vlatka Matković Puljić, Health and Environment Alliance (HEAL) Mirko Popović, Renewables and Environmental Regulatory Institute (RERI), Serbia Jovan Rajić, Renewables and Environmental Regulatory Institute (RERI), Serbia Editing Emily Gray, CEE Bankwatch Network Design Milan Trivić Cover photo Pljevlja, Montenegro - Davor Pehchevski This publication has been produced with the financial assistance of the European Union. The content of this publication is the sole responsibility of CEE Bankwatch Network and can under no circumstances be regarded as reflecting the position of the European Union. Contents Glossary ...................................................................................................................................................................................5 Executive summary ..................................................................................................................................................................6 Introduction .............................................................................................................................................................................10 Legal framework .......................................................................................................................................................................12 Regional overview of results ..............................................................................................................................16 Country profiles............................................................................................................................... ....................18 Bosnia and Herzegovina ................................................................................................................18 State of play with the NERP Continuous emissions monitoring Compliance with the 2018 NERP ceilings Ongoing investments Kosovo ....................................................................................................................................................20 State of play with the NERP Continuous emissions monitoring Compliance with the 2018 NERP ceilings Ongoing investments Montenegro .....................................................................................................................................24 Opt-out Continuous emissions monitoring Emissions in 2018 Ongoing investments North Macedonia ..............................................................................................................................26 State of play with the NERP Continuous emissions monitoring Compliance with the 2018 NERP ceilings Ongoing investments Serbia .......................................................................................................................................................29 State of play with the NERP Continuous emissions monitoring Compliance with the 2018 NERP ceilings Ongoing investments Conclusions and recommendations ..............................................................................................................34 Glossary – Equipment for the reduction of nitrogen oxides emissions. De-NOX – Equipment for the reduction of sulphur oxide emissions. De-SOX EC – European Commission ELV – Emission limit value. This represents the permissible quantity of a substance contained in the waste gases from the combustion plant which may be discharged into the air during a given period; it is calculated in terms of mass per volume of the waste gases expressed in mg/Nm3. EnCom – Energy Community Energy Community Treaty – A Treaty signed in 2005 that entered force in 2006 and aims to extend the EU energy market to its nearest neighbours, by applying EU energy, environment and competition legislation to their energy sectors. The Treaty currently includes the European Union, Albania, Bosnia and Herzegovina, Georgia, Kosovo, Moldova, Montenegro, North Macedonia, Serbia and Ukraine. EU – European Union IED – Industrial Emissions Directive - Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control). LCP – Large combustion plant. This is defined as a technical apparatus which is used to oxidize fuel in order to use the heat generated with a rated thermal input of equal to or greater than 50 megawatts (MW). This includes plants such as fossil fuel or biomass-fired power stations and combustion in petroleum refineries. LCP BREF – Best Available Techniques Reference Document for Large Combustion Plants, the conclusions of which were made legally binding in Commission Implementing Decision (EU) 2017/1442 of 31 July 2017 establishing best available techniques (BAT) conclusions, under Directive 2010/75/EU of the European Parliament and of the Council, for large combustion plants (notified under document C(2017) 5225). LCPD – Large Combustion Plants Directive – Directive 2001/80/EC on the limitation of emissions of certain pollutants into the air from large combustion plants. MWe – Megawatts of electric power – the most common form of expression of a power plant’s capacity. MWth – Total rated thermal input of a power plant – the rating used in EU legislation to define different size categories of power plants. In general, it is harder to achieve lower emissions concentrations from smaller power plants, so pollution limits are differentiated by size. NERP – National Emissions Reduction Plan – a flexible implementation mechanism under the Large Combustion Plants Directive in the Energy Community whereby emissions can gradually be reduced by totalling their combined emissions and ensuring they are lower than the decreasing ceilings set for 2018, 2023, 2026 and 2027. – Nitrogen oxides NOX Opt-out – A flexible implementation mechanism under the Large Combustion Plants Directive whereby plants can delay investments in pollution control equipment as long as they limit their operating hours to 20,000 between 1 January 2018 and 31 December 2023. Any plants operating after that have to comply with the rules for emissions from new plants, not existing ones. PM or dust – Suspended particulate matter or dust particles. – Sulphur Dioxide SO2 Executive summary In 2018, pollution control legislation under the Energy Community Treaty1 finally obliged the Western Balkan countries2 to start reducing the choking air pollution from their coal power plants. Action was badly needed. In 2016, these 16 plants emitted as much sulphur dioxide and dust 1 as 250 plants from the EU. As a result, it is estimated that they are responsible for around 3,900 The Energy Community Treaty entered into force in 2006 and is designed to premature deaths annually, spread between the region and nearby EU countries.3 extend the EU energy market to the EU’s southern and eastern neighbours. For more information, see www.energy-community.org Yet the countries’ preliminary emissions figures for 2018 show 2 Bosnia and Herzegovina, Kosovo*, that several Western Balkan plants have increased - Montenegro, North Macedonia and Serbia. Albania has no functional large not decreased - emissions of dust and SO2 since 2016. combustion plants. *According to the UN, Kosovo is “under the United Nations Interim Administration Mission in Kosovo (UNMIK) established pursuant to The legislation due to be implemented in these countries, the Large Combustion Plants Directive Security Council Resolution 1244.” In this publication it is referred to as “Kosovo”. (LCPD), was included in the Energy Community Treaty back in 2005 when the Treaty was originally 3 HEAL, CAN Europe, Sandbag, CEE signed, so the Western Balkan countries had no fewer than 12 years to invest in pollution control Bankwatch Network and Europe Beyond equipment before the 2018 deadline. Coal: Chronic coal pollution - EU action on the Western Balkans will improve health and economies across Europe, The LCPD has already been superseded in the EU4, where it was highly successful in reducing air February 2019 pollution from the power sector. It is therefore only a first step to meeting current EU industrial 4 The LCPD and several other Directives emissions standards, but would still represent a strong step forward for the Western Balkans. were brought together in the 2010 Industrial Emissions Directive (2010/75/ EC). Under this Directive, in 2017, a new Best Available Techniques Reference document was approved (the LCP BREF). Despite this, not one of the Western Balkan countries has yet Existing plants need to be brought into 6 line with these standards by 2021, while brought its power plants into full compliance with the Directive. permits for new plants issued after the publication of the new standards needed to be in line with the LCP BREF immediately. Bosnia and Herzegovina, Kosovo, North Macedonia and Serbia are using an implementation 5 Commission Implementing mechanism called the National Emissions Reduction Plan or