Environment law - Air pollution and integrated pollution control

United Kingdom

IPPC

Under the IPPC Directive (96/61/EC) Member States are required to report to the European Commission every three years beginning from its entry into force in October 1999. DEFRA has now published the first report for the period to 31 December 2002. The report covers the number of installations that are currently, or that will be included in the regime in the various industry sectors. It follows the format laid down by Commission Decision 1999/391/EC by presenting its response as answers to a series of questions.

(DEFRA, October 2003)

The EA has made available new software to accompany IPPC H1 guidance on environmental assessment of appraisal of Best Available Technique (BAT). The aim of the guidance is to provide information to all sectors to assist applicants when applying for a permit, particularly for quantifying environmental impacts to all media, calculating costs of environmental protection techniques, resolving cross media conflicts and in making cost-benefit judgments. The software can be used to input data requirements, perform calculations and present information. However, the EA says that applicants will still need to provide information other than which is calculated in the software. This might include any further detailed assessment undertaken which could involve interpretation and decision-making.

(EA, December 2003)

Views are being sought on minor amendments to the PPC Regulations 2000 (SI 2000 No 1973). The amendments relate to consolidation of permits when there is more than one permit applying to installations on the same site, and to a substantial change in an existing installation. The result of the change would be that an operator already possessing a permit for one or more installations applying for another permit on the same site could consolidate the conditions of the existing permit into the new permit. There are also several other proposed amendments including those relating to combustion activities, odorising plant, gasification, ferrous metals and incineration of waste, as well as a number of other miscellaneous changes. In addition, the government proposes to add to the Regulations an exemption for certain installations used for research, development and testing of new products and processes. The consultation closes on 12 March 2004.

(DEFRA, December 2003)

DEFRA has invited comments on revised process guidance notes for the minerals sector under local authority air pollution control (LAPC) and local authority pollution and prevention control (LAPPC). Although a final consultation was conducted on these notes in 2001 and amendments incorporated, due to publication delays and the considerable time elapsed, a second final consultation has been released. The process guidance notes provide technical guidance on the conditions appropriate to the control of emissions to air (Part B), which are regulated by local authorities. Comments on the consultation should have been sent by 31 December 2003.

(DEFRA, November 2003)

A supplementary note (AQ13 (03)) to DEFRA’s General Guidance Manual on Policy and Procedures for A2 and Part B installations has been released. It affects the provision in the PPC Regulations requiring a site report to be produced for all A2 applications, and will mean that intrusive site investigation will only be required as part of an application if a desk study suggests it is necessary. However, such investigations might be included in the permit conditions if required for the on-going management of pollution risks.

(DEFRA/EA, 1 October 2003)

DEFRA has issued guidance to clarify the position of galvanising operations under the PPC Regulations. It says that processes classed as a Part B under IPC will not necessarily be classified as Part B Activities under PPC. Therefore, it is possible that some operators are operating without the necessary permit. The guidance points out the relevant section to which various coating activities will be subject to under the Regulations.

(DEFRA, 15 October 2003)

Fluorinated greenhouse gases
DEFRA is consulting on an EU proposal for a regulation on fluorinated greenhouse gases. The proposal, published by the European Commission in August 2003 is intended to introduce general obligations for minimising the emissions of fluorinated greenhouse gases by introducing containment measures and recovery, as well as restricting the marketing of such gases for some applications. The proposed regulation will cover hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). It includes a complex package of measures many of which will have significant impacts on UK industry and includes provisions relating to leakage and inspection of refrigeration, air conditioning and heat pump equipment, and fire protection systems. It will also require a training and certification programme for inspection and maintenance duties of equipment containing fluorinated gases. The consultation closes on 23 February 2004, although DEFRA is welcoming early responses in order to inform its negotiations at EU level.

(DEFRA, December 2003)

Large combustion plant

The government’s plans for implementing the Large Combustion Plants Directive (2001/80/EC) have been announced. Under the Directive Member States are required to submit a plan for reducing emissions of sulphur dioxide, nitrogen oxides and dust from UK plants first licensed before July 1987. The Directive allowed a choice between setting emission limit values for individual plant, or establishing a national plan or bubble for the UK as a whole. Although DEFRA has opted for a national plan, it has stated that it will keep either option open while further analysis is carried out, and that it might withdraw the plan if the emission limit approach prove to be more effective. The final decision is due to be announced before spring 2004.

(DEFRA, 27 November 2003)

Air quality

A consultation paper inviting views on the UK’s report to the European Commission on plans and programmes to achieve limit values set by the first air quality daughter Directive (1999/30/EC) has been released by DEFRA. The first daughter Directive, under the Air Quality Framework Directive (1996/62/EC), sets binding limit values for nitrogen oxides, sulphur dioxide, particulate matter and lead to be met between 2001 and 2010. Member States are required to report to the Commission each year on whether the limit values have been achieved. Where limit values are exceeded, Member States are required to lay down plans and programmes to achieve compliance and a report has to be submitted to the European Commission. In the UK, the limit values are set out in the Air Quality Strategy which for some pollutants is more stringent than EU requirements. Views and comments on the report must be sent to DEFRA by 19 February 2004.

(DEFRA, November 2003)

Highways Agency

The Highways Agency has issued a notice outlining its role in local air quality management. The Agency is responsible for England’s major roads, including motorways, which carries the bulk of traffic. Areas adjacent to busy trunk roads often suffer from poor air quality due to vehicle emissions. The notice says the Agency has been gaining experience in assessing air quality and is working in partnership with local authorities towards delivery of the Air Quality Strategy. The Highways Agency is an executive agency of the Department for Transport and operates from seven regional offices which are each divided into areas containing a number of trunk road routes.

(Highways Agency, November 2003)

Food and drink industry

A range of resources designed to aid companies in applying for a PPC permit has been made available by the EA. The package comes in three parts and covers: general food and drink; milk processing; and the brewing and soft drinks sector. Various activities within the food and drink sector will need to apply for a permit between 1 June 2004 and 31 March 2005. Under PPC, companies will need to achieve a high level of environmental protection by preventing pollution, minimising waste, conserving energy and returning the site to a satisfactory state when operations cease.

(EA News, December 2003)

A joint report by Transport 2000, the Food Industry and Government has concluded that reducing carbon dioxide emissions from the transportation of food is essential to the goal of a 60% reduction by 2050 in the emission of greenhouse gases. It recommends that consumers should consider eating seasonal foods grown close to the point of sale, rather than unseasonable and imported foods. It was calculated that UK based food distribution and car travel for food shopping account for 3.5% of the UK’s carbon dioxide emissions. However, this figure did not include overseas journeys for imported foods, which are likely to be significant. It also said that other stages of food production also results in major emissions of greenhouse gases, with agriculture accounting for 12%
of the UK total.

(Transport 2000, November 2003)

Emissions trading

The EA is writing to businesses and organisations in England and Wales urging them to start planning their permit applications in preparation for the coming into force of the EU Directive on Greenhouse Gas Emissions Trading (2003/87/EC). Such businesses and organisations will include those involved in energy activities, the production and processing of ferrous metals, cement clinker and lime, the manufacturer of glass and glass fibre, bricks, paper and board and timber pulp. The first phase of the new scheme is due to take place between 2005-2007, with companies affected required to have a permit by 31 March 2004. In order to achieve this, applications are required to be submitted to the EA between 10 November 2003 and 31 January 2004. The principle behind the ‘Cap and Trade’ scheme is that it allows total emissions to be reduced in the most cost effective manner by allowing the cuts to be made where it is most economical to do so. It is expected that around 14,000 installations in 26 European countries will be covered by the scheme. Although DEFRA had intended to publish its national allocation plan by the end of 2003, this has been delayed until early 2004. It must be submitted to the Commission by 31 March 2004.

(EA News, 29 October 2003; 24 November 2003)

Air traffic emissions

BAA has called for the aviation industry to be included in the EU Emissions Trading Directive. The Chief Executive has stated that climate change is the biggest single environmental challenge to the industry. He also said that the industry has a responsibility to respond effectively to this problem. It is suggested that emissions from aircraft be partially integrated into the scheme, i.e. as buyers only from 2008. BAA believes that this would be a more effective policy for reducing impact on climate change than an aviation tax.

(BAA News Release, 13 October 2003)

An Air Traffic Emissions Reduction Bill, drafted by the Green Party, has been introduced into the House of Lords and is due to be debated in January 2004. The Bill would require the government to set targets for reducing greenhouse gas emissions from the aviation industry. This would involve limiting air traffic and therefore any major airport expansion. The Bill is intended to increase the sustainability of the aviation industry and to reduce its contribution to climate change. It would require a 5% cut in aviation emissions by 2010 compared with 2000 levels, a 10% cut by 2015 and a 50% cut by 2050.

(SO, 10 December 2003)

Motor fuel

New requirements relating to the sulphur content of motor fuels were brought into force on 31 December 2003 by the Motor Fuel (Composition and Content) (Amendment) Regulations 2003 (SI 2003 No 3078). They amend the Motor Fuel (Composition and Content) Regulations 1999 (SI 1999 No 3107) in order to implement the Quality of Petrol and Diesel Fuels Directive (2003/17/EC). The main effect of the amending Regulations is to insert new definitions and amend existing definitions in the 1999 Regulations, as well as prohibit the distribution or sale of petrol or diesel fuel from 1 January 2009 if the sulphur content exceeds 10 mg/kg. They will also prohibit the sale of gas oil intended for use in non-road mobile machinery or agricultural or forestry tractors before 1 January 2008 if the sulphur content is 2,000 mg/kg or higher, and from 1 January 2008, if the sulphur content exceeds 1,000 mg/kg.

(SO, 27 November 2003)

European Union

Transboundary air pollution
The 1998 Aarhus Protocol on heavy metals was due to enter into force on 29 December 2003 after Germany became the sixteenth country to ratify it. The Protocol is aimed at cutting emissions of three heavy metals namely cadmium, lead and mercury. It should result in a reduction of emissions from stationary sources such as the metal industry, electricity generation stations and waste incineration facilities. Countries signed to the Protocol will be required to reduce their emissions for the three metals below 1990 emission levels. It also makes suggestions for best available technique (BAT) for the sources included. In addition, the Protocol will introduce measures to lower heavy metal emissions from other products including mercury from electrical components, measuring devices, fluorescent lamps and dental amalgam.

(UNECE, October 2003)

Ozone depleting substances

A new European Regulation amending Regulation No 2037/2000 regarding the control of halons exported for critical uses, the export of products and equipment containing chlorofluorocarbons and controls on bromochloromethane (No 1804/2003) came into force in November 2003 after its publication in the Official Journal. It establishes a timeframe for phasing out halons for critical uses, i.e. those which have no technically and economically feasible alternatives. Export of halons for a critical use is allowed until 31 December 2009, although the Commission will review this situation in January 2005 and might advocate an earlier phasing out date. The Regulation also adds bromochloromethane to the list of substances in Regulation 2037/2000 that should be phased out. In addition, the 2000 Regulation is amended so that equipment containing insulating foam or integral skin foam produced with chlorofluorocarbons is now excluded from any ban on export. This will now only apply to refrigeration and air conditioning equipment.

(OJL 265, 16 October 2003)

Greenhouse gases

A report by the European Environment Agency (EEA) has concluded that the EU will miss its targets for reducing emissions of greenhouse gases under the Kyoto Protocol. The report says that the trend of emissions reduction during the 1990s was reversed in 2000 and 2001, largely due to increases in emissions from transport, especially road transport. It says that with existing domestic policies and measures, 13 out of 15 Member States as well as the EU as a whole, will miss their domestic emission reduction targets. Member States are now being urged by the Commission to introduce additional measures to meet their Kyoto targets. However, the projections exclude the effects from several policy measures currently being developed under the European Commission’s European Climate Change Programme, or the EU Emissions Trading Scheme due to start in 2005. The EEA reported in May 2003 that the EU as a whole had so far cut its emissions to 2.3% below 1990 levels up to 2001. The latest projection predicts that the reduction in 2010 will be only 0.5% below 1990 levels, compared with a target of 8% reduction. In a second report, the EEA examined the likelihood of the 10 accession states meeting their Kyoto targets. It concluded that seven countries were on track to achieve their targets, in most cases by a wide margin. Slovenia was identified as the only acceding and candidate country that expects to miss its target. The emissions of the six Kyoto greenhouse gases declined markedly in most of these countries during the 1990s due to a reduction in the number of polluting and energy intensive industries. Under the Protocol, Hungary and Poland have a reduction target of 6%, with the other eight countries required to cut their greenhouse gas emissions to 8% below the base year by 2008 – 2012.

(EEA, September 2003)

The European Bank for Reconstruction and Development has entered into its first venture in the field of carbon credits. It is to set up a carbon fund to promote reductions of greenhouse gas emissions in central and eastern Europe under the Joint Implementation (JI) mechanism of the Kyoto Protocol using €32 million in Dutch funds to buy carbon credits. It is hoped that the measure will allow the Netherlands to meet its emission reduction targets under the Protocol.

(EBRD Press Release, 27 October 2003)

Agreement has been reached in the European Parliament on a Decision for monitoring greenhouse gas emissions, first proposed by the Commission in February 2003. It will replace the existing Decision (93/389/EEC) and will implement the EU’s commitment under the Kyoto Protocol. It incorporates wider and more detailed reporting requirements and guidelines for monitoring greenhouse gas emissions. The agreement will also provide more accurate guidelines on emission forecasts in order to increase reliability, which should lead to more effective monitoring of progress towards Kyoto commitments. It also puts in place other requirements under the Kyoto Protocol such as national systems for monitoring emissions and registries for recording transfer of emission rights.

(European Commission Press Release, 21 October 2003)

Ozone pollution

The EEA has said that ozone pollution during summer 2003 was the worst for ten years in large parts of Europe. It accredited this to the unusually hot weather, during which air pollutants such as nitrogen oxides and volatile organic compounds emitted from traffic, industrial processes and natural vegetation, combine with sunlight to form ground level ozone. It warns that this situation may be repeated in future summers if temperatures remain high. Current EU legislation setting national ceilings for the release of ozone precursors is expected to result in a 30% reduction in emissions by 2010. Twenty-three of 31 European countries reporting experienced ground level ozone pollution with concentrations well above human health thresholds on one or more days between April and August. Governments are required to inform the public whenever this threshold is breached.

(EEA, October 2003)

Emissions trading

The EU Greenhouse Gas Emissions Trading Directive (2003/87/EC) has been published in the Official Journal. As outlined in the October 2003 Environment Law Bulletin, the Directive will require Member States to set emission limit values for specified activities from 1 January 2005. However, the range of industries and gases to be included has yet to be finalised. The installations covered is likely to include generators and boilers with a rated thermal input greater than 20 MW, as well as several other sectors including oil refineries, metal processing and cement production.

(OJL 275, 25 October 2003)

International

Kyoto Protocol

The annual ministerial meeting of the parties to the United Nations Framework Convention on Climate Change (UNFCCC) took place in Milan in December 2003. Attended by 5,000 participants including 95 ministers, it was intended as another step towards preparing for the entry into force of the Kyoto Protocol. At the meeting, Ministers agreed that climate change remains the most important global challenge and that its effects are already evident. Discussions covered questions relating to co-operation between developed and developing nations including funding issues, technology transfer and the importance of partnership with the private sector. This resulted in the development of two funds, the Special Climate Change Fund and the Least Developed Countries Fund. Progress was also made at the meeting on the final rules for the use of forest carbon sequestration sinks projects in the Clean Development Mechanism (CDM). The technical agreement recognises the environment and social economic benefits of sinks projects. The Protocol has been ratified by 120 Parties, representing two-thirds of the world’s population.

(UNFCCC, December 2003)

CDM

The Executive Board of the CDM has unveiled its report for the period 2002-2003 during the Conference of the Parties (COP) at the ninth session held at the beginning of December 2003 in Milan. The CDM is one of the flexible mechanisms under the Kyoto Protocol in which developed countries can gain credits for greenhouse gas reductions by investing in projects in developing countries that reduce emissions of greenhouse gases. The report describes progress made towards implementing the CDM, now in its second year of operation, and outlines in detail methodologies for baseline determination, monitoring and the accreditation of projects.

(UNFCCC, September 2003)

Ozone depleting substances

A meeting of the United Nations Environment Programme (UNEP), that took place in Kenya in November 2003, ended without agreement on whether to grant critical use exemptions for methyl bromide, a pesticide and known ozone depleting chemical. The meeting was the latest on the Montreal Protocol which requires developed countries to stop using methyl bromide, except for approved exemptions, by 2005. However, some farmers have claimed that using current available alternatives to the pesticide is not feasible. The US has threatened to renege on the Protocol if it is prohibited from continuing to use the chemical. A special meeting has been arranged for March 2004 to discuss the issue further.

(UNEP Press Release, November 2003)

Emissions trading

It was announced by the World Bank that the volume of greenhouse gas emission transactions rose from around 30 million tonnes in 2002 to 70 million tonnes as of November 2003. Most of the transactions in 2003 were project-based transactions for compliance purposes. In its report entitled, ‘State of the Carbon Market 2003’ the World Bank says that although project backed transactions dominate the market at present, there is a trend of increasing emissions trading activity. It also says that the market is still in its infancy and estimated that the value of contracts could reach $10 billion in 2007. Although the market is currently dominated by the public sector, the World Bank says that the involvement of the private sector is growing, and now represents more than 40% of all carbon finance activity in the Clean Development Mechanism countries.

(World Bank, December 2003)

Climate change

The Carbon Disclosure Project (CDP), set up in May 2002 and involving 35 institutional investors, has launched a new initiative on corporate responsibility. It has requested that the 500 largest global companies provide information on their greenhouse gas emissions. The aim of the CDP is to raise awareness of climate change within companies and to provide information for investors. It believes that the financial consequences of climate change are likely to increase significantly in the near future. The latest stage of the CDP involves 75 institutions with more than $7,000 billion under management and includes many Japanese and US institutions. The survey also enquires about the likely effects of the EU Emissions Trading Scheme on companies’ business. The information is due to be summarised in a report which should be released around the middle of 2004.

(Financial Times, 3 November 2003)

A group of German scientists have completed a study which concluded that a rise in global temperatures of more than 2°C over pre-industrial levels could lead to extremely severe events. It says that sudden phenomena such as irreversible disintegration of ice sheets, disturbances to the North Atlantic Ocean currents and to monsoons in Asia would lead to catastrophic effects on society. Global mean temperatures rose by 0.6°C in the 20th century and current predictions suggest that temperatures may increase by a further 1.4 – 5.8°C by the end of the 21st century. The report goes on to say that even if the Kyoto Protocol comes into force, the reductions advocated would be insufficient to keep climate change at tolerable levels.

(Nature, 4 December 2003)