Environment Law Update: Air pollution and integrated pollution control 2

United Kingdom

United Kingdom

Climate change

The UK Climate Change Programme has been published after consultation on the draft published in March 2000. It sets out policies and measures for practical action to cut emissions over the next decade and to reduce dependence on fossil fuels by a fundamental shift in the way energy is generated and used. Targeted areas include improvements in domestic and industrial energy efficiency, cutting emissions, stimulating investment in renewable technologies and ensuring that the UK adapts to the impacts of climate change. Other initiatives include the reduction of emissions from the public sector, proposals to encourage UK investment in innovative energy projects abroad, GBP30 million for the UK emissions trading scheme due to start in 2001 and GBP89 million to support offshore wind and energy crop installations. A number of specific examples of best practice in energy management systems are also featured. The European Community agreed jointly to an 8 percent reduction in greenhouse gas emissions at Kyoto, with the UK subsequently agreeing to a 12.5 percent reduction. The UK Government has set a separate domestic goal of reducing carbon dioxide emissions by 20 percent below 1990 levels, by 2010. While some green campaigners praised the Government for being one of the first to develop a strategy, they also suggested that there was little evidence that the targets set out in the programme were attainable. It was also pointed out that most of the reductions in emissions to date were an accidental consequence of the switch from coal to gas-fired power stations.
(SO, November 2000)

Climate change levy

In the pre-Budget review, the Treasury has refused to give in to pressure from business to amend the climate change levy on energy use. Industry had warned that the tax, which now seems likely to go ahead in April 2001, will hit production and reduce profits. However, Government Ministers claim that the levy would have no overall impact as the revenue raised would be recycled back into employers' National Insurance contributions and some heavy energy users would be eligible for up to 80 percent rebates for agreeing pollution cuts. Those manufacturers not covered by European Union pollution control regulations however, will be ineligible for discounts and could see steep rises in their energy bills.
(The Financial Times, 21 November 2000)

The DETR has published a Participants Pack and an Introductory Guide containing general information about the Climate Change Levy, in addition to detailed advice to companies who are considering entering energy efficiency agreements with the Government.
(DETR, October 2000)

PPC

Amendments to the Pollution Prevention and Control (England and Wales) Regulations (SI 2000 No. 1973) have been proposed in a consultation paper. The proposed amendments relate to the transfer of certain industries to integrated regulation (A2 installations) from air-only regulation (Part B processes). The changes arise from responses received to the April 2000 consultation paper. Responses to the latest consultation paper were requested by 31 January 2001.
(DETR, December 2000)

Vehicle emissions

The Deputy Prime Minister has announced a GBP69 million package over the next three years to promote the development, manufacture and use of cleaner emission vehicles. This measure will more than double the current annual expenditure in this area and forms part of the broader Government response to the final report of the Cleaner Vehicles Task Force. The extra investment includes GBP30 million for the on-going Powershift programme to promote the purchase of gas and electric vehicles. Purchasers have to apply to the Energy Saving Trust which administers the scheme. In addition, GBP30 million is being made available to 'Clean Up', the programme for tackling pollution from urban vehicles. Under this scheme taxis, buses and trucks will be fitted with pollution cutting equipment such as catalytic converters and particulate traps. A further GBP9 million will be put towards raising public awareness and to supporting the development of fuel cell and hybrid technologies.
(The Times, 21 November 2000)

The Government's Green Fuels Challenge, announced in November 2000, aims to stimulate industry to propose practical options for alternative fuels with less adverse effects on the environment and health. These alternatives would then qualify for major cuts in duty rates. The DETR is inviting fuel producers, motor manufacturers, environmental groups and others to provide information on a range of environmental, health and safety and vehicle performance issues. The deadline for responses is 31 January 2001.
(DETR, December 2000)

Emissions trading

A Greenhouse gas emissions trading scheme for the UK was the topic of a recent consultation paper. Emissions trading has the potential to provide companies with flexibility for cost-effective emissions reduction and to provide an incentive to develop low carbon technologies. Emissions have been traded in the United States for a number of years, with the market estimated to be worth between US50 million and US100 million. Potentially the global market could be worth billions of dollars per year. Much of the content of the consultation document is based on proposals from the business-led UK Emissions Trading Group (ETG). The ETG presented a full set of proposals to the Government in March 2000 and since then has been working in an advisory capacity on various aspects of the scheme. At this stage, the consultation is seeking views on the broad framework proposed by the Government for an Emissions Trading Scheme. The consultation paper acknowledges the need for a flexible scheme that can adapt to, and seize opportunities offered by the likely extension of emissions trading markets. Early development of a domestic trading scheme will mean that the UK will be well placed to play a leading and influential role in both the development and use of these wider schemes. Further technical documents on the details of the scheme will be issued shortly. Responses to the consultation were requested to be completed by 12 January 2001.
(DETR, November 2000)

Consultants PricewaterhouseCoopers and financial brokers Cantor Fitzgerald have launched a global Internet exchange for trading greenhouse gas emissions. The new scheme, to be called CO2e.com, will start by trading carbon dioxide emissions and will later be extended to include other greenhouse gases. It will cater for all types of users in all types of industries, and provide services from requesting emissions measurement to developing reduction projects requiring design, engineering and financial expertise, through to the execution of trades.
(Sunday Telegraph, 19 November 2000)

Local air pollution control

A report commissioned by the DETR, National Assembly for Wales and the DTI examined four potential methods for delivering a risk based system for regulating local air pollution control (LAPC). The LAPC system was established under Part I of the Environmental Protection Act 1990 and requires local authorities regulate air pollution from around 17,000 industrial processes. The report entitled "Risk Assessment Method for Local Air Pollution Control" judges each method for transparency, value for money, effectiveness, consistency, regulatory burden and time taken to complete. The DETR is consulting local authorities and trade associations on the recommendations of the report prior to a local authority trial of the preferred scheme in early 2001. The aim is to adopt a method with increased transparency, reduced burden for industry and greater consistency between regulating authorities as well as encouraging industries to improve their environmental management.
(DETR News Release, 17 November 2000)

European Union

Air quality

The Directive relating to limit values for benzene and carbon monoxide in ambient air (2000/69/EC) has been adopted. This is the second daughter Directive of the Framework Directive on ambient air quality assessment and management (96/62/EC). It prescribes, among other things, limit values and alert thresholds for the two compounds in outside air. The Directive has to be transposed into national law before 2003. Air pollution in enclosed spaces will be considered in a review due in 2004.
(OJ L 313, 13 December 2000)

Ozone depletion

A ban on the sale and use of most hydrochlorofluorocarbons (HCFCs), carbon tetrachloride and 1,1,1 trichloroethane began being phased in on 1 October. HCFCs are being banned as part of the UK's implementation of EU Regulation on Substances that Deplete the Ozone Layer (2037/2000).
(OJ L 244, 29 September 2000)

Greenhouse gases

A first European Commission progress report, under Council Decisions for a monitoring mechanism of Community carbon dioxide and other greenhouse gases, has been published. It is based mainly on documents provided by member states and covers data on actual greenhouse gas emissions up to and including 1998 and projections up to 2010. The report warns that, based on existing EU and national policies, the majority of EU countries will miss their greenhouse gas emissions targets by up to 8 percent of the Kyoto commitment. Additional measures proposed, but not yet implemented by member states, are projected to cut emissions to just 1 percent below the EU's Kyoto commitment. Most of these reductions however, will be due to Germany and the UK and the report warns that individual countries are responsible for meeting their own targets. Policies and measures to address any failing, e.g. energy taxation, energy efficiency, car emissions and landfill, have been proposed in the framework of the European Climate Change Programme. Trends for emissions from individual economic sectors for 1990-98 are also presented, and show that the transport sector is the fastest growing source of greenhouse gas emissions.
(Com (2000) 749, 22 November 2000)

Vehicle emissions

The Auto-Oil II Programme (AOP II) report has now been published. The main objective of the AOP II was to assess future trends in air quality and to develop cost effective and scientifically sound policies to reduce emissions. The report found that road transport is responsible for a declining relative share of total emissions of the most common atmospheric pollutants. Furthermore, although road transport was predicted to play a major role in poor air quality until 2010 and beyond, it is was also stated that other sources would need to be targeted in order to bring about further improvements in air quality.
(COM(2000)626, 5 October 2000)

International

Climate change

The United Nations Sixth Conference of the Parties (COP6) involving delegates from 184 nations ended without an agreement in November. The conference at the Hague in the Netherlands was an attempt to ratify the 1997 Kyoto Protocol which was drawn up to cut major industrialised countries' greenhouse gas emissions by an average of 5.2 percent below 1990 levels by 2008 to 2012. Failure to reach an agreement at COP6 appeared to be the result of differences between the European Union and a United States led 'umbrella group' including, Canada, Japan, Australia and New Zealand. The main sticking point appeared to be the magnitude of the reductions in emissions targets which could be off-set against credit gained from planting forests and fertilising farmlands in order to increase the absorption of carbon dioxide from the atmosphere - 'carbon sinks'. However, there is currently much scientific uncertainty about the efficacy of these sinks. Although the United States did offer some concessions on the magnitude of allowances for sinks in a UK negotiated deal, a majority of the EU delegates rejected it, arguing that the caps were still too high. Many delegates pointed to progress made during the talks, especially on technical issues. At a follow-up meeting in Ottawa between the EU and the US, officials from both sides were reported to have made some progress. However there was no agreement and significant differences between the two groups still remain.
(Lycos New Releases, November 2000: http://www.unfccc.int/)

A new report "Accounting for Carbon Sinks in the Biosphere, European Perspective" was presented at COP6 in The Hague. The report summarises the current understanding of the carbon cycle and covers key issues of accounting and verification. It concludes that planting new forests is a relatively ineffective way of creating carbon sinks, as they would only temporarily reduce carbon dioxide for 15-100 years at the most. In contrast, preservation of existing forests would be a much more effective measure. The report was published by the CARBOEUROPE New research initiative and supports European policy on climate change.
(European Commission, November 2000)