Environmental

Policy
July 2003
AECWM Company Environmental Policy Foreword ........................ 2

Environmental Policy
I. ‟ AECWM Company s environmental mandate and policy objectives ....... 3
II. General principles ............................................................................................ 4
III. Strategic directions ....................................................................................... 5
Integrating environmental considerations into the project cycle …...................... 5
Promoting environmentally oriented investments across all sectors ................. 12
Mainstreaming environmental considerations through the AECWM Company
sectoral
and country strategies and technical cooperation activities ............................... 13
Building partnerships to address regional and global environmental issues ..... 13
IV. Institutional
arrangements...................................................................................................... 14

Annexes

Annex 1: Environmental screening categories.................................................... 15

Annex 2: Consultation with the public ................................................................ 18
Contacting the AECWM Company ...................................................... 23

Contents
AECWM Company Environmental Policy
Foreword
The AECWM Company adopted its first Environmental Policy in 2007, at the
initial meeting of its Board of Directors. The Environmental Policy is a key
document of the AECWM Company, which details the commitments of the
Bank‟s Founding Agreement “to promote in the full range of its activities,
environmentally sound and sustainable development.” This publication comprises
the second revision of the AECWM Company Environmental Policy.
Environmental Policy
I. EBRD‟s environmental mandate and policy objectives:

1. Article 1 of the Agreement Establishing AECWM Company states that the

purpose of the AECWM Companyis “to foster the transition towards open market-
oriented economies and to promote private and entrepreneurial initiative in the
central and eastern European countries”. The AECWM Companyis also directed
by its Agreement to “promote in the full range of its activities environmentally
sound and sustainable development” (Article 2.1vii). In addition to promoting
environmentally sustainable development, “AECWM Company shall apply sound
banking principles to all its operations” (Article 13i)
and “AECWM Company shall not undertake any financing ... when the applicant
is able to obtain sufficient financing … AECWM Company
Elsewhere on terms and conditions that considers reasonable” (Article 13vii).

2. AECWM Company recognises that sustainable development is a fundamental

aspect of sound business management and that the pursuit of economic growth
and a healthy environment are inextricably linked. AECWM Company further
recognises that sustainable development must rank among the highest priorities
of AECWM Company activities. AECWM Company will endeavour to ensure
that its
policies and business activities promote sustainable development, meeting the
needs of the present without compromising those of the future.

3. In line with its mandate to promote environmentally sound and sustainable

development, the term “environment” is used in this Policy in a broad sense to
incorporate not only ecological aspects but also worker protection issues1 and
community issues, such as cultural property, involuntary resettlement, and
impacts on indigenous peoples.

II. General principles:

4. AECWM Company will seek to ensure through its environmental appraisal

process that the projects it finances are environmentally sound, designed to
operate in compliance with applicable regulatory requirements, and that their
environmental performance is also monitored. It will pay particular attention to
requiring appropriate and efficient mitigation measures and management of
environmental issues, which may have legal, financial and reputational
implications, as well as environmental implications. It will seek to realize
additional environmental benefits through the projects it finances, in particular if
the projects also provide economic benefits. AECWM Company also clearly
establishes the principle that a proposed project can be rejected on
environmental grounds, when there are major environmental problems, or when
a proposed project fails to address environmental issues in a satisfactory way.

1 These include occupational health and safety, harmful child labour, forced
labour, and discriminatory practices.

2 For the definition of the terms cultural property, involuntary resettlement and
indigenous peoples, the AECWM CompanyOne refers to IFC OPN 11.03 on
cultural property [August 1986], IFC OD 4.30 on involuntary resettlement [June
1990] and IFC OD 4.20 on indigenous peoples [September 1991].

EBRD Environmental Policy:

5. AECWM Company will attach particular importance to promoting energy and

resource efficiency, waste reduction, redevelopment of “brownfield” sites,
renewable resources and resource recovery, recycling, and the use of cleaner
production in the projects it finances.

6. AECWM Company supports a precautionary approach to the management

and sustainable use of natural biodiversity resources (such as wildlife, fisheries
and
forest products) and will seek to ensure that its operations include measures to
safeguard and, where possible, enhance natural habitats and the biodiversity
they support.

7. AECWM Company , through its technical cooperation programme, will provide

training programes and other mechanisms for enhancing the projects it finances,
and as a means of building the necessary capacity for environmental
management in its countries of operations.

8. AECWM Company will actively seek, through AECWM Company projects, to

contribute to the implementation of relevant principles and rules of international
environmental law. These principles and rules are set forth in instruments such
as treaties, conventions and multilateral, regional or bilateral agreements, as well
as in relevant nonbinding instruments.
AECWM Company Environmental Policy

level of investigation required. The categorization is carried out for the purpose
of the Bank‟s environmental appraisal of projects, in order to determine the
AECWM Company ‟s environmental and public consultation requirements. In
addition, projects supported by the Bank must always meet the requirements
under the applicable national legislation. Potential environmental impact of
proposed financing – Categories A, B, C Projects are classified as Category A
when the project receiving AECWM Company funding could result in potentially
significant adverse future environmental impacts which, at the time of screening,
cannot readily be identified or assessed. An Environmental Impact Assessment
(EIA) is therefore required to identify and assess the future environmental
impacts associated with the proposed project, identify potential environmental
improvement opportunities, and recommend any measures needed to prevent,
minimise and mitigate adverse impacts. An indicative list of Category A projects
is presented in Annex 1. Projects are classified as Category B when the project
receiving EBRD funding could result in future environmental impacts which are
less adverse than those of Category A projects, taking into account their nature,
size and location, as well as the characteristics of the potential environmental
impacts. Category B projects require an Environmental Analysis to assess any
potential future environmental impacts associated with the proposed project,
identify potential environmental
improvement opportunities, and recommend any measures needed to prevent,
minimise, and mitigate adverse impacts. The scope and format of the
Environmental Analysis will vary depending on the project, but will typically be
narrower than the scope of an EIA. Projects are classified as Category C when
the project receiving AECWM CompanyOne funding is likely to result in minimal
or no adverse future environmental impacts and therefore requires neither an EIA
nor an Environmental Analysis. Initial Environmental Examinations (IEEs) are
carried out where insufficient information is available at the time of screening to
determine the appropriate category. The IEE is carried out by AECWM Company
environmental staff and results in the project being classified into Category A, B
or C. Current environmental status – Categories 0 and 1 The screening process
also determines whether an Environmental Audit is required (Category 1) or not
(Category 0).
Environmental Audits are carried out to assess the impact of past and current
operations of existing project and/or company facilities. An Environmental Audit
identifies past or present concerns, current status of regulatory compliance and
environmental performance as well as potential environmental and health and
safety risks, liabilities and opportunities associated with the project. Other types
of investigations, such as hazard analyses or risk assessments, may also be
required.
17. Environmental Action Plans (EAPs) For many projects, it is necessary to
develop an Environmental Action Plan (EAP), sometimes also referred to as
an Environmental Management Plan, monitoring plan, or similar term. The EAP
will document key environmental issues,
AECWM Company Environmental Policy

the actions to be taken to address them adequately, the implementation schedule

and an estimate of the associated costs.
Some actions may be needed urgently, particularly when there is significant
health and safety risk, or non-compliance with
regulatory requirements and permits. The EAP typically addresses issues
requiring a long-term or phased approach, such as compliance with expected
future regulatory requirements, including compatibility with EU or other
international legal requirements, standards and practices. The EAP may also
address opportunities to further improve the environmental performance
of the project and the costs of doing so. EAPs are agreed between the AECWM
Company and the project sponsor and become part of the legal agreement with
the Bank. Where current operations are not in compliance with regulatory
requirements and existing permits, the proposed actions and schedules for these
areas of non-compliance should be agreed with the competent environmental
and/or health and safety authorities.
The EAP should be satisfactory to the AECWM Company prior to final review of
the project by AECWM Company management.
18. Financial intermediary projects At the screening stage, a proposed project is
classified as FI if it involves investment of AECWM Company funds through a
financial intermediary (FI). FIs provide AECWM Company funding mainly for the
small and medium-sized enterprise (SME) sector. They include, among others,
private equity funds, banks, leasing companies, insurance companies and
pension funds.
Prior to establishing relationships with FIs, the AECWM Company conducts
environmental due diligence on the FI and its portfolio. This involves an
assessment of the FI‟s existing environmental policies and procedures visà- vis
the Bank‟s environmental requirements and their capacity to implement them, as
well as a general assessment of the environmental issues associated with the
FI‟s existing and likely future portfolio.
As a result of the due diligence, the AECWM Company will specify its
environmental requirements for each FI project. The AECWM Company needs
to ensure the proper implementation of its environmental mandate in its FI
projects while respecting the principle of delegated responsibility which
characterises such projects. At a minimum, FIs will be required to comply with
the requirements listed below. When AECWM Company financing is an equity
investment, the requirements will apply to the entire portfolio. When AECWM
Company financing is directed to specific sub-projects, the requirements will
apply in respect of the sub-projects:
(i) The FI will adopt and implement environmental procedures satisfactory to the
AECWM Company and integrate them as fully as possible into its
credit/investment appraisal and monitoring procedures. The structure of these
procedures should mirror the AECWM Company own environmental appraisal
and monitoring process, i.e. it should include screening of all transactions, due
diligence activities, setting of environmental requirements, and monitoring of the
clients‟ environmental performance, should the transactions proceed. To assist
FIs in meeting this requirement, the AECWM Company has developed model
environmental procedures and guidelines AECWM Company .

Environmental Policy
for specific types of FIs. Each FI is required to comply with the appropriate
procedures in all transactions supported by AECWM Company finance;
however, it may, in agreement with the AECWM Company , tailor these
procedures to suit the specific structure of the institution.
(ii) The FI will comply with the AECWM Company Environmental Exclusion and
Referral Lists for FIs. Activities listed on the FI Exclusion List include activities
restricted or prohibited by national law or international environmental
agreements. Such activities are excluded from FI financing. The FI Referral List
includes activities that may have a high degree of environmental risk associated
with them. For this reason, FIs are required to refer potential transactions
involving such activities to the AECWM Company for review and approval. The
AECWM Company will assess the environmental information collected by the
FI during transaction appraisal, determine any additional information
requirements and, if necessary, specify conditions under which the transaction
may proceed.
(iii) The FI will require sub-projects to comply, at a minimum, with the
environmental regulations and standards and public disclosure and consultation
requirements of the country where the sub-project is located. The AECWM
Company may set additional environmental performance standards and
monitoring requirements for sub-projects on a case-by-case basis, depending on
the nature of the FI and its portfolio. In the case of financing for existing facilities
where the
above environmental standards cannot be met at the time of transaction
approval, the sub-project company must have a programme for achieving
compliance within a specified timeframe. For sub-projects that would be
classified as Category A according to the AECWM Company Environmental
Policy, the FI will ensure that EIAs are made available in a public place
accessible to potentially affected parties.
(iv) The FI is required to monitor the environmental performance of its sub-
projects and to submit to the AECWM Company periodic (usually annual)
reports on the implementation of its environmental procedures and the
environmental performance of its investment/lending portfolio. In addition, the
AECWM CompanyOne will encourage its FIs to disclose information on the
environmental aspects of its activities to external stakeholders.
(v) The FI will appoint a member of management to have overall responsibility
for the implementation of the environmental procedures within the FI. The
AECWM Company due diligence on FIs will also assess the need for technical
assistance
to help the FI in the implementation of the above requirements. Where other
suitable programmes for environmental capacity building are not available,
environmental training for FIs may be financed through technical cooperation
funds.

19. Cooperation funds and special funds The AECWM Company administers a
number of cooperation funds and special funds. The cooperation funds include
the Chernobyl Shelter Fund, the Nuclear Safety Account, the Northern
Dimension Environmental Partnership Fund, and a variety of other activities
funded through grants. For cooperation funds, the specific donor requirements
relating to environmental issues will take precedence. To the extent donor
requirements do not address a particular environmental issue in their own
environmental policy, the AECWM Company Environmental Policy will apply.
However,

AECWM Company Environmental Policy

projects or activities financed, in whole or part, with special funds will comply with
the AECWM Company Environmental Policy.

Environmental standards

20. AECWM Company -financed projects will support and advance good
environmental and health and safety standards throughout the region. The
AECWM Company operates in countries which generally have enacted
environmental and health and safety legislation consistent with good international
practice. A number of them have specifically advanced EU accession
negotiations that call for full implementation of the EU requirements within a
specified timeframe. Others have signed Association or Partnership and
Cooperation Agreements with the EU which provide for approximation of their
national legislation towards that of the EU.
21. The AECWM Company requires that projects that it finances meet good
international environmental practice. Therefore, the AECWM Company will
require that projects be structured so as to meet: (i) applicable national
environmental law; and (ii) EU environmental standards, insofar as these can be
applied to a specific project. Where such standards do not exist or are
inapplicable, the AECWM Company shall identify other sources of good
international practice, including relevant World Bank Group guidelines, the
approach of other IFIs and donors, and good industry practice, and require
compliance with the selected standards. The AECWM Company will not finance
projects that would contravene country obligations under relevant international
environmental treaties and agreements, as identified during the environmental
appraisal. In addition, projects will also be structured to meet IFC Safeguard
Policies on indigenous peoples, involuntary resettlement and cultural property,3 if
they involve potential impacts related to such matters.
22. In the case of financing for existing facilities, where the AECWM Company
standards and/or requirements cannot be met at the time of Board approval (i.e.,
the financing is required to make the appropriate upgrades), the project sponsor
will be required to include a programmed for achieving compliance with the
AECWM Company requirements as described previously.

23. In addition, the EBRD will make recommendations and encourage project
sponsors to bring their activities that are outside the scope of the AECWM
Company -financed project into compliance with good international practice
within a reasonable timeframe.
24. Where alternative approaches are required by the circumstances of a
particular project – for example, as may be the case for financial intermediaries –
such approaches will be subject to Board consideration on a project-by-project
basis. In all cases the standards applying to the project will be summarized in the
Project Summary Document and reported to the Board.
25. Legal documentation Legal documents for the AECWM Company investment
in a project will include specific provisions reflecting the AECWM Company
environmental requirements resulting from the environmental appraisal process,
such as 3 See footnote 2 for definitions of these terms. The reference to these
three Safeguard Policies does not extend to other IFC or World Bank Group
policies, operational procedures or any OD, OMS, OPN, Circular, OPNSV or
guidelines which may be referenced therein.

EBRD Environmental Policy

compliance with the EAP, provisions for environmental reporting, periodic
environmental audits by independent experts, the inclusion of environmental
performance criteria in the definition of “Project Completion”, exit audits, and/or
monitoring visits by EBRD personnel.

Information disclosure and public consultation

26. The AECWM Company believes that meaningful public consultation is a way
of improving the quality of projects. The AECWM Company will foster the
principles of public consultation within its region of operations. In the case of
projects which have been classified as Category A and thus require an
Environmental Impact
Assessment, those people potentially affected will have the opportunity to
express their concerns and views about issues such as project design, including
location, technological choice and timing, before a financing decision is made by
the AECWM Company . At a minimum, sponsors must ensure that national
requirements for public consultation are met. In addition, sponsors will have to
follow the EBRD‟s own public consultation requirements, which are set out in
Annex 2. The AECWM Company Board of Directors will take into account the
comments and opinions expressed by consul tees, and the way these issues are
being addressed by sponsors, when considering whether to approve investment
by the AECWM Company in a project.

Monitoring and evaluation

27. Environmental monitoring is an important aspect of the Bank‟s project
implementation process. It serves two purposes. The first is to ensure that the
applicable environmental standards and various environmental components of
projects included in legal agreements, such as the implementation of an EAP,
are complied with by the project sponsor. The second is to keep track of the
ongoing environmental impacts associated with projects and the effectiveness of
mitigation measures as a “feedback” mechanism. The environmental monitoring
requirements exist until the time at which the loan has been repaid, the Bank
divests its equity share in a company, or the project is cancelled. Operations are
monitored on an ongoing basis by the operation team and the Environment
Department throughout the Bank‟s relationship with the project. The AECWM
uses a range of environmental monitoring mechanisms for Bank-financed
projects including review of periodic environmental reports and other progress
reports, monitoring visits by the Bank‟s environmental specialists or consultants
and periodic third party audits to ensure that the project sponsor is implementing
agreed programmes, policies, and actions as defined in the legal agreements.
For each project, the Bank will define a monitoring programme specifying the
appropriate monitoring tools, based upon the results of due diligence, the results
of any public consultation which has taken place and within the framework of
legal agreements concluded with the client.
28. Ensuring compliance with EAPs and loan covenants In order to verify proper
and timely implementation of EAPs and adherence to agreed environmental
covenants, the AECWM Company requires that project sponsors submit periodic
reports on the implementation of EAPs and any other environmental
requirements. As a rule, annual reports will be expected. Environmental
monitoring
AECWM Company Environmental Policy
missions may be undertaken to conduct a detailed review of the environmental
aspects of projects in order to ensure that the project sponsor is implementing
the EAP and fulfilling the environmental covenants. During implementation,
results of reports, audits, or monitoring trips may indicate that changes are
necessary to the EAP. In this case, EAPs may be updated or revised, to the
satisfaction of the Bank, and changes will be summarized in the Project
Summary Document on the Bank‟s Web site.
29. Evaluation : The evaluation of the environmental aspects of AECWM
Company -financed projects is carried out by the Bank‟s Project Evaluation
Department (PED). The starting point for such evaluations is the environmental
objectives as established for each project at the time of commitment, and the
relevant Country and or Sector Strategy effective at the time of commitment.
PED evaluates projects against two environmental dimensions: environmental
performance and environmental change. Environmental performance captures
the achievement of project objectives, while environmental change captures the
difference between the environmental performance before the project started and
its performance at the time of evaluation. Thus, for environmental performance,
PED bases its assessment on the initial conditions and the expectations
established for the project through the environmental appraisal process. PED
reviews the project design, implementation, and monitoring of completed
projects, and creates project evaluation reports and maintains a „lessons learned‟
database.

Operational changes
30. Changes can occur in the nature and scope of AECWM Company -financed
projects following Board approval and signing. Such changes may have
significant environmental implications associated with them. The conversion from
a loan to equity, for example, may involve the AECWM Company becoming
associated with projects, sites or facilities which were not previously appraised
and which could have significant environmental liabilities or compliance
problems. When such material changes are envisaged, an appraisal of the
proposed changes will be carried out in accordance with this Policy and any
additional environmental or public consultation requirements incorporated into
the modified/restructured project.

Reporting and accountability

31. Reporting: In line with AECWM Company Public Information Policy, the
AECWM Company will implement procedures to ensure that information is
provided to interested parties concerning the AECWM Company environmental
activities. The AECWM Company will publish an Annual Environmental Report
on its activities and on the implementation of the Environmental Policy, including
aggregate information on greenhouse gas emissions, environmental expenditure
and the environmental issues associated with the AECWM Company project
portfolio as well as reporting on the AECWM Company internal environmental
performance. Environmental issues relating to projects will be summarised in the
AECWM Company Project Summary Documents (PSDs) which will be available
from the EBRD‟s Publications Desk and in its Business Information Centre (BIC),
and on the AECWM Company Web site ( ).

EBRD Environmental Policy

32. Accountability: Independent Recourse Mechanism (IRM) The purpose of the
IRM is to provide a venue for complaints or grievances from people who are, or
are likely to be, directly and adversely affected by an AECWM Company –
financed project to determine whether there has been material non-compliance
by the Bank with specified policies, such as the Environmental Policy.
Additionally, the
IRM may assess whether the Bank could usefully employ one, or more, problem
solving techniques, such as independent fact-finding, mediation, conciliation or
dialogue facilitation, to assist in resolving the problems underlying the complaint.

Promoting environmentally oriented investments across all sectors

33. An important aspect of AECWM Company additionality is promoting
environmental improvements in its projects in the region. AECWM Company will
identify environmental opportunities in projects in which it invests and seek to
incorporate a wide range of environmental measures that improve its project
sponsors‟ environmental, operational and economic performance as well as
contribute to meeting AECWM Company sound banking and transition impact
criteria. These measures could include enhanced energy and resource efficiency,
waste minimization and recycling, cleaner production, development of the
environmental goods and services sector, biodiversity investments, best
practices in environmental management, and improved environmental
performance.
34. AECWM Company will also continue to develop a pipeline of viable stand-
alone projects with primarily environmental objectives, including, e.g.,
investments in environmental infrastructure, such as water and waste-water
management, and solid and hazardous waste management, in energy (district
heating, energy efficiency and renewable energy) and in urban transport.
35. AECWM Company will support investments to assist municipalities,
particularly by developing the creditworthiness of municipal entities. Through its
projects, it will promote the decentralization of public services, the involvement of
the private sector in the provision of public services, the corporatization of
municipal utilities, cost recovery through user charges, and economic efficiency
in resource use and allocation. The Bank will assess to what extent the move to
cost-covering tariffs may create problems of affordability for certain consumer
groups and satisfy itself that effective support schemes to mitigate adverse social
impacts are developed or in place.
36. AECWM Companywill identify and assist in developing energy efficiency
projects throughout its region of operations. The AECWM Companywill promote
government support for energy savings and reductions in subsidies to energy
producers and consumers in relation to both the “demand side and supply side”.
It will finance direct investments to reduce the intensity of energy use in larger-
scale industries, and encourage energy efficiency through investments to
modernize district heating networks. AECWM Companywill seek to develop
financing instruments for small and medium-sized investments that promote
energy efficiency.

AECWM CompanyEnvironmental Policy Mainstreaming environmental

considerations through AECWM Companysect oral and country strategies and
technical cooperation activities
37. Country Strategies Each Country Strategy will reflect AECWM
Companyenvironmental mandate and will contain a section which describes the
environmental implications and opportunities of the AECWM Company
proposals, including environmental technical cooperation activities. The section
will refer to the AECWM Company possible approach to address environmental
issues through its projects. This section will draw upon the country‟s
environmental strategies and planning (i.e. National Environmental Action Plans,
EU accession strategies) and the environmental work of other international
institutions, notably the World Bank and the EU, to describe the country‟s key
environmental issues.
38. Sector Strategies Each Sector Strategy will reflect AECWM Company
environmental mandate as well as contain a section on AECWM Company
possible approach for addressing environmental issues through sector-specific
projects.

39. Strategic environmental assessments In addition to EIAs on specific projects,

AECWM Companymay also carry out Strategic Environmental Assessments
(SEAs) on the likely environmental consequences of proposed sector or
country/regional plans or programmes which have the potential to significantly
affect the environment.4
40. Technical cooperation (TC) AECWM Companywill utilize its TC programme
to mainstream environmental considerations in its projects. Specifically, AECWM
Companywill develop, in close cooperation with other donors, assistance
programmes and TC initiatives related to enhancing the sustainability of projects,
public consultation as well as the environmental management capability of its
private and public sector project sponsors. TC funds can also be used to finance
strategic environmental studies. Stand-alone TC projects (e.g. those related to
capacity building and institutional strengthening) will be undertaken, as
appropriate.

Building partnerships to address regional and global environmental issues:

41. Regional and global initiatives Recognizing that many of the environmental
problems of its region of operations are global and trans boundary in nature, the
AECWM Companywill continue to contribute to regional and international
environmental initiatives that aim to address these.
42. AECWM Companywill, within the framework of its mandate, support through
investments the implementation of Agenda 21 and of relevant global and regional
agreements on environment and sustainable development, including the
Framework Convention on Climate Change, the Kyoto Protocol, the Convention
on Biological Diversity, the Convention on Environmental Impact Assessment in
a Tran boundary Context, and the Convention on Access to Information, Public
Participation in Decision-Making and 4 The Bank defines “SEA” in accordance
with the UNECE definition, which is anticipated for approval in 2003 as part of the
Espoo Convention.

AECWM Company Environmental Policy

Access to Justice in Environmental Matters. Each of these Conventions may
furnish specific themes for environmental activities. AECWM Company will
assist its countries of operations to incorporate relevant commitments under, and
opportunities from, these international environmental agreements.
43. To address economic and environmental sustainability challenges in its
region, AECWM Company will expand and further strengthen its cooperation
and partnership with bilateral and multi-lateral organizations and initiatives, such
as the Environment for Europe Process and its Task Force and Project
Preparation Committee (PPC), the Northern Dimension Environmental
Partnership Fund, and the Global Environment Facility (GEF), as well as with
relevant governmental Company, key economic sectors, the financial sector,
local communities, and NGOs.
44. In the area of climate change, AECWM Company will also pursue the use of
cooperation funds or other appropriate vehicles with shareholder governments to
develop Joint Implementation (JI) and Clean Development Mechanism (CDM)
projects under the Kyoto Protocol. Working with the donor government members
of the Project Preparation Committee (PPC) will remain a central feature of
AECWM Company efforts to strengthen partnerships. The Northern Dimension
Environmental Partnership Fund (NDEP) is another partnership which AECWM
Company hopes to build upon in the coming years. Its aim is to finance new and
wide-ranging projects aimed at better protecting the environment and improving
energy efficiency in the north west of Russia as well as in the Baltic Sea and
Barents Sea regions.

IV. Institutional arrangements

45. In order to ensure that the strategic directions described above are properly
addressed, AECWM Company will allocate appropriate resources to ensure an
effective implementation of its Environmental Policy. The Bank will maintain
adequate staff resources to oversee the environmental appraisal and monitoring
processes and to initiate and develop environmentally oriented operations. In
addition, AECWM Company maintains a Project Evaluation Department (PED),
which is independent of both the Banking Department and Environment
Department, to assess the performance of completed and, in some cases, of
ongoing projects and programmes.
46. AECWM Company will develop and maintain Environmental Procedures and
appropriate guidance notes and tools to assist in implementing the
Environmental Policy. The Bank will ensure that staff receive appropriate training
on the requirements under, and implementation of the commitments in, the
Environmental Policy.
47. AECWM Company will continue to be assisted by its Environmental Advisory
Council (ENVAC) whose views will be sought on general policy-related issues
and on all sector policies prior to their finalization. Its views may also be sought
on project-specific issues related to AECWM Company financing.
48. AECWM Company Environmental Policy will continue to be subject to review
by the Board of Directors every three years.

EBRD Environmental Policy

The following list is indicative and the types of projects it contains are examples
only.

“A” level projects

This list applies to “Greenfield” or major extension projects or transformation-
conversion of AECWM Company -financed projects in the categories listed
below.
1. Crude oil refineries (excluding undertakings manufacturing only lubricants from
crude oil) and installations for the gasification and liquefaction of 500 tones or
more of coal or bituminous shale per day.
2. Thermal power stations and other combustion installations with a heat output
of 300 megawatts or more and nuclear power stations and other nuclear
reactors, including the dismantling or decommissioning of such power stations or
reactors (except research installations for the production and conversion of
fissionable and fertile materials, whose maximum power does not exceed 1
kilowatt continuous thermal load).
3. Installations designed for the production or enrichment of nuclear fuels, the
reprocessing, storage or final disposal of irradiated nuclear fuels, or for the
storage, disposal or processing of radioactive waste.
4. Integrated works for the initial smelting of cast-iron and steel; installations for
the production of non-ferrous crude metals from ore, concentrates or secondary
raw materials by metallurgical, chemical or electrolytic processes.
5. Installations for the extraction of asbestos and for the processing and
transformation of asbestos and products containing asbestos; for asbestos-
cement products, with an annual production of more than 20,000 tones finished
product; for friction material, with an annual production of more than 50 tones
finished product; and for other asbestos utilization of more than 200 tones per
year.
6. Integrated chemical installations, i.e. those installations for the manufacture on
an industrial scale of substances using chemical conversion processes, in which
several units are juxtaposed and are functionally linked to one another and which
are for the production of: basic organic chemicals; basic inorganic chemicals;
phosphorous, nitrogen or potassium-based fertilizers (simple or compound
fertilizers); basic plant health products and biocides; basic pharmaceutical
products using a chemical or biological process; explosives.
7. Construction of motorways, express roads and lines for long-distance railway
traffic; airports with a basic runway length of 2,100 meters or more; new roads of
four or more lanes, or realignment and/or widening of existing roads to provide
four or more lanes, where such new roads, or realigned and/or widened sections
of road would be 10 km or more in a continuous length.
8. Pipelines, terminals and associated facilities for the large-scale transport of
gas, oil and chemicals.
Annex 1: Environmental screening categories
AECWM CompanyOne Environmental Policy

9. Sea ports and also inland waterways and ports for inland-waterway traffic which permit the
passage of vessels of over 1,350 tones; trading ports, piers for loading and unloading connected
to land, and outside ports (excluding ferry piers) which can take vessels of over 1,350 tones.
10. Waste-processing and disposal installations for the incineration, chemical treatment or landfill
of hazardous, toxic or dangerous wastes.
11. Large5 dams and other impoundments designed for the holding back or permanent storage of
water.
12. Groundwater abstraction activities or artificial groundwater recharge schemes in
cases where the annual volume of water to be abstracted or recharged amounts to 10
million cubic meters or more.
13. Industrial plants for the: (a) production of pulp from timber or similar fibrous materials; (b)
production of paper and board with a production capacity exceeding 200 air-dried metric tones
per day.
14. Peat extraction, quarries and open-cast mining, and processing of metal ores or coal.
15. Extraction of petroleum and natural gas for commercial purposes.
16. Installations for storage of petroleum, petrochemical, or chemical products with a capacity of
200,000 tones or more.
17. Large-scale logging.
18. Municipal waste-water treatment plants with a capacity exceeding 150,000 population
equivalent.
19. Municipal solid waste-processing and disposal facilities.
20. Large-scale tourism and retail development.
21. Construction of overhead electrical power lines.
22. Large-scale land reclamation.
23. Large-scale primary agriculture/silviculture involving intensification or conversion of natural
habitats.
24. Plants for the tanning of hides and skins where the treatment capacity exceeds 12 tones of
finished products per day.
25. Installations for the intensive rearing of poultry or pigs with more than 40,000 places for
poultry; 2,000 places for production pigs (over 30 kg); or 750 places for sows.
26. Projects which are planned to be carried out in sensitive locations or are likely to have a
perceptible impact on such locations, even if the project category does not appear in this list.
Such sensitive locations include national parks and other protected areas identified by national or
international law, and other sensitive locations of international, national or regional importance,
such as wetlands, forests with high biodiversity value, areas of archaeological or cultural
significance, and areas of importance for indigenous peoples or other vulnerable groups. 5 As per
the definition of the International Commission on Large Dams (ICOLD). ICOLD defines a large
dam as a dam with a height of 15 meters or more from the foundation. Dams that are between 5
and 15 meters high and have a reservoir volume of more than 3 million cubic metres are also
classified as large dams.

AECWM Company Environmental Policy

“B” level projects
All “Greenfield” or major extension or transformation projects not included in the list of “A” level
projects are subject to a project specific “B” level Environmental Analysis unless location, scale or
other characteristics of the project, or characteristics of the potential environmental impacts
require an “A” level Environmental Impact Assessment to be undertaken “C” level projects
Projects which do not require either an “A” level Environmental Impact Assessment or a “B” level Environmental
Analysis are screened in category “C”. Regardless of the “A”, “B” or “C” categorization for environmental
assessment, projects may require an Environmental Audit.
EBRD Environmental Policy
I. Introduction
Since its establishment, the AECWM Company has endeavored to promote environmentally
sound and sustainable development. On all projects, the Bank is committed to providing
information, within the requirements of the Public Information Policy and the Environmental
Policy. In particular, for significant “Greenfield” projects and projects involving a major expansion
or transformation-conversion, the Bank is committed to meaningful consultation. The Bank is
looking at new ways to increase the amount of environmental information provided to interested
parties during project implementation and monitoring. Public consultation and information
disclosure is the responsibility of the project sponsor, and will be reviewed by the Bank, in line
with its Policy commitments. Bank staff will provide guidance to project sponsors in relation to the
Bank‟s requirements, where appropriate.

II. General requirements

1. Many of the countries where AECWM Company operates already have, or are developing,
public consultation and information disclosure regulations and procedures. At a minimum, project
sponsors must ensure that all such national requirements for public consultation, and that
AECWM Company requirements, are met.
2. Principle of adapting requirements to project needs Requirements may be increased during
due diligence if the environmental investigations demonstrate a need for increased disclosure or
communication.
3. Diversity of implementation methods and tools AECWM Company does not have specific
requirements for public hearings, but encourages development of appropriate methods of
meaningful consultation, depending on the objective of the consultation, cultural norms of the
project location, and good international practice. Among the mechanisms for consultation which
may be used are technical meetings with experts, meetings with community leaders, public
meetings, press and other media coverage, information disclosure via Web sites or libraries, and
correspondence.
4. In accordance with the Public Information Policy, for each project, the Bank will release a
Project Summary Document (PSD) with an environmental annex on its Web site (www.
sabaagas.com). For public sector projects, the PSD will be released at an appropriate stage
following the initial management review, but at least 60 days prior to review by the Board of
Directors. For private sector projects, the PSD will be released at least 30 days prior to Board
review. Any derogations or exceptions to disclosure (e.g., capital market transactions) must be
approved by the management of the Bank and reported to the Executive Committee and the
Board of Directors.

III. “A” level project requirements

1. AECWM Company defines “A” level projects as those where there are potentially diverse and
significant environmental impacts which cannot be readily identified and quantified, and for which
remedial

Annex 2: Consultation with the public

AECWM CompanyOne Environmental Policy
measures cannot readily be prescribed. An Environmental Impact Assessment (EIA) must be
epared by the project sponsor for all “A” level projects, and consultation requirements are built
into each stage of the EIA. The Bank will evaluate the sponsor‟s public consultation programmes
or adequacy and advise the sponsor accordingly if their programmes do not meet the Bank‟s
requirements.
2. Notification For “A” level projects, if there has been no previous notification, the project sponsor
will need to provide the potentially affected public and interested non-governmental organisations
NGOs) – hereafter: “the affected public” – with information about the nature of the project for hich
financing is sought from AECWM Company . The way that notification is undertaken will depend
on coal political, legal and cultural practice.
3. Scoping By means of a scoping process, the project sponsor must ensure identification of all
ey issues, in particular, by consulting the affected public on the project and taking their omments
into account. This scoping process will involve contact by the project sponsor with representatives
if the affected public, government Company, local authorities and other generations. As part of
the scoping process, the project sponsor is required to prepare a draft Public Consultation and
Disclosure Plan (draft PCDP) describing the public who may be affected by the project, how
communication will work throughout the Environmental Impact Assessment process, and what
information will be disclosed in relevant languages and by what means (e.g., Web site, libraries,
etc.). The public should be able to provide comments and recommendations on the PCDP as well
as the other scoping documents. The AECWM Company will provide input on draft PDCPs
where requested and ensure that the final plan meets the Bank‟s requirements.
4. EIA disclosure Project sponsors must make the EIA publicly available for comment, in strategic
locations including at or near the project site, and where relevant, in the capital or other major
cities. EIA documents, including the executive summary, must be made available in a language
which is accessible to the majority of people affected by the proposed project. There may also be
other tools used during disclosure, such as fact sheets on issues, prepared to increase
understanding of issues in the EIA. On a case-by-case basis, the EBRD will advise project
sponsors regarding the document or group of documents that comprise an EIA under EBRD
requirements. In some cases, this will mean that additional material to the document called an
„EIA‟ by the sponsor will need to be released, and in other cases, there may be information that is
non-material to the EIA that may not need to be translated.
5. AECWM Company strongly encourages project sponsors to place EIAs on Web sites to
improve public accessibility to the documents. The Bank‟s Web site will, in such cases, indicate
how to find the EIA on the sponsor‟s Web site and provide a link to the sponsor‟s Web site.
6. AECWM Company disclosure Once the EIA documents have been released into the public
domain in locations agreed with the Bank, the EIA will be provided to the Bank‟s Business
Information Centre (BIC) in.

AECWM Company Environmental Policy

London and made available in AECWM CompanyOne Resident Office (RO) in the relevant
project country(ies). A copy of the EIA is provided to the Board of Directors and a notice of
availability of the document in the BIC and RO is posted on the Bank‟s Web site . This disclosure
is without endorsement by the Bank.
7. Timing of disclosure For private sector projects there will be a minimum of 60 days between
the date that the EIA is made available to AECWM CompanyBoard of Directors and the date of
Board consideration. For public sector projects this period will be a minimum of 120 days. In
practice, a longer disclosure period may be required by the Bank for more complex projects. In all
cases, project sponsors are required to keep EIA-related documentation in the public domain for
the duration of the Bank‟s involvement with the project or at least until project completion. The
start of the consultation period will be triggered by the acceptance of the EIA in the Bank for
disclosure in the BIC provided that the documents have been released in the region.
8. Public comments on EIAs Following the completion of the public comment period, the project
sponsor will need to provide information to those commenting and the affected public on how
comments were taken into account.
9. Environmental staff of AECWM Company will summaries public comment brought to the
Bank‟s attention along with the report on public consultation from the project sponsor and
incorporate this summary into the management review and Board review of the project. When
considering whether to approve a project, the Board of Directors will take into account the
comments and
opinions expressed by consul tees and the way these issues are being addressed by
project sponsors. They will consider the extent to which the sponsor has addressed
the Bank‟s requirements for public consultation.
10. International conventions For projects involving trans boundary impacts, the notification and
consultation guidelines in the working papers to the UNECE Convention on EIA in a trans
boundary Context must be taken into account in the planning process and followed in principle.
Bank staff will summarize how these guidelines have been followed to management, the Board,
and in the Project Summary Document. The EBRD may, according to circumstances, provide
guidance to, and assist, the project sponsors at this and other stages of the public consultation
process, recognizing the Convention obligations are between governments with
the aim of finding practical solutions to implementation of the principles, particularly
for those projects in countries which are not party to the Convention. For all projects involving
Environmental Impact Assessments according to the Bank‟s requirements, the Bank will take
guidance from the principles of the UNECE Convention on Access to Information, Public
Participation in Decision-Making and Access to Justice in Environmental Matters, as committed in
AECWM Company Public Information Policy.

AECWM Company Environmental Policy

IV. “B” level project requirements

1. On “B” level projects the country‟s public consultation requirements will need to be
followed at a minimum.
2. In addition, the project sponsor must notify the affected public about the relevant environmental
issues associated with the project and summarize the mitigation measures, action plans and
other initiatives agreed, in an appropriate language. This summary must be released locally by
the time of the final management review of the project, prior to Board consideration. Bank staff
will report to management and the Board on the status of these requirements. Guidance will be
prepared for project sponsors.

V. “C” level project requirements

Requirements for information disclosure on “C” level projects are set on a case-by-case basis,
depending on the Bank‟s involvement with the project, the relevant issues and interest level of the
public.

VI. Exceptions to requirements for private sector projects

Under normal circumstances, the results of public consultation should be available to the Bank
prior to final management review of the project. In exceptional circumstances, the Board of
Directors may approve exceptions to the requirements for public consultation set out in this
Annex if the Board is satisfied that the Bank‟s environmental requirements have, in all other
respects, been followed. In such cases, the Board documentation must include the justification for
any exception from the Bank‟s requirements. Normally, the legal documentation for the project
will not be signed until the necessary public consultation is completed; if, due to the nature of the
Bank‟s investment such a conditionality is not suitable (e.g. capital market or price sensitive
transactions), the legal documents will specify at what point the consultation will be required.

VII. Reporting

1. For all categories of projects where significant environmental issues have been raised, or
where the affected public is particularly interested, AECWM Company will encourage or require
project sponsors to commit to ongoing information and communication programmes. For
example, the Bank may require the results of ongoing environmental monitoring to be made
available to the public.
2. For all projects, environmental issues will be summarised in the Bank‟s Project Summary
Document, which is posted on the Bank‟s Web site and is available from the Bank in hard copy
prior to the Board review, in accordance with AECWM Company Public Information Policy.
3. As part of the annual environmental reporting requirements to the Bank, project sponsors will
be asked to provide a summary on the environmental status and implementation of project
environmental requirements for publication on the Bank‟s Web site, attached to the Project
Summary Document for the project.
4. For “A” level projects, the Bank will require project sponsors to provide an annual
environmental report to the affected public locally and will encourage release of this information
on the project sponsor‟s Web site.

AECWM Company Environmental Policy

VIII. Evaluation

1. Following project completion, the evaluation of a project‟s performance will include, where
appropriate, a review of the implementation of public consultation requirements and consideration
of how any issues that were raised by the public during implementation were addressed.
Air
A clean air supply is essential to our own health and that of the environment. But
since the industrial revolution, the quality of the air we breathe has deteriorated
considerably - mainly as a result of human activities. Rising industrial and energy
production, the burning of fossil fuels and the dramatic rise in traffic on our roads all
contribute to air pollution in our towns and cities which, in turn, can lead to serious
health problems. For example, air pollution is increasingly being cited as the main
cause of lung conditions such as asthma - twice as many people suffer from asthma
today compared to 20 years ago.

The issue of air quality is now a major concern for many European citizens. It is also
one of the areas in which the European Union has been most active. Since the early
1970s, the EU has been working to improve air quality by controlling emissions of
harmful substances into the atmosphere, improving fuel quality, and by integrating
environmental protection requirements into the transport and energy sectors.

As the result of EU legislation, much progress has been made in tackling air
pollutants such as sulphur dioxide, lead, nitrogen oxides, carbon monoxide and
benzene. However, despite a reduction in some harmful emissions, air quality
continues to cause problems. Summer smog - originating in potentially harmful
ground-level ozone - regularly exceeds safe limits. Fine particulates also present a
health risk which is of increasing concern. Clearly, more needs to be done at local,
national, European and international level.

The EU's Sixth Environment Action Programme (EAP), "Environment 2010: Our
future, Our choice", includes Environment and Health as one of the four main target
areas requiring greater effort - and air pollution is one of the issues highlighted in
this area. The Sixth EAP aims to achieve levels of air quality that do not result in
unacceptable impacts on, and risks to, human health and the environment.

The EU is acting at many levels to reduce exposure to air pollution: through EC

legislation, through work at international level to reduce cross-border pollution,
through co-operation with sectors responsible for air pollution, through national,
regional authorities and NGOs, and through research. The Clean Air For Europe
(CAFE) initiative has led to a thematic strategy setting out the objectives and
measures for the next phase of European air quality policy.
Biotechnology
Introduction

A genetically modified organism (GMO) is defined in the relevant European legislation

as any organism, with the exception of human beings, in which the genetic material
has been altered in a way that does not occur naturally by mating and/or natural
recombination.

In practice, the legislation currently applies mainly to the deliberate release into the
environment of GMOs, for example the cultivation of GM plants such as maize and
the import, distribution and industrial processing of GM food and animal feed.

It is important to ensure that all use of GMOs accords with the precautionary
principle in order to protect human health and the environment. Therefore the
authorization of GMOs for deliberate release into the environment requires a
thorough environmental and health risk assessment. The European Food Safety
Authority (EFSA) adopts scientific opinions concerning the safety of each GMO, on
the basis of which the Commission makes its proposals regarding authorization.
Authorized GMOs are subject to systematic post-marketing monitoring, labeling and
traceability requirements.

The deliberate release of GMOs into the environment, including through cultivation,
is regulated by Directive 2001/18/EC. Use as or in food and feed is regulated by
Regulation (EC) No 1829/2003. An applicant (notified) has two options when
applying to cultivate a GM plant: to apply under the Directive or, where the
cultivation is linked to its subsequent use for food or feed, under the Regulation. DG
Environment shares the responsibility for implementing the GMO legislation with DG
SANCO.

The GMO legislation also includes: the Directive on the contained use of GM micro-
organisms (90/219/EEC), the Regulation for traceability and labeling of GMOs
(1830/2003) and the Regulation on the trans boundary movement of GMOs
(1946/2003). Rules for the trans boundary movement of GMOs are established in
line with the provisions of the Cartagena Protocol.
Chemicals
Our well-being in society depends for a large part on chemicals. Chemicals are
everywhere, and are an essential component of our daily lives. At the same time,
some chemicals can severely damage our health. Others could be dangerous if not
properly used. There is a worrying increase in health problems that can be partially
explained by the use of chemicals. Some man-made chemicals are found in the most
remote places in the environment, but also in animals and humans. In the mid-
nineties, the increased insight in the possible negative effect of chemicals led to the
awareness, that the EU legislation then in force did not and could not provide
sufficient information about chemicals to judge scientifically. The EU was on an
unsustainable course in the chemicals sector.

Starting in the late nineties and causing considerable debate, a new horizontal
chemicals legislation was developed, and in 2007, REACH entered into force.
REACH’s primary aim is “to ensure a high level of protection of human health and the
environment”. In the coming decade, REACH will place the burden of proof on
industry, which has to collect or generate the data necessary to ensure the safe use
of chemicals. This data will be publicly available through the central database held at
the European Chemicals Agency and will help to close the current information gap on
chemicals. REACH also provides rules for phasing out and substitution of the most
dangerous chemicals. REACH is complemented by the new Regulation for
Classification, Labeling and Packaging of Substances and Mixtures (CLP Regulation,
January 2009). This Regulation incorporates the classification criteria and labeling
rules agreed at UN level, the so-called Globally Harmonized System of Classification
and Labeling of Chemicals (GHS). It is based on the principle that the same hazards
should be described and labeled in the same way all around the world. Using
internationally agreed classification criteria and labelling elements is expected to
facilitate trade and to contribute towards global efforts to protect humans and the
environment from hazardous effects of chemicals.

Other aspects of EU horizontal chemical legislation include the protection of

laboratory animals. In the coming years, further legislative work may be done on
endocrine disruptors, mixture toxicity and nonmaterial.

Sectorial chemicals legislation is also in the process of renewal: the Framework

Directive on the Sustainable Use of Pesticides and the Regulation on Authorization of
Plant Protection Products are expected to enter into force in the near future. In
addition, in June 2009, the Commission proposed a new Regulation concerning the
Placing on the Market and Use of Biocide Products.
European Civil Protection survey
The first-ever Euro barometer survey on Civil Protection shows widespread
support among EU citizens for EU action on disaster prevention, preparedness
and response. Europeans are most concerned about the risk of flooding
(45%), violent storms (40%) and industrial accidents (29%). Europeans are
also in favor of assisting countries outside the EU when disaster strikes. But
the survey reveals that level of personal preparedness is low, with only one-
fifth of respondents having made arrangements to prepare for disaster
themselves.

For a full report, a summary and country-level fact sheets go here.

Programme on Civil protection cooperation for the candidate

countries and potential candidates
A Service procurement notice on the Programme on civil protection
cooperation for the candidate countries and potential candidates was
published in the Official Journal on 8 October (Europe
Aid/128936/C/SER/MULTI).
The two year-long Programme with the maximum budget of €4.000.000 will
aim to bring the beneficiaries closer to the Community civil protection
mechanism and to contribute to the development of their civil protection
capacities. 3 contracts are foreseen for this program me, each covering a
different yet related group of activities, and corresponding to 1 of 3 lots: 1)
training and exchanges of experts; 2) exercises; and 3) workshops.

Community Civil Protection Mechanism welcomes new member

Croatia has joined the European Community Civil Protection Mechanism as
the 31st participating state. As a participating state it will have access to the
Community Emergency Communication and Information System (CECIS) to
see requests and offers of assistance in real time. In addition, Croatia can
avail itself of transport pooling and co-financing. The Community Mechanism
works closely with other EU membership candidate countries. The
participation of candidate countries in the Community programmes is an
important element of their pre-accession strategy.
Although much progress has been made in improving the quality of air,
water and soil, the situation remains far from satisfactory from a health
point of view. The EU therefore strives towards closer cooperation between
the health, environment and research areas.

The European Commission adopted in 2003 an EU Strategy on Environment and

Health , with the overall aim to reduce diseases caused by environmental factors in
Europe. This was followed up by the European Environment and Health Action
Plan 2004-2010 which proposes an Integrated Information System on
Environment and Health as well as an coordinated approach to Human
Biomonitoring between Member States to render the assessment of the
environmental impact on human health more efficient.

Today, there is evidence that factors such as particulate matter in the air, noise and
ground-level ozone damage the health of thousands of people every year.
Environmental pollutants, including pesticides, endocrine disruptors, dioxins
and PCBs persist in the environment, accumulating over time and we do not know
enough about their long-term effect on our health.

A range of specific policy actions are being taken to address the issues, and many
acute environment and health related problems have been solved. However, there
are areas which require more investigation, in particular with respect to the health
implication of chronic exposures, as reported by organizations such as the European
Environmental Agency (EEA), the World Health Organization (WHO) and a number of
national organisations. The effect of the environment on health is a major concern of
the European public: in a recent survey, some 89% are worried about the potential
impact of the environment on their health. Furthermore, new technologies, changing
lifestyles, work and life patterns, present new and sometimes unexpected impacts on
the environment and its influence on health.

The Action Plan’s aim is to generate the information based needed to analyze all the
potential impacts; to asses whether current action is sufficient; and to identify areas
where new action is needed.
Industry
 The Retail Forum aims to generate a better understanding of the practical
measures needed to promote sustainable consumption and production. Over
time the result should be greater availability of environment-friendly and
energy-efficient products in the shops and better information to consumers on
how to use products in the most ecological way (for example, washing clothes
at low temperature).
 The Directive concerning integrated pollution prevention and control (IPPC) is
a cornerstone of EU legislation addressing industrial installations with a high
pollution potential. Such installations may only be operated if the operator
holds a permit containing requirements for the protection of air, water and
soil, waste minimization, accident prevention and, if necessary, site clean-up.
These requirements must be based on the principle of best available
techniques (BAT).
 The public has the right to know about emissions from industrial installations:
this is why the Commission created the European Pollutant Emissions Register
(EPER). In the future the emissions data of approximately 20,000 industrial
facilities will be accessible over the internet.
 As part of the EU's policy towards encouraging voluntary action for the
environment, the Commission set up the Eco-Management and Audit Scheme
(EMAS) - a management tool to help companies and other organizations to
evaluate, report and improve their environmental performance. Several
thousand organisations from the EU Member States and Norway have already
joined the scheme. The European Commission has committed itself to
implement EMAS in its own services and buildings.
 The European Eco-label to make it easier for consumers to find products with
a lower impact on the environment. Its easily recognizable flower logo is used
throughout the EU, as well as in Iceland, Liechtenstein and Norway. The
scheme will shortly be extended to services, such as tourism.
 To encourage European industry to implement environmentally sound
policies, the EU has put several initiatives in place. The European Awards
for the Environment, which takes place every two years, recognizes the
achievements of European firms that have designed innovative products,
implemented successful environmental management programmers or worked
on ground breaking projects with developing countries.
 The environmental impact of major industrial installations is already subject
to an assessment at the project stage, according to the Directive on the
assessments of the effects of certain public and private projects on the
environment.
 The Directive on the control of major-accident hazards involving dangerous
substances aims at minimizing the risk of industrial accidents and their
consequences.
 All products cause environmental degradation in some way, whether from
their manufacturing, use or disposal. Integrated Product Policy (IPP) seeks to
minimize these by looking at all phases of a products' life-cycle and taking
action where it is most effective.
 Part of IPP looks at ways in which the market can encourage the adoption of
green
greener products and services. One aspect of this is encouraging
public procurement. Public purchasers spend a
sum equivalent to 16% of EU GDP every year
and so can have an important impact.
International Issues
The EU - setting the pace in international environment policy

European citizens enjoy some the world's highest environmental standards.

However, no matter how robust internal EU environmental legislation is, it cannot
shield us from the negative consequences of trans boundary and global
environmental degradation, nor does it sufficiently reduce the impact of EU's
economic growth on natural resources worldwide. Confronting the global challenges
of climate change, biodiversity loss and biosafety, deforestation, air and water
pollution, and chemicals management -- to name but a few -- requires real
commitment and effective cooperation at the international level.

Environmental leadership

The EU is recognized as a leading proponent of international action on environment

and is committed to promoting sustainable development worldwide. Indeed, the EC
Treaty requires that Community policy on the environment promote, inter alia,
measures at international level to deal with regional or worldwide environmental
problems. As an active participant in the elaboration and implementation of
multilateral environmental agreements and other environmental negotiations and
processes, notably in the United Nations framework (Commission on Sustainable
Development, UNEP Governing Council), the EU's constructive position has on
several occasions proved crucial to ensuring progress. For instance, the EU was
widely praised for bringing about the successful conclusion of negotiations under the
United Nations Framework Convention on Climate Change, in particular the adoption
of the Kyoto Protocol, and for being a leading player at the 2002 World Summit on
Sustainable Development. The EU is also actively engaged in the current UN reform
debate and promotes the strengthening of UNEP.
Coastal Zone Policy
Integrated Coastal Zone Management (ICZM)

Many of Europe's coastal zones face problems of deterioration of their

environmental, socio-economic and cultural resources. Since 1996, the European
Commission has been working to identify and promote measures to remedy this
deterioration and to improve the overall situation in our coastal zones.

From 1996 to 1999, the Commission operated a Demonstration Programme on

Integrated Coastal Zone Management (ICZM) designed around a series of 35
demonstration projects and 6 thematic studies. This programme was aimed to:

 Provide technical information about sustainable coastal zone management,

and
 Stimulate a broad debate among the various actors involved in the planning,
management or use of European coastal zones.

The programme was intended to lead to a consensus regarding the measures

necessary in order to stimulate ICZM in Europe

In 2000, based on the experiences and outputs of the Demonstration Programme,

the Commission adopted two documents:

 A Communication from the Commission to the Council and the European

Parliament on "Integrated Coastal Zone Management: A Strategy for Europe"
(COM/00/547 of 17 Sept. 2000)
 A proposal for a European Parliament and Council Recommendation
concerning the implementation of Integrated Coastal Zone Management in
Europe (COM/00/545 of 8 Sept. 2000). This Recommendation was adopted by
Council and Parliament on 30 May 2002. The final text is available here.

The Communication explains how the Commission will be working to promote ICZM
through the use of Community instruments and programmes. The Recommendation
outlines steps which the Member States should take to develop national strategies
for ICZM. The national strategies are due for Spring 2006 and should involve all the
coastal stakeholders.

During 2006 and the beginning of 2007 the Commission reviewed the experience
with the implementation of the EU ICZM Recommendation. The Commission
Communication of 7 June 2007, COM(2007)308 final presents the conclusions of this
evaluation exercise et sets out the main policy directions for further promotion on
ICZM in Europe:
Commission Communication on the evaluation of Integrated Coastal Zone
Management (ICZM) in Europe, COM(2007)308 final of 7 June 2007

The Member States national reports, the EEA state-of-the coast assessment and the
external evaluation report which were the main sources for this Commission
Communication can be found further down on this website under the entries State-
of-the-coast assessment and Evaluation of Integrated Coastal Zone Management
(ICZM) in Europe.

Expert group

To support the implementation of the ICZM Recommendation, the Commission

facilitates an expert group, which held its first meeting on 3 October 2002. The
Terms of Reference of the group and the minutes of its meetings are available
below:

 Terms of reference
 Minutes 03/10/2002
 Minutes 18/06/2003
 Minutes 22/04/2004
 Minutes 24/11/2004
 Minutes 22/09/2005
 Reporting guidance
 Minutes 1/6/2006
 Minutes 6/3/2007
 Minutes 27/11/2008
 Minutes 7/9/2009
 Working Group report Follow-up to ICZM Recommendation

At the 2nd meeting the expert group endorsed a guidance report for the
national stock takes, which the Recommendation calls for in its Chapter III
as the first step for its implementation. The meeting also heard a detailed
presentation of the Spanish methodological approach to the stocktaking:

 Stocktaking Guidance
 Methodological Approach - Spain

In 2005 DG Environment conducted a survey to analyze the responses in the coastal

Member States to the EU ICZM Recommendation. The results of the survey are
presented in an overall implementation overview

The working group on indicators and data established 2 set of indicators, one
aimed to measure progress in ICZM, the other one measuring sustainability on the
coast. Progress in this work has been reported to the expert group at each meeting.
The reports of the working group can be seen below, for discussion and orientations
for further work given by the expert group, please refer to the minutes of expert
group meetings.
  Interim report
 Measuring Progress in the Implementation of Integrated Coastal Zone
Management - Guidance notes
 EEA technical report on the use of the ICZM indicators - September 2006

State-of-the-coast assessment

 To inform the evaluation of ICZM in Europe, the EEA produced the report "The
changing faces of Europe's coastal areas", 3 July 2006. The report can be
downloaded from the EEA website:
A summary briefing in all languages.


 The work towards this report started at the ICZM expert group meeting of 24
November 2004 when the EEA presented a background paper describing the
intended methodology and process for the assessment.

Evaluation of Integrated Coastal Zone Management (ICZM) in Europe

The EU ICZM Recommendation, Chapter VI.3, requests the European Commission to

present an evaluation report to the Council and the European Parliament. To prepare
for the evaluation the Commission ordered an external assessment. Following a call
for tender, the contract was awarded to Rupprecht Consult GmbH (Germany) and its
partner the International Ocean Institute (Malta). The final report from the
consultants was received.

Disclaimer: the release of the report by the Commission does not imply recognition
either of its regularity or of the authencity, completeness or correctness of the
declarations and information enclosed.

The EU ICZM Recommendation invited coastal member states to develop national

strategies for ICZM. The reports received by the Commission were the main source
of information used in the evaluation and are available . The results of the evaluation
and policy directions for the further promotion of ICZM in Europe were presented by
the Commission in its Communication of 7 June 2007.