Improving Financial Security in the Context of the Environmental Liability Directive (ELD)
The 2016 REFIT Evaluation of the Environmental Liability Directive (ELD) showed that the national implementation is working to a much lower extent than could be expected and with a great variation between the Member States. Under the Multi-Annual Work Programme for the period 2017 to 2020, the European Commission promotes, among others, the availability of financial security across the EU. Supporting this objective, the project aims to enhance the evidence base in relation to the current situation in Member States.
Financial security instruments can be important in the event of an operator’s insolvency or other inability to remediate environmental damage. The 2004 Environmental Liability Directive did not introduce mandatory financial security instruments, but required Member States to encourage the development of such instruments. Hence, different Member States follow different approaches as regards the instruments.
The results of the REFIT Evaluation published by the European Commission in 2016 indicate that there is sufficient insurance cover for environmental and ELD liabilities available in most insurance markets across the EU, but the demand by operators for such insurance is low. The project team led by Valerie Fogleman will examine and analyse all aspects of financial security and insurance markets for environmental liabilities. To this end, it will implement the following tasks:
- Explore the state of financial security for ELD liabilities in all Member States
- Outline the developments in financial security on Member State level in the last 10 years
- Investigate and formulate the most promising and appropriate financial security instruments
The project team will conduct desk research, consult stakeholders in Member States and discuss the outcome at an expert workshop. The study will support the work of the European Commission under the Multi-Annual Work Programme for the period 2017 to 2020.
Ecologic Institute supports the project in all organisational issues and with language expertise in, among others, German, Dutch, French, Spanish and Bulgarian. Its Events Team supports the preparation and implementation of the expert workshop.