Environmental Action Programme for Central and Eastern Europe Environmental Action Programme for Central and Eastern Europe Setting Priorities Abridged Version of the Document endorsed by the Ministerial Conference Lucerne, Switzerland 2830 April, 1993 Copyright © 1998 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First Printing May 1998. Previously distributed by OECD in 1994. 2 3 4 5 03 02 01 00 The findings, interpretations, and conclusions expressed in this publication are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. 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Environmental Action Programme for Central and Eastern Europe : setting priorities : abridged version of the document endorsed by Environmental Action Programme for Central and Eastern Europe 1 Environmental Action Programme for Central and Eastern Europe the Ministerial Conference, Lucerne, Switzerland, 28−30 April 1993 / [prepared by a team led by Richard Ackerman (World Bank) ... et al.]. p. cm ISBN 0−8213−3179−5 1. Environmental policy—Europe, Eastern—Congresses. 2. Pollution—Economic aspects—Europe, Eastern—Congresses. 3. Europe, Eastern—Economic aspects—1989—Congresses. conditions—1982− 4. Latin America—Social conditions—1982− I. Ackerman, Richard. II. Ministerial Conference "Environment for Europe" (1993 : Lucerne Switzerland) III. World Bank. IV. Organization for Economic Co−operation and Development. V. Title. HC244.Z9E523 1998 98−10238 363.7'0094—dc20 CIP Preface to the 1994 Edition At the Ministerial Conference "Environment for Europe," which took place on 28−30 April 1993 in Lucerne, Switzerland, Ministers "endorsed the broad strategy, with its principles and general priorities, contained in the Environmental Action Programme for Central and Eastern Europe (EAP) as a basis for action by national and local governments, the Commission of the European Communities and by international organisations and financial institutions and private investors active in the region" (Paragraph 6 of the Ministerial Declaration, 30 April 1993). This endorsement was the culmination of a two−year process of discussion and consensus building among representatives from about 30 Eastern and Western countries and numerous international institutions in the framework of the Swiss−led Expert Group established after the Dobris Conference in June, 1991. From a different perspective, the endorsement was the beginning of a substantive dialogue which is based on a much better understanding of how to achieve tangible results in a situation where serious environmental problems must compete with many other grave social and economic demands. The great achievement since the Dobris Conference, however, goes well beyond the preparation of the Action Programme, for there has been a shift in understanding of how it might be possible to achieve the greatest possible environmental improvements with the available resources. There is now a recognition that improvements in the environment are rooted in economic and social change, not in isolated investments. Attendance at the Lucerne Conference reflected this new paradigm; not only were environment ministers from 50 countries represented, but many senior finance, economic, and sectoral ministry officials also attended, especially from the 20 participating Central and Eastern European countries. This Action Programme represents a synthesis of several major studies. As part of a broad consensus building process, they were reviewed by various expert panels and dis− cussed at international meetings prior to the Lucerne Conference. The work was undertaken by the World Bank and OECD under the guidance of a Task Force chaired by the Commission of the European Communities. The innovative conclusions and fundamental recommendations would not have been possible without the commitment of countless individuals and generous contributions by several governments and institutions. The major studies were funded jointly by the governments of Denmark, Germany, Italy, The Netherlands, Switzerland, the United Kingdom, and the United States; and by the European Commission, the OECD, and The World Bank. The Netherlands Government also financed the editing of the Action Programme. Most important of Preface to the 1994 Edition 2 Environmental Action Programme for Central and Eastern Europe all, however, was the dedicated effort of a number of the Central and Eastern European countries with whom we embarked on a journey that is bringing us ever closer together in our joint quest for a better "Environment for Europe." RUTH DREIFUSS FEDERAL COUNCILLOR HEAD OF THE FEDERAL DEPARTMENT OF THE INTERIOR GOVERNMENT OF SWITZERLAND YANNIS PALEOKRASSAS COMMISSIONER COMMISSION OF THE EUROPEAN COMMUNITIES JEAN−CLAUDE PAYE SECRETARY−GENERAL ORGANISATION FOR ECONOMIC CO−OPERATION AND DEVELOPMENT LEWIS T. PRESTON PRESIDENT THE WORLD BANK This Report has been prepared by a team led by Richard Ackermann (World Bank) and comprising Gordon Hughes, Clyde Hertzman, László Somlyódy, Kristalina Georgieva, Wendy Ayres, and Gretta Goldenman. The sections on economic and environmental policies and on forecasting draw upon the work of Rob Maas, Johannes Bollen and Jean−Paul Hettelingh (RIVM) and Michael Toman (RFF). The chapter on expenditure priorities is based on the work of Wynne Jones, Mark Ambler, John Marrow and others working under a contract with Coopers & Lybrand. The section on Transboundary and Global Concerns is based on a draft from Martin Uppenbrink (UNEP), and benefitted from extensive comments and review by Anton Eliassen, Harald Dovland, Mari Saether (Norway). The sections on biodiversity and nature conservation are based on contributions from Jean−Pierre Ribaut (Council of Europe), Zbigniew Karpowicz and Liz Hopkins (IUCN). Information on the phaseout of Ozone Depleting Substances was provided by Claus Hvashøj Jørgensen and Ulla Blatt Laursen under a contract with COWIconsult. The section on Non−Governmental Organizations includes contributions from John Hontelez, Mara Silina, Martin Kaspar, and Przem Czajkowski. The principal editor was Frances Cairncross. Many others provided helpful comments and contributions. Brendan Gillespie (OECD) and Anna Bramwell (EU Commission) provided major inputs; and valuable advice was received from members of the Task Force, Expert Group, and others, in particular Alexander Avertchenkov, Dan Beardsley, Thomas Becker, Ruth Bell, Quincy Berengère, Lars Björkbom, Jan Boehringer, Anders Bojeman, Philippe Bourdeau, Philippe Bourel dela Roncière, Ralph Brieskorn, Giuseppe Cassini, Guy Clausse, Andrzej Czyz, Andriy Demydenko, Jeremy Eppel, Hermann Escher, Andrea Fennesz, Duncan Fisher, Richard Fort, Alexander Goudyma, Ronald Greenberg, Hugo Haider, Hans−Joachim Hermann, Theresa Herzog−Zimmermann, Paul Hofseth, Adam Isaacs, Oreola Ivanova, Jonathan Klavens, Miklos Koloszar, Zsuzsa Lehoczki, Kurt Lietzmann, Thomas H. Litscher, Bill Long, Måns Lönnroth, Ralph Luken, Sheila McKinley, Timo Mäkela, Margita Mastrovic, Alexander Melzer, Brian K. Muehling, Branimir Preface to the 1994 Edition 3 Environmental Action Programme for Central and Eastern Europe Natov, Marek Novakowski, David W. Pearce, Grzegorz Peszko, Istvan Pomazi, Tue Rohrsted, Theodore E. Russell, Wilhelm Schmid, Karsten Skov, David Stanners, Daniel Stauffacher, Jernej Stritih, Ulf Svidén, Josue Tanaka, Stanislaw Tarkowski, Daniel Thompson, Jan Thompson, Istvan Tökes, Hubert Menalda van Schouwenburg, Luis Veiga da Cunha, Ulla Weigelt, Henry Wyes, Harvey Yakowitz, André Yatchinovsky, and Anthony Zamparutti. Valuable advice was received from colleagues in the World Bank, including especially Wilfried Thalwitz, Anil Sood, Marcelo Selowsky, Anand K. Seth, Robin Bates, Kathleen Stephenson, Anders Halldin, Helmut Schreiber, Bilal Rahill, Stephen Lintner, Nicole Glineur, Piotr Wilcynski, Peter Whitford, Mark Kosmo. Laszlo Lovei and David Wheeler were Peer Reviewers. The Action Programme and the many related administrative tasks depended critically on the tireless assistance of Lucie A. Albert, Johnson Appavoo, Nathalie Lenoble, Jennifer Sterling (World Bank), and Anne Cariou and Leonora Lynch (OECD). A full draft of this report was discussed with Central and Eastern European governments in the course of a series of missions in March/April 1993. These missions were led by representatives from Austria, Denmark, Germany, The Netherlands, Sweden and the United Kingdom. Many thanks go to Jürgen Gneveckow, Lousewies van der Laan, and Bo Libert for their efforts to obtain translations of the Action Programme; to Stanislaw Sitnicki, Alexander Juras and Colin Woodard at the Regional Environment Center for organizing the translation and dissemination in Eastern Europe; and to all the countries and institutions sponsoring the translation and dissemination process. The EAP is being translated into 19 Central and Eastern European languages. The work program and the many studies leading up to this Environmental Action Programme for Central and Eastern Europe (EAP) were first described in a document entitled "Setting Environmental Priorities in Central and Eastern Europe." Many of the issues raised in that document are taken up in greater detail in this report and in the technical reports issued separately. Table of Contents Preface link Executive Summary (As Adopted at the Ministerial Conference) link I. Introduction: Why an Environmental Action Programme? link Objectives link The High Costs of Environmental Cleanup link International Assistance link The Need to Set Priorities link Why a Regional Approach? link II. How to Set Priorities link Table of Contents 4 Environmental Action Programme for Central and Eastern Europe The Costs of Environmental Damage link Environmental Damage and Human Health link The Main Pollution Problems link Degradation of Ecosystems and Biodiversity Conservation link Responding to the Problem: Finding a Balance between Policies link and Investments III. Policy Reforms link The Effects of Economic Change on the Environment link Better Environmental Policies link Enforcement link IV. Building Better Institutions link A Commitment to the Environment link Legislative and Institutional Reform link Environmental Monitoring and Information Systems link Constraints on Policy and Project Implementation link Management Capacity, Training and Education link Developing New Partnerships and Involving the Private Sector link V. Priorities for Environmental Expenditure link "Win−Win" Investments and Worker Training link Operation, Maintenance and Repair (OMR) link Immediate Priorities for Public Investment link Investments to Deal with Urgent Problems Specific to Different link Countries Low−Cost Measures to Address Longer Term Environmental link Problems Financing Environmental Investments link VI. Transboundary Issues: Regional and Global Concerns link Regional Concerns: Air Pollution link Regional Concerns: Water Pollution link Global Issues link Management of Toxic Chemicals and Hazardous Wastes link Conclusions: The Key Messages link VII. Principal Recommendations link Priorities in Detail link Table of Contents 5 Environmental Action Programme for Central and Eastern Europe Annexes 1 Summary of Human Health Problems and Major Industrial link Plants in Pollution "Hot−Spots" 2 Occupational Health link 3 Modelling the Impact of Economic Reform and Industrial link Restructuring 4 Why Raise Energy Prices? link 5 Environmental Standards link 6 Priorities for Environmental Expenditure (Details) link Boxes 1.1 Environmental Investment Expenditures in Poland link 1.2 Follow−up of the Lucerne Ministerial Conference link 2.1 Developing Country−Specific Priorities (Albania) link 2.2 Portraits of Different Kinds of "Hot Spots" link 2.3 Nitrates in Drinking Water in Romania link 2.4 Cost Savings for One Medium−Sized Town link 2.5 Airborne Dust or Gases—Which is More Important? link 3.1 Short−Term Threats to the Environment in Russia during the link Transition 3.2 Privatization and Environmental Liability link 3.3 Reducing Emissions from Coal−Burning link 3.4 Finding the Most Efficient Way to Reduce Environmental link Pollution 3.5 Financing Environmental Protection in the Russian link Federation 3.6 National Environmental Funds link 3.7 Environmental Standards in the European Union link 4.1 Key Features of National Environmental Action Plans link 4.2 The French River Basin Agencies: An Example of Regional link Water Management 4.3 The Project Cycle under Central Planning link 4.4 Proposed Project Fact Sheet link 4.5 Cost−Effective Wastewater Management in a River Basin: link The Nitra River link Table of Contents 6 Environmental Action Programme for Central and Eastern Europe 4.6 The Regional Environmental Center for Central and Eastern Europe (REC) 5.1 Dealing with Large, Old Industrial Plants link 5.2 The Diversity of Pollution Problems and Remedies—An link Overview 5.3 Checklist for Cost−Effective Municipal Wastewater link Investments 5.4 Biodiversity Conservation: Short−Term Investment Examples link 6.1 The Environmental Damage Caused by Acid Emissions link 6.2 Low Cost Options to Reduce Sulfur Dioxide Pollution link 6.3 Black Triangle Environmental Programme link 6.4 Mechanisms to Share the Burden of Reducing Transboundary link Pollution 6.5 Environmental Programs Dealing with International Waters link 6.6 Wastewater Investments Which Meet Domestic and link Transboundary Objectives 6.7 The Polish Debt−for−Environment Swap link 6.8 ODS Phaseout Activities link 6.9 Global Environment Facility Biodiversity Projects in Central link Europe Annex Boxes A6.1 Environmental Improvements in the Non−Ferrous Metals link Industry A6.2 Environmental Investments in the Iron and Steel Sector link A6.3 The Impact of Industrial Pollution on Municipal link Wastewater and Sludge Treatment A6.4 Rural Water Supplies link A6.5 The Application of Natural Treatment Systems: Szugy, link Hungary A6.6 Different Types of Wastewater Treatment link A6.7 Priorities and Alternative Technologies: Case Study of an link Overloaded Treatment Plant A6.8 Environmental Investments in the Paper and Pulp Sector link A6.9 Environmental Investments in the Chemical Sector link Text Figures Table of Contents 7 Environmental Action Programme for Central and Eastern Europe 2.1 Fuel Use for Households, Commerce and Services (Percent link Shares in 1988) 2.2 Fuel Use for Electricity (Percent Shares for Public Supply in link 1988) 2.3 Number of Passenger Cars Per 1000 Persons (1990) link 2.4 Average Annual Percentage Growth in Numbers of Cars Per link 1000 Persons (1980−90) 6.1 Total Emissions of SO2 and N0x from Central and link South−Eastern Europe 6.2 Total Emissions of Sulfur Dioxide and Nitrogen Oxides from link Russia 6.3 Total Emissions of SO2 and NOx from Other Countries of link the Former Soviet Union 6.4 Emissions of Carbon Dioxide in Central and Eastern Europe link 6.5 Primary Energy Use in Central and Eastern Europe link Annex Figures A3.1 Emissions of Particulates in Hungary and Russia under link Alternative Reform Scenarios A3.2 Emissions of Particulates in Romania and Ukraine under link Alternative Env. Standards A3.3 Emissions of Sulfur Dioxide in Hungary and Belarus link A3.4 Emissions of NOx in Hungary and Ukraine link A3.5 Emissions of Lead in Bulgaria and Romania link A3.6 Emissions of Cadmium in Belarus, Lithuania and Romania link A3.7 Emissions of BOD in Russia link A3.8 Particulate Emissions in Poland by Type of Source link A3.9 SO2 Emissions in Czech & Slovak Republics by Type of link Source A3.10 Lead Emissions in Bulgaria by Type of Source link Text Tables 2.1 Minimum Damage Costs from Pollution Emitted by High and link Low Stacks 5.1 Priorities for Pollution Control link Annex Tables A1.1 Major Industrial Plants Located in Pollution "Hot Spots" link Maps Table of Contents 8 Environmental Action Programme for Central and Eastern Europe 1 Concentration of Total Dust (RIVM/IBRD 25296R) 2 Total Deposition of Cadmium (RIVM/IBRD 25305R) 3 Concentration of Sulfur Dioxide (RIVM/IBRD 25297R) 4 Concentration of Sulfur Dioxide in 2010 (RIVM/IBRD 25298R) 5 Locations of Large Point Sources of SO2 Emissions in the CEI Region (IISAS) 6 Regional SO2 Emissions from All Sources in the CEI Region (IISAS) 7 Leaching of Nitrate in Agricultural Soils (RIVM/IBRD 25312R) 8 Exceedance of Critical Loads for Acidity (RIVM/IBRD 25300R) 9A Exceedance of Critical Loads for Acidity in 2010, Scenario 1 (RIVM/IBRD 25301R) 9B Exceedance of Critical Loads for Acidity in 2010, Scenario 2 (RIVM/IBRD 25302R) 10 Aluminium Concentrations in Acidified Soils (RIVM/IBRD 25304R) Technical Reports (issued separately) This report represents a synthesis of a two−year process involving numerous studies, detailed technical reports on the most important topics, joint meetings, workshops and international conferences. Following is a list of the major reports and conferences: Environment and Health in Central and Eastern Europe Monograph evaluating the influence of environmental pollution on human health in comparison with other determinants of health in 12 Central and Eastern European countries. The document summarizes the current knowledge about locations in the region where environmental pollution is known to have influenced human health, and identifies the principal types of environmental exposure which are affecting human health and could be subject to remediation through concerted environmental action. A draft of the report, which was prepared for the World Bank, was discussed at a high−level meeting of health and environment officials sponsored by WHO, UNEP and the World Bank at the WHO Regional Office for Europe in Copenhagen (Denmark), March, 1993. Environmental Liability and Privatization in Central and Eastern Europe Book analyzing the legal and economic issues associated with questions of environmental liability in the privatization process. The document, prepared by the World Bank, is based on an international conference on privatization, foreign direct investment and environmental liability hosted by the Polish Ministry of Environmental Protection, Natural Resources and Forestry in Warsaw in May, 1992. The Conference, which was organized jointly by The World Bank, OECD and EBRD, brought together ministers, deputy ministers and other Table of Contents 9