Firms face new EUR 7.5-billion annual pollution clean-up bill

Date: 18/02/1999

By Renée Cordes and Gareth Harding

EU GOVERNMENTS would be forced to cut emissions of the pollutants which cause smog and acid rain by up to three-quarters under controversial new plans being drawn up by the European Commission.

In what is set to be the biggest, costliest and most far-reaching EU environmental measure since the 'Auto-Oil programme' to cut car emissions was proposed five years ago, the Commission is due to adopt a proposal next month calling for national emissions ceilings to be imposed on four key gases for the first time.

To meet the proposed targets by 2010, member states could face an extra €7.5-billion yearly bill on top of the €58-billion annual cost of complying with existing and promised laws.

Under plans drawn up by Environment Commissioner Ritt Bjerregaard, member states would have to reduce emissions of sulphur dioxide (SO2) by 78%, volatile organic compounds (VOCs) by 60%, oxides of nitrogen (NOx) by 55% and ammonia by 21% compared to their 1990 levels.

These pollutants have been shown to cause acid rain, which erodes buildings and destroys vegetation, and ground-level ozone, which causes smog and exacerbates respiratory problems. While all countries would have to achieve certain emissions levels by 2010, they would be allowed to decide for themselves how to meet the targets.

Some governments are expected to put up a staunch fight against the proposed ceilings, which are seen by the Commission as an interim step towards the long-term goal of cutting emissions below 'critical' levels. This would mean reducing the area affected by acidification in half within ten years and lessening the number of times EU ozone limits are exceeded by two-thirds.

Commission estimates show that some countries would have to make swingeing cuts in emissions to meet the planned targets. Germany, France and the UK would have to lower the amount of SO2 pumped out by smokestacks by between 80-90% compared with 1990. Belgium, Germany and the Netherlands would have to make above-average reductions in VOCs, NOx and ammonia - which come from industrial sources, motor vehicles and agriculture respectively. Italy would face a whopping €9-billion annual bill to meet the new limits.

Industry has already fiercely attacked what it describes as the Commission's "unrealistic" targets for cutting emissions of the pollutants. The Union of European Industrial and Employers' Confederations (UNICE) argues that the draft proposals would impose an "enormous and unnecessary burden on the EU and consumers" and is urging the institution to propose less stringent ceilings.

But Commission officials say a study carried out for it concluded that the health and environmental benefits of meeting the proposed targets would far outweigh the costs.

As well as national emission ceilings and a strategy to cut ground-level ozone, the Commission will present proposals for a stringent new air quality limit for ozone based on the recently revised World Health Organisation standards.

Although the EU has already set a limit for the gas, this is not legally-binding and is frequently and systematically exceeded.

The latest report from the Copenhagen-based European Environment Agency estimates that nearly half Europe's population is exposed annually to levels of ozone which require national authorities to issue warnings to people who are susceptible to breathing problems.

Under draft proposals, the EU would set an interim target for protecting human health of 50 parts-per-billion of ozone, with member states only allowed to breach the limit 20-30 times a year. Environmentalists argue that this target is too lax and that lower ceilings are needed to protect human health and ecosystems from the dangers of choking smog and acid rain.

Commission is about to propose legislation calling for national emissions ceilings to be imposed on four key gases (SO2, VOCs, NOx and ammonia) for the first time.