Select Committee on European Scrutiny Eighth Report


EMISSIONS CEILINGS FOR CERTAIN ATMOSPHERIC POLLUTANTS


(20359)
10232/99
COM(99)125

Draft Council Directive on national emission ceilings for atmospheric pollutants; and

Draft Council Directive relating to ozone in ambient air.
Legal base: Article 175(1) EC; co-decision; qualified majority voting
Document originated: 9 June 1999
Forwarded to the Council: 14 July 1999
Deposited in Parliament: 30 July 1999
Department: Environment, Transport and the Regions
Basis of consideration: EM of 30 September 1999
Previous Committee Report: None
To be discussed in Council: No date set
Committee's assessment: Politically important
Committee's decision: Not cleared; further information needed

Background

  5.1  As a result of atmospheric pollution, the Community faces three main, and inter-related, environmental problems. These are:

  • acidification, which can have adverse effects on fish populations, forests, drinking water supplies, and buildings, both close to the source of pollution and more widely (including across national borders);

  • eutrophication, where the deposition of nitrogen compounds from the atmosphere leads to changes in land ecosystems, to the detriment of the significant number of plants species which prefer nitrogen-poor soils;

  • increases in tropospheric ozone (produced and trapped in air near the Earth's surface), arising from secondary pollution caused by the reaction of pollutant precursors in the presence of sunlight: this can affect human health, produce a range of effects on individual crop and tree species, and add to the greenhouse warming potential of other gases.

  5.2  The main sources of these problems are sulphur dioxide (SO2), which arises predominantly from coal and oil combustion, and especially from power plants; nitrogen oxides (NOx), which are also related to the combustion of fossil fuels, but with transport as the major source; volatile organic compounds (VOC), which derive from fuel combustion in transport, gas evaporation during loading/unloading of petrol, industrial processes, and the use of products containing organic solvents; and ammonia (NH3), which arises almost exclusively from agricultural activity, particularly animal husbandry.

  5.3  The Community has sought to address these problems by a range of measures. At a strategic level, the Fifth Environmental Action Programme sets the general and long-term objectives that there should be no exceedance of critical loads[28] (for acidification) and critical levels[29] (for ozone), and that everyone should be effectively protected against recognised health risks, with World Health Organisation (WHO) values becoming mandatory at Community level. Subsequently, the Commission's acidification strategy envisaged:

  • the setting of national emission ceilings;

  • ratification by the Community of the 1994 Protocol on sulphur emissions under the UNECE[30] Convention on Long-range Transboundary Air Pollution (CLRTAP);

  • limiting the sulphur content of certain liquid fuels (including setting a maximum limit in heavy fuel oil);

  • revising the existing legislation on large combustion plants; and

  • designating the North Sea and Baltic Sea as sulphur dioxide emission control areas under the Convention for the Prevention of Pollution from Ships (MARPOL).

  5.4  Up to now, similar strategies have not been developed for either ozone or eutrophication. However, the Commission points out that, in the former case, measures have already been taken in other contexts to drive down precursor emissions over the next decade, whilst it has also been possible both to demonstrate the benefits for soil eutrophication of reducing acidification and tropospheric ozone, and to make important progress on this latter issue.

  5.5  Nevertheless, despite the steps which have been taken, and the improvements in air quality and environmental protection which these are expected to produce by 2010, the Commission says that the Community will continue to be exposed to the problems of acidification, tropospheric ozone and eutrophication, and will not achieve the goals set out in the Fifth Environmental Action Programme. It therefore concludes that further measures are needed, and these are set out in the current document. This would involve an integrated strategy for setting emission ceilings for the various atmospheric pollutants mentioned in paragraph 5.2, and, as a separate but related measure, the setting of environmental quality standards for the concentration of ozone in ambient air.

— The integrated strategy

  5.6  The Commission says that an integrated strategy is needed because the problems which arise are inter-related, and because such an approach would exploit "the potential synergies in tackling multiple objectives simultaneously in a co-ordinated, balanced and cost-effective manner". It has therefore carried out a combined analysis which aimed to optimise the results of its earlier studies (which had looked at separate approaches related only to acidification or to combatting tropospheric ozone). The Commission adds that eutrophication objectives were not introduced, but that it was possible to demonstrate the consequential benefits in that area of reducing acidification and tropospheric ozone levels.

  5.7  So far as acidification is concerned, the Commission says that critical loads vary greatly according to such factors as soil and bedrock differences and alkaline depositions, whilst for eutrophication they reflect the level of nitrogen deposition at which vegetation changes take place. The proposed emission ceilings are then derived from a series of complex computer models which integrate the available data, including the potential cost of abatement measures in each Member State. In the case of critical levels for ozone, the Commission has relied on WHO guidelines. That for human health sets a mean level of 120mg/m3 over an 8 hour period (though the Commission points out that this is not strictly a critical level, since it does not include a margin of safety, and is based upon acceptance of a certain — albeit small — amount of risk to the general population). In the case of vegetation, the WHO has adopted a number of critical levels which represent the accumulation above a threshold of 40ppb (80mg/m3), calculated by adding together the excess concentrations of every single 1 hour ozone value above that threshold during daylight hours and over a certain period. These critical values are known as Accumulation Over Threshold of 40 ppb (AOT40), and vary according to vegetation type.

  5.8  The Commission goes on to say that its analyses have in common (i) the use of estimated 1990 emissions as the baseline for subsequent reductions; (ii) emission projections on a "business as usual" scenario, incorporating all existing Community legislation (or that proposed to the end of 1998)[31]; (iii) a scenario for 2010, under which all available or proven technical measures to reduce emissions are assumed to be taken; and (iv) intermediate scenarios for 2010, which explore cost-effective allocations of emission reductions across the Member States in order to meet various environmental quality objectives.

  5.9  It points out that the reference scenario would have an "important influence" in driving down emissions, so that between 1990 and 2010, those for SO2 are expected to fall by 71%, those for NOx by 48%, those for VOC by 49%, and those for NH3 by 12%. However, it says that these measures will still not be enough to meet the "no adverse effects" aim over the next decade. It also makes the important point that, if the environmental benefits at a Community level are to be maximised for a given level of costs, there must be a differentiation of Member State emission levels, consistent with the polluter-pays principle, since the alternative of obliging all Member States to apply an equally high level of effort would in many cases have little environmental benefit. On this basis, the Commission concludes that acidification objectives dominate at the German/Dutch border, in eastern Germany, in Ireland, and to a limited extent in Spain; that health-related ozone objectives dominate in the UK, France, the Benelux countries, Portugal, and some parts of Germany; and that ozone objectives related to vegetation protection pose the greatest challenge in the Mediterranean countries.

  5.10  In translating these aims into Community action, the Commission says that the general long-term objective of no exceedances of critical loads and levels, though accepted by Member States in principle, is in practice unattainable in the medium term. It therefore envisages a number of interim objectives, which it suggests are "clearly needed if quantified and time limited commitments are to be adopted for acidification and ozone". It has accordingly proposed national emission ceilings (in thousand tonnes), aimed at reducing by 2010 the area unprotected from acidification by at least 50% as compared with 1990. Those proposed are shown below, along with the Commission's associated cost estimates (in million euro):

   
SO2
NOx
VOC
 NH3
Costs
Austria
40
91
129
67
119
Belgium
76
127
102
57
1053
Denmark
77
127
85
71
5
Finland
116
152
110
31
0
France
218
679
932
718
916
Germany
463
1051
924
413
2146
Greece
546
264
173
74
338
Ireland
28
59
55
123
44
Italy
566
869
962
430
403
Luxembourg
3
8
6
7
5
Netherlands
50
238
156
104
971
Portugal
141
144
102
67
57
Spain
746
781
662
353
22
Sweden
67
152
219
48
87
UK
497
1181
964
264
1348
EC15
3634
5923
5581
2827
7514

The UK would thus account for 13.6% of the Community-wide reduction in SO2 emissions, whilst the corresponding figures for NOx, VOC and NH3 would be 20%, 17% and 9% respectively. Its share of the cost would be 18%, second only to that of Germany. However, the Commission points out that, for all Member States, the calculations do not consider possible changes in energy supply or other structural measures, and thus probably present an upper estimate.

  5.11  According to the Government, the proposed UK ceilings for 2010 would compare with its 1990 baseline, and the "business as usual" scenario for 2010, as follows (in kilotonnes):

   
1990 baseline
2010 (projected)
2010 (proposed)
SO2
3805
980
497
NOx
2839
1186
1181
VOC
2667
1351
964
NH3
329
297
264

This suggests that the main focus of attention in the UK would need to be emissions of SO2 and VOC.

  5.12  Member States would be required to draw up programmes for the progressive reduction of their annual limits, and to provide by the end of 2002 information which will enable the Commission to assess progress. If necessary, the programmes would be revised in 2006. The Commission in turn would have to report at four yearly intervals to the Council and European Parliament.

  5.13  It says that compliance with the proposal would produce the following overall improvements for the Community:

  • a reduction in the total load of acidifying deposition in excess of critical loads from about 24,000 million acid equivalents in 1990 to about 600 million in 2010, with a corresponding reduction in the ecosystem area exposed to further acidification from 37 million hectares to 4.3 million hectares;

  • a reduction in the number of days with ozone concentrations above the WHO's health guidelines from more than 60 days in the worst affected areas in 1990 to about 20 days in 2010;

  • a reduction of more than 50% in the exposure of vegetation to damaging ozone levels;

  • a reduction of about 30% in the Community ecosystem area exposed to further eutrophication; and

  • a reduction for the Community as a whole of 78% for SO2 emissions, 55% for NOx, 60% for VOC, and 21% for NH3.

— Ozone in ambient air

  5.14  The Commission says that, in its efforts to develop a Community strategy to combat tropospheric ozone, it has taken into account such considerations as the predicted evolution in precursor substances (NOx and VOC), the transboundary nature of the problem, the potential impact of measures from outside the Community, and the impact on acidification and eutrophication. It says that it has concluded that, in addition to the national emission ceilings for NOx and VOC needed to achieve the interim objectives already mentioned, an effective strategy should include a further "daughter" directive under Directive 96/62/EC (which establishes a framework under which the Community will agree air quality limit or target values[32] designed to reduce the harmful effects of specified pollutants).

  5.15  The Commission also says that such a strategy should include interim and long-term objectives. For human health, the latter would require that the 120mg/m3 limit, taken as an 8 hour mean, should not be exceeded within a calendar year, whilst for vegetation the maximum AOT40 level would be 6000mg/m3.h.

  5.16  The interim objectives would move towards these goals by defining as target levels improvements in ozone levels everywhere in relation to the base year ("gap closure"), and which improve the situation in areas with the largest pollution load by establishing a uniform concentration level (the "absolute" target), taking into account feasibility and cost. In the case of human health, the aim is that the 120mg/m3 limit would by 2010 be exceeded on no more than 20 days a year, implying a minimum gap closure of between 60% and 70% in relation to the current WHO guideline. For vegetation, the permitted AOT40 by 2010 would be 17000mg/m3.h averaged over 5 years, representing a gap closure of 30-35%. Member States would need to identify the regions or zones where target values were not being met, draw up plans demonstrating how they intended to achieve these values within the required time period, and inform the Commission accordingly. In addition to target values, the proposal would set alert and information thresholds of 240mg/m3 and 180mg/m3 respectively.

The Government's view

  5.17  In the first part of his Explanatory Memorandum of 30 September 1999, the Minister for the Environment (Mr Meacher) deals with the proposed national emission ceilings. He says that the Government was concerned that the very high cost of the emission ceilings in the acidification strategy would imply an unacceptable economic burden for some Member States, but considers that improvements to the underlying data have now reduced this without significantly compromising the environmental gains. Nevertheless, he suggests that the targets remain "challenging" for some pollutants.

  5.18  He goes on to say that the Government is refining its views on appropriate ceilings for the UK, and will take into consideration the views of interested parties. He points out that it would be for Member States to decide how to make the emission reductions to which they were committed, and that the precise measures necessary will be clearer when the ceilings are finalised. Subject to that, he believes that the most cost-effective reductions which the UK might make include for sulphur dioxide either fuel switching (from coal to gas, or from high to low sulphur fuel oil); for VOCs, measures over and above the Solvents Directive and the Auto Oil programme, might include vapour controls and recovery, and extending the use of low-solvent or water-borne paints; and for ammonia, a new range of measures affecting animal husbandry and the handling of animal waste (though he adds that the efficacy of such steps has yet to be proven, and that the proposed ceiling might be unachievable). In the case of nitrogen oxides, the Minister considers that, because of the substantial reductions in emissions already in prospect under existing agreements such as the Auto Oil programme and the Integrated Pollution Control régime, the proposed ceiling should not involve significant further reductions.

  5.19  The Minister also refers to the negotiations which have recently been completed on a parallel proposal under the UNECE Convention on Long-range Transboundary Air Pollution (CLRTAP), which he says covers the same four pollutants and addresses broadly the same environmental effects as this one. The main differences are that the UNECE region covers not just the Community, but east European countries (including Russia) and North America, and that the model used to generate its proposed ceilings explicitly included eutrophication.

  5.20  As regards the Commission's estimates of the annual cost of attaining the proposed ceilings, the Minister points out that the overall figure for the UK of 1348 million euro (£944 million) in paragraph 5.10 can be broken down between the different pollutants, with 299 million euro attributable to SO2, 1026 million euro to NOx and VOC, and 23 million euro to NH3. He adds that a detailed assessment of these costs will be presented in a Regulatory Impact Assessment. However, he also makes the point that, while the Commission analysis shows that the benefits would exceed the costs for the Community as a whole, many of the environmental benefits are not assigned a monetary value, whilst the majority of benefits were attributed to human health, where the valuation methods used were contrary to those accepted by the UK.

  5.21  The second part of the Minister's Explanatory Memorandum deals with the proposed directive on ozone. He says that the Government expects the national emission ceilings Directive to be the principal means by which the targets in the proposed ozone Directive will be achieved, and that the latter measure will not therefore impose any direct requirements on industry. However, he adds that it will entail additional monitoring, and may require further local implementation and enforcement measures, which will be considered as part of a Regulatory and Environmental Impact Assessment. In the meantime, he points out that the UK National Air Quality Strategy currently sets a considerably more stringent objective for ozone than the target value in the proposed directive, but that the opposite would be the case in the longer term.

Conclusion

  5.22  This is clearly a substantial proposal, which we will wish to consider further when we have received the Regulatory Impact Assessments promised by the Minister, but which we think it sensible to outline to the House at this stage. In the meantime, there are two questions on which we would welcome the Minister's advice when he provides his Supplementary Explanatory Memorandum. First, we would like to know not only whether the costs of the measure outweigh the expected benefits, but also whether the share of the overall Community cost which the UK would be required to bear is, in the Government's view, reasonable, having regard to the problems which have been identified and the solutions proposed. Secondly, the national emission ceilings in this proposal appear to be substantially lower than those envisaged under the UNECE. Since these have ostensibly been set using the same mathematical model, we would be interested to know to know whether this difference has arisen for any reasons other than those noted in paragraph 5.19 above; whether the differences, in terms of environmental impact and cost of compliance, are significant; and, to the extent they are, which of the two approaches is to be preferred.


28   "Critical load" means a quantitative estimate of an exposure to one or more pollutants below which significant harmful effects on specified elements of the environment do not occur, according to present knowledge. Back

29   "Critical level" means the concentration of pollutants in the atmosphere above which direct adverse effects on receptors, such as human beings, plants, ecosystems or materials, may occur, according to present knowledge. Back

30  United Nations Economic Commission for Europe. Back

31  In addition to the steps set out in paragraph 5.3 above, these measures include Directive 70/220/EEC on emissions from passenger cars and light commercial vehicles (as last amended by Directive 98/69/EC), Directive 96/61/EC concerning integrated pollution prevention and control, Directive 98/20/EC on the quality of petrol and diesel fuels, and Directive 99/13/EC on the limitation of emissions of volatile organic compounds. Back

32  These are defined as air quality objectives to be attained as far as possible within a given period. Back


 
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