5 Emissions of volatile organic compounds
from solvents used in paints
| (24189)
5268/03
COM(02)750
| Draft Directive on the limitation of emissions of volatile organic compounds due to the use of organic solvents in decorative paints and varnishes and vehicle refinishing products and amending Directive 1999/13/EC.
|
| Legal base | Article 95EC; co-decision; QMV
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| Document originated | 23 December 2002
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| Deposited in Parliament | 16 January 2003
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| Department | Environment, Food and Rural Affairs
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| Basis of consideration | EM of 31 January 2003 and SEM of 4 October 2003
|
| Previous Committee Report | None
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| To be discussed in Council | 27 October 2003
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| Committee's assessment | Politically important
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| Committee's decision | Not cleared; further information requested
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Background
5.1 Under certain climatic conditions, the emission of volatile
organic compounds (VOCs) into the atmosphere can lead to the formation
of ground level ozone, which can in turn have adverse effects
on human health and the environment, described by the Commission
as a "widespread and chronic problem" within the Community.
As a result, a number of steps have been taken, such as Directive
2002/3/EC[19] requiring
Member States to establish management plans aimed at meeting air
quality objectives for ozone. They also include measures aimed
specifically at limiting emissions of VOCs from different sources,
such as Directive 98/69/EC (which addresses those from vehicles),
and Directive 1999/13/EC[20]
(which sets emission limit values and introduces plans to reduce
such emissions from industrial sectors which are substantial users
of organic solvents).
5.2 The Commission says that, as a result of these
various steps, man-made emissions of VOCs within the Community
are projected to have fallen in 2010 by 50% (from 14.1 million
tonnes to 7.1 million tonnes) as compared with 1990, but that
further measures are needed to reach the ceiling of 6.5 million
tonnes to which Member States have committed themselves. In particular,
it says that, since the mechanisms used by Directive 1999/13/EC
are unsuitable for plants below a certain size, it was asked by
the Council to explore the possibility of an approach which would
reduce the VOC content of products.
The current proposal
5.3 The Commission has now set out in this proposal
measures to limit such emissions resulting from the use of organic
solvents in decorative paints and varnishes and vehicle refinishing
products, which it has since identified, not only as significant
sources of VOC emissions, but also as among those sectors where
it would be technically and economically feasible to reduce the
VOC content further within a realistic timeframe. The proposal
would therefore set limit values for the content of VOCs in certain
categories in these products, these limits applying in the case
of vehicle refinishing products by 1 January 2007, and for paints
and decorative products by 1 January 2010 ( but with an intermediate
level applying as from 1 January 2007). At the same time, in order
to avoid a duplication of effort, the proposal would repeal those
provisions of Directive 1999/13/EC which set limit values for
emissions from the vehicle refinishing sector.
The Government's view
5.4 In his Explanatory Memorandum of 31 January 2003,
the Minister of State (Rural Affairs and Urban Quality of Life)
at the Department for Environment, Food and Rural Affairs (Mr
Alun Michael) said the proposal could have cost and technical
implications for manufacturers who might need to reformulate some
paints, and that there would be implications for the solvent manufacturing
sector as a result of a reduction in the demand for their products
(though he also pointed out that in recent years there has already
been a trend towards paints with a lower content of VOCs). The
Minister added that, although the proposal was accompanied by
a summary of costs and benefits at the European level,[21]
the Government had not yet completed a Regulatory and Environmental
Impact Assessment for the UK, but that a preliminary Assessment
would be produced by April 2003.
5.5 In view of the importance of such an Assessment,
we decided to defer substantive consideration of the proposal
until it was available, but we have received only recently an
initial Assessment under cover of a supplementary Explanatory
Memorandum of 6 October 2003 from the Parliamentary Under-Secretary
of State (Farming, Foods and Sustainable Energy) at the Department
of Environment, Food and Rural Affairs (Lord Whitty). The Assessment
points out that, in 1999, it was estimated that the UK emitted
about 1,750,000 tonnes of VOCs into the atmosphere from a variety
of sources, of which just over 4% was accounted for by decorative
paints and vehicle refinishing products.[22]
It also highlights the UK's undertaking to reduce total VOC emissions
to 1,200,000 tonnes annually by 2010. In the case of paints, it
says that there has already been a considerable shift away from
solvent-based products in favour of those based on water, and
that the first phase of a voluntary agreement adopted by the British
Coatings Federation (BCF), in response to an initiative by the
European Paint Manufacturers Association (CEPE), would broadly
correspond to the 2007 limit values under the proposed Directive.
5.6 It then seeks to quantify the likely benefits
and costs in the UK, whilst also pointing out the large degree
of uncertainty this entails, particularly when attempting to assess
the potential health benefits. However, as a result of deferred
deaths, reductions in respiratory diseases and avoidance of environmental
damage, the benefits by 2010 are put at only some £3.4 million
a year, whereas the annualised costs in 2010 are estimated at
£83 million, of which £49 million would fall on paint
manufacturers and £32 million on those manufacturing resins,
and about £1.1 million on vehicle refinishers. There would
thus be a net disbenefit of nearly £80 million a year. The
Assessment also contrasts this figure with the Commission's estimate
that there would be net benefit to the UK of between £30
and £34 million, and says that the Government is currently
discussing these differences with the Commission.
5.7 The Minister's Supplementary Explanatory Memorandum
also says that negotiations are at an advanced stage, and that
the Italian Presidency has indicated that it will be seeking political
agreement at the Environment Council on 27 October 2003. He has
added in a covering letter that, if the Presidency can put together
a suitable text in the light of any amendments proposed as a result
of the European Parliament's first reading on 29 September, he
expects the Council would be willing to reach agreement, and he
has indicated that it would be a considerable help if we were
able to complete scrutiny of the proposal before the Council in
question.
Conclusion
5.8 Whilst we have noted the Minister's request,
we have two points on it. Firstly, this is not the first occasion
on which we have held a document under scrutiny on the basis of
an undertaking that his Department would shortly be providing
a Regulatory Impact Assessment, only to find ourselves faced with
an urgent request some months later to clear a document on the
basis of information which has only just been provided.
5.9 Secondly, although the Minister does not
say explicitly that the UK is willing to sign up to a political
agreement on the proposal, we infer from his request for clearance
that this is so. In that case, we are concerned, not only about
the clear difference between the Commission's estimate of the
net cost and that undertaken by the UK, but also because the latter
suggests that the annual cost of the proposal in 2010 would be
nearly 25 times the monetised benefit. Consequently, before we
can consider it further, we need confirmation from the Minister
that the UK intends to agree to a proposal on which there appears
to be such a clear disbenefit, and, if so, a convincing explanation
why.
19 OJ No. L.67, 9.3.02, p.14. Back
20
OJ No. L.85, 29.3.99, p.1. Back
21
The costs are put at between €108 and €157 million
a year by 2010, and the health-related benefits at about €582
million a year. Back
22
The largest source of emissions (road transport) accounted for
23% of the total. Back
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