Select Committee on European Scrutiny Sixteenth Report


7  AMBIENT AIR QUALITY

(27030)
14335/05
COM(05) 447

+ ADD 1
Draft Directive on ambient air quality and cleaner air for Europe
  
  
  
Commission Staff Working Paper: Annex to the Commission
Communication "Thematic Strategy on Air Pollution" and the Directive on
Ambient Air Quality and Cleaner Air for Europe - Impact Assessment


Legal baseArticle 175EC; co-decision; QMV
DepartmentEnvironment, Food and Rural Affairs
Basis of consideration SEM of 16 December 2005
Previous Committee Report HC 34-xiv (2005-06), para 3 (11 January 2006)
To be discussed in Council No date set
Committee's assessmentPolitically important
Committee's decisionNot cleared

Background

7.1 As we noted in our Report of 11 January 2006, the Commission has sought in this document to give legislative effect to the intentions in the Communication it produced in September 2005[27] setting out a Thematic Strategy on Air Pollution. As such, the proposal would retain the obligations which Member States are currently required to meet under the Air Quality Framework Directive (1996/62/EC) and three of its "daughter" Directives,[28] but, in addition to allowing them more time to comply, it would introduce a number of changes foreshadowed in the Thematic Strategy. These include a non-mandatory provision to reduce ambient levels of the more hazardous fine particles below 2.5 µm in diameter (PM2.5) in 2020 by an average of 20% across each Member State, with the aim of introducing a mandatory reduction later; a mandatory annual average "concentration cap" of 25µg per m3 on such particles by 2010; and the introduction of new monitoring requirements by the beginning of 2008, in order to assess compliance.

7.2 We also noted that the Government was preparing an initial Regulatory Impact Assessment, but that the Commission had in the meantime considered the financial implications of implementing the measures to which Member States are already committed (including those in the proposed Directive which are confirmed from the current legislation) and of meeting the new objectives proposed for fine particles. It had concluded that the measures already committed will cost €65 billion (£5 billion in the UK), but that, despite the resultant improvement in air quality, the disbenefits arising from damage to health in 2020 would still be between €189 and €609 billion a year (£15-43 billion in the UK). It also put the cost of delivering in due course a mandatory reduction in fine particle levels at about €5 billion a year across the Community as a whole, but suggested that this would deliver benefits of €36-119 billion.

7.3 Against this background, and bearing in mind the intrinsic importance of the subject, we decided to draw these more detailed legislative proposals on air quality to the attention of the House, even though they had been foreshadowed in our Report of 16 November 2005 on the Thematic Strategy on Air Pollution. However, we said that we would take a final view on them once we had received the Regulatory Impact Assessment which the Government had said it would be providing.

Supplementary Explanatory Memorandum of 16 December 2005

7.4 The initial Regulatory Impact Assessment attached to the supplementary Explanatory Memorandum of 16 December 2005 which we have now received from the Minister for Local Environment, Marine and Animal Welfare at the Department for Environment, Food and Rural Affairs (Mr Ben Bradshaw) has sought to assess the implications of both the draft Directive as it currently stands and (in order to aid the UK's negotiating position) of a number of possible changes.

7.5 We have decided in this Report to concentrate on the first of these approaches, where the Assessment suggests that:

  • since some of the current limits set for larger particulate matter up to 10 µm in diameter (PM10) and nitrogen dioxide may not be met fully as things stand, the extended time limit for compliance would increase the chances of those limits being met, and also have an unquantified impact on the additional costs it would otherwise have been necessary to incur: on the other hand, there would be an unquantified health disbenefit;
  • since the exposure reduction target for fine particles is not mandatory, this would of itself be unlikely to create any additional costs for the UK;
  • the proposed concentration cap for fine particles could be met without additional measures; and
  • the costs associated with the need for additional monitoring would be between £1.6 and £2.5 million a year.

7.6 It follows, therefore, that the more significant implications would arise were certain measures going beyond those in the proposal to be taken. The Assessment says that this would improve the UK's ability to meet the existing air quality targets for nitrogen dioxide and larger particles; enable it to make progress towards a mandatory exposure reduction target for fine particles (though it is still unlikely that the 20% figure could be met by 2020); and enable it to comply with a more stringent concentration cap below the proposed 25µg per m3. The additional costs and benefits this would imply are inevitably somewhat speculative, but the Assessment suggests that, if additional measures costing around £500 million a year were to be taken, the benefits could be between £200 and £1,900 million a year. In other words, at the lower end of this range, the costs would be greater than the benefits, whilst at the upper end, the opposite would be the case.

Conclusion

7.7 Although the analyses contained in the Regulatory Impact Assessment are complex, it seems evident that simply implementing this proposal as currently drafted would give rise to relatively low costs and benefits within the UK, and that much would depend upon whether (and, if so, what) additional steps were to be taken as a result of the negotiations on the present text. Consequently, although we see no need at present for further consideration of this document, we think it prudent to hold it under scrutiny, and to ask the Minister to inform us if any changes giving rise to significant additional costs or benefits are proposed. In the meantime, we are drawing this latest information to the attention of the House.



27   (27030) 14335/05; see HC 34-x (2005-06), para 8 (16 November 2005) and para 9 below. Back

28   Covering respectively sulphur dioxide, nitrogen dioxide, oxides of nitrogen, particulate matter and lead; benzene and carbon monoxide; and ozone. Back


 
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