Select Committee on European Scrutiny Thirty-First Report


12 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 considerationSecond SEM of 15 May 2006
Previous Committee ReportHC 34-xiv (2005-06), para 3 (11 January 2006) and HC 34-xvi (2005-06), para 7 (25 January 2006)
To be discussed in Council27 June 2006
Committee's assessmentPolitically important
Committee's decisionCleared

Background

12.1 As we first 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[42] 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,[43] 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.

12.2 We also noted that the Government was preparing an initial Regulatory Impact Assessment, but that the Commission had in the meantime 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.

12.3 Against this background, and bearing in mind the intrinsic importance of the subject, we decided to draw these proposals to the attention of the House, but 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.

12.4 In our subsequent Report of 25 January 2006, we noted that the initial Regulatory Impact Assessment which we had by then received had 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. We decided in that Report to concentrate on the first of these approaches, where the Assessment had suggested 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.

12.5 We therefore commented that the more significant implications that would arise were certain measures going beyond those in the proposal to be taken, and we noted that, although any estimates were inevitably somewhat speculative, the Assessment had suggested 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. Accordingly, we concluded that, although we saw no need at present for further consideration of this document, it would be 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 were made.

Second supplementary Explanatory Memorandum of 15 May 2006

12.6 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) a Second supplementary Explanatory Memorandum of 15 May 2006, enclosing a revised Regulatory Impact Assessment. This maintains the original cost and benefit estimates provided for implementing the proposal as it stands, the main change being an increase (from £200 million to £900 million) in the lower figure provided for the benefits which would arise from any additional measures. However, we understand that it has now become clear from discussion in Brussels that the Council is unlikely to agree any additional measures, and that the most probable outcome will be an agreement along the lines of the Commission's proposal.

Conclusion

12.7 Since we have already established that the costs and benefits of adopting the proposal are likely to be small, we are now content to clear the document.


42   (26900) 12735/05; see HC 34-x (2005-06), para 8 (16 November 2005) and HC 34-xvi (2005-06), para 9 (25 January 2006). Back

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


 
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