Validación de la propuesta

Coverage for ELD already exists in some MS through different type of financial security instruments (as illustrated in Figure 4). Insurance is the most popular instrument, followed by bank guarantees. The current uptake of the different possible instruments and their field of application are further discussed here.

Insurance and re-insurance

Insurance is indeed the most common instrument to cover environmental liability in many MS (Austria, Belgium, Czech Republic, France, Hungary, the Netherlands, Poland, Slovakia, Spain, Sweden, and United Kingdom). See chapter 4 for more detailed information on the insurance products currently available and the development of the market.

Table 2 summarises the some providers of environmental insurance policies in different MS (as responded in the survey).

August 2008 European Commission, DG ENV

Financial Security in Environmental Liability Directive, Final Report 33

Figure 4 - Existing instruments to cover environmental liability in some MS

0 1 2 3 4 5 6 7 8 9 10 Private/public insurance and re-insurance Pools Bank guarantees Financial guarantees MBIs Others Number of MS Bank guarantees

Eight MS responded that bank guarantees are present in their market (Austria, Belgium, Cyprus, Czech Republic, the Netherlands, Poland, Spain, and the United Kingdom). Hungary foresees the use of bank guarantees and bonds to complement the existing limited number of commercial insurance products.

In the Netherlands, on the basis of the Decree on Financial Security (Besluit financiële

zekerheid milieubeheer), competent authorities may require in the issued permits they

issue to provide financial security to cover compliance with its obligations regarding waste management and storage after termination of the operator’s activities. To meet these requirements, financial security is usually provided in the form of a bank guarantee. Nevertheless, some companies are not in favour of this financial instrument as they argue that bank guarantees severely limit their investment capacity and most banks are not very keen to cover long terms risks. Partially on the basis of this argument, on the 8th of March 2008 the Second Chamber of the Parliament adopted a resolution to abolish the Decree on Financial Security, even if the government had proposed to maintain the Decree.

In Spain, bank guarantees play a minor role and are mainly used in the case of mining or similar activities where the damage is going to take place due to the nature of the activity. In the United Kingdom, there is some experience of bank guarantees through the requirements on landfill operators. In Czech Republic, bank guarantees are used in the field of shipments of waste (1013/2006/EC Regulation).

Financial guarantees

Financial guarantees are not very common and are present in only four MS out of the 15 that responded to the questionnaire, i.e. Austria, Belgium, Spain, and United Kingdom. In the United Kingdom, as for bank guarantees, there is some experience on financial guarantees as a requirement for landfill operators.

34 European Commission, DG ENV

Financial Security in Environmental Liability Directive, Final Report August 2008

Table 1 – Environmental insurance providers in some MS

MS Company Czech

Republic

Česká pojišťovna a.s. Allianz

Kooperativa

France AXA (Reinsured by Assurpol)

AGF Division AGCS (Reinsured by Assurpol) AIG Europe (France)

Finland AIG Europe S.A. (Finland) Germany Victoria Versicherung AG

Allianz Versicherungs-AG Deutschland AXA Versicherung AG

Hungary AIG Europe (Hungary) Aegon Hungary Insurance Co. Generali-Providencia Zrt. UNIQA Insurance Co. (Hungary) Ireland XL Insurance

ACE Europe (Ireland) Chubb Corporation AIG Europe (Ireland)

Royal Sun Alliance (United Kingdom) Crest Underwriting Ltd. (United Kingdom) Italy AIG Europe (Italy)

Netherlands Aegon Schadeverzekering

Allianz Nederland Schadeverzekering

Algemene Zeeuwse Verzekering Maatschappij AXA Schade N.V.

Poland UNIQA WARTA

Commercial Union

Slovakia Allianz - Slovenska poistovna a.s. UNIQA poisťovňa, a.s. (Slovakia) Spain

AIG Europe (Spain) Mapre (Spanish pool) Allianze (Spanish pool ) Caser (Spanish pool )

Pool Español de riesgos medioambientales (co- reinsurance pool)

Sweden AIG Europe (Sweden) United

Kingdom

ACE

AIG Europe (United Kingdom) Chubb

XL Insurance Company Limited (USA)

Market based Instruments (taxes, permits, etc.)

Six MS responded that they also resort to MBIs to offer coverage for environmental liability (Austria, Belgium, Bulgaria, Cyprus, Poland, and Spain). In Spain, it is recognised that taxes are the main channel for Public Administration to collect money and use it

August 2008 European Commission, DG ENV

Financial Security in Environmental Liability Directive, Final Report 35

for restoring damages caused to water bodies and shores, and to take air pollution prevention measures.

Other instruments

In the Netherlands, the Decree laying down the general rules regarding environmental management for companies requires financial security to cover liability damages during the operation of oil stations for road traffic. The owner of a petrol station can meet these requirements by participating in a Collective Financial Security Fund. The Fund has been created by the sector itself and only pays in case of bankruptcy of the owner of the petrol station who is therefore not able to bear the costs of cleaning up the soil pollution.

In Sweden, Chapter 33 of the Swedish environmental code establishes a system for environmental remediation insurance. Operators pursuing environmentally hazardous activities for which a permit must be obtained or a notification filed to the relevant authorities, shall pay a pre-determined fee in order to finance common environmental damage insurance (Sw. miljöskadeförsäkring) and common environmental clean-up insurance (Sw. saneringsförsäkring). These insurances shall be used to pay damages and cover remediation costs, should there be inter alia no operator liable (i.e. in the case of orphan sites). However, an operator may not receive compensation from these insurances. As of today, the system does not encompass damage to biological diversity (according to the definition in the ELD) but an extension is under consideration.