Tools for calculating the Financial Security in Spain. Environmental liability supply model (MORA) Environmental Damage Index (IDM)

Transcription

1 Tools for calculating the Financial Security in Spain 19th ELD NATIONAL EXPERTS MEETING Environmental liability supply model (MORA) Environmental Damage Index (IDM) Isaac Sánchez Navarro Technical Advisor General Directorate of Environmental Quality and Assessment and Nature Brussels, 17/04/2018

2 CURRENT LEGAL FRAMEWORK European Directive 2004/35/EC on environmental liability Environmental Liability Law 26/2007, 23 October Modified by Law 11/2014 Royal Decree 2090/2008, which enacts the partial implementation regulations of Environmental Liability Law 26/2007 Modified by Royal Decree 183/2015 Ministerial Order ARM/1783/2011 Priority order and timetable for the publication of ministerial orders that will set mandatory financial guarantee for groups of economic activities (gradual approach) Modified by Orden APM 1040/2017 Ministerial Order APM/1040/2017, 23 October Entry into force of mandatory financial guarantee: - 31 October 2018, priority 1 (Seveso and some industrial emissions directive activities) - 31 October 2018, priority 2 (some industrial emissions directive activities)

3 ELD PRINCIPLES AND OBJECTIVES PREVENTION PRINCIPLE POLLUTER PAYS PRINCIPLE First pilar = Directive RISK MANAGEMENT MEASURES PREVENTION MEASURES LIMITATION MEASURES REMEDIATION MEASURES Entered into force in 2007 Costs reduction Second pilar. Not in Directive ENVIR. RISK ANALYSIS Reduction / exention FINANCIAL PROVISION Order APM 1040/2017: P1: 31 October 2018 P2: 31 October 2019 Normal activity Threat of damage Damage

4 FINANCIAL SECURITY Some Annex III operators must ensure they have the financial security to cover the environmental liability inherent in their intended activity/s. Seveso, industrial emissions, and waste management from mining Financial security forms: insurance policy or contracts, guarantee or adhoc technical reserves 20 M limited coverage (prevention, avoidance and primary remediation costs), although liability is unlimited Will be determined based on an environmental risk assessment Exemptions mechanisms (art. 28 Law 26/2007): Operators likely to cause damage remediation of which is estimated to be less than 300,000. Operators likely to cause damage remediation of which is estimated at between 300,000 and 2,000,000 and who show, through certificates issued by independent bodies, that they are associated permanently and continuously with EMAS and/or ISO

5 FINANCIAL SECURITY Annex III operators obliged to carry out an Environmental Risk Assessment in order to: Determine if are under the obligation to have a FG or are exempted, and calculate its amount It is a risk management and decision-making tool Sectorial environmental risk analysis tools to help operators the fulfillment of their obligations (ERA) and share the costs between operators: MIRAT Methodological guides Scale charts Risk MIRAT Scale charts Heterogeneity Methodological guides They must be approved by the Technical Commission for the prevention and remediation of environmental damages

6 FINANCIAL SECURITY Procedure in Spanish EL legislation Environmental Risk Analysis Determination of finantial guarantee: 1. Identification of risk scenarios and its probability 2. IDM calculation: reference scenario determination 3. Risk of each scenario (IDM * probability of occurrece) 4. Selection of scenarios that represent 95% of total risk 5. Environmental damage cost of reference scenario A. Quantification B. Cost Finantial guarantee: Cost of primary remediation + 10% prevention measures

7 Environmental Damage Index (IDM) - It is required (compulsory) under Royal Decree 2090/2009 (annex III) - It allows to estimate the order of magnitude of the damage of each risk scenario. - It gives a semi-quantitative result that allows to classifiy the risk scenarios by the potential damage they can cause. - It is based on cost estimations of primary recovery costs. - There is no mathematical relationship between IDM and the real cost of remediation

8 FINANCIAL SECURITY MORA Applications A. Ex-ante 1. Estimate the amount of the mandatory financial guarantee Support tool (not mandatory) for determining the amount of the financial guarantee, providing the recovery cost (primary, compensatory and complementary) of a risk scenario. It is NOT a risk analysis tool 2. Adoption of risk management measures Knowing the recovery costs of the potential environmental damages, is a very useful information that can be used for the adoption of risk management measures, to minimize the potential risks. B. Ex-post 1. Help establishing remedial measures As a tool that helps (both operators and the administration) to establish primary, complementary and compensatory remedial measures, when an accident with environmental damages has occurred

9 MORA and IDM SOFTWARE Modelo de Oferta de Responsabilidad Ambiental (MORA) More than1200 users registered and projects created

10 MORE INFORMATION ON THE APLICATION OF LAW 26/2007

11 THANK YOU FOR YOUR ATTENTION!! Isaac Sánchez Navarro Technical Advisor General Directorate of Environmental Quality and Assessment and Nature

12 Case study 5. Selection of the reference scenario 3. Risk scenario with the highest IDM among those that includes 95% or accumulated risk Scenario Probability IDM Risj %Risk Accumulated Risk E.8 3,23E ,39 1,63 0,02% 100,00% E.10 7,75E ,57 266,15 3,21% 99,98% E.9 2,15E ,51 5,68 0,07% 96,77% E.3 5,91E ,77 144,00 1,74% 96,70% E.7 3,11E ,63 58,48 0,71% 94,96% E.6 1,09E ,24 203,66 2,46% 94,25% E.2 2,13E , ,42 47,05% 91,79% E.5 1,03E ,98 175,67 2,12% 44,74% E.4 1,21E ,87 201,12 2,43% 42,62% E.1 2,01E , ,09 40,19% 40,19%

13 Case study 6. Cuantification and cost of reference scenario A. Cuantification Spill of 350 m3 of substance C affecting soil and groundwater. Grimaz et al. Model(2007): : - Soil 808,31 m3 (1.333,72 t) - Groundwater ,78 m3.

14 Case study 6. Cuantification and cost of reference scenario B. Cost Resource Quantity Technique Cost primary ( ) Total ( ) Soil 1.333,72 t Landfarming ,05 Groundwater ,78 m3 Separation , ,15