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Relevant to the Pulp and Paper Industry

Relevant to the Pulp and Paper Industry. Environmental Legilsation. Gladys Naylor Environmental Management Mondi South Africa. The Constitution. Section 24 of the Constitution sets out the environmental right as follows: 24. Environment (1) Everyone has the right:

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Relevant to the Pulp and Paper Industry

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  1. Relevant to the Pulp and Paper Industry Environmental Legilsation Gladys Naylor Environmental Management Mondi South Africa

  2. The Constitution Section 24 of the Constitution sets out the environmental right as follows: 24. Environment (1) Everyone has the right: (a) to an environment that is not harmful to their health or well-being; and (b) to have the environment protected, for the benefit of present and future generations, through reasonable legislative and other measures that: (i) prevent pollution and ecological degradation; (ii) promote conservation; and (iii) secure ecologically sustainable development and use of natural resources while promoting justifiable economic and social development.

  3. Development of Legislation 1994 Environment Conservation Act 73 9f 1989 Forestry Laws Amendment Act 35 of 2005 National Veld and Forest Fire Act 101 of 1998 National Water Amendment Act 45 of 1999 Constitution Act 108 of 1996 National Water Act 36 of 1998 Biodiversity Act 10 of 2004 Air Quality Act 39 of 2004 Waste Act 59 of 2008 Gas Act 48 of 2001 1997 2001 2003 2006 2009 2005 2008 1989 1996 1998 1999 2004 National Environmental Management Act 107 of 1998 National Forest and Fire Laws Amendment Act 12 of 12001 Water Services Amendment Act 30 of 2004 National Energy Regulator Act 40 of 2004 Environment Laws Amendment Act 14 of 2009 Electricity Regulation Act 4 of 2006 Water Services Act 108 of 1997 Protected Areas Act 57 of 2003 National Forests Act 84 of 1998

  4. National Environmental Management Act (NEMA) • The National Environmental Management Act (NEMA) creates the fundamental legal framework that gives effect to the environmental right guaranteed in section 24 of the Constitution of the Republic of South Africa,108 of 1996 • The Act repeals the greater part of the Environmental Conservation Act 73 of 1989 • NEMA sets out the fundamental principles that apply to environmental decision making • The core environmental principle is the promotion of ecologically sustainable development

  5. National Environmental Management Act (NEMA) • Makes provision for integrated environmental governance • Introduces the framework for environmental impact assessments • Contains far-reaching general duty of care to prevent, control and rehabilitate the effect of significant pollution and environmental degradation, including historic pollution and environmental degradation (Section 28) • A criminal offence to cause significant pollution or environmental degradation • Criminal prosecution of environmental crimes may lead to the incarceration of managers as well as directors of companies

  6. National Environmental Management Act (NEMA) • Dictates the duty of care to address emergency incidents of pollution (Section 30) • Penalties – a convicted offender is liable to a fine of R1 million and/or imprisonment of up to 1 year) • Provides for a compliance and enforcement directorate with wide powers to enforce NEMA as well as other environmental legislation – EMIs (“Green Scorpions”) • Provides employees the right to refuse to perform environmentally hazardous work and whistle blowers are protected

  7. National Environmental Management ActEIA Regulations • On 18th June 2010 the new EIA Regulations were published and came into effect on 2nd August 2010 • EIA Regulations (R543) • Listing Notice 1 (R544) lists activities which require a Basic Assessment • Listing Notice 2 (R545) lists activities which require a Scoping and Environmental Impact Report

  8. Air Quality Act • The Air Quality Act regulates air quality in order to protect the environment • Provides for national norms and standards regulating air quality monitoring • Provides for specific air quality measures • Registration Certificates issued under the Atmospheric Pollution Prevention Act (APPA) need to be converted to AQA Air Emission Licenses • Ambient air quality standards put in place

  9. Air Quality Act Ambient Air Quality Standards Sulphur Dioxide Particulate Matter (PM10) Nitrogen Dioxide (NO2)

  10. Air Quality Act Point Source Emission Limits Solid Fuel Combustion Installations (greater than 50MW heat input per unit) under normal conditions of 10% O2, 273 Kelvin and 101.3 kPa

  11. Air Quality Act Point Source Emission Limits Gas Combustion Installations (greater than 50MW heat input per unit) under normal conditions of 10% O2, 273 Kelvin and 101.3 kPa

  12. Air Quality Act Point Source Emission Limits Lime Kiln under normal conditions of 10% O2, 273 Kelvin and 101.3 kPa

  13. Air Quality Act Point Source Emission Limits Recovery Boilers under normal conditions of 10% O2, 273 Kelvin and 101.3 kPa

  14. Air Quality Act - Penalties • A person convicted of an offense in terms of AQA is liable to a fine of up to R5 million and/or 5 years imprisonment (previously R500 under APPA) • A second time offender is liable to a fine of up to R10 million and/or imprisonment of up to 10 years (previously R2000 under APPA)

  15. National Environmental Management:Waste Act (NEM:WA) • Came into effect on 1 July 2009 (with the exception of certain sections) • Regulates waste management in order to protect health and the environment • Provides for institutional arrangements and planning matters • National Waste Management Strategy • Norms and standards such as the classification of waste • Designation of Waste Management Officers

  16. National Environmental Management:Waste Act (NEM:WA) • Provides for the licensing and control of waste management activities • Remediation of contaminated land (sections 35 to 41 not in effect yet) • Requires Industry Waste Management Plans • Establishment of a National Waste Information System • Licensing of Waste Management Activities

  17. National Environmental Management:Waste Act (NEM:WA) • Sets out compliance and enforcement provisions • Offenses (section 67) • Penalties – an offender could receive a fine of up to R10 million and / or imprisonment of up to 10 years for certain offences (set out in section 68 of the Act)

  18. Incentives and Disincentives Jan 2008 S36B Income Tax Act Environmental Capital Expenditure Tax deduction Jan 2009 S12I Income Tax Act Clean Production Tax Benefits Tax deduction Mar 2009 S36C Income Tax Act Biodiversity Tax Benefits Tax deduction Mar 2009 varied Elec Regulation Act RE Electricity Tariffs Feed in tariffs Jul 2009 2c/kWh Customs and Excise Act Energy Efficiency Levy Energy levy Oct2009 R3/bulb Customs and Excise Act Light Bulb Levy Bulb levy

  19. Incentives and Disincentives Sep 2010 per CO2 Customs and Excise Act Revised Vehicle Taxes Vehicle Levy ? R15 – R140 Agreement Waste Tyre Levy Tyre Levy ? R100/ton? ? Emission Taxes CO2 tax ? R/ton? Waste Act Extended Producer Responsibility Paper / packaging levy

  20. Environmental Capital Expenditure “environmental treatment and recycling assets” “environmental waste disposal assets” Tax write-off Tax write-off Accelerated depreciation allowance Straight line depreciation allowance Year 1 Per year 40% 5% Year 2 20% Year 3 20% Year 4 20%

  21. Environmental Capital Expenditure “environmental treatment recycling assets” “any new and unused air, water, and solid waste treatment and recycling plant or pollution control and monitoring equipment if the plant or equipment is - • utilised in the course of a taxpayer’s trade in a process that is ancillary to any process of manufacture or any other process which, in the opinion of the Commissioner, is of a similar nature; and • required by any law of the Republic for purposes of complying with measures that protect the environment”.

  22. Environmental Capital Expenditure “environmental waste disposal assets” “any new and unused air, water, and solid waste disposal site, dam, dump, reservoir, or other structure of a similar nature, or any improvement thereto, if the structure is - • of a permanent nature; • utilised in the course of a taxpayer’s trade in a process that is ancillary to any process of manufacture or any other process which, in the opi9nion of the Commissioner, is of a similar nature; and • required by any law of the Republic for purposes of complying with measures that protect the environment”.

  23. Renewable Energy Wind, sun, water, biomass Tax write-off Accelerated depreciation allowance Year 1 50% Year 2 30% Year 3 20%

  24. Possible Future Charges? NEM: Air Quality Act Permitted Allowance exceed Charge / Excess?

  25. Possible Future Charges? National Water Act Waste Discharge Charge System exceed Charge based on pollutants

  26. Why is this important? • Duty of Care • Sustainability of our natural resources • Reputational Risk • Criminal Sanctions • What will our legacy be?

  27. Questions?

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