The Dutch Industry Covenants, a success to reduce air pollution?

1. The Dutch Industry Covenants, a success to reduce air pollution? Michiel Faber FO-Industrie November 11th 2004

2. Contents • FO-Industrie • Covenants (Voluntary Agreements) • Recent Studies concerning Covenants • Results • Conclusion

3. FO-Industrie: Characteristics • Non Governmental Organisation • Neutral Position in Relation to the Parties of the Agreements • Link between Policy and Implementation • Financed by the Ministry of Environment • Executed by Fugro • Founded in 1993

4. Covenants: Background • National Environmental Policy Plan (NEPP, 1989) • Strategy for Sustainable Development in 2010 • Objectives for Environmental Issues (2000/2010) • Command and Control is insufficient to meet objectives • Distinguishing Target Groups • Responsibility Target Groups

5. Covenants: Characteristics • Result of Negotiations • Actors: Representatives of Governments and Industry • Commitment: Companies and Competent Authorities • Objectives NEPP translated for Industrial Sectors • Integrated Environmental Target Plan (IETP) for each Sector • Best Available Technology (BAT) • Consultative Committees • Monitoring and Reporting

6. Recent studies • Evaluation Environmental Covenants (in general) • Additional effects of covenants • Voluntary, not without obligations; a study concerning free-riders • Evaluation 10 years Target Group Policy (industry)

7. Evaluation Environmental Covenants Findings concerning the instrument: • Positive judgements of involved parties • Besides environmental results also surplus value for the process around covenants • Little of no technological breakthrough

8. Checklist • Choice for a covenant:sense of urgency / knowledge / clear partner • Process and negotiations:parties involved / professionals / transparent • The covenant itself:clear targets, actions / how to monitor / broadly based • The implementation of the agreements:inform, activate parties / monitoring and feedback

9. Additional Effects of Covenants Primary goal: • reduce environmental pollution! But also additional effects: • more knowledge environmental problems • increasing environmental care system • pro-active attitude

10. Voluntary, not without obligations; a study concerning free-riders • Observation: • Some companies as well as some authorities; back out of obligations (‘free riders’) • Reasons for being ‘free rider’: • Covenants not known (small companies) • Less priority for environmental issues (companies) • Bad economic situation (companies) • Less priority for covenants (authorities) • Short of staff (authorities)

11. Effects of ‘Free riders’ • Companies: • Environmental impact ‘free rider’ is minor (small companies, minor emissions) • Authorities: • Delay in meeting environmental targets • For other companies: • No longer ‘Level Playing Field’

12. Evaluation 10 years Target Group Policy • Starting points: • Industry important sector concerning environmental issues • 90% industrial emissions covered with the covenants • Questions: • Industry still important? • Still 90% industrial emissions covered? • Results 2000 and 2010 targets

13. Results Importance: • Air pollution: 50% • Water pollution/Acidification/Climate change: 20 - 35% Coverage: • Covenants + obligatory reports = still 90% Targets: • 2000: +/- 92% realised (Air: 32 versus 38, 84%) • 2010: +/- 65% realised (Air: 16 versus 38, 46% in 2000)

14. Contribution of sectors in total industry emission

15. Contribution NOx-emissions in The Netherlands 7% 11% covenants 3% 2% 6% 3% Other industry 3% refinaries 3% 11% energy 16% agriculture 2% consumers 5% 1% 59% 64% traffic 4% other 1985 2000

16. Conclusion The Dutch Industry Covenants, a success to reduce air pollution? With the right preconditions……. Yes it is in the Netherlands!