Decentralization in Environmental Compliance and Enforcement in Asia

1. Decentralization in Environmental Compliance and Enforcement in Asia Introduction By Dr. Benoit Laplante Asian Environmental Compliance and Enforcement Network AECEN Annual Conference November 25, 2008

2. Introductory remarks Common approach: • A common approach to pollution control in South East Asia • includes the following: • A national government adopts national pollution • control regulations (such as regulatory standards or • pollution fees); • Implementation of the regulations is then left to sub- • national levels of governmental agencies (province • or state or municipal).

3. Introductory remarks Issues include: • The pollution control regulations often apply equally to all • sub-national levels of government throughout the country • despite the fact that different regions of the country • experience different environmental, social, and economic • conditions (e.g. same standards or same fees). • In theory, we would prefer that standards be more stringent or pollution fees be higher in areas of the country where pollution discharges may create more damages.

4. Introductory remarks Issues include: • Similarly, the design of the pollution control regulations does • not necessarily account for the fact that the capacity of local • environmental agencies (resources, knowledge, budget) • typically vary considerably across the country.

5. Introductory remarks Hence, the approach is: • Uniform pollution control regulations which in principle • should not be uniform, and which in practice cannot be • implemented in a uniform manner throughout the country. In addition: • Sub-national levels of pollution control agencies (or • departments or bureaus) typically do not have enough • resources to implement fully the requirements of the • pollution control regulations. What is then the outcome?

6. Take the example of China Uniform levy per unit of wastewater discharge in mid 1990s

7. Yuan/Ton .00 to .05 .05 to .10 .10 to .15 .15 to .30 Missing Miles 0 500 Take the example of China A pollution levy which in theory is uniform for the entire country in fact is not implemented uniformly by local EPBs.

8. Introductory remarks The outcome appears to be: • Uniform national pollution control regulations are not • implemented in a uniform manner. • Local environmental agencies or departments have to • prioritize the implementation of regulations and they do so by • targeting pollution sources more likely to create large • environmental damages.

9. Questions for discussion Question 1: • Under what circumstances decentralization is more likely to • be effective? Question 2: • What type of mechanism should be in place for the national • environmental agency to monitor effectively the • implementation of pollution control regulations by local • agencies or departments? Question 3: • What are the training needs of the local environmental • agencies or departments to increase their capacity to • implement national pollution control regulations?