1. Air Quality Governance in the ENPI East Countries Capacity building for decision makers for small businesses regulation Monika P ř ibylová

2. Regulation on non- Annex I installations Issues to consider and resolve:  Legal framework setting the environmental regulation of non- Annex I installations;  Specification of non-Annex I installations;  Air pollution regulations of non-Annex I installations, setting ELVs and other requirements for operators;  Other regulatory requirements related to specific media (e.g. water) or to specific types of activities or installations. 2

3. Summary of the regulatory overview 1.The Latvian system would be probably easiest for implementation as it keeps the procedure for determining ELVs for relatively big number of pollutants for many industrial activities. Yet it undertook transformation from media to integrated approach. 2.Czech system keeps media approach, therefore is less costly both for the industry and for the permitting authorities. 3.UK system emphasises negotiation of permit conditions including ELVs, using the guidance’s proposed emission levels as benchmarks, which is very different from project countries’ system. 3

4. Possible approaches 4 Utilizing the Latvian regulations prescribing environmental performance conditions for several specific activities (GBRs); Utilizing the Czech regulations prescribing ELVs and related air protection measures; Utilizing the English sectoral guidance as models for developing general binding rules or recommendations for project countries.

5. Environmental impact of SMEs in EU  Estimation: 50 – 70% of the environmental impact originates from 20 million SMEs  Minimum: 51 – 53 % in SK, RO, UK (with a relatively low share of persons employed in SMEs)  Maximum: above 70% in ES, LV, GR, CY (with a relatively large share of persons employed in SMEs) 5

6. OECD recommendations for improvement of SME environmetal performance 1.Regulatory simplification 2.Sectoral approach to SME activities 3.Adaptation of tools to SME needs 4.Using business arguments and business partners 5.Packages of information-based tools 6.Importance of market signals 7.Need for initial public funding 8.Development of performance indicators. 6

7. Regulatory simplification and adaptation of tools to SME needs Focus on reducing administrative burdens and related costs: 1.simplification of the environmental permitting procedure by reducing the permits’ issuance time, or replace permits by simple registration where relevant 2.prolonging permit validity period 3.requiring less certificates, less monitoring reports for applications and justifications 4.improving internal communication between administrative units 5.creation of one-stop-shops for environmental permitting issuance (Moldova example of electronic system); 6.creation of a database so that administrative units exchange information 7

8. What is needed for applying sectoral approach? Defining sectors and threshold criteria for middle or low polluting activities Adjusting legislation to introduce the sectoral requirements Developing sectoral GBRs or guidance with relevant regulatory requirements Training permitting/regulatory authorities on sectoral issues and regulations 8 Sectoral approach to SME activities

9. Campaigns promoting EMS Should take into account the size and the environmental impact of a company Complex management systems such as EMAS and ISO 14001 should target medium-sized and large companies as they are seen as too complex for micro and small companies. Micro companies are too small to use EMS Campaigns for environmental impact reduction, energy labels, eco-labels, test and certification of products will enable micro companies to reduce their impact much in the same way as private households. 9

10. Need for initial public funding Support for minimizing the costs of complying with environmental legislation Free or subsidised advisory services to assist SMEs in complying with the legislation in force. Differentiating environmental charges (e.g. Smaller permit fee for SME) One of the actions under the EU Environmental Compliance Assistance Programme for SMEs (ECAP) is to build local environmental expertise available to SMEs. 10

11. Environmental Compliance Assistance Programme for SME Activities: – Minimising the administrative burden on companies – Helping SMEs integrate environmental concerns into their businesses – Supporting regional and national networks – Building up local know-how – Improving communication – Providing funding http://ec.europa.eu/environment/sme/index_en.htm 11

12. Example: main environmental impacts of manufacture of food products and beverages Waste Wastewater management Packaging and packaging waste (depending on their particular activities and products). Issue: the lack of public infrastructure a)missing central public wastewater treatment plants is considered as a serious obstacle for SMEs wastewater management. b)missing systems for separate waste collection for waste streams that could be recycled is an obstacle to individually cope with recycling requirements. 12

13. Conclusions – support of local SMEs Cooperation with Ministries of regional development on supporting establishment or improvement of local infrastructure (e.g. WWTP, waste collection system) Identifying priority sectors and propose regulatory changes Elaborate RIA for the simplification of legislation and adjust legislation accordingly Developing GBRs or guidance on environmental requirements for SME priority sectors Decentralisation of regulatory powers (e.g. permitting on regional/local administration level) 13