1 The role of the chemical industry between prevention and remediation UNECE Workshop on the transboundary accidental water pollution, liability and compensation 22 May 2007, Budapest Anne Rose Lambers, Cefic Legal Counsellor

2 Cefic – the European Chemical Industry Council Forum and voice of the chemical industry in Europe Membership: 27 national federations and 500 companies are direct members About companies (with 96 % less than 250 employees) Around 30% of the worldwide chemical production

3 The main aspects for industry The Protocol is based on 3 principles Legal standing before the Court against the polluter and third parties Scope of Damage Liability and financial security Access to information and justice Rule on the relationship between the Convention and European rules

4 Our experience with contamination 1. Distinction between accidents in the past and in the future Many industrial operations which caused contamination where not supposed to be illegal at the time it happened Problem: this distinction has not been done everywhere 2. Important change of culture and sensitivity Responsible Care initiative Has provided the basis for them in the present legislation (for example emergency preparation and accident prevention) Has promoted the development and diffusion of formalised management systems in the field of HSE (ISO 14001, EMAS)

5 Result of progress in the field of prevention and protection High standards in the current legislation: Seveso, IPPC, Water Framework Directive, Environmental Liability Directive = challenge for industry - on the other hand: -> industry is aware – raises acceptance to be liable -> obligation to restore is reasonable and accepted -> enhanced guarantees to control the likelihood of accidents and their consequences -> the probability for accidents in the future is low(er)

6 Cefic’s concerns A broad variety of international and national liability regimes exists now -> distortion of competition Ambiguity with existing legislation needs to be avoided A different approach should be taken towards past accidents A risk-based approach could help to identify how far the decontamination activities have to go with limitations of the future use of the site

7 Cefic’s objectives for ratification of the Protocol Harmonised approach Application reasonably defined – legal certainty! No reversal of the ‘burden of proof’ Proportionate liability Exemptions for actions in compliance with a permit and/or in line with state-of-the-art technology No financial fund

8 Conclusion Although the chemical industry is involved in the problem, it is also a fundamental component of the solution: Systematic tools and commitments through Responsible Care approach Technological tool and know-how in remediation area and water pollution control

9 Thank you for your attention! Anne Rose Lambers Tel.: