1. AQM-European Experience: Addressing Industrial Air Pollution
Magnus Gislev
European Commission
Delegation in China

2. Contents of the presentation
1. Background
2. EU Air Quality Legislation and National Emission Ceilings
3. EU Integrated Pollution Prevention and Control Directive
4. European taxes, charges and emissions trading
5. The new EU Air Pollution Strategy

3. Background to EU AQM policy
European citizens are estimated to die prematurely every year due to bad air quality
Air pollution is also causing severe damage to ecosystems through acid rain and deposition of eutrophying substances
Worrying trends (energy, transport)
Air does not respect borders
Internal EU market + global economy

4. Loss in life expectancy attributable to exposure to fine particulate matter
2000

5. National emissions ceilings
EU Air Pollution
Legislation
Concentrations
Emissions
Framework Directive
1St Daughter
National emissions ceilings
Stationary sources
Mobile Sources
2nd Daughter
3rd Daughter
LCP’s
Incineration
VOC’s
IPPC
4th Daughter
Exchange Information
Non-road
Fuels Quality
Road

6. EU Air Quality Framework Directive
Directive 96/62: Framework obligations
capacity building
define zones and agglomerations
Perform assessment : Measurement/modelling
Inform the public
Report to the Commission
Management :
Maintain air quality where good
If Conc>Limit Value + Margin of tolerance:
Prepare, implement plans and programmes

7. EU Air Quality Daughter Directives
Air quality standards, minimum monitoring requirements, stations criteria, reference methods
Directive 99/30:
limit values for PM10, NOx, SO2 and lead
Directive 2000/69:
limit values for benzene and CO
Directive 2002/3:
Target values for Ozone
Monitoring of ozone precursors (NO2, VOCs)
Directive 2004/107:
Target values BaP, HM (excluding Hg)

8. National Emission Ceilings (1)

9. National Emission Ceilings (2)
Objective :
To set total national ceilings for pollutants causing acidification and eutrofication and for ozone precursors for the protection of the environment and human health
Reduce areas with critical loads at least 50% compared to 1990
Ground level ozone by 2/3 (health) 1/3 (eco)
Management :
national programme has to be prepared and communicated to the Commission
implemented to stay below ceiling by 2010
NECD complementing Gothenburg Protocol under CLRTAP
European Community also signed GP
Revision of NECD in 2006
Measure under T/S on Air Pollution : new objectives!
Burden sharing principle :
EU target
extensive modelling (tools upgraded within CAFE programme)
Negotiations
Reporting :
national programme
annual inventories+projections (2010)

10. NEC – required reductions

11. IPPC permit system
IPPC = Integrated Pollution Prevention and Control Directive, 96/61/EC in force since October 1999
Permit
Competent authorities reconsider and update permit conditions
Competent authorities check compliance with permit when installation operates
Operators inform competent authority regularly of the results of the monitoring of releases and without delay of any accident significantly affecting the environment
Operators enable the authorities to carry out inspections within the installation, to take samples and to gather any information necessary for the performance of their duties

12. Scope of IPPC The IPPC Directive covers
1. Prevention of pollution caused by production
selection of raw materials
cleaner production processes
2. Control of pollution caused by production
end-of-pipe abatement techniques
It does not cover
- Pollution caused by products

13. IPPC: Activities covered
Annex I: CATEGORIES OF INDUSTRIAL ACTIVITIES
Energy industries
Production and processing of metals
Mineral industry
Chemical industry
Waste management
Other activities
Production of pulp and paper
Pre-treatment of textiles
Tanning of hides
Slaughterhouses and processing of food products
Disposal of animal waste
Rearing of poultry or pigs
Printing, coating, degreasing, waterproofing etc.
Production of carbon or electrographite

14. IPPC: Key provisions integrated, decentralised permit procedure
public participation and access to information including an emission register
emission limit values based on Best Available Techniques (BAT) and Environmental Quality Standards
exchange of information on BAT and associated monitoring
existing EU emission limit values are minimum requirements

15. Best Available Techniques
most effective in achieving a high general level of protection of the environment as a whole
developed on a scale to be implemented in the relevant industrial sector, under economically and technically viable conditions, advantages balanced against costs
the technology used and the way the installation is designed, built, maintained, operated and decommissioned
Best
Available
Techniques

16. BAT reference document
Best Available Techniques reference document
on large combustion plants
available on Internet:
What is it?
What not?
Results of an information exchange on BAT, not delivered information is not reflected, BREFs need to be updated from time to time
Provides competent authorities, companies, public, Commission etc. with information for their decision-making
Tool to drive environmental performance
A BREF does not interpret the Directive or define or alter legal obligations
A BREF does not prescribe techniques nor contains suggested ELVs
A BREF cannot contain detailed local considerations, trade-offs are possible, but authorities are ultimately responsible for such decisions

17. Pollutant Emission Register
European Pollutant Emission Register (EPER)
Principal emissions (37 air and 26 water pollutants  50 in total) and IPPC sources responsible
Published every 3 years
First occasion in February 2004 (EU-15)

18. Pollutant Emission Register
Example: PM10 emissions in 2001 from IPPC sources

19. Pollutant Emission Register
Example: 10 highest SOx emitting installations in EU (2001)
CENTRAL TERMICA AS PONTES 315, t
PPC S.A., SES MEGALOPOLIS A' (I, II, III) 161, t
Unidad de Producción Térmica Teruel 152, t
CENTRALE TERMOELETTRICA DI PORTO TOLLE 72, t
CENTRAL TERMICA DE MEIRAMA 70, t
EDF ENERGY (COTTAM POWER) LTD 70, t
EDF ENERGY (WEST BURTON POWER) LTD 68, t
Scottish Power Generation uk 68, t
UPT COMPOSTILLA 61, t
BRITISH ENERGY PLC 59, t

20. Emissions trading in Europe
EU greenhouse gas emissions trading: first economic instrument at EU level
National CO2 systems in UK and Denmark
NOx trading in Netherlands
SO2 trading in Slovakia
More plans triggered by the National Emission Ceilings Directive?

21. Dutch NOx emissions trading scheme
Introduced in the Netherlands in parallel with EU CO2 trading scheme
Triggered by national ceilings of -50% by 2010 and -75% by 2020
Major considerations include:
- local effects
- application of Best Available Techniques
- monitoring and environmental management systems
- cooperation by industry and enforcement
Covers utility power plants and industrial facilities of >20 MW th
Allocation based on performance standard rates (benchmarking) corresponding to -55% in 2010 compared to 1995 levels
Local Aspects: studied in 2002 report by TNO>> industrial installations only in limited number of situations contributing to hot spots - local air quality
Technical approach: Emissions Trading direct and effective driver towards decisions in the companies on application of Best Available Techniques
Importance of Monitoring and Environmental Management Systems so far under valuated and insufficiently implemented through IPPC permit
Inspection - Enforcement requires effective organisation
Full involvement of industry from the start is crucial

22. Emission taxes and charges
Sweden has highest S, N taxes in the World:
SO2 tax 2 $ /kg
Sweden has a NOx charge of 6 $ /kg, 99% of revenues are refunded according to useful energy output
Since 1990 specific NOx emissions in Sweden have dropped by over 40% to lowest levels world-wide
Other EU countries also have taxes (e.g. Denmark on SO2 and individual Spanish regions on SO2)
2 $ / kg is more than 10 times higher than French SO2 tax and the market price of permits in the US
The plants subject to NOx charge now only account for 5 % of total Swedish NOx emissions (but non-fossil energy sources dominate).

23. Environmental taxes and charges
Environmental tax bases and applications are spreading steadily in Europe
Design important: exemptions, recycling of revenues in exchange for good performance
Very few attempts to base tax rates on external costs
Little evidence of less competitiveness
Second: incentives for changing behaviour
Fourth: on national level, and sectoral level; on micro level victims possible, but they may already have been in the margin

24. Policy mixes From optimal instrument to optimal mix
Mixes are rule not the exception
Many combinations found
Balance of effectiveness and efficiency/costs
Third bullet: ETS and VA, taxes and VA, ETS and subsidies, taxes and subs, standards and taxes, standards and ETS

25. New EU Strategy on Air Pollution
Euro 5 for cars and vans
Euro 6 for Heavy Duty Engines
Revision of the National Emission Ceilings
Small scale combustion
Ship NOx engine standards
Agriculture
Revise Air quality legislation
Small scale combustion
Possible extension of the scope of the IPPC Directive
Energy Using Products Directive for small sources
Ship NOx engine standards (IMO or EU)
Agriculture (NH3)
N content of feedstuffs