ucc law and the environment 2010 · • move to market based emission trading schemes ... •...
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UCC Law and the Environment 2010Environmental Law & Economics
Margaret Austin22 April 2010
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Environmental Law & Economics
• Integrated climate change and energy agenda for EU
• Low carbon economy
• Market Based Instruments (MBIs) to achieve change
• Changing incentives for business and consumers
• Fiscal and environmental advantages of MBIs
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Environmental Law & Economics .../cont’d
• Change from “command and control” regime
• State regulation and control
• Move to market based emission trading schemes
• Soft instrument – ecolabelling, privatisation of services, voluntary
agreements
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Environmental Law & Economics .../cont’d
• Commission Green Paper on MBI in 2007
• Commission Working Document 2007
• Commission Analysis of Replies on Green Paper 2009
• Danish Packaging Tax – reflects differences in environmental impacts
of materials
• More expensive, fails to produce better recycling results and causes
market distortions
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Environmental Law & Economics .../cont’d
• MBI in Waste Management
• Suggestion of harmonised landfill tax – EU wide minimum rates
• Widely differing natural circumstances
• Cost and competitiveness issues
• For those categories with no alternative – C&D waste such a tax has
no steering effect and leads to possible flytipping
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Environmental Law & Economics .../cont’d
• Flat landfill tax hinders mix of incentives and flexibility to divert from
landfill
• Economic costs and population densities differ across MS
• Higher taxes would be incentive for certain MS
• In other MS other instruments such as bans on capacity restrictions
• Specific national waste systems could be jeopardised by harmonisation
• EU framework already wide enough
• Allows discriminatory taxation affecting free movement of goods
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MBI and Biodiversity• Attaching a monetary value to environmental impacts and biodiversity
• German water industry, voluntary payments in form of bonuses for
resource protecting agriculture
• Biodiversity offsets – habitat banking
• Potentially increase the cost effectiveness of nature protection
measures
• Local compensation access in cities
• Cannot move ecosystems
• Definition of appropriate criteria and units by which habitat value can
be assessed and compared problematic
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Emission Trading Systems
• Example of a new instrument of environmental policy
• Origins of environmental law in nuisance, tort, criminal law
• State regulated systems for protection of environment:– Public participation– Judicial review
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Emission Trading Schemes …/cont’d
• Operators behaviour not dictated by law
• By what it can and it is willing to pay
• Environment a commodity?
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Emission Trading Schemes …/cont’d
• Limited possibility for judicial review of decisions
• Generic allocation decisions
• Not individual decisions, not addressed to plant operators
• Criticised for failing to focus on environmental effectiveness
• However provides for gradual reduction of cap and incentivises
innovation
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Emission Trading Schemes …/cont’d
• Shift from focus on compliance with limits
• Focus on functioning of allocation system
– equality, nondiscrimination
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Role of Law & Lawyers
• Changing role of state and law
• Different legal issues
• Economic law issues– Restraints on competition, free movement of goods and
services– Procurement, state aids
• Transparent, fair, systems
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Emissions Trading Scheme• Macro allocation
• Arcelor Atlantique et Lorraine & Others –v Premier Ministre, ECJ 2008
• Challenge to exclusion of aluminium & plastics production
• Discrimination justified but clear that court will not tolerate ad
infinitum
• Competition law principles
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Allocation through the Markets
• Operation of the market
• Role of law to ensure functioning of the market
• New Emissions Trading Directive: Focus on insider trading, unfair trading
• Concerns re losing sight of environmental objectives
• Requirement for “greening” of economic law
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Recent Irish Experience
• Nurendale Limited trading as Panda
Waste Services v. Dublin City Council &
Others
• Competition law issues
– consideration of environmental issues
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THANK YOU
MARGARET AUSTIN
22 April 2010
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UCC Law and the Environment 2010
Margaret Austin22 April 2010