ENVIRONMENTAL PERFORMANCE REVIEW OF THE UNITED KINGDOM

Transcription

1 ENVIRONMENTAL PERFORMANCE REVIEW OF THE UNITED KINGDOM EXECUTIVE SUMMARY The United Kingdom has experienced almost a decade of steady GDP growth, exceeding both the OECD and EU averages. Since the early 1990s, per capita GDP has grown 20% in real terms. This expansion was primarily driven by rapid growth in services (e.g. transport, communication, finance and business services). Services now exceed 70% of total output, while industry s contribution has dropped to 25% of GDP, despite growth in the high technology and light manufacturing sectors. This dematerialisation of the economy, along with changes in energy supply and an increasingly mobile lifestyle, has helped reshape UK production and consumption patterns in ways that eased some traditional pollution pressures and raised some new challenges. Since the early 1990s, the UK has made noteworthy progress in decoupling a number of pressures from economic growth. It achieved strong decoupling for major air pollutants and CO 2, for water withdrawals and for agrochemical consumption. This progress reflects both the reshaping of the economy and the strengthening of UK policies in the EU context. The UK is committed at the highest level of government to protection and sustainable development. Yet, it could still improve its ranking among OECD and EU countries with respect to a number of indicators of pressure intensity. Today, priority issues include diffuse pollution, waste management, soil and water management, landscape and biodiversity conservation, and climate protection. To meet these challenges, the UK will need to: i) expand its infrastructure (e.g. for waste and waste water treatment) and continue implementing its policies; ii) further integrate concerns into economic and social decisions; and iii) reinforce its international co-operation. This report examines progress made by the UK since the previous OECD Environmental Performance Review in 1994, and the extent to which the country s domestic objectives and international commitments are being met. It also reviews progress in the context of the OECD Environmental Strategy *. Some 51 recommendations ** are made that could help strengthen the UK s performance in the context of sustainable development. In implementing policies, good progress has been achieved with objectives and the mix of policy measures used Since the 1994 review, the UK has made noteworthy progress in achieving a number of its objectives and in expanding its infrastructure, although at the pace allowed by relatively limited pollution abatement and control expenditure. Targets related to emissions of conventional air pollutants, persistent organic pollutants and heavy metals, and to quality of drinking and surface water, were reached. Large-scale investment in waste water treatment infrastructure has accompanied privatisation of water services in England and Wales. The UK has extended the range of its objectives, partly in response to EU and other international commitments, and partly as a consequence of its own sustainable development commitments. The mix of policy measures used has become more balanced, with more use of economic instruments in recent years, and continued effective use of regulation and land use planning. Regulation of significant point sources of industrial pollution has been carried out in an integrated pollution control (IPC) framework since 1990, with cost-effectiveness as a guiding principle (BATNEEC). Lesser industrial point sources and urban waste water treatment are subject to media-specific regulatory regimes. Modifications to the pollution control system, initiated to conform with provisions of the EU directive on integrated pollution prevention and control (IPPC), are encompassing previously excluded installations and introducing additional objectives of pollution prevention and resource efficiency. For water supply and waste water treatment, the polluter pays and user pays principles are applied fairly consistently in England and Wales, although less so in Scotland. The UK has developed and begun to apply new economic instruments such as a landfill tax, an aggregates levy, a climate change levy and emission trading systems. A reform is under way to enhance integration of objectives with land use planning. * The objectives of the OECD Environmental Strategy for the First Decade of the 21 st Century covered in these Conclusions and Recommendations are maintaining the integrity of ecosystems (Section 1), decoupling pressures from economic growth (Section 2), the social and interface (Section 2) and global interdependence (Section 3). ** See Annex. 1

2 but there is considerable scope for further progress, including in the areas of waste, diffuse pollution and infrastructure development. In line with its sustainable development commitments, progress has been achieved with institutional integration but much remains to be done concerning sectoral policies (e.g. energy, transport, agriculture) and regional ones. Notwithstanding the revival of management in the late 1980s and the real progress just described, there is considerable margin for further progress, as the UK is in the middle range of EU or OECD countries for many indicators, has not yet achieved a number of its objectives and still presents a deficit of infrastructure (e.g. waste and waste water treatment infrastructure). Municipal waste generation has continued to parallel GDP growth, with recycling and recovery rates trailing those of comparable EU countries and landfilling rates remaining high. Developing the infrastructure necessary to implement best practices concerning hazardous waste disposal will require considerable investment. There is a need to further develop policy instruments to address diffuse pollution concerns, particularly as regards agriculture and urban runoff; the nitrogen surplus of the UK, although reduced, still exceeds the EU average by nearly 50% and the number of declared nitrate vulnerable zones is still insufficient to comply with the nitrate directive. Measures to conserve marine habitats and biodiversity should be reinforced. Significant expansion in inspection and enforcement will be required to accommodate the extended scope of IPPC regulation. Pollution abatement and control expenditure continues to represent 0.8% of GDP, and will probably need to be increased to meet future infrastructure investment requirements. The use of cost-benefit analysis to support decision making is part of the administrative culture in the UK, but limited information on costs and benefits makes it difficult to assess the cost-effectiveness of the IPC system. Also, the extended efficiency criteria have to be made compatible with the international and sustainable development objectives that are increasingly shaping the UK's policies. In summary, considerable effort and investment will be necessary for the UK to consolidate and extend implementation of policies. The UK economy has grown by almost 2.5% per year since the early 1990s. Strong decoupling from GDP growth has been achieved for emissions of major air pollutants and CO 2, as well as for water withdrawals and application of agrochemicals. A sustainable development strategy is in place. Progress towards sustainable development has been aided by institutional and market-based integration in several sectors. Institutional integration of sustainable development has been fostered by a range of high-level co-ordination committees (e.g. Green Ministers Committee, Environmental Audit Committee) and advisory bodies (e.g. Sustainable Development Commission). Strengthened procedures for taking issues into account have been built into policy-making processes. The traditional filtering of policy measures through cost-benefit analysis has been extended, with a stronger focus on objective setting and monitoring of progress through indicators. Substantial progress in policy integration has been achieved with respect to energy, transport, construction and agriculture. The UK has begun to use the modulation mechanism of the CAP, strengthening integrated rural development approaches, including through targeted support for management and biodiversity. A number of market-based instruments have been introduced, such as the climate change levy, that apply the principle of taxing bads and using the revenue to support goods. In transport, the fuel duty escalator influenced the modal split, shifting the trend back towards rail and water, and thus helped the UK reduce air pollutant emissions. At project level, impact assessments are carried out for large projects, and recent legislative changes are expanding their scope, in compliance with EU legislation. On the other hand, many UK indicators of pressure intensity are still in the OECD middle range. Changes in consumption patterns are generating and/or accentuating concerns. For instance, traffic volumes continue to grow, and municipal waste generation closely tracks GDP growth. Decoupling of diffuse pollution from economic growth will require continued efforts. Much remains to be done to translate sustainable development orientations into practice and to achieve full integration of economic, social and considerations in important sectoral policies. Although such efforts have been fairly comprehensive on the part of the central government, translation of general intentions into regional development priorities and local action is patchy. The integration of objectives into the policies of economic regulators such as OFGEM should be improved. The guidance function of important environment-related energy and transport taxes should be reviewed. Progress toward national goals concerning renewable forms of energy, waste management and agri- concerns remains slower than what is needed to reach them. 2

3 International commitments have translated into strong results on a range of issues and will need to be consolidated and extended, inter alia, concerning GHGs, nitrates, fisheries, ODA. Concerning climate change, the UK reduced its GHG emissions by 13.5% from 1990 to The country thus has already made very good progress towards meeting its ambitious national target of cutting CO 2 emissions by 20% between 1990 and 2010, as well as its international target under the Kyoto Protocol (a 12.5% reduction in GHG emissions between 1990 and ). A comprehensive climate change programme was launched in 2000, with the aim of sustaining these emission reductions and meeting the national CO 2 target. Concerning transboundary air pollution, the UK has met all of its international reduction targets for NO x, SO x and NMVOC emissions. Concerning marine issues, the UK extended prohibitions regarding ocean dumping to industrial waste and sewage sludge in the 1990s, and has consistently ensured that at least 25% of the foreign ships calling at its ports are inspected for compliance with the Paris Memorandum of Understanding on Port State Control. It has also upgraded waste management facilities in its ports, anticipating international requirements. Performance on transposing and applying EU directives on environment has improved overall, although several issues of non-compliance have been taken to court (e.g. on nitrates and marine habitats). A major review in 2000 of export credit programmes led to the adoption of a Statement of Business Principles that determines how applications for support are assessed, taking into account sustainable development concerns. However, to ensure that the GHG reductions are sustained, the country needs to vigorously pursue implementation of additional policies and measures outlined in the climate change programme. Attaining its targets concerning wider use of renewables and combined heat and power production would also help assure the country s longer-term performance (post-2010) with respect to climate protection, and to transboundary air pollution control (in line with the EU acidification strategy and national emission ceiling directive). Additional measures will also be necessary to moderate demand for road transport and electricity. Further technological control of air emissions at refineries and offshore installations will be necessary to meet future international emission reduction targets for SO x, NO x and NMVOCs. The UK s performance in reducing nitrate discharges to regional seas has fallen short of international commitments. Offshore installations have been slow in complying with OSPAR limits on oil content in discharges of produced water. As in other North Sea countries, about half the fish stocks exploited by the UK fishing fleet are classified as outside of biologically sustainable limits. Programmes aimed at reducing fishing capacity have had moderate impact. The UK s official development assistance (ODA) totals 0.32% of GNI, well under the Rio target of 0.7%. Attempts to mainstream concerns into ODA projects have helped raise general awareness of the issues, but have so far not led to clear and practical guidelines, or use of best practices. To purchase the OECD Environmental Performance Review of the United Kingdom, and other OECD publications, visit the OECD Online Bookshop at or send an to sales@oecd.org For more information about the OECD's series on countries' performance, contact: Christian Avérous, Head, Environmental Performance and Information Division, Environment Directorate christian.averous@oecd.org Fax: For more general information about the OECD Environment Programme, visit our website at: or send an to env.contact@oecd.org 3

4 Annex: 51 Recommendations * Environmental management strengthen inspection and enforcement and related monitoring efforts, as necessary to implement revised regulations; review present systems of charging users for waste and waste water services, identifying opportunities to strengthen economic incentives for resource conservation and efficiency; review expenditure and increase investment in infrastructure (e.g. waste and waste water treatment facilities); develop and apply economic and regulatory instruments so as to meet reduction targets for diffuse pollution, particularly from agriculture and transport; continue to integrate concerns into land use planning. Air continue efforts to reduce NO x, particulate and NMVOC emissions, in light of persistent problems with high concentrations of NO 2, PM 10 and ozone in some areas; implement area-wide emission control more consistently, providing more precise guidance to local authorities and taking measures to reinforce their management capacity where necessary; work to increase public perception of fuel- and vehicle-related taxes as tools for achieving goals, improving public transport and promoting low-emission vehicles and their refuelling infrastructure; strengthen transport demand management measures, including through the use of local authorities new powers to set road use charges and workplace parking levies; improve integration of air management concerns into transport policies and plans, particularly at the local level through better land use planning; continue to integrate local, regional and global atmospheric management concerns into energy policies. Water increase the number of designated sensitive areas and complete urban waste water treatment infrastructure, especially that needed to reduce pollutant discharges to coastal waters; complete delineation of nitrate vulnerable zones, in which codes of good agricultural practice and nutrient management plans should be binding; further develop the river basin approach to water management (e.g. by setting statutory water quality and quantity objectives), extending responsibilities of subnational environment agencies accordingly; continue to develop a policy framework for sewage sludge management based on economic and analysis; further explore the possibility of introducing taxes on nutrients and pesticides as a means of internalising external costs of diffuse pollution; explore the possibility of introducing industrial water pollution charges, with efficiency and financing objectives in mind. Waste establish a systematic data collection and information system concerning the generation, recovery and disposal of non-municipal waste; introduce effective measures to encourage waste minimisation (e.g. waste charges for household waste, material resource efficiency standards) and accelerate efforts to increase material recovery rates; strengthen measures to prevent and discourage illegal disposal of waste, with emphasis on inspection and enforcement; review and revise landfill-related measures (e.g. landfill tax rates, exemptions; inspection and enforcement) so as to more effectively support objectives related to reduction of landfilling and diversion of waste to unlicensed sites; accelerate measures to ensure that treatment and disposal of hazardous waste are organised in an ly sound and economically efficient manner (e.g. eliminating "co-disposal"), and clearly identify infrastructure needs; assure implementation of new legislation on remediation of contaminated land. Nature and biodiversity extend and strengthen the use of management agreements for protected areas; fully implement the biodiversity action plan through local action plans, and improve monitoring of the condition of individual species and habitats; continue to encourage the expansion of woodland and forest cover and to promote sustainable forestry in line with the UK forestry standard; further promote agri- programmes, as allowed for under the EU Common Agricultural Policy (CAP); develop and implement comprehensive legislative and institutional mechanisms for marine nature conservation, fully implementing the EU habitat directive in the 200-mile exclusive economic zone; continue to promote measures to conserve wildlife species that are in decline, and regularly monitor their status as a basis for establishing related conservation measures. * These Recommendations were formally approved by the OECD Working Party on Environmental Performance. 4

5 Towards sustainable development Environmental/social integration Sectoral integration: construction International co-operation reflect sustainable development objectives more systematically in public service agreements and through integrated analysis (e.g. extended cost-benefit analysis) of policy measures; ensure that central government initiatives for improved integration and sustainable development are effectively translated into regional development priorities and local action; strengthen the incentive role of economic instruments in inducing targeted modal shifts in transport, with appropriate phasing and consultation; further extend the shift of CAP resources towards integrated rural development programmes, including through agri- measures; study and develop the extension of the climate change levy into a broader based tax on greenhouse gas (GHG) emissions. take concerted action to reduce disparities in risk exposure and access to services; monitor implementation and assure proper enforcement of countryside access and rights of way; further strengthen the integration of targets and actions in initiatives to combat social exclusion and deprivation, and seek to ensure that social compensation measures do not undermine the effectiveness of policies; assure effective integration of objectives in local partnership approaches to sustainable development; provide for improved legal standing of NGOs in courts and pursue implementation of recent legislation concerning access to information. further promote the integration of environment-related measures into strategies and programmes devoted to improving performance in the construction sector; amend the Building Act to address the operational energy efficiency of existing buildings, and launch a comprehensive policy, with clearly defined targets, to substantially upgrade energy efficiency in existing buildings; continue efforts to improve resource efficiency and conservation through increased recycling and reuse of construction materials and sites, and strengthen control of illegal disposal of construction and demolition waste; ensure that the public sector, through its procurement policy, sets a good example for sustainable construction and operation of buildings and infrastructure; add indicators to the set of construction performance indicators and promote public awareness of rating and labelling systems such as SAP and BREEAM. review and adjust, if appropriate, economic incentives in the energy and transport sectors to facilitate full implementation of the climate change programme; strengthen and further expand measures to limit nitrate inputs into regional seas, with particular attention to diffuse sources such as agriculture; strengthen enforcement and pollution control measures at offshore installations and refineries in line with internationally agreed control targets (e.g. under OSPAR, MARPOL, EU emission ceiling directive); continue to reduce fishing fleet capacity and related subsidies, and work to ensure that precautionary management strategies are applied to overexploited fish stocks; monitor the implementation of voluntary initiatives designed to assure integration of sustainable development concerns into export credits and guarantees; increase official development assistance towards the Rio commitment of 0.7% of GNI and establish clear procedures for mainstreaming objectives into projects; ratify and implement recently signed international agreements (Annex II). 5