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  No. 4, December 2002


Main articles in brief

Oil refining
New measuring technique not only raises emission figures enormously but also shows where emissions are actually taking place.

Public procurement
Court case shows that especially strict requirements can be set where there are existing environmental standards.

Emissions trading
Shipowners and other interested parties are proposing that trading should also be applicable for ships’ emissions.

Dangerous particles
A study of 26 European cities suggests that by reducing concentrations, many thousands of deaths could be avoided each year.

Cost of pollutants
Estimates released by the EU Commission reveal great variations between member states, and especially high costs in cities.

Germany
Agreement within the coalition government indicates that the country intends to stay in the lead in defending the climate.

LRTAP Convention
Implementation Committee reports that many nations are failing to comply with the protocols.

China
Facts assembled by Stockholm Environment Institute reveal unsafe levels of air pollution in most Chinese cities.

NEC directive
Finland is well on the way to compliance with this directive on national ceilings to emissions.

 

EDITORIAL


Can they be serious?


A well-known problem for something like fifteen years has been the enormous emissions of sulphur dioxide and nitrogen oxides from ships. But shipping's character of an international business has always been used as an excuse or manoeuvre to delay any action. The emissions of air pollutants from ships have in consequence continued to increase.


The few attempts to improve matters by legislation have either been ignored or deliberately delayed. Although the marketing of marine gas oils with a sulphur content of more than 0.2 per cent was supposed to have been forbidden in the Community after October 1, 1994 through the EU directive 1993/12/EC, it seems that only a few countries have complied.


Six years later that directive was replaced by another, 1999/32/EC, which instead of prohibiting the marketing of marine gas oils with more than 0.2 per cent sulphur content, saddled the member countries with the responsibility of ensuring that, as from July 2000, such oils would not be used within their territories. But there is no real evidence to show whether they have taken any action.


An agreement reached within the International Maritime Organization (IMO) in the autumn of 1997 concerning an appendix to its MARPOL convention, called Annex VI, set some rather modest limits on the sulphur content of marine fuels and the emissions of nitrogen oxides. Yet the implementation of these requirements has been greatly delayed as a result of many countries putting off ratification of Annex VI. See article below.


But, as shown in the first article in this issue, there is one good example of a measure that has really brought about a lowering of ships emissions - the use in Sweden of environmentally differentiated harbour and fairway dues. Although clearly effective, the system could nevertheless be improved, for instance if it were also made to take into account the distance travelled, since that greatly affects the amounts of pollutants emitted. It would also make it easier for more countries to apply it if the EU were to introduce either a common system of fairway dues or some kind of common infrastructure charging for shipping. The latter alternative was aired last year in the Commission's White Paper on Transport, but what is of importance is of course that some such system should be agreed upon and put into practice.


In view of all this it is indeed somewhat surprising to see how various groups connected with shipping suddenly seem prepared to spend hundreds of thousands of euros on so-called preparatory studies of something of a quite different type of economic instruments, namely emissions trading (see article below). One's confusion is ever greater on noting that principally the same groups are involved in two altogether diverging - and obviously competing - proposals. One is inclined to ask if they are really seriously meant, or simply aimed at muddying the debate and so preventing any effective measures being taken.


If the industry were really interested in reducing emissions, it ought logically to support EU legislation setting the minimum requirements for fuel quality that will be necessary both for marine gas oils and heavy bunker oils. Both the shipping industry and the EU member countries must at last, too, take upon themselves the responsibility for the practical carrying out of the legislation.


Economic instruments will be a necessary complement, because they can help to bring about still greater reductions than are likely to be attainable solely through EU and IMO procedures. If economic instruments are to be properly effective, they must however also be so arranged as to further the internalizing of the environmental costs of shipping.


Christer Ågren

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DIFFERENTIATED DUES

Something that works

Close on 80 per cent of the entries to Swedish ports are now of ships using low-sulphur bunker oil, and a greater part of all the vessels in the world fitted with catalyzers are sailing in Swedish waters.

This is largely a result of the system of differentiated fairway charges now being operated in Sweden, the impulse to which came in the nineties in consequence of a growing awareness that ships' emissions of sulphur dioxide and nitrogen oxides - and so their contribution to acidifying and eutrophying fallouts - was much greater than had previously been thought.

In 1996 an agreement was reached between the National Maritime Administration, Swedish Shipowners' Association, and the country's ports with the aim of getting ships' emissions of sulphur dioxide and nitrogen oxides down by 75 per cent soon after 2000. For its part the Maritime Administration undertook to introduce differentiated fairway dues as from January 1, 1998, to give an advantage to ships with lower emissions of these air pollutants. Most of the Swedish ports have followed suit by differentiating harbour dues.

In 2001 altogether 2800 ships were making some 127,000 calls at Swedish ports. For most of those that were calling only once or twice a year, charge differentiation meant little. The system has greatest effect for frequent arrivals, and it is of course the emissions from these that are of greatest importance for the Swedish environment.

At least 1200 of the ships plying in Swedish waters are now running on low-sulphur fuel. To be eligible for the lower rates, ferries must use fuel with a maximum sulphur content of 0.5 per cent. For other types of vessel the limit is 1.0 per cent.

Among the most frequent callers besides ferries it is mainly vessels carrying forest products - timber, pulp, and paper - that have been adapted to meet the requirements for emissions of nitrogen oxides. The greatest reduction comes from the use of catalyzers (selective catalytic reduction, SCR), by which 90-95 per cent of the emissions can be eliminated. Another method is the HAM (Humid Air Motor), which can control the formation of NOx and reduce it by 70-80 per cent through the addition of water vapour to the engine's combustion air.

Most of the 70 or so vessels in the world presently equipped with catalyzers or comparable equipment for reducing emissions of NOx are running in Swedish or Norwegian waters. Vessels certified for the lower Swedish charges have an average emission of about 3 grams of NOx per kilowatt-hour which is more than 80 per cent lower than that from unequipped vessels, which average 17-20 g/kWh. Best performer is the Birka Princess, which with SCR emits no more than 0.5 g/kWh.

"The Swedish system has set a standard that has also been followed by the Åland islands, and it gave us an incentive to invest in the installation of catalyzers in our ships," commented Wiking Johansson, CEO of Birka Line Abp, which owns the Birka Princess, currently being used mainly for cruises around the Baltic, starting from Stockholm. The Birka Line also owns seven vessels for transporting forest products, three of which that are trading regularly between Sweden and various countries on the continent are equipped with catalyzers.

The forest products companies reacted quickly to the debate on shipping emissions. Assidomän was a frontrunner when it decided already in 1997 to have all its so-called system carriers run on bunker oil with a maximum of 1 per cent sulphur.

"No sooner had the press started to write about Assidomän's switching to low-sulphur oil than all the Swedish forest product companies did the same. They just could not go on using oil with a 3 per cent sulphur content," said Rolf Johannesson, managing director of SCA and chairman of the transportation committee of the Swedish forest industries.

All told, the Swedish forest product companies have about twenty ships in regular traffic along the Swedish coast and down to the continent, and most of them already have, or soon will have, catalyzers. SCA for instance has already equipped one of its three ships, and intends to fit catalyzers on the others too. "The Swedish forest products industry has shown the way. It is now time for others to follow our example," says Rolf Johannesson.

A Swedish shipowner with global interests, Wallenius OW Lines, is striving to reduce emissions from its vessels - forced as it happens by demands from customers. The company is mostly engaged in shipping cars and trucks to markets around the world. "As early as the mid-nineties Volvo started to question us about our emissions of pollutants," relates Per Croner, in charge of the environmental aspects of Wallenius business. Its target for 2003 is not to use fuel oil with more than 1.5 per cent sulphur. One project was to run one of its ocean-going carriers, the MS Turandot, on marine diesel oil with no more than 1 per cent sulphur.

Diesel fuel costs 30-40 dollars more per ton than ordinary bunker oil, so that with each ship using some 50 tons every twenty-four hours, the difference is considerable. It turned out however after three years' trial that the cleaner fuel resulted in less wear on the machinery, with less need too for lubricating oil and less maintenance work. It also brought better working conditions for the crew. "Having now assessed the project, we find that the advantages of using diesel fuel can be costed at 20 dollars per ton," says Per Croner.

In order to bring down emissions of nitrogen oxides as well, Wallenius has modified the engines on 10 of its 19 vessels sailing under Swedish flag, thereby reducing them by 20-30 per cent, to about 13 grams per kilowatt-hour.

Berit Blomqvist & Christer Ågren

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IMO ANNEX VI

Moving towards ratification

As announced at a meeting of the IMO Marine Environment Protection Committee October 7-10, altogether six nations - accounting for about a quarter of world gross tonnage for merchant ships - have now ratified the air-quality annex of 1997 to the IMO's MARPOL Convention (Annex VI).

It seems that in view to some extent of an EU proposal that is on the way for dealing with air pollutants from ships, more and more countries are now belatedly starting to get around to ratifying the annex. The six that have already ratified are the Bahamas, Liberia, Marshall Islands, Singapore, Norway, and Sweden. Ratification by at least 15 states representing 50 per cent of the world's gross tonnage is required for the annex to come into force.

At the October meeting a further ten countries1 reported that steps towards ratification were now in their final stages, meaning that it could take place at the end of this year or certainly during the first half of 2003 - which would make it possible for Annex VI to come into force in 2004.

Christer Ågren

1 Belgium, Cyprus, Denmark, Finland, Germany, Greece, Luxembourg, the Netherlands, Panama, and Spain.


Merchant fleets of the world: the fifteen countries with the greatest percentage of total gross tonnage. Those in italics have ratified Annex VI.

Country Per cent
Panama 20.5
Liberia 9.5
Bahamas 5.6
Malta 5.0
Greece 4.7
Cyprus 4.2
Norway 4.1
Singapore 3.9
China 3.0
Japan 2.7
USA 2.0
Russia 1.9
Hong-Kong 1.8
Marshall Islands 1.7
Italy 1.6

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EMISSIONS TRADING


Extending it to ships


Shipping interests putting forward their own proposals as alternatives to legislation.


This last year two interested parties have each put forward proposals for reducing the emissions of air pollutants from international shipping through a system of allowance trading. The reason can be seen in the fact that ships' relative share of the emissions of sulphur has been steadily increasing (see AN 3/02) and that the EU Commission has recently announced a strategy for reducing them.


The one proposal comes from the Swedish Shipowners' Association1 in collaboration with PricewaterhouseCoopers (PwC). Put briefly, it amounts to this: all major land-based point sources of emissions - in effect those covered by the EU directive on Integrated Pollution Prevention and Control - should be subject to emission caps for sulphur and nitrogen oxides. When added up, the individual caps would constitute EU caps for SO2 and NOx for all sources included in the IPPC directive. These caps would be set for several years, during which they would be gradually lowered. Each individual source would be given an emission allowance and would be able either to purchase additional allowances or sell any surplus it had. Allowances could also be banked for future use.


According to the PwC/SSA proposal, sectors not covered by caps, primarily shipping, could participate in the trading scheme on a voluntary basis. By reducing emissions to levels below a baseline, such as in IMO MARPOL Annex VI (see box), ships could generate emission-reduction credits (ERCs) which they could sell to the capped emission sources on land. These credits would thus have the same function and value as emission allowances.


The other proposal, started at the initiative of BP Marine, has led to the formation of a cross-industry project called SEAaT (Shipping Emissions Abatement and Trading).2 Among the industry groups that had provided funding for the project by September 2002 were, besides BP Marine, BP Shipping, P&O, Shell Marine Products, and CEPSA. Supporting the project by participating in its Steering Committee are, in addition to the above, the International Bunker Industry Association, Concordia Maritime, the European Community Shipowners' Association, the International Chamber of Shipping, and Intertanko.


The SEAaT proposal outlines a scheme in which a cap would be set for the total of ships' emissions in the relevant sea area or areas. That cap would gradually be reduced, and each ship movement or activity would be assigned an emission allowance. The ship, or some person or body acting on its behalf, could then either


a) sell or bank any excess allowance (if emissions are low) or


b) if emissions are high, buy further allowance.


While it is intended that the trading scheme should initially apply to emissions of SO2 in the North Sea and the Baltic, it could later be extended to cover also NOx and particulates, as well as other sea areas.


These proposals obviously differ in several basic aspects. First and foremost, SEAaT wants the ceiling, as well as allowance trading, to be confined to the shipping sector, while PwC would have the ceiling apply to emissions from land-based sources only, and let ships' participation in allowance trading be voluntary.


The PwC proposal would mean in practice that the capped land-based sources would be obliged to gradually reduce their emissions still further (or buy allowances or ERCs) and accept the accompanying costs. When buying ERCs, land-based sources would in effect pay for ships' emission reductions.


That opens the way for many questions. How, for instance, is the cap for land-based emission sources to be set? What changes might be needed in the IPPC directive? Is there a risk of merely shifting the bulk of emissions from sea to land? How is the conflict with the EU aim of internalizing the external costs of all modes of transportation to be resolved? And so on. There is no answer to any of these questions in any of the published documents.


The SEAaT proposal would appear to be simpler both in its structural and political aspects - although setting emission ceilings for shipping in any specified sea area will be far from uncomplicated. For one thing, PwC maintains that the Convention On the Law of the Sea (UNCLOS) prevents the setting of binding caps for international shipping. Despite the political feasibility of its scheme being totally dependent on the ability to set a cap, SEAaT has so far given no indication as to how such a cap should be set.


While PwC clearly states that its trading scheme should be seen as a complement to regulation, it is not clear whether SEAaT wants its scheme to be either a complement to EU legislation (such as on maximum sulphur content) or an alternative to such legislation. It does however want any legislation on the sulphur content of marine fuels to be sufficiently flexible to allow sea-water scrubbing to be used as an alternative means of reducing the emissions of sulphur from ships. This might indicate that regulations on the sulphur content of marine fuels would be acceptable to SEAaT, provided they contain provisions similar to those in MARPOL Annex VI, allowing the equivalent emission reductions to be achieved by technical means as an alternative.


Since the SEAaT proposal aims first and foremost at reducing SO2 emissions, and is limited to trading between ships, its viability depends very much on sea-water scrubbing being allowed as a lower-cost alternative for emission abatement (the only other option for ships being to use low-sulphur fuels).To date there is however very little documented evidence on the efficacy of sea-water scrubbing. One device that is being tested aboard a Canadian icebreaker, called Ecosilencer, is claimed by the maker to achieve an SO2 reduction efficiency of about 95 per cent. Without sea-water scrubbing the scope for SO2 emissions trading would, under the SEAaT concept, obviously be extremely limited, since there would be little if any difference in the marginal costs for reduction, the only option being to use low-sulphur fuel. It might however be workable for reducing NOx, since there are many means, with varying degrees of efficiency and marginal cost, for lowering the emissions of that pollutant from ships.


Both projects recognize that much remains to be done before a practical and politically acceptable system can be developed for trading in ships' emissions. Provided economic support can be found, PwC will spend about a year on "clarification" (Phase 1) of the project. The suggested budget for the ten sub-projects of that phase is estimated to lie between 330,000 and 595,000 euros. Phase 2 would then involve design and development, and Phase 3 implementation. The necessary funding is expected to come primarily from stakeholders - shipowners, shipowners' associations, and other interested businesses.


The SEAaT scheme is already an established project, with sponsors and supporters from a number of shipping and oil companies as well as shipping interest groups. Its short-term objectives, as stated in the autumn of 2002, are to lobby the CEC, IMO and other relevant parties in order to keep the door open for adoption of "non-fuel abatement technologies and emissions trading," and to "gain active support from stakeholders in order to establish a Sponsoring Board and funding, establish a steering committee, and gain approval for a plan and approach for future activities." The budget for the first stage of the project (June to October 2002) was proposed to be US$360,000.


In the next stage, SEAaT will aim at developing a system for the allocation of emission ceilings, at gaining acceptance of trading from the EU and maritime institutions, and promoting emission abatement by technical means. Development of the actual rules for trading is regarded as a matter for the longer term.


This autumn talks have been going on with the aim either of coalescing the two projects or at least establishing close cooperation - on the one hand to avoid duplication, on the other to pave the way for political acceptance and support for an allowance-trading system as a means of reducing the emissions of air pollutants from shipping.


Neither PwC nor SEAaT have given any clear timetable to indicate when they believe the proposed trading schemes could become operational. During the preparatory meetings the interested parties gave signs however that they envisaged a fairly long-drawn-out process, with little likelihood of any functioning system being in place before 2010.


Christer Ågren


1 The proposal is presented in the document Emissions Trading Scheme SO2 & NOx, dated March 22, 2002, and has been submitted as the SSA's response to the Commission's discussion paper from January 2002 on a Community strategy on air pollution from ships. The text is available at: www.europa.eu.int/comm/environment/air/consultation _responses/swedishshipowners_response.pdf


2 For more information, see www.SEAaT.org

IMO MARPOL VI


International talks on the controlling of ships' emissions had started within the UN shipping organization IMO at the end of the eighties, with the outcome that in 1997 the organization adopted Annex VI as a complement to the MARPOL convention. The limits that the annex sets for the sulphur content of bunker oil (4.5 per cent) and emissions of NOx (17 g/kWh) are however so weak as to be hardly likely to lead to any appreciable reduction of emissions. The annex does nevertheless set a limit of 1.5 per cent in the bunker oil of ships sailing in Sulphur Emission Control Areas (SECAs), which should mean reductions in two such areas, the Baltic and North Seas. It still remains however for Annex VI to be ratified by a sufficient number of countries for it to come into force.

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MARINE ENVIRONMENT

EU strategy proposed for the seas


On October 2 the EU Commission issued a so-called communication1 on the one hand describing the current state of the environment in Europe's sea areas, and on the other singling out some of the objectives and measures that are expected to be included in the thematic Community strategy on the preservation and conservation of the marine environment, which is to be presented in 2004.


Among the objectives to which attention is drawn are those:

  • to halt decline in biodiversity by 2010;
  • to eliminate human-induced eutrophication problems, also by 2010;
  • to eliminate all discharges of oil from ships and offshore installations by 2020;
  • to progressively reduce emissions of hazardous substances to the marine environment, with the ultimate aim of reaching near-background concentrations for naturally occurring substances, and close-to-zero concentrations for manmade synthetic substances.


Under the heading of "policy actions," the Commission outlines twenty-three to those ends. Anti-eutrophication measures are for instance to include a comprehensive assessment of the state of marine eutrophication in 2006 with proposals for new, complementary instruments to help in cutting the emissions of nitrogen oxides from ships that are to materialize in the context of the strategy to reduce air pollution from sea-going vessels.


After reviewing the existing EU, national, regional, and international policies, the Commission has come to the conclusion that there is currently no integrated EU policy for the protection of the marine environment, a lack which it intends to correct with its proposed thematic strategy for 2004.


1 Towards a strategy to protect and conserve the marine environment. COM(2002)0539. http://europa.eu.int/eur-lex/en

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EXTERNE


Estimating costs of pollutants


Gains from reduction greatest in densely populated countries, costs extra high in cities.


There have just come new figures from the Commission showing what the costs of several air pollutants are to society in terms of money, through damage to people's health, buildings, and farm crops. They update and collate statistics arising from the EU ExternE program.


Although the Commission has had the study1 made largely in aid of the work on proposals for infrastructure charging, the figures can be used in many ways, such as for quantifying the benefits generated by limits on pollution in current and future EU directives, or as data for emissions charging.


They cover these types of damage:


· Acute (short-term) effects of fine particles, sulphur dioxide, and ozone on mortality and morbidity.


· Chronic (long-term) effects of fine particles on mortality and morbidity.


· Effects of SO2 and acidity on materials used in buildings and other structures of no significant cultural value.


· Effects of ozone on arable crops.


It should be noted that for lack of information - as regards for instance exposure-response functions and estimates of economic values - some types of damage have been omitted. Among them are effects on ecosystems, cultural heritage, and visibility.


In terms of prices in 2000, the average damage caused generally in the EU by one ton of pollutant emitted over rural areas is put at 14,000 euros if the pollutant is fine particles (PM2.5), 5200 if it is SO2, 4200 for NOx, and 2100 euros for volatile organic compounds (VOCs). These being average figures, they mask however the great variations between member states, as can be seen from Table 1.


Seeing that the estimates concern mainly damage to health, it is hardly surprising that the greatest gains from every ton of pollutant reduced should be in relatively densely populated countries such as Belgium, France, the Netherlands, and Germany.


The costs will moreover be extra high when fine particles and SO2 are emitted in cities, since more people will then be exposed. In a town of 100,000 inhabitants, for instance, they are estimated to amount to 33,000 euros per ton of fine particles emitted, and 6000 euros for SO2. This is damage over and above that for the whole country. The larger the city, too, the higher the cost will be per ton of emitted pollutant.


The gain from reducing emissions from ships, which has also been calculated, turns out to vary from one sea area to another (see Table 2). It is suggested that whereas national rural data should be used for emissions from ships close to shore (say in coastal trading), emissions from ships in port should be treated as of urban origin, with the size of the port city also taken into account.


Christer Ågren


1 BeTa (Benefits table database): Estimates of the marginal external costs of air pollution in Europe. Version E1.02a. Created for the European Commission DG Environment by netcen. Can be downloaded from: http://europa.eu.int/comm/environment/enveco/studies2.htm


Table 1. Estimated costs of damage from emissions in rural areas. Unit: euro per ton of pollutant emitted.

 

SO2

NOx

PM2.5

VOCs

Austria

7200

6800

14000

1400

Belgium

7900

4700

22000

3000

Denmark

3300

3300

5400

7200

Finland

970

1500

1400

490

France

7400

8200

15000

2000

Germany

6100

4100

16000

2800

Greece

4100

6000

7800

930

Ireland

2600

2800

4100

1300

Italy

5000

7100

12000

2800

Netherlands

7000

4000

18000

2400

Portugal

3000

4100

5800

1500

Spain

3700

4700

7900

880

Sweden

1700

2600

1700

680

UK

4500

2600

9700

1900

EU15

5200

4200

14000

2100


Table 2. Estimated costs of damage from emissions at sea. Unit: euro per ton of pollutant emitted.

 

SO2

NOx

PM2.5

VOCs

Baltic Sea

1600

2100

2500

1000

North Sea

4300

3100

9600

2600

English Channel

5900

5400

12000

1900

Eastern Atlantic

4500

4800

9100

1500

Mediterranean

4700

6200

10000

1700

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PUBLIC PROCUREMENT


Environmental considerations in order


Court rulings confirm that inclusion of environmental requirements is no contravention.


When taking bids for public transportation services in 1997, the Helsinki municipality seized the opportunity to insinuate a proviso concerning nitrogen-oxide emissions from buses which in effect can only be met by vehicles running on natural gas.


The catch was that the only existent filling station for gas was located on premises owned by the municipality. One of the bidders brought a suit against the municipality, claiming the requirement to be too strict and favouring the municipality's own company.


When finally passing judgment this last September, the court ruled that the requirement did not contravene the principle that all bidders should be treated equally, and that it was in order for the municipality to set environmental requirements just as it had done.


But it added that the freedom to set requirements has limitations - they must be made known in advance and formulated in such a way as to be easy to evaluate and follow up. It also emphasized that they must consider only important aspects of the matter. In the case in point it is obvious that the main burden on the environment will come from vehicles in operation. A limit to the emissions of air pollutants was therefore in order.


The court also settled the question of whether there must be a direct advantage to the party calling for bids. It decided there need not be. Since the procuring body is acting on behalf of the public, all that is necessary is that the requirements should benefit the public. They must, on the other hand, have a clear connection with the object of procurement.


In the Amsterdam treaty - the EU constitutional law - the principles of freedom of trade and respect for the environment are made to weigh equally. The law on public procurement actually preceded the Amsterdam treaty, which may explain the previous uncertainty as to what should apply.


Last year there came another court ruling, which although not dealing with public procurement, nevertheless was of prime importance in clarifying the possibility of setting environmental requirements. In that particular case (C-379/98, Preussen-Elektra), the Prussian state laid down that a certain proportion of the electricity in the net must have come from renewable sources. The judgment of the Community court was that although the law was of a discriminatory nature, it was allowable on account of its environmental advantages which, as a result of the Amsterdam treaty, had become just as important as freedom of trade - and that it was in any case a part of EU policy to promote renewable energy.


That court decision can well be interpreted as allowing for wider environmental considerations wherever the EU is pursuing an active policy for the protection of the environment. The case of the Finnish buses shows that especially strict requirements can be set in instances of public procurement if, as in Helsinki, there are existing environmental standards to observe.


Ministers responsible for EU's internal market reached agreement in May on a revision of the law on public procurement, and many had feared that attempts to eliminate the possibility of corruption would make it even harder for authorities to take environmental and social factors into consideration as well. It is now thought that in the light of the court's ruling the ministers will in any case have to revise their agreed wording.


Fredric Lindberg & Maria Losman
Consultants, Miljöbyrån Ecoplan AB

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BUILDINGS

Call for obligatory energy certification

A recently agreed EU directive will require an energy certificate for all buildings that are sold or rented out.

The new directive will require each member country to set binding targets for minimum energy efficiency, which shall apply to all new construction. The requirements must also be met when space of more than 1000 sq. metres is renovated.

All buildings must, when put up, sold, or rented out, acquire a certificate from an independent expert, testifying to their energy performance and including recommendations for cost-effective improvements. Certificates will be valid for ten years.

Systems for energy certification must be in place within three years, with an extension for a further three years for countries lacking qualified and/or accredited experts. The directive also requires regular inspections of boilers and air-conditioning systems above a certain size.

A compromise version of the directive from the Council of Ministers was passed by the EU parliament at a second reading on October 10, and final agreement by Council is expected this autumn.

According to the Commission as much as 40 per cent of the energy use in the EU takes place in buildings, with domestic space heating accounting for 57 per cent of that total, heating water for 25 per cent, and electrical appliances and lighting for 11 per cent.

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GROUND-LEVEL OZONE

Concentrations still too high

The concentrations of ground-level ozone were again high in Europe this last summer, according to the EEA, the European Environment Agency. Background concentrations appear to be increasing, although peak levels were lower during that period.

Under an EU directive of 1992 the member countries are obliged to measure the concentrations of ground-level ozone and report them to the Commission. The directive also contains the proviso that if certain threshold values are exceeded in a country, the public has to be warned or informed.

Besides the EU members, ten other countries sent in data in 2002, and altogether 1718 monitoring stations were then considered to be operating in all the reporting countries.

During the summer of 2002, the threshold value for warning the public (when the one-hour average exceeds 360 µg/m3) was exceeded in France (at one station), in Italy (one), and Spain (at three stations), all in June. The highest concentration was that recorded at Puertollano in Spain: 391 µg/m3.

The threshold value for informing the public (180 µg/m3 as one-hour average) was reported to have been overstepped in eleven of the member countries as well as in six others - with about 33 per cent of the monitoring stations reporting such occurrences.

Throughout the five months of monitoring this threshold was passed in France, Greece, Italy, and Spain. The concentrations when it was overstepped were highest in southern France, the Po valley and central Italy. The value was exceeded during four consecutive months in Austria, Germany, and Switzerland, and in three in the Netherlands and the Czech Republic.

Ten countries - Ireland, Norway, Denmark, Sweden, Finland, Estonia, Latvia, Lithuania, Bulgaria, and Romania - reported no overstepping of the threshold for public information, and this was the sixth consecutive year in which Ireland and Finland could report no exceeding of that limit.

It is difficult, with the relatively short series of uniform measurements that is available (they were started in consequence of the directive in 1994) to say anything with certainty about the long-term trends, since the concentrations vary quite a lot from year to year, depending on the weather.

The decline in peak concentrations that nevertheless seems to be occurring may be explained by the lowering of the emissions of precursors (nitrogen oxides and volatile organic compounds) in Europe during the nineties. It seems on the other hand that the average (background) level is increasing, possibly because of incoming transports both of ozone and its precursors from other parts of the northern hemisphere.

The present ozone directive is due to be replaced in September 2003 by the third daughter directive to the Air Quality Framework Directive (96/62/EG), when the rules for reporting will be altered. For one thing there will be a new "alert" threshold of 240 µg/m3. This year that threshold was passed in 7 per cent of the cases where overstepping of the public information threshold was reported. Henceforth, whenever the alert threshold is passed, governments will have to set going plans for achieving an immediate reduction of concentrations "where feasible."

Per Elvingson

Air Pollution by Ozone in Europe in Summer 2002. Published by EEA, available at http://reports.eea.eu.int/topic_report_2002_6
/en/topic_2002_06.pdf
.

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FINLAND

Attaining ceilings

At the end of September Finland made known its program for meeting the requirements of the EU directive on national emission ceilings for certain atmospheric pollutants.1 This directive, which was adopted last year, is the most important for improving the quality of the air in Europe. It sets binding ceilings for four pollutants - SO2, NOx, VOCs and ammonia - which have to be met by 2010.

The program defines targets and measures for reducing emissions in the energy, transportation, agricultural, and industrial sectors. Attaining the ceilings will mean cutting the emissions of SO2 by 57 per cent (from 1990 levels), those of NOx by 41 per cent, VOCs by 42 per cent, and ammonia by 18 per cent. See table below.

It is thought that in Finland 's case the ceilings can be attained without any need for further measures to out emissions. Decisions already taken, coupled with the effects of EU legislation, should suffice. Confirmation that Finland is already well on the way to compliance in this respect comes from its emission data for the year 2000. This applies especially to SO2, where emissions are already far below the ceiling for 2010. Lower margins for the other pollutants suggest however that it may nevertheless be necessary in their case to take further measures.

Finland appears to be the first of the EU countries to set out a program for accomplishment of the NEC directive. As far as is known, too, it is the only one to have done so by the set date, October 1, 2002.

Christer Ågren

1 According to Article 6 of the EU directive on national emission ceilings for certain atmospheric pollutants (2001/81/EC), member states should, at the latest by October 1, 2002, each have drawn up programs showing how they are planning to meet the emission ceilings for SO2, NOx, VOCs, and NH3 set out in the directive for 2010. The programs are to include information as to the policies and measures that have either been adopted or are envisaged, as well as quantified estimates of their effect on the emissions of these pollutants by 2010. Member states shall moreover make their programs available to all, including environmentalist organizations.

Emissions in Finland 1990 and 2000 and emissions ceilings for 2010 of the NEC directive (ktons).

 

1990

2000

NEC 2010

change 1990-2000

change 1990-2010

Sulphur dioxide

260

74

110

72%

57%

Nitrogen oxides

287

209

170

26%

41%

VOCs

224

161

130

28%

42%

Ammonia

38

33

31

13%

18%

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EU in brief

Parliament wants more trading

At its first reading of the Commission's proposal for trading in CO2 emissions, the EU Parliament voted to make it not only obligatory as from 2005, but also to include all the six greenhouse gases in the Kyoto protocol. The Parliament also wanted more sectors to be included in the scheme, and proposed that 15 per cent of the emission allowances should be put up for auction in each country instead of being allotted free of charge. The revenue should be recycled back to industry for environmental purposes.

The proposed directive is expected to be on the Council of Ministers agenda for December. Most of the countries are in favour of a mandatory scheme from 2005, but Germany and the UK have been arguing strongly for voluntary trading until 2008. The Parliament would be willing to accept some exceptions during the first three years, but it is a question whether that will be enough to satisfy the opposition.

Source: Environment Daily. October 10, 2002.

 

Agreement on small petrol engines

The Council and Parliament are now agreed on the directive for limiting the emissions from non-road petrol-driven machines that was put forward by the Commission in December 2000. This follows the October acceptance by the ministers of the amendments arising from the Parliament's second reading.

This means that the initial set of emission limits will be applicable 18 months after the directive's coming into force, probably in autumn 2004. A second round of tighter limits will be introduced between 2004 and 2010, depending on engine type. Taking it thus in two steps will be instead of allowing manufacturers to bank and deal in emission allowances as in the system proposed by the Commission (see AN 1/01).

The engines covered by the directive - in lawnmowers, chain saws, hedge trimmers, etc. - are estimated to account for 10-15 per cent of the emissions of volatile organic compounds in the EU. The Commission is now working on a second revision of the directive to tighten the emission limits also for diesel-driven machines.

Source: Environment Daily. October 21, 2002.

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PARTICULATES

Causing many thousand deaths every year

Data on the concentrations of particles in the air of twenty-six cities in twelve European countries has now been assembled in a uniform manner within APHEIS,1 Air Pollution and Health: A European Information System, part funded by the EU.

Nineteen of the cities2 have used PM10 as the measure and the concentrations vary from 14 micrograms per cubic metre as a yearly average in the cleanest - Stockholm and Gothenburg - to 74 µg/m3 in the dirtiest, Bucharest.

In a number of cities, among which were Cracow, Rome, and Seville, concentrations of PM10 were exceeding the EU limit of 40 µg/m3 yearly average that will be coming into effect in 2005. With the exception of Stockholm, Gothenburg, Lille, and Toulouse, all were overstepping the preliminarily stricter limit of 20 µg/m3 for which 2010 is scheduled to be the starting year. Many cities will also be having difficulty in meeting the future EU standard for a 24-hour average value for PM10.

Among the cities that had not used PM10 as a measure, but had chosen instead black smoke, far the worst was Athens.

By using known connections between particle concentrations and effects on health, the APHEIS researchers were able to quantify yearly deaths in the cities in question. As regards the nineteen cities using PM10 as the measure, with a total population of 32 million, it appeared that:

· If the yearly average value were to drop to 40 µg/m3 (EU standard for 2005) in all cities, altogether 2653 premature deaths a year could be prevented, or 9 per 100,000 inhabitants.

· If the stricter limit of 20 µg/m3 (proposed EU standard 2010) were met in the same cities, the premature deaths that could be avoided would amount to 11,855 a year or 43 per 100,000 of population.

· Reducing the levels by just 5 µg/m3 would prevent 5547 premature deaths annually (19 per 100,000 inhabitants) in all the cities, even those with the lowest pollution levels.

If black smoke is used as the measure, as it was in 15 cities with a total population of 25 million, the dose-response connection in cases of long-term exposure is more uncertain. However about 577 premature deaths could be prevented annually, or 3 per 100,000, if short-term exposure to outdoor concentrations of black smoke were reduced by 5 µg/m3.

Two outstanding conclusions are that:

1. Even a small and achievable reduction in air-pollution levels, such as 5 µg/m3, would have a beneficial effect on health, and thus justify taking preventive action in all cases, no matter what levels any city had.

2. Although the general risk of death from air pollution is less than that from smoking, it is nevertheless real and worth taking steps against, especially as exposure is involuntary and affects the whole population.

In continuation more cities will be involved, with improved methods of calculation and research given a wider scope. It is intended for instance to calculate the years of life lost, or reduction in life expectancy, in order to estimate the effects on health of long-term exposure to air pollution, and to collaborate with economists in calculating the costs to society in the cities participating in the program.

Per Elvingson

1 A Health Impact Assessment of Air Pollution in 26 European Cities. Can be downloaded from www.apheis.net. APHEIS is financed by the EU in collaboration with participating countries.

2 Bordeaux, Bucharest, Budapest, Celje, Cracow, Gothenburg, Lille, Ljubljana, London, Lyon, Madrid, Marseilles, Paris, Rome, Seville, Stockholm, Strasbourg, Tel Aviv, and Toulouse.

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DUBLIN

Fewer deaths after ban on coal

A ban on coal burning had an almost immediate effect on people's health in Dublin, reports the British medical journal The Lancet.1

The quality of the air in the Irish capital had been steadily worsening during the 1980s as a result of ever more households abandoning oil in favour of bituminous coal for domestic heating.

But after the use of coal had been forbidden in 1990, air quality improved faster and more dramatically than anyone had envisaged. The concentrations of particles, measured as black smoke, dropped straight away by as much as 70 per cent in the winter when the ban was imposed.

Previously black-smoke levels had averaged about 80 micrograms per cubic metre in winter in Dublin. After the ban they plummeted to 20 micrograms.

The improvement in air quality was accompanied by a drop in mortality from heart and lung diseases, say the researchers who had examined the death records for the six years before and after introduction of the ban. They found that deaths from respiratory diseases dropped by 15 per cent, and from cardiovascular disease by 10 per cent.

The researchers - among whom was Harvard professor Douglas W. Dockery - say these health benefits, which were measurable within the first year of the ban, were substantially greater than previous short-term studies had predicted.

Source: Environment News Service (ens-news.com) October 22, 2002.

1 Effect of air-pollution control on death rates in Dublin, Ireland: an intervention study. By Luke Clancy, Pat Goodman, Hamish Sinclair, Douglas W Dockery. The Lancet, Vol. 360, October 19, 2002. Can be read at www.thelancet.com.

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GERMANY

Will be aiming at greatly reduced emissions

Agreement between Social Democrats and Die Grüne means that Germany is bent on maintaining its leadership in matters concerning the climate.

In the matter of the climate, Germany intends to remain in the lead among nations. Here follows some of the central extracts from the agreement between the coalition parties settled in October:

Germany will be proposing that the EU declare itself ready to have reduced its emissions of greenhouse gases by 30 per cent in 2020 (from 1990 levels) as agreed for the second round of the Kyoto protocol.

For its part Germany will be aiming at a 40-per-cent reduction by 2020 - provided that the EU adopts the 30-per-cent target.

Emissions trading

It will also be supporting the need to introduce a system of emissions trading in Europe. It will moreover be urging the following as directions for EU policy:

· The measures adopted since 1990 for the reduction of greenhouse gases must be observed when allotting emission allowances.

· The emission allowances should be allotted free of charge and be compatible with the flexible mechanisms of the Kyoto protocol.

Ecotaxes

It is suggested that in 2004 the price of oil, the state of the economy, the competitiveness of German business, and the public mood are to be re-examined, in view of the emissions of greenhouse gases, to see whether environmental taxation can be further developed.

Moreover, during the next few years the incentives to the development of renewable energy will be raised to 200 million euros in 2004 and 220 million in 2005. Further:

· The freeing of flights to other EU countries from VAT will be dropped.

· The exemptions given to producers in respect of environmental taxes will be cut down.

The success of the new rail fare system is to be followed up by making train travel increasingly attractive - especially for families with children - through a 7-per-cent reduction of VAT on rail tickets.

Strongly supported by the coalition government are also emission charges for flights on European routes and a further differentiation of start and landing fees based on emissions of air pollutants.

Energy efficiency and renewables

Measures are to be taken to have doubled the proportion of renewables in the generation of electricity and the consumption of prime energy at the latest by 2010 (from base-year 2000 levels).

The government will also be pushing for the development of combined heat-and-power and hydrogen cells in accordance with legislation passed during the previous session, and be collaborating with industry to these ends.

Offshore wind farms are planned to add at least 500 MW to capacity by 2006 and 3000 MW by 2010. Heating from renewable sources is to be encouraged, the aim among others being to have doubled the installed area of solar panels during the coming four years.

The German environmentalist organization GermanWatch was not satisfied: "Apart from some new ideas concerning long-term climate policy, the agreement has yielded only a patchwork of minor measures for saving the climate."

Source: KlimaKompakt No. 22 / October 2002 (www.germanwatch.org/rio)

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LRTAP CONVENTION

Many countries are failing to comply with protocols

It would appear from the last review made by the Implementation Committee1 that several countries are sometimes failing badly to comply with the protocols under the Convention on Long-range Transboundary Air Pollution. This failure concerns not only the obligatory emission targets (especially those in the 1988 protocol for NOx and that of l991 for VOCs - volatile organic compounds) but also the obligation to report.

During the year the committee examined the following eight countries for non-compliance with emission targets.

Finland. It was noted in the previous review that Finland had failed to reduce its emissions of VOCs, as required, by 30 per cent between 1988 and 1999.2 It had however, according to the latest data, managed to reduce them by 26 per cent during the period of the last review, and is expected to have got them down by 30 per cent in the course of this year.

Greece. The latest reported data shows emissions of NOx to have been higher in recent years than they were in 1987, the base year for the protocol. In 2000 they ran up to 320,000 tons as against 285,000 tons in 1987. The committee expressed deep concern at the prospect of Greece failing to comply even by 2010, by which time it will have been in non-compliance for thirteen years, and at its not having indicated a year by which it expects to achieve compliance.

Italy. As in the case of Finland, it was noted in the previous review that Italy had failed to make the 30-per-cent reduction for VOCs - having brought emissions down by no more than 18 per cent from 1990, the base year for the protocol, to the target year 1999. The latest data do however show that there had been a 26-per-cent reduction by 2000, and that the 30-per-cent goal should have been reached this year.

Ireland. Emission data shows the country's emissions of NOx to have been above the 115,000-ton level for the base year 1987 during all five years from 1996 to 2000. In that last year they amounted to 125,000 tons. By way of explanation, reference was made to the country's extraordinary economic growth during the nineties. Proposed measures should however make compliance possible at the latest by 2004.

Luxembourg. Both in 1999 and 2000 emissions of VOCs were, according to the latest figures, only 21 per cent below those in Luxembourg's base year (1990) instead of the required 30 per cent.

Norway. As both Finland and Italy have done, Norway produced further information last year in regard to compliance with the VOC protocol. The implementation committee found it worrying that in 2000 emissions had been 45 per cent over the required level, and that Norway did not expect to achieve compliance before 2006. It further noted that there was no evidence of any concrete steps having been taken to shorten the delay.

Spain. Emissions of NOx were reported to have been above the level of the base year (1987) in all seven years from 1994 to 2000. In that last year they ran to 1,419,000 tons, 26 per cent higher than in the base year, when they were 1,121,000 tons. The committee expressed concern at Spain not having indicated a year by which it expected to have achieved compliance, and at the trend showing the country to be moving steadily away from it. Moreover, it was not complying with the VOC protocol either. Far from achieving the required 30-per-cent reduction, it had allowed emissions to be even higher than those of the base-year figure of 1,526,000 tons both in 1999 and 2000.

Sweden. According to the latest data, by 1999 emissions of VOCs had only been brought down by 22 per cent from the 555,000 tons of the base year (1988), and in 2000 by 25 per cent. A large uncertainty was reported to remain in regard to the data itself, of which a thorough overhaul was however said to be under way. But no date could yet be specified by which Sweden could be expected to be in compliance.

As to the obligation to report, the committee noted that as a result of the previous year's exhortations from the Executive Body of the convention, several countries had responded by sending information. Despite a general improvement there are however still some notable failures, Luxembourg and Ukraine being pointed out as being consistently in non-compliance. Some kinds of emissions data are still missing from Belgium, Croatia, the Netherlands, Italy, and the European Community.

Parties to the convention are also required to report strategies and policies for abating air pollution generally, and eleven were found to be still not complying.

From an in-depth review of the extent of compliance with the 1994 Sulphur Protocol the committee concluded from the data received that nineteen of the twenty-five parties seemed to have met their obligations for the year 2000. Three - Canada, Croatia, and Italy - had not submitted the necessary data for evaluation, while in the case of three others - Belgium, Hungary, and Monaco - the protocol was not yet in force that year.

After trying to review compliance with other obligations, such as to set standards for emissions and fuels, the committee had to admit that the reporting from more than half of the twenty-five parties to the protocol was so inadequate as to prevent any conclusions being drawn. The report, with its conclusions and recommendations, will be considered by the Executive Body of the Convention at its coming meeting in Geneva on December 10-13.

Christer Ågren

1 The fifth report of the Implementation Committee (EB.AIR/2002/2 and Add.1). Can be downloaded from: http://www.unece.org/env/eb/welcome.html

2 The extent of compliance with the VOC protoco1 of 1991 was reported in more detail in Acid News 1/02, and that of the sulphur protocol in AN 3/02.

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HEMISPHERIC POLLUTION

Sources are all around

Throughout the northern hemisphere emissions are creating pollution at levels above what they will have to be if the objectives for air quality are to be attained. Ozone and particles are cases in point.

So far air quality has been mainly regarded as a local or regional problem. But research has now shown there to be an extensive transporting of pollutants across the whole northern hemisphere - of mercury and persistent organic substances as well as ozone and particles.

In the case of ozone, hemispheric pollution adds to the local background kind when summer smog with high levels of ozone hits Europe, and significant part of it may have come from sources in Asia and North America. Similarly, European emissions can add to excessive levels in Siberia. Emissions from Asia, North America, and Europe have increased the hemispheric burden of ozone by at least 50 per cent since the start of the industrial revolution, according to leading scientists from all three continents, meeting in Germany this last October. Among the organizers of that conference was the Convention on Long-range Transboundary Air Pollution.

"These conclusions confirm the need to continue addressing air pollution at an international level within the framework of the Convention, and to take an even broader hemispheric perspective in developing cost-effective strategies to tackle the problem," averred Kaj Bärlund, UN ECE Environment Director.

Further information: www.unece.org/press/pr2002/02env09e.htm

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CHINA

Bad environment may become worse

Unsafe levels of at least one pollutant in most cities, only four meet guidelines.

Policemen directing traffic in Beijing are living dangerously. Given the concentrations of pollutants in the air at the city crossways, they are estimated to have an average lifespan of only 40 years.

This is just a small detail in the mountain of facts in a report1 made by the Stockholm Environment Institute for UNDP, the United Nation's Development Programme.

According to a ranking made by the World Bank, sixteen of the twenty cities with the worst air pollution in the world are Chinese. The concentrations of total suspended particles (TSP) are on an average 10-20 times higher than, say, in London or Brussels.

As a measure of air quality the Chinese use an air pollution index, API, which is a compound of the concentrations of sulphur dioxide, nitrogen oxides and TSP.

The State Standards system is based on the API, with Grades I and II being considered suitable for long-term living conditions, Grade III acceptable for short-term exposures, while Grades IV and V are unsuitable for humans.

Of the 335 Chinese cities regularly monitored, only 33 per cent met either Grades I or II in 1999, with over 40 per cent falling into Grades IV and V (see Figure 1). Hence almost half of Chinese cities monitored - with a total population of 270 million - are unsafe by Chinese API standards.

Figure 1. Ambient air quality in Chinese cities.

The percentage would certainly rise if the figures for each pollutant were known, and most Chinese cities experience unsafe levels of at least one pollutant. For example, using a different measuring system, only four cities - Haikou and Sanya (Hainan), Xiamen (Fujian) and Beihai (Guangxi) - met the WHO guidelines for air quality.

Although the concentrations of small particles (PM10 and PM2.5) are not regularly measured in China, monitoring campaigns in Beijing have revealed episodes with very high levels of PM2.5, especially during periods of smog accumulation in summer.

Attempts at quantifying the effects of air pollution on health have ended in widely varying results. One of those mentioned in the SEI report, referring to the year 2000, put the number of premature deaths due to air pollution at 600,000, cases of chronic bronchitis at 5.5 million, and respiratory illnesses 20 million. If the quality of the air were to be really brought up to Chinese standards, some 178,000 deaths, or 7 per cent of all deaths in urban areas, could be avoided each year. Each year, too, 7.4 million working days are being lost on account of health problems related to air pollution.

Acidification has been a known problem in China for decades. In the 1980s, areas affected by acidification extended over large parts of Guangdong, Guangxi, Sichuan, and Guizhou. By the 1990s, the area had grown considerably, and included large parts of Hunan, Jianxi, Fujain, Shanghai and Shangdong provinces. By 2000, nearly one-third of China was affected.

The consequences of acid deposition are exceedingly costly, one estimate putting the economic cost at 110 billion yuan in 1995, or almost 2 per cent of the GDP. Among the effects are damage to agricultural crops and forests, reduction in food production, destruction of lake ecosystems, and damage to buildings. Guangxi province is estimated to experience a 5-10 per cent general reduction in food crops, and since 1980, 85 per cent of the pine stands in forest areas have been affected, with the death rate reaching 35 per cent.

The emissions of air pollutants are intimately connected with the use of energy. Although starting to decline, they still remain high from combustion in power plants, industries and households. With the gradual, ongoing modernization of Chinese cities, fuels have shifted from coal to coal gas or even natural gas, residential boilers have been upgraded, and cooking on open fires in street stalls is prohibited, while cooking with gas is encouraged. Coal still remains however the dominant source of energy, accounting for 70 per cent of primary energy use (Figure 2).

Figure 2. Primary energy use by source 1998 (Although not included, energy from biomass is estimated to equal that from oil).

Road traffic is also adding greatly to pollution and the use of energy. Since 1980 the number of vehicles has been growing at a rate of 20 per cent annually in many urban areas. It is estimated that there are currently about 20 million motor vehicles in China, and the figure is expected to reach upwards of 50 million by 2010. During the 1990s, the transport sector's share of energy use nearly doubled. Oil is expected to be the fastest growing form of primary energy used in China, propelled by this surge in transport.

To date the Chinese authorities have shown very little interest in developing alternatives in transportation, possible because the car is regarded as such an important symbol for economic development and success. Only in one respect have they imposed any environmental requirement at the national level, by forbidding the sale of leaded petrol. A ban on old vehicles has been introduced locally in Beijing, where taxis and buses running on liquid petroleum gas are also the order of the day. It is however obvious that if transportation should approach western European or North American levels, even large investments in the cleanest technologies will not suffice to resolve the problems for the environment.

Although the use of energy is still low in China - being only about half the world average and a mere tenth of the US level - demand is steadily increasing, with some forecasts indicating a quintuple rise up to 2050. If anything like that amount were to be generated in the same way as today, the effects on environment and health would be disastrous. The SEI does note however that there is a huge unused potential for improvement in China.

Although China has reduced the energy needed to produce 1 US dollar of GDP by more than half since the economic reforms set off, energy efficiency is still only one-quarter of the performance in industrialized countries. Therefore, energy generation need only increase by half in order to satisfy a six times higher demand by mid-century should China manage to reach the energy efficiency standards of industrialized countries.

As to the way energy is generated there is also considerable room for improvements. The crucial point is the government capacity to promote the development of sustainable energy. With economic restructuring a major force for change, and environmental protection policies increasingly integrated with energy policies, momentum is nevertheless increasing to improve energy efficiency and promote renewable sources of energy.

The report, which deals with much else besides air pollution, presents two scenarios for future developments in China.

In the one, with market control where short-term interests are allowed to profit at the expense of long-term sustainability, society becomes even more inegalitarian and environmental problems mount catastrophically.

In the other scenario, considered fully possible by the authors of the report, who call it "the green reform path," ever greater importance is attached to the efforts of non-governmental organizations and to a greater engagement of ordinary citizens in work for the environment, coupled with respect for traditional Chinese values instead of a western way of life all taken up with consumption.

Per Elvingson

1 China Human Development Report 2002 - Making Green Development a Choice. Printed copies can be ordered from Academic & Trade Unit, Oxford University Press (China) Ltd., 18th Floor, Warwick House East, Taikoo Place, 979 King's Road, Quarry Bay, Hong Kong. 150 pp. US$ 22.50. The report can also be downloaded in pdf format free of charge from UNDP.

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UNITED STATES

Open market trading scheme criticized

There are grave imperfections in the system for open-market trading that the US Environmental Protection Agency is trying to introduce, according to a recent report from the agency's own Office of Inspector General (IG).

Contrary to traditional "cap and trade" programs, open-market trading allows polluters to trade emission credits between sectors and time periods without limit. Electric utilities could for instance continue smokestack emissions in return for a promise to carry out a drive to remove old, highly polluting cars from the road. Trading is not limited, either, to one pollutant: different kinds of pollutants can be exchanged for each other.

The idea with open-market trading is to increase flexibility and make it easier for stationary sources to fulfill the requirements of the Clean Air Act. But the way the system is fashioned makes it impossible to foresee its effects on the environment.

It lacks namely a mechanism to ensure that trades between sectors will be of like value - in other words, that apples will really be exchanged for apples and not for "a promise of a future guava," as one critic expressed it. Another weakness is that it will be allowable to sell left-over credits from, say, a shut-down plant.

The IG's scrutiny was made at the joint request of the New Jersey chapter of the Sierra Club and Public Employees for Environmental Responsibility (PEER), but the agency's response suggests that it has no intention of taking any notice.

"The EPA will ignore this report just as they have ignored four previous IG reports and numerous pleas from their own specialists," said Jeff Ruch, PEER's executive director. "Until these problems are addressed, EPA's trading plans will remain a dangerous scam that threatens to undermine real progress towards clean air."

Per Elvingson

Further information: PEER has set forth its criticism of open-market trading in a white paper entitled Trading Thin Air, available at www.peer.org/publications/wp_trading.html. PEER is a national alliance of local state and federal resource professionals working to protect the environment.

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Trading in brief

Local program not working

An evaluation by the US Environmental Protection Agency has shown that a local cap-and-trade program set going in California for controlling the emissions of sulphur and nitrogen oxides is performing below expectations.

The Regional Clean Air Incentives Market program (RECLAIM) was adopted by the South Coast Air Quality Management District in 1993. It has more than 350 participants in its NOx market, and about 40 for SO2.

"The program has produced far less emission reductions than were either projected for [it] or could have been expected from the system it replaced," was the EPA's conclusion. It replaced a so-called-command-and-control system in which industries either had to meet emissions caps or face fines.

Like most of the new trading programs, RECLAIM cannot rely on market incentives, but will require additional government involvement to avoid industry manipulation, the EPA found.

Source: Environment News Service (ens-news. com), November 13, 2002. The EPA's evaluation of the RECLAIM program is available at: www.epa.gov/region09/air/reclaim/

 

.. but emissions are declining nationally

The annual evaluation of the Acid Rain Program1 that has just been published by the EPA shows that the emissions of sulphur and nitrogen oxides from the designated plants are continuing to decline. The emissions of sulphur dioxide from power plants in 2001 were 10.6 million tons, a full one-third reduction from 1990 emissions and down from 17.3 million tons in 1980. Emissions of nitrogen oxides from power plants also continued a downward trend of 4.1 million tons in 2001, a 25 per cent decline from 1990 emissions levels. The trading component of the SO2 program has significantly lowered the costs of compliance and has not resulted in any significant geographic shifts in emissions, according to the report.

1 EPA's Acid Rain Program 2001 Progress Report is available online at: www.epa.gov/airmarkets/cmprpt/arp01/index.html along with extensive information on emissions data, allowance transfers, air quality data and atmospheric deposition data.

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VOLATILE ORGANIC COMPOUNDS

Refineries' emissions underestimated

A new measuring technique has shown them to be far greater than would have appeared from the modelling that had previously been relied upon.

It has been found that computing refineries' emissions of non-methane volatile organic compounds (NMVOCs) by modelling almost always results in gross underestimates.

At the end of the eighties the Gothenburg county council ordered measurements to be made in which the light types of hydrocarbons were to be singled out. Later measurements of all NMVOCs revealed that the emissions from one refinery alone amounted to 25,000 tons a year - vastly more than the theoretical assessment of 1000 tons. As a result of extensive abatement measures, the figure has now been brought down to 5000 tons, still far and away above that obtained from modelling.

The measuring technique, called DIAL, differential absorption lidar, has subsequently been used at all Swedish refineries as well as at Sweden's largest port, Gothenburg.

It has also been used in Belgium, where refineries in Flanders initially reported emissions of volatile organic substances totalling 14,000 tons at the end of the nineties. But it turned out that when estimated by the DIAL method, they were more than 18,000 tons a year, and that from only two refineries, answering for only a few per cent of the total of crude oil that was being processed in the area.

The DIAL method makes it possible on the one hand to get a proper idea of where emissions are actually taking place, and on the other to find a basis for the most cost-effective measures for betterment. It has also revealed that the really big emissions normally come from storage - not, as modelling had indicated, from the refining process.

It is believed that big investments will now be necessary at the refineries - those in Belgium for instance being under pressure to bring their emissions of non-methane volatile organic compounds down to 9300 tons by 2010. The actual emissions from refining and storage are doubtless much more than has appeared from theoretical calculations in other countries too.

"The DIAL technique makes it possible to discover leaks with great accuracy, and so develop cost-effective means of dealing with them," says Lennart Frisch, now consultant and formerly environmental officer for the Gothenburg county council. "Since the end of the eighties the all-over emissions from Swedish refineries have come down by 50-80 per cent."

Per Elvingson

For more information: Lennart Frisch, Agenda Enviro AB. Internet: www.agendaenviro.com.

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AVIATION

There will be a need to raise fares

A study made by the Dutch research institute CE Delft for the German Federal Environment Agency (Umweltbundesamt) has shown that the effects of air transport on the environment would definitely diminish if the airlines and other operators were forced to accept their environmental costs.

The price of a 200-kilome