Financial Provisions

This report summarizes the evaluation of three pre-existing calculation tools for determining financial provision for unforeseen environmental liabilities. The tools, developed in Spain, the Netherlands, and Ireland, were assessed for wider application in different jurisdictions. The report concludes that all three tools have potential for use in other regions, with some considerations for their specific purposes and contexts.

This document provides a practical guide for regulators on using financial provisions for environmental liabilities. Building on a previous report on financial provisions, this guide explains terminology, gives an overview of financial systems, and offers advice on calculating the amount of financial provision needed. It also explores different types of financial provisions and their advantages and disadvantages.

This report presents the findings of a year-long project on financial provisions for environmental liabilities in Europe. The project examined various financial tools and their suitability to cover foreseen and unforeseen environmental liabilities, with the aim of protecting the environment and the public purse. The report also presents case studies where financial provisions have succeeded and failed, and includes recommendations for a second year of research.

This web guidance has been prepeared based on the IMPEL Practical Guidence on Financial Provision for Environmental Liabilities published in 2018. The guide has been produced by a team of regulators, academics and consultants, under the European Network for the Implementation and Enforcement of Environmental Law (IMPEL), with the support of the European Commission. It has been peer reviewed by the project team and by the IMPEL Cross Cutting Expert Group.

The three main parts of the guide provide:

1. information on the calculation of the amount of financial provision including links to available tools and template;
2. a detailed breakdown of the key advantages and disadvantages of each financial provision, together with recommended checks for financial provision in general and for each financial provision; and
3. examples of usage and guidance.

Introduction  

IMPEL-ESIX is a communication tool developed by IMPEL to enable law enforcement officers and other stakeholders  to exchange and dissimilate information about  the subject of illegal killing and catching of birds (IKB). At a later stage other subjects, such as EU Timber Regulation and N2000 & Habitat Directive issues will be part of this system.