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Præsentation af Aalborg Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld, AAU Copenhagen and Carla Smink, AAU GIN 2012, Linköbing

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Page 1: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Can local environmental regulation of companies deal with a broader environmental view?

Kasper Dirckinck-Holmfeld, AAU Copenhagen and Carla Smink, AAU

GIN 2012, Linköbing

Page 2: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

A broader environmental view

• Traditional focus was on diluting or reducing emissions of plants in respect to the local environmental concerns

• Increased focus on global environmental concerns such as Climate change, resource scarcity and suppliers pollution in third country by addressing input related aspect and whole lifecycle perspectives

Page 3: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

New Modes of Governances

• Critique of Command-and-Control regimes for being static and costly

• Advocates for new regime based on participation, dialogue, devolved decision-making, flexibility, inclusiveness, consensus-building

• Also in the environmental field

Page 4: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Ecological Modernisation - Converging of business and regulatory approaches towards environment?

Companies approach towards Environment•Traditional see environment as external to core business with implementation of end-of-pipe as means to comply regulation and thus causing extra cost •Increasingly “some” companies are seeing environmental as providing competitive advantages

• Directly in terms of resource efficiency gains (Eco-efficiency, Pollution prevention strategies etc)

• Also as being more efficient in fulfilling environmental requirement

• Include environment in strategic positioning and in product development

Page 5: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Ecological Modernisation – Converging of business and regulatory approaches towards environment?

Change in Governance approach•From enforcing Norms based on carrying capacity of surroundings and/or End-of-pipe technologies•Towards promoting the use of BAT, Pollution Prevention and Cleaner Technologies through both norms and especial dialogue and focus on win-win sollutions

Page 6: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Differentiated Approach towards CompaniesNot all Companies are alikeCalls for differentiated regulatory approach!-approaching companies differently in terms of either regulator or facilitator-Regulatory relief for best performer by extended use of self-regulation

Page 7: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Agenda of this Paper

• In Denmark several attempts to address a broader environmental perspective as part of the permitting and monitoring process was carried out during the late 1980s and 1990s though e.g. promotion of Cleaner Technologies and Environmental Management System

• This paper looks at status for local governments capabilities to do so here 10-20 years after Pollution Prevention was included as prime principles in the Environmental Protection law

• Specifically it addresses the local authorities perceptions of options to include GHG reductions and energy efficiency

Page 8: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Empirical data

• Review of several political documents including both prime legal texts (acts and orders), political agreements and different evaluations reports

• Conduction of interviews with case workers in 7 Danish municipalities participating in a EU funded project “Carbon 20” about how to engage local business in CO2 reductions, and

• Interview with a employed in the central administration Danish Environmental Protection Agency

Page 9: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Findings

• Define findings in respect to: 1. Legal base for addressing broader

environmental concern as part of requirements in either permits or injunctions

2. Facilitation of companies to implement environmental improvement beyond compliance as part of Monitoring/surveillance activities

Page 10: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Legal base 1

• There (seems to be) legal base for addressing broader environmental concern including GHG reduction and energy.

• Its even stated that there is actual an obligation to address at least waste prevention

• However the Local authorities considered the legal base as unclear, if even existing!

• They do therefore not formulating requirements

Page 11: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Legal Base II

• Furthermore, the legal base is strictly related to formulation requirement based on BAT

• A competence that are no longer necessarily present:• Several of those companies subject for full permits

and full assessment of BAT, are under the jurisdiction of the state,

• the majority of rest is subject for centrally defined requirement in relation to BAT with no options to add additional requirement related to BAT

• These central requirement do (currently) only relates to traditional environmental concerns

Page 12: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Facilitation beyond compliance I

• While the legal base for formulating requirements are weak, there is amble room to address broader environmental concern as a facilitation beyond compliance • The Guidance document for

Monitoring/Surveillance calls for a catalytic role in prolongation of the authority role

• Opposite, another guidance document calls for a prioritisation of monitoring activities toward the reactive, while providing those with establish self regulative procedure such as e.g. EMS a regulatory relief

Page 13: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Facilitation beyond compliance II

• Furthermore, the catalytic role is solely perceived as an option, and not obligation, and thus depending on local political prioritising

• In the Latest 10-15 years, the direct regulation of companies have experiences severe resource restrains and current economic crisis is putting further pressure on public finances in Denmark

• Even caseworkers from municipalities belonging to a forum called “Green Cities” doubted that they can continue to be able to prioritise something that is not strictly required

Page 14: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Conclusions

• Can local environmental regulation of companies deal with a broader environmental view?

• In theory: Yes, as there is both amble legal room and established competences to at least address and facilitate a stronger focus on broader environmental concerns as part of dialog to go beyond compliance.

• However, in practise, the direct regulation of companies is still dominated by a traditional authority role focused on the traditional environmental parameters• and possible even more now than in the 90’ties.

Page 15: Præsentation af Aalborg Universitet Can local environmental regulation of companies deal with a broader environmental view? Kasper Dirckinck-Holmfeld,

Præsentation af Aalborg Universitet

Perspectives

• A renewed focus on climate and discussions about green growth might trigger a renewed focus on the need for addressing broader environmental concerns as well as reintroducing the more facilitative role.

• Several municipalities are starting to carry out EU financed projects on this and are lobbying that Climate and energy is a matter to be addressed by municipalities

• Furthermore different state agencies seems interested in reopen the discussions.

• However, the public finances are still under pressure , which puts severe restraints on any new initiatives, including the continuing of the current EU projects.