Evaluation of the Polluter Pays Principle in EU Policy

Client

DG Environment, European Commission

Focus

We are conducting a Fitness Check to assess the state of play on the implementation of the polluter pays principle in EU environmental policy including selected EU funding programmes.

Application of the principle in EU policy means that provisions to address pollution incur a cost that is borne by the polluter to promote full cost allocation of pollution and assign responsibility for externalities. Costs include:

• Costs of pollution prevention and control, in the form of investments and expenses which stem from provisions to prevent or control pollution (including accidental pollution).

• Costs of administrative measures needed to implement measures taken to prevent, control or remedy pollution, including labelling, reporting, registration, monitoring, and assessment needed to provide information.

• Costs of environmental damage. These are the costs of pollution borne by wider society that involve costs to remedy environmental damage caused by pollution, or to address externalities resulting from allowable residual pollution or accidental pollution.

The Fitness Check encompasses 68 policies relevant to: climate change, waste and recycling, zero pollution (for water, air, noise and chemicals risk management), nature and biodiversity, and horizontal themes concerning environmental liability, environmental crime and the built environment. In addition, it reviews the role of EU expenditure in safeguarding the environment to assess the extent to which EU funds and State Aid are contributing to clean up actions that should otherwise be paid for by the polluter.

What we are delivering

• A comprehensive evaluation analysis in line with the Commission’s Better Regulation Guidelines.

• A robust evidence-base to establish:

  • Who has paid the costs of pollution and whether there are safeguards to ensure the polluter does not shift the burden to society;

  • The extent to which the polluter pays principle has helped to make EU environmental policy more efficient by reducing the costs of meeting our targets; and

  • Whether the application of the principle in EU policy has contributed to a just and well-functioning market economy.

What is next?

We welcome your views on initial findings at an online workshop on 20 November. Register here: https://www.rpa-europe.eu/polluter-pays-principle-and-ehs

The evidence we are compiling as we conduct this Fitness Check will support the Commission in their endeavours to develop recommendations on incentives to better implement the polluter pays principle (as pledged in its Zero Pollution Action Plan).

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