**CZECH REPUBLIC**

**Capital:** Prague **Population:** 10,246,178

**Accession to the EU:** Yes, since 2004 **Language:** Czech

**Currency:** Crowns **GDP:** \$161.1 billion

**NATO:** Yes, a member since 1999 **GDP/Cap:** \$15,700

**Environment - Current issues:**

Air and water pollution in areas of northwest Bohemia and in northern
Moravia around Ostrava present health risks; acid rain damaging forests;
efforts to bring industry up to EU code should improve domestic
pollution

**Environment - International agreements:**

*Party to:* Air Pollution, Air Pollution-Nitrogen Oxides, Air
Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile
Organic Compounds, Antarctic Treaty, Biodiversity, Climate Change,
Climate Change-Kyoto Protocol, Desertification, Endangered Species,
Environmental Modification, Hazardous Wastes, Law of the Sea, Ozone
Layer Protection, Ship Pollution, Wetlands\
*Signed, but not ratified:* Air Pollution-Persistent Organic Pollutants

**Industries:**

Metallurgy, machinery and equipment, motor vehicles, glass, armaments

**Best prospect sectors:**

Regarding water management, one of the three major wastewater treatment
plant operators has left the market, leaving room for more prospects. In
Prague, a wastewater treatment plant needs an upgrade for nitrogen and
phosphor removal. Lastly, Brownfield remediation and renewable energies
are areas for new competition.

#### 

#### **Summary**

The Czech Republic's accession to EU was one of the main drivers for
introduction of new environmental laws in the country. Expenditures
needed to comply with these laws are estimated 250 billion CZK (approx.
\$ 9 bil.) over the next seven years. New regulations require wastewater
treatment plants for towns between 2 --10,000 people by 2010. Also, by
the year 2005, at least 50% of all packaging materials must be
returnable, 15% of plastic packaging material must be recycled. Lastly,
air quality must be improved. (Existing heating plant in Prerov and a
power station in Nová Hut). In the renewable energy sector there is a
large gap between the Czech Republic and EU member countries. The EU --
current 15 member states - is aiming to supply 12% of gross energy
consumption from renewable sources by 2010. In the Czech Republic
renewable energy usage is about 2-3 % of total energy consumption now.
Czech Republic committed itself to reaching the goal of 8 % usage by
2010.

[Contact Information:]{.underline}

Veronika Novakova

FCS, US Embassy, Trziste 15, 118 01 Praha 1, Czech Republic

Tel: 00 420 257 531 162, ext.:2437

Fax: 00 420 257 531 165

E-mail: <Veronika.novakova@mail.doc.gov>

**HUNGARY**

**Capital:** Budapest **Population:** 10,032,375

**Accession to the EU:** Yes, since May, 2004 **Language:** Hungarian

**Currency:** Forint **GDP:** \$139.8 billion

**NATO:** since 1999 **GDP/Cap:** \$13,900 (at ppp)

**Environment -- Current issues:**

The upgrading of Hungary\'s standards in waste management, energy
efficiency, and air, soil, and water pollution with environmental
requirements for EU accession will require large investments

**Environment -- International agreements:**

*Party to:* Air Pollution, Air Pollution-Nitrogen Oxides, Air
Pollution-Sulfur 85, Air Pollution-Volatile Organic Compounds, Antarctic
Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol,
Desertification, Endangered Species, Environmental Modification,
Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer
Protection, Ship Pollution, Wetlands

S*igned, but not ratified:* Air Pollution-Persistent Organic Pollutants,
Air Pollution-Sulfur 94

**Industries:**

Automotive, electronic parts and instruments, metallurgy, chemicals &
pharmaceuticals, machinery, processed foods.

**Best prospect sectors:**

Regarding priorities for the upcoming years, the government decided to
maintain focus on wastewater treatment developments, while water quality
improvements and waste management are also supported. Further priorities
include environment-related infrastructure projects like roads to
by-pass cities and contributions to bus companies' Euro-engine programs,
etc. Until recently the country\'s spending on environmental projects
was low, around 1.2-1.3 % of GDP. However with current ambitious
development plans this must increase in the upcoming years. Today,
expenditure on wastewater accounts for nearly half of the total spending
on environmental projects, while spending on waste management accounts
for some 15 percent, followed by remediation of contaminated sites and
air pollution control. Currently more and more major wastewater and
regional waste management projects are being financed partially by the
EU Cohesion Fund and supplemented by Hungarian state's funding. The
construction of Budapest's central sewage treatment plant will be far
the largest environment-related project of the decade. According to a
recent decision, the EU will cover more than two-third of the \$6-700
million construction costs of the Budapest wastewater project. In
addition to a great number of small local companies, Germany and Austria
are by far the major players on the environmental technology market in
Hungary, followed by the Netherlands, France, USA, Japan and the
Scandinavian countries; thus American companies face stiff competition.
Many foreign environmental companies have made significant investments
during the last decade while others work via local consulting companies
and/or distributors.

**Summary:**

Improving environmental standards is one of Hungary's top priorities
after joining the European Union (EU) on May 1, 2004. While Hungarian
environmental legislation has adopted most EU laws and regulations,
enforcement is not strong enough. It will take several years to bring
the country's environmental infrastructure to EU standards. After the EU
accession in May, 2004, Hungary became eligible for EU Structural and
Cohesion Fund grants. Since tenders for EU-funded projects under the
Structural (infrastructure related) and Cohesion (environment and
transportation infrastructure) Funds do not have a nationality
requirement they may extend to U.S. involvement. Therefore since May
2004, U.S. companies may benefit from Hungary's receiving EU funds.

[Contact Information:]{.underline}

Kinga Svastics, Commercial Specialist

U.S. Commercial Service, American Embassy

Bank Center, Szabadsag ter 7-9, H-1054 Budapest, Hungary

Tel: (36-1) 475-4090 Fax: (36-1) 475-4676

Email: <Kinga.Svastics@mail.doc.gov>

**POLAND**

**Capital:** Warsaw **Population:** 38,626,349

**Accession to the EU:** Yes, since 2004 **Language:** Polish

**Currency:** Zloty **GDP:** \$427.1 billion

**NATO:** Member since 1999 **GDP/Cap:** \$11,100

**Environment - Current issues:**

Situation has improved since 1989 due to decline in heavy industry and
increased environmental concern by post-communist governments; air
pollution nonetheless remains serious because of sulfur dioxide
emissions from coal-fired power plants, and the resulting acid rain has
caused forest damage; water pollution from industrial and municipal
sources is also a problem, as is disposal of hazardous wastes

**Environment - International agreements:**

*Party to:* Air Pollution, Antarctic-Environmental Protocol,
Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty,
Biodiversity, Climate Change, Desertification, Endangered Species,
Environmental Modification, Hazardous Wastes, Law of the Sea, Marine
Dumping, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution,
Wetlands\
*Signed, but not ratified:* Air Pollution-Nitrogen Oxides, Air
Pollution-Persistent Organic Pollutants, Air Pollution-Sulphur 94,
Climate Change-Kyoto Protocol

**Industries:**

Machine building, iron and steel, coal mining, chemicals, shipbuilding,
food processing, glass, beverages, and textiles

**Best prospect sectors:**

Recent EU directives are stimulating modernization of Polish
environmental equipment. Such modernization is prevalent in the fuel
sector, the water sewage treatment plant systems, storage facilities,
and the manufacturing and recycling of discarded packaging.

**Summary:**

The biggest environmental market driver in Poland is the strong desire
to meet European Union environmental standards, a key condition for
Poland joining the EU. It is estimated that the cost of adapting the
Polish economy to EU standards of environmental protection will amount
to between USD 19 and 35 billion, which will be born primarily by
business entities and local councils.

The most significant new challenges, which lie ahead for entrepreneurs
follow.

Businesses need to obtain integrated permits gained by the use of more
environmentally friendly materials. EU membership will also mean high
costs for entrepreneurs running energy installations with a capacity
exceeding 50 MW, and also operators of waste furnaces and installations
for the production of titanium dioxide. Such operators will be required
to significantly reduce harmful emissions into the air.

New regulations in the field of environmental protection, which will
come into force as of May 1, 2004, will tighten up storage requirements
for petrol, distribution of petrol, and transportation of petrol from
terminals to petrol stations. Entrepreneurs will have to significantly
reduce the levels of emission into the atmosphere of volatile organic
compounds. Compliance by Polish entities in the fuel sector with
standards in force in the EU will require, among other things
modernization of tanks for storage of crude oil and like products,
encapsulation of equipment for transferring fuel subsequently from
petrol pumps at petrol stations to cars, and the reduction of the amount
of sulphur in some liquid fuels.

Industrial waste produced by entrepreneurs will have to meet the most
stringent standards (including content of heavy metals, detergents,
pesticides, mercury, cadmium). The amount of pollutants found in sewage
will be measured using methods different from those used up to now - not
only on the basis of the amount of pollutants contained within it, but
also according to the maximum permitted mass of liquid pollutants which
can be produced in a tightly controlled production process.

[Contact Information:]{.underline}

Ania Janczewska

FCS, US Embassy, IPC Business Center, Poznanska 2/4, 00-680 Warsaw,
Poland

Tel: (48 22) 625-4374

Fax: (48-22) 621-6327

Email: <Ania.Janczewska@mail.doc.gov>