PAJ Oil Spill International Symposium 2004

The new Environmental Liability Directivefor Europe and its relationship to theMarine Oil Conventions- incl. Issues of Water Pollution to Marine Environment in Europe Tokyo, 26 and 27 February 2004
Dr. Franz-Martin Brueggemann- Executive Officer -European Petroleum Industry Association
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European Petroleum Industry Association

EUROPIA• Formed in 1989 as Association of Companies.
• Represents interests of EU oil refining, distribution andmarketing industry to the EU Institutions.
• Covers 95% EU refining capacity.
• Members present in all 15 Member States of theEuropean Union (EU), in Norway, Switzerland and in theten additional Member States from May 2004 on.
•Small Secretariat based in Brussels.
- Independent Secretary General.
- Executive staff on secondment from Member Companies.
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European Petroleum Industry Association

EUROPIA Member Companies•••••••••

BPCepsa
ChevronTexaco
ENI
ERG
ExxonMobil
FortumHellenic Petroleum
Kuwait Petroleum
International• MOL*••
•
•
••
•
•
•
•

OMVPetrogal
Petrol d.d.*PhillipsConoco
PKN-Orlen*
Repsol-YPF
SarasShell
Statoil
Total (formerly: TotalFinaElf)* = Observer MembersIndustry consolidation has reduced membership numbers but not
the size and scope of the activities covered by EUROPIA.
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European Petroleum Industry Association

EUROPIA - Key Stakeholders
Oil Industry Associations:
OCIMF, IPIECA,Oil Industry Associations withBrussels offices:
CONCAWE, OGP, and others

API, PAJ,JPECEUROPIA
National Oil
Industry Associations
in Europe

Industry
Associations:
UNICE, FEBIs,
CEFIC

EU COUNCIL
COREPER
NGOs

EU
COMMISSION

EU PARLIAMENTIEA-OECDMEDIA
SOCIETY

UN Bodies- UN-ECE- IMO / MARPOL- WHOeuropia

European Petroleum Industry AssociationEUROPIA priorities• Emissions Trading (JI CDM Linking•Energy Tax Issues / Diesel Taxation

Directive; NAP & EMR)

• Energy Efficiency and Services• CAFÉ (Clean Air for Europe) / Air Quality • Sulphur in Marine Fuels• Fuels Directive Review• AIr Quality Directives• UN Sulphur Reduction Initiative• IPPC• EU Climate Change Policy• Competitiveness• REACH (Registration, Evaluation and• Seveso IIAuthorisation of Chemicals)• Road Fuels / Alternative Fuels• PAHs in Oil Products• Environmental Liability• Enlargement Transition• Waste Protection Frameework/ Strategy• Arhus Convention• others

High priorities in 2003: Security of Supply/Strategic Stocksand Environmental Liability.
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European Petroleum Industry Association

Legislative Process in the EU

European Commission- Brussels -European Council- 15 Member States - 25 from May 2004 -European Parliament- Strassburg/Brussels -Important pieces of legislation, proposed by the Commission,require approval by Parliament and Council (i.e. Member States) andare sometimes modified siginificantly during the approval process.
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European Petroleum Industry Association

Environmental Liability Directive versus
CLC, Fund Convention, Bunker Oil and HNS Convention• European Commission Proposal 2002:- Directive not to apply if liability for an incident is regulated
by one of the four Conventions mentioned above.

• European Parliament after fierce debate in 1st Reading:- Strong minority (Socialists, Greens) for additional
application of the Directive if providing stricter liability.
- Majority for the application of the EU Directive only ifrelevant Convention not in effect.

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European Petroleum Industry Association

Environmental Liability Directive and Conventions- Outcome after fierce debate • Text not yet adopted but present wording will not be modified in thelast steps of the legislative process.
• European Council and European Parliament after 2nd Reading:- No application of the EU Directive if incident falls within
the scope of CLC, Fund Convention, Bunker Oil or
HNS Conventionand if- relevant Convention is in force in the Member Stateconcerned.
• European Parliament majority for amendment as to LLMC and CLNI.

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European Petroleum Industry Association

Environmental Liability Directive and Conventions- Future Steps which will be adopted • Member States to report to Commission by 2013.
• Commission to report to EU Parliament and Council before 2014 on:- experience gained within relevant international fora (IMO)- instruments in force, implemented by Member States or modified- thereby taking account of all relevant instances of environmental
damage resulting from such activities and the remedial action taken
and- considering the relationship between shipowners‘ liability andoil receivers‘ contribution.
Report to include any appropriate proposals for amendment!

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European Petroleum Industry Association

Environmental Liability Directive- Scope of Application versus Conventions • Incidents falling under CLC and Fund Convention;- In effect in all EU 15 Member States and accessioncountries with access to sea (Estonia still to ratify).
- Therefore: Directive will not apply.

• Incidents falling under HNS Convention and Bunker Oil Convention:- EU is clearing the way for Member States to ratify.
- Member States to put Conventions into force(as to HNS before 30 June 2006).
Where HNS and Bunker Oil Conventions are not in force, theregime of the new Directive will be applicable!
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European Petroleum Industry Association

Impact on incidents in the scope of
HNS and Bunker Oil Convention• National implementation of Environmental Liability Directive
required by mid 2007 the latest.
• From then on where relevant Convention is not in force:- Liability for environmental damage caused by emissions,events, incidents after mid 2007.
• Damages covered by new Directive:- Damage to protected species and natural habitats (biodiversity).
- Damage to water and land.
- Not covered: damage to health or property, lost revenues, etc.
- Public law regime i.e. restoration in the public interest.
Implementation of HNS and Bunker Oil Convention
before 2007 would significantly improve the situation!
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European Petroleum Industry Association

Environmental Liability Directive- Water pollution to Marine Environment • Annexes I and II of the Directive provide an
European wide framework of definitions:- restoration back to baseline condition.
- any significant risk to human health to be removed.
- restoration of damaged natural resources.
- restore, rehabilitate or replace damaged natural
resources and/or impaired services:- Biodiversity: not the economic value (e.g. for fishingindustry) but the services of a resource toanother resource or to the public are to be restored.
- Transformation into national law can lead to significant
differences.
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European Petroleum Industry Association

Some Conclusions• No unfair application of two different regimes on the same
incident via the new Directive.
• Any non-ratification or inefficiencies of Conventions will leadto a new debate about stricter rules.
• Present IMO discussions of utmost importance.
• EUROPIA to support OCIMF for their IMO debates.
• Any support by PAJ and Japanese Industry highly welcome.

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European Petroleum Industry Association

Last Slide

Thank you.

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European Petroleum Industry Association