While air pollution and poor drinking water quality are the most frequently cited environmental problems, management of wastewater and solid waste, pollution from the transport sector, and environmental degradation related to the energy sector also represent major challenges. Environmental pollution is particularly heavy in industrialized areas, where large polluting enterprises are located (e.g. chemical and petrochemical works, smelters, foundries and steel mills, cement and paper factories, coal mines, etc.).
Additional environmental damage has been caused in some cases by forestry mismanagement, poor agricultural practices and intensive tourism.
Environmental policies in most countries place high emphasis on restructuring the industrial sector in order to reduce the negative impact on the environment. The policies generally stress the preference for preventive measures instead of the end-of-pipe approach, application of environmental regulations to all branches of industry regardless of ownership, and the use of the "polluter pays principle." Introduction of environmentally friendly, modern manufacturing techniques throughout all production processes is emphasized.
In practically all the surveyed countries, the two major environmental priority areas are air pollution control, and protection of water resources and improvement of drinking water quality. Table 1.3 presents the breakdown of environmental expenditures (from both the public and private sectors) by media.
| TABLE 1.3: BREAKDOWN OF ENVIRONMENTAL EXPENDITURES BY MEDIA, 1995 | ||||
|---|---|---|---|---|
| Country | Environmental Expenditures (USD mln) | Share of Expenditures | ||
| Air Pollution | Water and Wastewater | Waste | ||
| Czech Republic | 1185 | 58% | 32% | 9% |
| Hungary | 385 | 16% | 55% | 12% |
| Poland | 1308 | 53% | 37% | 9% |
| Slovakia | 232 | 43% | 44% | 12% |
| Slovenia | 147 | 71% | 9% | 18% |
| Source: 1996 Statistical Yearbooks of the surveyed countries (except for Slovenia, where data are from the 1995 Statistical Yearbook) Note: For Slovenia, data on expenditure by media are for 1994. |
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As shown in Table 1.3, the bulk of environmental spending is allocated to air pollution activities, and water and wastewater projects. Waste management activities are the third largest priority area when spending is considered. The large share of water and wastewater treatment and air pollution control projects arises for two main reasons:
In general, however, significant project opportunities are expected in wastewater treatment and air quality protection, and in the energy sector.
Priority areas in the energy sector include the conversion of most of the current small and medium-sized heat generating stations from coal-burning to gas use; modernization of industrial boilers (e.g. use of fluidized bed boilers); reconstruction of larger heating stations for use also in electricity generation; and modernization and construction of new smaller energy generating sources. Construction of installations for reduction of dust and gaseous emissions (especially sulfur dioxide, dust particles, nitrogen monoxides, carbon oxides) is also a priority area. In the long term, energy saving measures will be a significant opportunity area.
Another significant source of local air pollution in cities is domestic heating, largely based on individual fireplaces which are not fitted with any pollution control equipment. Construction of central (district) heating systems in urban areas is the most common way of addressing this problem, although gas heating is also gradually being introduced in individual family houses, and, in some areas, in businesses as well. With respect to modernizing the domestic heating systems in individual houses, Slovenia is probably most advanced among the surveyed countries.
Emissions from the transport sector have also become a growing source of air pollution, especially in big cities. Traffic-related air pollution in urban areas is among the most frequently cited environmental problems.
Finally, control of process and fugitive air emissions at industrial plants is another area frequently cited as a priority. Most countries are preparing legislation aimed at reducing air emissions of volatile organic substances, hydrocarbons (including benzo-a-pyrene), heavy metals and other air pollutants.
Another frequently mentioned priority is the elimination of shortages in high-quality drinking water supply in urban areas, mainly through the construction of additional water treatment works, construction of wastewater treatment plants in cities located along major rivers, and the reduction of pollution loads discharged by industry and the municipalities into rivers.
The main project opportunities in the water management sector are related to the construction of new, and modernization of existing water supply and wastewater treatment systems. Contamination of groundwater resources (especially by oil-based substances, organic solvents, and heavy metals) is also a significant problem. Another important field is the improvement of sanitary conditions in rural areas by supplementing village water supply systems with adequate sanitation.
Interestingly, in practically all countries, the management of sludge from wastewater treatment was a major unresolved issue.
The disposal of hazardous waste is one of the most pressing problems. Frequently, significant amounts of hazardous waste are stored on-site at the source in so-called temporary storage facilities. There are few modern facilities for the disposal of hazardous waste. Incineration of hospital waste is generally carried out in small and obsolete facilities.
For some bulk industrial waste (e.g. phosphogypsum, "red mud" from aluminum production), no feasible treatment technology is available. Other high volume industrial waste which needs to be better managed includes waste from coal mining and open pit excavation.
Governments are undertaking a number of actions to address the problem of waste management. New waste legislation is being prepared (e.g. Waste Acts in Poland and Hungary) or has been adopted recently (hazardous waste regulations in Hungary). Product fees ("green taxes") have been imposed on some products, such as fuels, tires, refrigerants, car batteries and packaging materials.
To date, waste management projects have tended to focus on landfill construction. While this tendency will continue in the near future, (especially hazardous waste sites and sanitary landfills), other waste management activities are expected to grow in importance. Waste minimization and recycling of waste (e.g. reducing generation of industrial wastes, increasing the rate of their utilization) are high on the priority list in all countries. Construction of modern hazardous waste incinerators is another likely opportunity area. Composting of municipal waste is of interest in Poland, while a significant number of projects relating to site remediation and decontamination are under way, especially in Slovakia and the Czech Republic. In Hungary, the government intends to establish a nationwide waste collection and recycling system. In Slovakia, the government puts high emphasis on construction of regional incineration plants for hospital waste, and remediation and revitalization of old landfills.
Revitalization of damaged soils and landscape is a priority, especially in heavily industrialized areas. Intensive reforestation programs, particularly in watershed areas and on land unsuitable for agricultural use, are underway in Poland and Slovakia.
Comprehensive environmental programs have to be developed for some of the most contaminated or threatened areas in the CEE countries. North Bohemia in the Czech Republic, Dunaujvaros and Varpalota in Hungary, Silesia in Poland, and the Kosice region in Slovakia are examples of areas strongly polluted as a result of heavy industrialization.
Noise and vibration affecting the general public does not seem to be a major area of interest in most countries, and was not perceived a significant project opportunity area. Generally, the required measures are costly, and there are other more pressing environmental priorities for cash-strapped investors. Noise-related problems play a significant role only on a local scale, for instance in the vicinity of major highways, and industrial plants with high noise levels. The latter, however, is a particularly significant issue in Poland, where legislation sets strict standards for acceptable noise levels.
Occupational health and workplace safety (OHS) does not seem to be a major priority area at present, although it is likely that with the introduction of stricter OHS regulations comparable with those in the EU, and with the increased direct liability of employers for workers' safety, demand will grow. Also, requirements related to risk management stipulated in the ISO certification process are likely to influence the situation in this field.
Water management, and particularly wastewater treatment, are likely to remain priority areas in the near future. Pollution of potable water sources from agriculture, and from contaminated sites is a likely target area in the future.
Currently, end-of-pipe technologies are mostly used to address major environmental problems, but the significance of preventive solutions is expected to increase with time. In the long term, waste minimization and pollution prevention should become the prevailing approach. Increasing environmental fees, better enforcement of regulations, and growing costs of waste disposal are major driving factors. Price liberalization is also expected to stimulate demand for energy efficiency measures, resource recovery, and water reuse projects.
The construction of modern landfills is an expected long-term opportunity area. Accumulated hazardous waste that needs treatment and removal, and waste disposal sites that need remediation are likely to remain a significant priority.