While air pollution and poor quality drinking water are the most frequently cited problems, the management of wastewater and solid waste, pollution from transport and the energy sector and site remediation and clean-up of contaminated land remain major challenges. Environmental pollution is particularly severe in industrialized areas where large polluting companies operate (e.g. textile manufacturing, food processing plants, mining companies and factories). Additional environmental damage, especially the contamination of soil, has been caused by former military bases and camps.
Environmental policies in all three countries place high emphasis on modernizing the industrial sector to reduce pollution at its source. These policies generally stress preventive measures instead of the "end-of-pipe" approach. The introduction of environmentally friendly manufacturing techniques throughout all production processes is emphasized.
In all three countries, water protection remains the main priority, followed by air protection and waste management. Table 1.3 presents the breakdown of environmental expenditures by media. As it illustrates, the bulk of environmental spending is on water protection, wastewater treatment and the improvement of drinking water quality. Air quality receives the second largest amount of spending, closely followed by waste management, including hazardous waste. The large share of investment in these areas can be attributed to two main factors:
| TABLE 1.3: BREAKDOWN OF ENVIRONMENTAL EXPENDITURES BY MEDIA, 1996 | ||||
|---|---|---|---|---|
| Country | Environmental Expenditures (USD mln) |
Share of Expenditures* | ||
| Air Pollution | Water and Wastewater | Waste | ||
| Estonia | 77.7 | 25% | 67% | 8% |
| Latvia | 27.6 | 8% | 83% | 6% |
| Lithuania | 31.1 | 6% | 88% | 4% |
| * Totals may not amount to 100 percent Source: 1997 Statistical Yearbooks of the surveyed countries |
||||
Survey respondents frequently cited, however, the lack of funds for environmental projects, incomplete or changing legislation, inconsistent enforcement, and a lack of awareness of environmental issues as factors that delay the necessary environmental investments.
In general, however, significant project opportunities are expected in the future in wastewater treatment, air quality protection, waste management and site remediation.
Priority areas in the energy sector include the conversion of fuel to gas, the conservation of energy, and the introduction of alternative and renewable energies. The modernization of older heat generation facilities is under way in each of the three countries, and the installation of equipment for the reduction of dust and gaseous emissions (especially sulphur dioxides, nitrogen monoxides, carbon oxides and dust particles) is also a priority area. In the longer term, energy saving measures will also be an important opportunity area. Residential heating is another source of air pollution in cities, mainly caused by individual fireplaces which are not fitted with any air pollution control equipment. Increasing attention will also be accorded to this area.
The transport sector increasingly contributes to significant air pollution in urban areas. Leaded fuel consumption is still relatively high, but goals for its significant reduction have been established for the near future.
Finally, stationary sources such as industrial units (e.g. manufacturing companies, the cement industry, etc.) are also recognised as major sources of air pollution with attention increasingly accorded to reducing emissions of volatile organic substances, hydrocarbons, heavy metals and other air pollutants.
The main project opportunities in the water management sector are related to the construction and modernization of water supply and wastewater treatment systems, sewerage and pumping houses. Contamination of groundwater resources, in particular by oil-based substances, organic solvents and heavy metals, is also a serious problem.
Since Estonian discharges into watercourses reach the Baltic Sea, the country maintains a bilateral treaty with Finland to remove 90 percent of organic and phosphorous substances from wastewater. This treaty, intended for adoption in 1996, will come into force in 1998.
In Latvia, in order to ensure the implementation of wastewater remedial measures, the Ministry of Environmental Protection and Regional Development established the 800+ Program for water management. Its objectives are to reduce health risks, improve water quality and prevent the degradation of water ecosystems.
In Lithuania, the eutrophication of lakes, particularly that of the Curonian Lagoon, is of national concern. The majority of domestic wastewater is discharged into rivers after insufficient mechanical and/or biological treatment. In 1996 for example, some 40 percent of wastewater was treated to national standards, 44 percent was insufficiently treated and 16 percent was discharged untreated.
Not all inhabitants of the surveyed countries have access to quality drinking water or treated water. In some remote areas, residents obtain their water from wells that are also likely to be contaminated. Shortages of quality drinking water often occur in urban centers, where consumption continues to rise.
The high levels of investment in the water and wastewater sector shown in recent years in the Baltic States are likely to continue in the near future.
One of the most pressing priorities is to improve the handling of existing landfill sites, most of which are abandoned or mismanaged. In Lithuania for example, more than 800 landfills exist, the majority of them located in poor geographic or geological areas.
Hazardous waste poses a serious problem since its disposal has never been regulated and few facilities are equipped to ensure its proper treatment. Therefore, the hazardous waste that currently awaits disposal leaches into the ground, contaminating the soil and groundwater. Hospital waste is incinerated in small facilities. All three countries, however, are now in the process of enacting laws on hazardous waste management.
Until today, projects related to waste management have focused on landfill construction. This is expected to continue in the future, but other projects that relate to waste minimization and the recycling of waste are expected to grow in importance. The construction of modern hazardous waste treatment facilities is also expected in the near future. In Estonia, waste related projects have focused on the closure of abandoned landfills and the construction and operation of new landfills. One of the goals of the Estonian government is to increase levels of waste recycling by 30-40 percent in the next four years. In Latvia, the government intends to introduce its "Law on Solid Waste Management" and a Hazardous Waste Management Strategy in 1998. In Lithuania, the Law on Waste Management is currently being reviewed in Parliament, and regulations for hazardous waste management are also being prepared.
Comprehensive environmental programs have been developed for the most contaminated areas and for special national treasures such as the Curonian Lagoon in Lithuania.
Noise and vibration affecting the general public does not seem to be a major area of interest. Some small-scale environmental surveys and health related studies have been conducted, but funding tends to be channeled into more pressing issues such as water supply management. Noise-related problems are generally outlined at the local level and some measures have been taken to reduce transport noise found close to highways and airports.
Occupational health and safety (OHS) is also not considered a priority. The introduction of regulations matching those of the EU will increase the importance of OHS as employers will be held accountable for the health of their employees.
Finally, the growth in importance of environmental impact assessment (EIA) and environmental management systems such as EMAS and ISO 14000 are forcing more and more enterprises to pay attention to environmental issues in the Baltic States. This field is expected to grow in the future as awareness increases.
Air pollution will continue to be a priority, although a shift in attention is expected from large industrial plants and their emissions to small and medium-sized companies. Air pollution from mobile sources, predominantly traffic, will continue to grow in importance and will be an area of major focus in terms of environmental impact assessments.
Currently, attention to end-of-pipe technologies will shift toward the implementation of preventive measures and clean technologies. Increasing environmental fees and enforcement and growing costs of waste disposal are expected to increase compliance among residents and enterprises. Price liberalization is also expected to significantly stimulate the demand for energy-efficient measures.
The construction of modern landfills and the overhaul of existing sites is expected to remain a long-term priority in all three countries. Hazardous waste collection and disposal will also remain important as legislation is enacted in the near future.