CEE countries have applied both strategic oriented (top-down) or action oriented (bottom-up) approaches when developing their environmental policy documents. The majority of countries started with the preparation of the strategic, long-term environmental policy papers and followed with action-oriented plans (Albania, Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovakia). Some countries (Lithuania) used a different approach. They drafted a general National Environmental Strategy (NES) based on a specific Environmental Protection Program (EPP). This action-oriented EPP served as an initial planning document. The NES will be supplemented by the NEAP which will plan short and medium term environmental activities. Other countries (FYR Macedonia, Slovenia) are preparing an action-oriented environmental program without developing a general environmental policy.
The relevant national policy documents (i.e. environmental strategy studies, action plans and programs), concentrate on the following issues: environmental policy development, implementation mechanisms, institutional strengthening, improvement of legislative and regulatory framework, investment priorities and international cooperation. The focus is on health-related issues rather than nature protection.
With respect to responsibility for preparation of policy documents, two main approaches have been identified:
Frequently, NGO participation in policy-making takes the form of participation in discussions on draft documents and commenting on them. In some countries environmental NGOs have independently drafted environmental protection strategies and listed environmental priorities. In Poland and Bulgaria, NGOs have conducted assessments of the environmental situation for use by the UNCED, for the Lucerne Conference or at the request of international organizations dealing with environmental issues (e.g. UN ECE).
The majority of countries have already enacted framework Acts on the Environment (Albania, Bulgaria, Croatia, Czech Republic, Lithuania, Slovakia, Slovenia). In Poland and Hungary these acts were in force even before 1989 and their amendments are now being drafted. In FYR Macedonia and Romania, a draft environmental act was prepared but is still to be approved by Parliament.
In addition to drafting new and comprehensive environmental legal acts, the CEE countries are modernizing their environmental regulations by eliminating gaps and improving the consistency of existing regulations. Framework environmental acts and their amendments include such principles as polluter pays, prevention and precautionary, sustainability, shared responsibility, free access to environmental information, and public participation. However, many of them remain just a declaration of intent and are not properly enforced.
Enforcement of environmental regulation remains the most critical issue in environmental protection activities. For historical reasons, the creation of legal acts and their implementation are not consistent. There is no evidence of a procedure to consider the impact of the proposed legislation before entactment. Similarly, there is a delay in the preparation of government regulations needed to enforce the enacted law. Implementation of environmental regulations is not sufficiently supported by the public. Strong public involvement in environmental decision-making is seen in some countries as a pressure mechanism for improving the enforcement of legal regulations or even as a substitute for poor enforcement of environmental requirements.
During the past few years, the number of environmental NGOs has increased significantly in all CEE countries and are active at the national, regional and local levels. However, most NGOs operate locally. Their main activities are public campaigns, training courses, and practical environmental protection and nature conservation projects. Thus NGO activities are oriented towards environmental education and environmental awareness raising. Members of NGOs also work for commissions, committees or councils established by the state administration at all levels (FYR Macedonia, Poland).
In many countries NGOs participate in environmental policy-making by commenting on drafts of documents prepared by governmental bodies (Czech Republic, Poland, Albania). Bulgarian NGOs have even established a Green Parliament as a permanent forum for participation in environmental debates. In some countries NGOs develop independent environmental protection strategies and attempt to enforce them through campaigns and discussion with environmental administration. A matching draft of the Act on Ozone Layer Protection was prepared by a Czech NGO in 1993. After lobbying efforts, the draft was accepted by a group of Members of Parliament and discussed as their legislative initiative. The result was a compromise between the governmental and parliamentary drafts.
Environmental NGOs as well as the general public regularly participate in EIA procedures, which gives them an opportunity to be involved in decision-making on specific investment projects. Draft environmental legislation is usually discussed with scientists and independent environmental experts. Business representatives, such as the Hungarian Association of Large Industrialists, the National Association of Entrepreneurs or the National Association of Small Industrialists, comprise a lobby promoting appropriate environmental legislation.
Almost all the CEE countries established three levels of environmental administration:
Delegation of ministerial responsibility for such separate sectors as health care, agriculture, forestry, physical planning and transport varies from country to country. The same applies to responsibility for the environmental media (air, water, soil). Ministries of Environment or the relevant supreme national administration are in charge of maintaining pollution monitoring systems, defining environmental protection methodologies, coordinating environmental research, coordinating environmental projects of national importance and maintaining international cooperation.
Institutions subordinated to the Ministries of Environment consist of the following:
The regional environmental administration is responsible for regional policy, enforcing legal regulations, issuing environmental permits, imposing penalties, implementing EIA procedures, and developing local environmental regulations including taxes. The environmental inspectorate conducts site visits to assess compliance with the law. They have the right to stop production that violates environmental regulations.
Environmental information is collected at the lower level of the environmental administration for processing, storing and distribution at all levels. The national statistical office usually conducts the environmental data processing and dissemination. Scientific and research institutions also provide additional information. Official materials are distributed mostly through reports on the state of the environment, as well as through bulletins, environmental monitoring databases published by environmental authorities (Ministries of Environment) and NGOs. Free public access to environmental information is guaranteed by law; however, it is hardly enforceable in practice.
All CEE countries have strengthened the capacity of environmental administrations by implementing a comprehensive system consisting of administration and inspectorates at all levels (national, regional and local). The number of employees in environmental administration was also significantly increased.
The countries mainly use monetary penalties to enforce environmental legislation. However, the concept of polluter pays (charges and fees) has not yet been fully implemented in all CEE countries. Environmental charges, fees and fines are generally more widely used than taxes. There are also examples of using environmental tax and product charges (Hungary, Latvia, Lithuania).
A few countries have adopted incentive financial instruments on a limited basis. Suspension of charges to be paid by the polluter is being used under specific conditions if the polluter agrees to take measures to comply with environmental requirements (Czech Republic, Lithuania, Poland, Slovakia). Exemption from import duty for environmental protection equipment is also being applied (Bulgaria, Croatia). There are attempts to introduce labeling of environmentally friendly products in some CEE countries (Czech Republic, Croatia and Hungary). The same applies to cleaner production (Czech Republic, Lithuania, FYR Macedonia, Poland). Polish government agencies have conducted several environmental audits at companies to improve the environmental management, to maximize use of resources and to reduce energy consumption. Quality management techniques were used to identify the least-cost option for reducing demand for energy and resources (Hungary).
Harmonization concerns all the CEE countries, not just the associate members of the EU (Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovak Republic).
There are six sources of funds supporting environmental investments in the CEE countries:
Due to the overall economic decline in most CEE countries, funds for environmental projects are limited. Governments use these funds primarily to cover the costs of environmental administration and selected high priority projects (water reservoirs, treatment plants, national parks).
A few countries have established National Environmental Protection Funds (NEPFs) to provide off-budget funds earmarked for environmental purposes at national, regional and local levels (Bulgaria, Czech Republic, Estonia, Hungary, Poland, Slovakia, Slovenia). Revenues of the funds consist mainly of user and pollution charges and fines.
Recipients of earmarked funds are municipalities, industrial enterprises, research and education institutions, and NGOs. Non-commercial organizations may receive grants while commercial ones (enterprises) may only apply for soft loans. The NEPFs may provide soft loans for a certain percentage of the investment costs for environmental projects.
Commercial loans are seldom available for environmental investments because banks are unwilling to engage in non-profit, long-term environmental investments. Moreover, the high interest rates set by commercial banks discourage investors involved in environmental rehabilitation or nature protection.
As domestic funds for environmental protection purposes have become scarce, external funds available to the region have become more important. External sources of financing for environmental investments include the World Bank, EBRD, EIB, PHARE Program, US AID, and GEF.
However, except for Albania, the actual amount of external funds invested in the region is marginal compared to the domestic funds. External funds have mainly supported project preparation and feasibility studies, thereby serving as a catalyst for channeling domestic funds to environmental projects in the CEE countries.
Activities of the environmental investors are coordinated by the relevant administration. In projects with a national or international scope, the Ministry of Environment plays the leading role.
There are several priority categories that direct environmental investments in the CEE countries:
Environmental media-oriented investments are geared towards:
Investments are geared towards a particular region:
Commercial investments have been directed mainly towards installing pollution control equipment. Investments by enterprises were mobilized by:
The NEPFs provide a significant share of environmental investment funds. They are allocated to air pollution control, water quality improvements and water management, waste management and environmental monitoring systems.