Czech Republic
Political, economic and social impacts on environmental protection at the spring of 1994
Political changes
In 1990, new environmental institutions were established at the national level - the Czech Ministry of Environment and the Federal Committee of Environment. The responsibilities of the latter included federal legislation, environmental policy, international relations and bilateral cooperation, federal information systems and nuclear security. Before the "velvet revolution", the different areas of environmental protection were under the direction of several ministries and other state organs. The Federal Committee does not exist anymore due to the split of the Federation in 1993.
Between 1990 and 1992 many high-level, influential positions in the administration, parliament, government, etc., were held by people with considerable environmental knowledge and awareness. With the elections in June 1992 a more rightist coalition came into power. The present government is, as an expert mentioned, less "green" than the previous one and the economy is its primary concern. The economic lobby has become strong now, as well. This has effects on both domestic and international policy. Some experts claim that the position of the Ministry of Environment (MoE) is weak now, and even that a decline in the prestige of the MoE is perceptible. Others claim that the governmental changes are probably not too important, at least for now, and that the environmental agendas among Czech political parties do not differ greatly. Some experts mentioned that a more pragmatic, economically-oriented government may set the basis for the broad application of the polluter pays principle and will address and resolve issues regarding the economic feasibility of some of the provisions in the new environmental laws. Environmental advocates criticized the development that before the change of government, regular meetings were held between the MoE (and other Ministries) and NGOs where the actions of the Ministries were discussed while now the dialogue is less intensive. Since 1989, though, access to existing information has been improved and new types of information are collected and made available. The situation concerning statistical data on environmental protection is also being gradually improved.
Most of the experts agreed that the split of the Federation in 1993 did not have larger effects on environmental protection and policy. However, a number of impacts have been mentioned. The role and responsibilities of the MoE are more clearly defined now. The discussion about the future of the Federation and then the split in 1993 displaced environmental issues from the political agenda to some extent. The previously strong cooperation between Czech and Slovak NGOs became weaker.
Since 1990 new legislation, such as the General Environmental Protection Act, the Environmental Fund Act, the Air Protection Act, the Waste Management Act (there was no previous legislation on waste), the Nature Protection Act, the Act on the Phase Out of Ozone Depleting Substances, and the Environmental Impact Assessment Act have been passed. Some of the new laws have created conflicts of interest among the Ministries, and thus amendments and explanations to them have been and continue to be necessary.
In 1992 the authority for physical/territorial planning was given to the Ministry of Economy. This authority had previously been with the MoE since its establishment in 1990. Most issues of regional planning are handled at the district level. If there are conflicts that cannot be solved on the district level, the final decision is made by the Ministry of Economics. Some experts suspected that environmental concerns are probably less of a priority now than when regional planning was under the jurisdiction of the MoE, which might have effects in terms of preventive environmental protection.
Economic changes
Between 1989 and 1993 the decline in GNP was more than 20%, mostly due to the decrease in industrial production (which contributed a major portion of the country's pollution). The level of environmental pollution was not diminished to the same extent as the decline in industrial production because the most polluting industries did not reduce their production significantly. An expert mentioned that this is because the largest enterprises are protected by the government due to social (employment) concerns and also because these enterprises are often earning foreign currency. Therefore, as some experts mentioned, the existing laws are not applied strictly to all enterprises. However, the situation is supposed to improve in the future because the new environmental laws (i.e. air, waste, and in the near future also water regulations) will gradually come into effect (these laws require compliance within 5-7 years for existing facilities).
Privatization is not expected to have a negative impact on the environment, as there are regulations in place to prevent this. Through environmental audits or EIAs, measures to achieve compliance with the environmental laws will be identified (these regulations are provided only for the second wave of privatization). At present it is difficult to judge the impact of privatization and the success of these provisions because the second wave of ownership transfers has not advanced very far yet. Responsibilities for financing the cleanup of past pollution are unclear in practice. At present the rule is that the responsibility is with the new owner.
Social changes
Shortly after the revolution, environmental protection was considered the second most important issue for the country (after preventing the return of the totalitarian socialist system). Four years later environmental protection is considered much less important by the public. This changing attitude could already be observed by 1991. Environmental issues previously had significant importance in part because environmental activism was to some extent tolerated by the communist government and political protesters could unite under the banner of the environment without great risk of repression.
After the changes, many members of environmental NGOs went to work for the MoE. Many of them became somewhat disappointed after the initial enthusiasm. For many others, NGOs were a simply a base to use for general criticism towards the political system and they are not involved in environmental issues anymore. On the other hand, many new, often small environmental NGOs were established after the revolution. An umbrella organization, "the Green Circle", has been established to strengthen the dialogue and improve coordination with the MoE. This idea was not easy to carry out because the individual NGOs were reluctant to have somebody else speak in their name.
A significant portion of the public, like the government, is now concerned with the pressing economic situation and the development of the business sector. People behave as private citizens and private entrepreneurs, looking after their most immediate and direct concerns and issues. They are primarily interested in taking advantage of the new possibilities available in an open society, but also in the new threats and hardships facing the country. However, the social situation has basically stabilized (strikes are now rare for example). As one expert stated, the society is rather sensitive to impoverishment and hence there are measures in place to fight against this.
Assessment of environmental assets and damages
Natural capital
The experts mentioned that about 40% of the land in the Czech Republic has some sort of protected status. There are three national parks and 24 protected landscape regions and numerous nature reserves. The government is considering at present the addition of a new national park. Nature conservation has a long tradition in the Czech Republic (the first forest law was promulgated in 1754 and the first nature reserves were declared in 1838).
Environmental damages
The mining districts in Northern Bohemia have been devastated mainly due to air pollution (which is the primary source for health problems). To a smaller extent, the industrial areas of Northern Moravia (black coal mining and steel production) and Prague (mainly air pollution from automobiles and industrial production, causing harm to a large portion of the population) have also suffered environmental damages.
The planned building of a nuclear power plant in Temelin is very controversial and under discussion. There is a strong lobby in the government for the construction of the plant because it will benefit many industries. An expert mentioned that Temelin is in many peoples' view a reasonable way to improve the environmental situation in Northern Bohemia, because continued use of the existing power sources would simply prolong the poor environmental conditions. Northern Bohemia is producing most of the energy for the country. The Clean Air Act specifies that by 1998 when Temelin starts, emissions must be substantially reduced.
Priority environmental problems
Priority attention must be given to areas where human health is endangered, primarily industrial centers and big cities due to air pollution.
Air pollution is closely related to energy issues. With respect to this, the cleaning up of Northern Bohemia must continue. The energy policy (energy production, efficiency of energy use, energy saving) must be more compatible with environmental objectives. Air pollution from transportation is becoming an increasing issue.
Another issue which must be focused on is the increasing production of waste and proper waste management/minimisation (industrial and domestic origin).
Most of the experts preferred not to prioritize specific environmental problems along media lines but rather stressed the need for a methodological, comprehensive approach for the different media. It was also noted that considerable attention has already been given to identifying and prioritizing environmental problems in the Czech Republic and that such information is included in the official environmental policy and has also been published elsewhere.
Critical steps to be taken to start or continue environmental improvements
Management and administration
The cooperation between the MoE and related research and scientific institutions could be improved to ensure that their activities complement each other. Management capacities must generally be strengthened on all levels. The main problem of public administration at the local level is the lack of finances. Administration staff often cannot be paid adequately in comparison to what they could earn at private firms. In some districts the administration is managing very effectively in spite of the limited resources, but in general, local authorities are lacking qualified experts.
There is an intensive debate going on about the planned restructuring of the government administration structure (to involve the national, regional, and municipal levels). With respect to environmental management, it is necessary that duties and responsibilities at the local and regional level are more clearly defined. Also, the creation of a unified information network between regions must be accelerated.
Enforceable environmental policy and law
The new state environmental policy was prepared at the end of 1993. The document sets, in a comprehensive way, clear priorities and timelines for the individual components of the environment, for economic sectors (energy production, industry, transportation, agriculture, raw materials) and for human health, education and science. It also outlines intra-governmental cooperation. The policy is considered an important breakthrough. How successful the implementation will be remains to be seen.
Some experts critically explained that up to now a cooperative effort involving the whole government on environmental issues has largely been lacking. In terms of the energy, transportation, agricultural, fiscal, and taxation policies, the government does not adequately take environmental concerns into consideration. However, an expert noted that most of those policies are not officially approved yet and might be reformulated.
Together with the Ministry of Economy the MoE is preparing regional environmental policy. Environmental protection is now mainly directed at the national level. This regional policy should clarify the responsibilities and authority of the regional administrations. In certain areas there has been a gradual tendency to transfer power to the regions. Local self-governments also have responsibilities and power, but often they have no money for implementation, as the primary taxes go to and largely stay at the national level.
Since 1990, nearly the entire system of environmental legislation was replaced. The new environmental law generally has been considered as good by the experts. The rapid adoption of new environmental legislation was partly due to the recognition of the immediate need to improve the environment in the Czech Republic. This has resulted in some problems concerning interpretation and the feasibility of compliance with the law. Thus, amendments to the laws have been necessary. In some cases, explanations to the laws have had to be prepared. Relating to these points, many struggles have developed among different interests, especially among the Ministries. For example, the MoE has prepared a law for forest management in cooperation with the Ministry for Agriculture. All issues relating to forest management are presently under the authority of the Ministry of Agriculture, which has caused some power struggles between the two Ministries.
Some experts mentioned that because of the short deadline for compliance with the new strict regulations (5-7 years), often end of the pipe technologies will have to be installed, which are costly and economically inefficient. They suggested to integrate more economic tools, so that businesses can find the optimal economic solution for the required environmental benefit. Generally, there are major problems related to enforcement. The society does not tend to consider breaking the law as reprehensible or unethical. The people do not tend to report the infractions of which they are aware. The enforcement institutions face problems mainly related to management. They are not sufficiently developed, often understaffed and, in many cases lack necessary expertise. The measuring equipment they must use is often in poor condition. Regulations for the different media - air pollution, water pollution and waste management - are enforced separately. A more integrative approach would make sense.
Expertise and public support
The need to strengthen environmental education has been mentioned as a top priority. The forty years of poor attention to this area is a difficult burden to overcome. Improvements in education and training begin and develop slowly. Thus, an overall improvement in environmental education and training in the Czech Republic will be a gradual process. It is also necessary to improve the level of expertise of the environmental actors in the country. A better understanding of the problems they face and knowledge of alternative solutions and new technologies will greatly improve their ability to tackle those problems. A starting point would be to improve the information exchange regarding successful actions within the Czech Republic and the CEE Region, as well as ideas and solutions implemented or discussed in the West.
Technology and services
There is a lack of advanced technologies for environmental applications. The domestic environmental technology sector is underdeveloped and thus most abatement technologies, with some exceptions, are imported. Currently there are no economic incentives to support the development of domestic capacities in this field. Concerning this point, the government could give more support (this task is beyond the mandate of the MoE). The employment of state-of-the-art technologies is inhibited by the limited amount of money available. When examining options for reducing industrial emissions and effecting waste reduction, it is important to rely not only on end-of-pipe solutions, but to also consider what is called "integrated technology", which is a systematic approach to emissions and waste reduction. Employing an integrated technology strategy can reduce waste and emissions more efficiently and effectively than an end-of-pipe approach.
Driving forces for environmental improvement and degradation
Market reforms / restructuring of the economy
The decline in industrial production has been the major reason for some reduction in pollution levels. However, this is not the desired way to achieve environmental benefits and probably in the future industrial production will begin to increase again. Privatization is a major driving force for environmental improvement, especially in the long-term. It will correct the property rights issue, i.e. people will take responsibility for the management of their businesses and have the incentive to run them efficiently. They can also now be held responsible for compliance with environmental and other laws. While the privatization process is only just beginning, it will continue to effect gradual improvements in the environment. On the other hand, there may be some negative impacts from privatization in the near term because people are behaving as entrepreneurs, seeking short-term profits and pursuing any opportunity to maximise their financial gains. This may lead to exploitation of loopholes in the environmental laws and enforcement system. Some claim that the economic instruments that are presently employed (mainly fines and charges) are a driving force for environmental improvement to some extent, but they are not as effective or efficient as they should be.
International Competition / Foreign Pressure
The Czech Republic experienced some foreign pressure in the 1980s with regard to transboundary air and water pollution issues. This inspired several cooperative projects with its neighbors. This kind of pressure is not strong anymore though. Currently, Austria is pressuring the country with its opposition to the planned nuclear power plant in Temelin. The issue of integration into the European Community and its impact on environmental protection will be significant and Western standards have already been a driving force in the development of the Czech Republic's environmental law and regulations.
Western consumption patterns
Without a doubt the society is adopting Western consumption patterns. The "throw away mentality" is already perceptible. While this is a negative development from the environmental point of view, it was probably inevitable and not surprising. At present, the public does not seem to be aware of the problems associated with this trend. Economic incentives, especially with respect to business practices, could be used to prevent, or diminish, wasteful consumption habits.
The "greening" of business
Companies are being pressured to adopt environmentally sound practices. There is legal pressure in the form of new environmental laws and regulations, as well as improved enforcement. There is also perceptible informal pressure from the public encouraged by the increased environmental facts and data now available. As a result, even some of the most polluting large companies are responding to environmental concerns. They are also taking steps to improve the environmental awareness of their top management. The establishment of the Czech Environmental Management Center by 30 companies, the Association of the Producers of Environmental Systems, the Czech Business Council for Sustainable Development and the Business Leaders Forum of the Czech Republic are examples of industry's interest in environmental protection.
Integration of environmental protection and economic development
Obstacles to integration
Environmental concerns are usually not taken into account in economic policy. Environmental protection is considered as an issue that can be solved only when the economy is strong enough. The most critical factors that are necessary in order to improve the situation are: better environmental education and experience in dealing with environmental problems and issues, especially in non-environmental circles, and; improved information exchange with the industrialized countries of the West regarding successful policy integration and policy instruments and mechanisms. There is a lack of broad dissemination of this information at all levels (i.e. international treaties, literature, and personal contacts).
Additionally, the lack of cooperation and the conflicts of interests are hindering integration. An illustration of the adversity encountered in attempts to integrate economic and environmental policy is the history of the environmental tax. The Czech Republic has a comprehensive, modern tax system, consisting of seven special laws on taxation. Six of these taxes are in place. The seventh is the so-called ecological tax, which is still being prepared by the MoE in cooperation with the Ministry of Finance. It is doubtful whether this tax law will ever be adopted, and if adopted, whether it would be effective. Suspecting this, some advocates for an environmental tax attempted to include parts of it in other laws (i.e. income tax). Due to the efforts of the pro-environment lobby, some amendments were eventually included in the income tax law. It remains to be seen, however, what kind of effects these amendments will have. The lack of cooperation and the conflicts of interest actually seem to have made the result worse than it would have been without the intervention of the green lobbies.
Existing and proposed measures for improvements in integration
The topic is under discussion in some environmental circles, as well as a few economic circles. This discussion, though, is quite limited and no concrete measures have been taken to address this issue. Possibilities and the need for integrating environmental protection and economic development are not understood by the key sectors of government and therefore only a small number of measures are in place. In the state environmental policy, however, the gradual integration of environmental considerations into all economic and social activities is outlined as a long term goal.
Sustainable development was stressed as an important concept at the 1992 World Conference on the Environment in Rio De Janeiro. Sustainable development should be integrated into the Czech Republic's environmental policy according to the ideas laid-out at this conference. The MoE does cooperate with the United Nations' Commission for Sustainable Development. While there is some interest in this issue, the concept of sustainable development is not clear to a lot of people and different definitions exist. This could be an important topic for environmental education and/or training activities.
Financing environmental improvements
The limited resources available for environmental protection are generally used for the following types of activities: constructing wastewater treatment plants; establishing waste landfills or improving the management of existing ones; installing desulphurization technology in coal power plants; replacing lignite fuel with gas, and; accident prevention at industrial sites.
The situation regarding the financing of environmental investments needs to be improved. A major problem in obtaining financing for environmental investments is the short time period required for repayment of a loan - usually four or five years. Many environmental investments are long-term projects and a longer term is necessary for repayment. In addition, there are no guaranty funds available for environmental projects and banks are not prepared to bear the risks at this point. Some banks in the Czech Republic do have a policy on environmental management however.
Another area to be addressed regarding financing of environmental projects concerns the management of the State Fund for the Environment. This Fund could grow very large in the future as more companies are required to pay into it. The managers of the fund are interested in how to improve the decision-making process and in placing more emphasis on providing soft loans rather than grants.
Companies complain that the current structure of economic instruments is not efficient and does not provide much incentive for environmental improvements. The situation is better regarding wastewater (fees reflect investment and operational costs) and in the area of waste treatment (they can compare whether it is more useful to pay the fine or to pay for changing the technology). They also complain that these collected fees, which go to the State Environmental Fund, are not used effectively for industrial needs. There is some interest in the business community in tools that enable optimal environmental benefit from an economic point of view. They would like to get away from "command and control" regulations and replace them with measures based on the new idea of "eco-efficiency".
International cooperation
CEE-regional cooperation
There is a strong need to strengthen the East-East dialogue. However, it is not perceived as urgent by the public, probably due to the rejection of the commonly shared past four decades and a stronger orientation, in general, towards Western Europe. On the other hand, East-West cooperation has developed more sufficiently.
Western assistance
Experts stressed that the Czech Republic has had numerous positive experiences with Western assistance. Western assistance has been criticised in a general way, however. Many people have bad feelings about the fact that in many projects a sizable sum of money is spent for studies which are carried out by foreign consultants without adequate involvement of local participants. Sometimes a direct, deeper knowledge about the specific Czech problems is lacking when this occurs.
Proposals to improve the effectiveness of foreign assistance include: 1) ensure the adequate involvement of local representatives and experts who have direct experience with the issues in the country; 2) support the projects on a long-term basis (i.e. ensure support for the implementation of the projects), and most importantly; 3) financial and in-kind support for knowledge and information exchange with respect to problem solving techniques in the West.
It was stressed that there are no issues that can only be solved with foreign assistance and that the situation concerning external financial help is not absolutely critical. The experts listed some issues which could be addressed more quickly with foreign support:
- converting existing industrial plants (e.g. coal producing plants or generally facilities in the energy sector) into pilot plants with state-of-the-art abatement technology and integrated environmental management. Such plants could serve as examples for clean restructuring for other places in the CEE region under the right circumstances.
- assistance in the areas of science, assessment, some special types of technologies, and local and regional planning.
Interest groups in environmental protection
National and Local Governments
The MoE formulates and implements national environmental policies. Generally, however, the government is more concerned with the economy and does not make sufficient efforts towards directing action in environmental issues. There is a tendency to consider environmental protection as an issue that can be solved only when the economy is strong enough. Local governments have power and responsibility in different areas but usually too little money for the realization of concrete projects. Sometimes strong lobbying for local economic development activities impedes adequate consideration of environmental concerns.
Businesses
The business community is becoming increasingly more influential in the environmental decision-making process. Some experts think that the growing strength of the economic lobbies will possibly have negative impacts on the environment. However, there is growing interest among companies in improving their environmental policies as well as in integrating environmental concerns into the national economic policy in a practical and feasible way.
Environmental NGOs
Environmental NGOs have considerable influence on environmental decision-making with regard to some specific, local issues (sometimes they can mobilize public and/or media pressure), but limited impact on issues relating to environmental policy. They have generally been criticized for some of their weak efforts which were described as poorly coordinated and lacking publicity. Their influence is often not as strong as it could be and they are still not demanding enough. This situation seems to be slowly improving however.
Media
The media has considerable influence but reports focus mainly on "hot stories" with a tendency towards sensationalism. The main approach is popular. There is insufficient coverage of the real issues and of positive and constructive examples of environmental protection.
Academia
The influence of academia and science on the environmental decision-making process has been described as weak by the experts.
REC * PUBLICATIONS * STRATEGIC ENVIRONMENTAL ISSUES 2 * CZECH REPUBLIC
