Slovenia
Political, economic and social impacts on environmental protection at the spring of 1994
Political changes
The change to parliamentary democracy has largely brought benefits for environmental protection. Significant new environmental legislation was passed, NGOs have entered the political arena and pro-environment political parties were even created. A Green Party was established and entered the first governing coalition with four ministers under the condition that it could promote its environmental program. There was a chance to put environmental issues on the political agenda, but in practice, not much was done to improve the environmental situation. The symbolic objective of their platform was the closing down of the Krsko nuclear power plant. They were not successful, however, in achieving this goal during their years in power. During the first few years of the transition environmental problems were pushed to the background by the problems of creating a national identity. Since the 1992 elections, when the Green Party lost, no political party has been actively interested in the environment. Due to the differences within the party between radical environmentalists and other factions, the Green Party split. Some of the members of the Green Party remained in leading positions of other parties, while others joined NGOs.
The establishment of parliamentary democracy has in itself brought indirect benefits for the environment. As mentioned, NGOs became more active politically, however, this has resulted in some negative consequences for the NGO movement. For a few years only those NGOs who obeyed the rules of the political parties were able to make an impact in the environmental arena. These green parties consist mainly of persons with ecological ideologies, but they lack environmental experts like those participating in Western NGOs. There is limited access to political channels for experts who are concerned with specific environmental issues.
Economic changes
During the transition to a market economy the old system of production, which was characterized by an emphasis on energy intensive heavy industry, has been changed to a great extent. Success depends on whether or not this trend will continue and the economic program includes rehabilitation and restructuring. Industrial production in 1993 was still falling. In 1991 the growth of GNP was 9.0%, in 1992 7.2%, while in 1993 it was expected to be between -1.0 and 1.0.%. At the same time, however, 35,000 new jobs have been created in new factories, indicating that the restructurization process of industry has started and is progressing. Pollution is decreasing in part because heavy industry is in crisis and production has declined. The energy prices remain under government control, though, and they are kept low which does not encourage energy efficiency.
The free market reforms have led to an economic decline and funding for the environment is very limited. The implementation of some of the most important environmental projects, like the desulphurization of the Sostenj power plant, was stopped due to the lack of money. The government also plans to further develop infrastructure, the energy sector, railroads, telecommunications, etc., which should have a positive influence on the environment. However, capital for environmental investments is quite limited which means that loans will have to be sought which will in turn lead to an increase in the foreign debt. Slovenia currently has a total debt of about 1.7 billion USD, and the country will also have to take over a portion of the ex-Yugoslavian debt (but it is not yet known how much this will be). The government is seeking funds from abroad within the framework of the Slovenia Environmental Project.
Privatization is expected to generate funds for the economy as well as the environment. The privatization process has been started and funds are being put in a Development Fund. The small and medium sized enterprises (those with between 500-2000 employees) are being privatized first. Public ownership of large companies (in which citizens can buy shares) is also an option for some enterprises. Managers and workers can also buy shares of their own enterprise. The Agency for Privatization is the authority responsible for approving the schemes of privatization. The tasks of debt management, restructuring, and financing belongs to the Development Fund. Privatization of the banks will be started after a rehabilitation program is completed. The first step is to reduce debts and support the change of ownership structure. As a second step their debt will be managed by the Development Fund.
Social changes
After the disintegration of the central planning system, the links between science, government, and local communities were broken. As the political system and society organized themselves in new ways a vacuum was created. Experts working in the different institutes and citizens were not part of the decision-making process. The only way to express themselves was through the media and protest letters. Democratization has, however, allowed the development of many different views. Environmental activists and organizations have become more involved in decision-making and politics. This expanded political activism has caused some crisis, however, in the NGO movement because many NGOs did not agree with using environmental issues for political purposes.
Economic reforms are also causing serious social problems. There are 100,000 unemployed people which are creating social pressure on politicians which may ultimately impact the economic strategies. At present, day-to-day survival is the most important priority for citizens. Economic and social problems have priority over environmental concerns and are perceived as the most important issues, both by the public and the government.
During the past years the NGO movement in Slovenia has undergone great changes. Environmental issues are returning to the political agenda now due to the activities of new NGOs. One example is the Slovenian E-Forum (Environment, Economy and Energy), established in June 1993, which integrates experts of different institutes and universities. There are other NGOs, already operating in the past, whose activities tend to represent certain ethical norms and lifestyles based on moral feelings rather than expert knowledge. These are organized in local groups dealing with local problems and through cooperation they are able to have some influence on the national level. NGOs can act along with the media to publish articles and studies in order to increase environmental consciousness. They also attempt to influence decision-making by cooperating with and sometimes pressuring the government. It was reported, however, that currently NGOs and environmental experts are not involved enough in the discussion of environmental issues. The relationship between politicians and scientists depends on the political climate of the moment and experts working at the universities and institutes are presently inadequately supported.
The environmental consciousness of the public is relatively high in Slovenia. People accept that nature and the environment have to be preserved, but they provide only passive support. A number of NGOs are working quite effectively, but the public remains unsupportive of solutions that are costly. This attitude is caused in part by earlier experiences with some politicians who manipulated environmental concerns as a means for political gains. Environmental issues are still sometimes used as tools in political battles of local communities and parties.
Assessment of environmental assets and damages
Environmental assets
Slovenia is rich in natural capital. National parks provide special protection for particular areas (Triglav, Crkvinica). A new law is being prepared to protect rare species, large territories (such as parks), and different natural phenomena like the disappearing lake in the Karst region. There are suggestions to expand the national park system by adding seven of the most important areas of rich natural value. Some of Slovenia's rivers are well preserved (Soca, Krka and Kolpa). The alpine areas could also be an important source of clean drinking water. Wetlands are another natural value but there is a serious problem of protecting those in the vicinity of large towns like Koper, and along the Mura River.
Slovenia's natural beauty could bring financial benefits. The question is how to utilize this beauty properly, protect the resources, and ensure economic progress and human welfare at the same time. Slovenia has to base its development on agriculture and tourism. Two options are open: 1) to develop a tourist industry based on the seaside, or 2) to be an alpine country with a busy harbor. It is not yet decided which direction the country should take. So far, the tourist industry is in state hands. It is necessary to develop small-scale, quality opportunities for tourism, however, it must be regulated. In certain regions ecotourism is successful (Karst area) and it is possible to build upon this. The tourism sector does not yet fully appreciate the potential attraction of the country's valuable assets, therefore, it has not been able to properly market them. Slovenia could compete with Austria and Italy in this field. The Ministry of Economy is responsible for promoting tourism and they are cooperating to a certain extent with the MoE, but sometimes it is difficult for them to find a common language to use in setting goals.
Environmental damages
Acid rain caused by emissions from thermal power plants and automobiles is seriously damaging forest areas in the northeast and coastal areas of the country. Transboundary pollution from Italy is also contributes to poor air quality. Surface water is polluted due to the lack of wastewater treatment plants and solid waste disposal facilities. Groundwater is contaminated by the dumping of hazardous waste (Drasko Pole, Ptuj, Celje). Human health is currently effected by threats to drinking water coming from agricultural activities (fertilizers and pesticides) and industrial pollution. The most serious case in which human health was threatened occurred a few years ago on the Krupa River when there was an environmental catastrophe involving polychlorinated byphenols. Health effects of poor environmental conditions have also been documented in Kamnik, as air pollution from coal burning has led to respiratory illnesses especially among elderly people and children.
Priority environmental problems
Air quality
Air quality is not a problem in all areas of the country, however in some locations (comprising about 40% of the population) it is under acceptable standards. Air problems are especially intense in specific locations prone to temperature inversions in the winter. Valleys (including the capital area of Ljubljana) sometimes become inundated by smog resulting from the emissions of coal burning furnaces, industrial facilities and automobiles.
Hazardous, municipal and nuclear waste
Hazardous waste was reported as the next priority problem and it is a subject in which the general public has a special interest. Appropriate policies, as well as treatment and disposal facilities, are lacking. Currently the waste is stored on the sites of the facilities or dumped illegally. Proper management of municipal waste also poses considerable challenges. There are some pilot projects for waste management, recycling, and separate waste collection, but it takes time because a market has to be built up for the recycled products. The issue of nuclear waste also remains unresolved. New disposal sites are very much needed but citizens are strongly opposed to having such facilities located near their communities.
Water pollution
Water pollution is another serious environmental problem in Slovenia. Wastewater treatment facilities are lacking and improper disposal of wastes results in contaminated surface and groundwater.
Transport
Environmental problems related to transportation are also serious issues. There is the danger of constructing new highways from Italy to Austria and Hungary. Slovenia is becoming a transit country because of Austrian and Swiss restrictions on transport in their countries. The government has not been able to prevent this development. Highways are considered by many to be the ultimate solution to the problems of transport, development, and employment. There is assistance from the EU and soft pressures from Italy linked to the associated EU membership of Slovenia. There is the danger that motorways which are not needed in Slovenia will be built anyway to satisfy foreign demand. These highways are likely to endanger protected areas and may be built on first class agricultural soil. The Ministry of Health (which is currently lead by members of the Green Party) is trying to introduce health related environmental solutions to transportation problems.
Energy sector
The energy sector is the ultimate cause of many of Slovenia's environmental problems. Power production based on high sulphur coal is the dominant cause of air pollution and the nuclear plant poses long-lasting threats to air, soil and water. Currently energy is produced by three thermal power plants, a number of hydropower stations, and one nuclear power plant. The Krsko nuclear plant has been the subject of pointed public and political discussion and was a major item in the Greens' environmental program. Their suggestions to close the plant were not realistic according to the MoE, which is also in charge of nuclear safety. The ministry would like to assure the financial viability of the plant and see that it covers its costs. A fund will be set up to decommission the plant but it is not possible to stop operating it, as it is the single biggest source of energy, accounting for 25% of supply. Others suggest that it should be completely closed in two years if there are no funds because it will need renewal which costs a lot of money and the plant will not be profitable anyway. Slovenia is looking for alternative renewable energy sources (wood, solar energy, wind) and interested in constructing smaller capacity hydropower plants which do not damage nature so much.
Forest protection
More than half of Slovenia (53%) is covered by forests. Currently 63% of these areas are privately owned but the figure is expected to rise to around 80%. With privatization the forests will be exposed to new threats as their care and management become the responsibility of the private owners. Acid rain poses another risk to the health of the country's forests.
Critical steps to start or continue environmental improvements
Management and administration
Improvements in environmental management and administration are very much needed and accordingly the restructuring of the environmental administration is being finalized based upon the concept presented in the new environmental framework law. The MoE will be strengthened and new responsibilities (nature protection, construction permitting) will be added. According to the new structure the division of responsibilities between the different institutions dealing with environment will be clearly defined. Water management authority has already been passed to the association of municipal services. An environmental protection agency and environmental inspectorate will also be established. The agency will deal with monitoring, planning, preparing rehabilitation programs, enforcement, environmental permitting, EIA and will be responsible for environmental management in general. The inspectorate will have a controlling and enforcing role. An environmental fund will be established financed partly from the central budget, and partly from money generated through privatization. The fund should be operational from the beginning of 1994. A juridical reform is under way creating 42 regions and involving regulations of other fields which have an impact on the environmental sector. The MoE plans to further develop the national environmental strategy and other regulations. The Slovenian Environmental Project, financed by the World Bank, and other technical assistance programs will also be used for elaborating the overall strategy.
In conjunction with the above-mentioned changes in administration, goals and priorities for environmental protection need to be better formulated and identified. In this respect, the new environmental framework law should be very helpful. Experts with diverse backgrounds are needed at the management level. Environmental administrators also need to improve their abilities to communicate and cooperate with the public.
The division of responsibility between the national government and the local authorities in the environmental field is still a problem. There is inadequate cooperation between the two levels. The government cannot solve the local problems, but unfortunately the local communities are left to themselves without having the necessary resources. There is a need for more restrictive environmental policy at the local level. So many different interests are present at this level that decisions are often based on politics rather than expert information.
Enforceable environmental policy and law
The concept contained in the recently adopted environmental framework law is to lead to proper environmental policy and management. The necessary institutional framework for this is being created. Critical steps to build effective environmental policy which spells out the priorities, advantages, and assets are the following: changing the emphasis on the lawmaking approach to a policy-making approach; analyzing the state of the environment including the assessment of what has been done in the past three years, locating key environmental problems and elaborating solutions for them with expert involvement; creating functional and effective institutions at all levels; assessing foreign assistance programs; using environmental legislation and economic instruments as tools; reaching consensus with all interest groups and within the government to overcome the present sectoral divisions, and; strengthening public participation and better public communication.
Some of the above problems are already being addressed. Nevertheless, some key elements are missing like the identification of critical environmental problems and the elaboration of solutions based on a systemic approach (elaborating economic models for particular cases, setting up the necessary institutions, etc.). It is necessary to come to a common understanding about the environment. Presently the Ministries of Environment, Agriculture and Health all have different definitions.
The Slovenian Environmental Project, which is often mentioned as a strategy is, in fact, a program dealing with a few outstanding environmental issues. The Project has not been based on a methodology for establishing priorities. Some of the greatest environmental problems are included, but they are not prioritized. The Project was elaborated by the MoE, however, the parliament has never adopted it. The MoE is planning to prepare a National Environmental Strategy and to present it to the parliament by June of 1994.
The first crucial steps have been made toward effective environmental legislation. The basic framework law on environment has been adopted by the Parliament, but sectoral laws (such as nature protection) and regulations are still missing. Until these are adopted and methodologies (standards) to implement them elaborated, however, the framework law will not function properly. This might take 3-4 years. The parliament wants to adopt these regulations in a few months but this is not likely to happen. The concept of the framework law is considered good but it is impossible to enforce with the existing environmental administration. A complex and incremental approach would be needed in the implementation and enforcement. EIA will play a very important role in new management efforts. The new framework law prescribes EIA but it is still it is not widely used and should be implemented with urgency. Slovenia has already lost 3 years in implementing this very important instrument.
It is necessary to change the view that it is enough to have environmental laws without proper implementation and enforcement mechanisms. This lawmaking approach should be changed to a public participation and public communication approach. The framework law already exists, now public participation and education is needed. Many people are sceptical about the extent to which wider involvement of experts and NGOs will actually occur. These people do not expect quick change because currently only a very small group, consisting of government and parliamentary experts, is involved even in the preparation of the national environmental plan. A strategy is missing to bridge the gap between the public and the government. Also, there is a conflict within the government regarding enforcement of environmental laws. Currently the MoE participates in the process of drafting environmental law but it is not responsible for enforcing the laws once they are adopted.
Expertise and public support
The level of environmental training and education is relatively high in Slovenia but more has to be done. The framework exists for training, and in general, technical training is good but there is a need for training of specific environmental experts (i.e. environmental economists, environmental lawyers, etc.). Improved expertise is also needed for environmental managers in government, businesses and NGOs. Many specialized institutes exist with environmental experts, but the disciplines are closed and they are not interfaced with each other, thus coordination of knowledge and an integrative approach to problem-solving is missing.
Elementary schools have the choice to introduce alternative programs, including environmental education. There is a fear, however, that due to being included in the official state school system, these programs might lose their appeal. More support for out of school programs and alternative forms of education are needed. Many NGOs are involved in environmental education and public awareness raising programs. The media needs to present environmental issues in a format that is more attractive to the public.
In order to be able to implement laws and regulations, allies would be needed who have similar interests, but public participation is not functioning very effectively. The decision-making system is not as open as it could be and environmental experts and NGOs are not able to play as significant role as they probably should.
Technology and services
There are many enterprises in Slovenia still using outdated technologies. Slovenia is desperately in need of retrofitting many of its industrial facilities. It is necessary to train experts in how to use modern environmental protection methods and technologies. The general public also needs to be made aware of environmentally friendly products which exist. Without their cooperation it is difficult to make any serious progress. Western assistance is invited but there is a high concern about the import of dirty technologies. So far Slovenia has not been greatly endangered by dirty industries but the fear is there. The application of new technologies should be supported through economic and market instruments. A special association of environmental businesses has been created within the Chamber of Commerce to create a market for these industries and environmental services. Environmental consulting services are developing slowly but more experience and expertise is needed. New economic development is leading to small entrepreneurs producing eco-products, bio-products, eco-designs, eco-agriculture, etc., and these producers are looking for support. Unfortunately, policies or market regulations to support them are missing thus far.
Driving forces for environmental improvement and degradation
Privatization
Privatization is looked at in the short-term as a negative driving force on the state of the environment, because needed legislation to control it and safeguard environmental protection is lacking. The privatization law does not include clear regulations about who is responsible for past environmental damages, clean up, compliance schedules, application of environmentally friendly technologies, etc. The EC is providing some assistance with regards to environmental auditing in the privatization of some enterprises, but audits are not obligatory. In the long-term privatization could be positive if the above issues are properly dealt with.
Market economy reforms
Economic reforms could be a positive factor if the general process was directed in environmentally friendly ways, but if present trends are followed there is a high probability that environmental protection will not be a priority. Competition can be a negative driving force if businesses are looking only to profit as quickly as possible. Sometimes they present themselves as being "greener" than they actually are to improve their image. Also, Western firms are sometimes interested in exporting their dirty technologies or polluting activities to Slovenia to avoid stricter regulations in their own countries. The reforms also have positive effects, however, as the use of resources becomes more efficient, the focus on energy intensive heavy industry subsides, and modern environmentally friendly technologies become available.
Membership in the EC
Entering the EC will be a strong positive driving force towards environmental improvement, as Slovenia will have to comply with EC standards and Western environmental attitudes if it wants to export to those markets. The question is whether Slovenia will be able to enter the EC with the first group of CEE countries or not. Some fear that entering the EC will cause Slovenia to lose its independence in determining its own development path. Others are concerned about the effects EC membership will have on Slovenia's agricultural sector. It is feared that few farmers would survive if they had to operate under true free market conditions given the current level of state subsidies.
Western development patterns
With open borders and pervasive marketing Western products and lifestyles are becoming increasingly popular and bring new environmental problems. Automobile transportation is growing rapidly and Slovenia has become a transit route between Eastern and Western countries. Greatly increased exhaust emissions, more traffic jams, and growing pressure to construct highways result. Some environmentally harmful Western goods, such as throwaway packaging, have become much more common in Slovenia and the country is not prepared to deal with them (waste separation and recycling is largely lacking).
NGOs and environmental education
The activity of environmental NGOs is growing and becoming more effective in helping environmental improvements. Education and training in environmental issues are also positive factors. The University of Ljubljana established a postgraduate program in environmental protection to train students and teachers.
Integration of environmental protection and economic development
Obstacles to integration
Officially environmental protection is integrated with economic development but the practical signs of this are difficult to see. The various ministries having impacts on the environment do not work together as closely as they should and do not tackle environmental problems in a comprehensive way. The MoE has to fight with other ministries for the protection of environmental interests in other sectoral policies and this task is especially difficult as the MoE is considered to be relatively weak in comparison with them. Foreign assistance sometimes creates additional obstacles as there is not always a complex approach in evaluating all of the impacts of such assistance. Politicians do not fully appreciate the fact that Slovenia could profit greatly from integration of environment and economy in the long run, and they usually are concerned just with short-term interests.
Existing and proposed measures for improving integration
The prevailing liberal economic theory has to be transformed to become more environmentally sustainable. A legal framework has been provided for sustainable development but the concept needs to be put into actual practice. The polluter pays principle exists but enforcement must be improved if potential benefits are to be realized. Short-term thinking should be changed for long-term thinking. Environmental impact assessments are now required by the environmental framework law and these should be helpful in incorporating environmental concerns into economic activities.
Financing environmental improvements
Sources of funding
There is a decrease in funds available for environmental protection. In Slovenia some economic instruments were already in use in past years. An Ecofund existed in 1989-90 and was financed by a tax on water management and the use of the environment in air and waste fields. 33 million USD were collected. The previous government eliminated the fund, however, in 1990 and therefore Slovenia lost more than 60 million USD of potential funding in that time. Since then environmental projects have been funded from the state budget, fees and penalties paid by polluters and by foreign assistance programs. The new environmental law envisions the setting up of a new Environmental Fund. Some of the current major environmental projects are funded by Western assistance programs (World Bank, EBRD). Local communities receive revenues from industrial users of the environment and larger contributions are being sought from citizens to pay for certain environmental services such as waste management, water supplies and wastewater treatment and gasification.
The idea of utilizing economic instruments for environmental protection is widely accepted in Slovenia. The Environmental Fund should be operational from 1994. However, the Ministry of Finance is against earmarking separate funds for environmental purposes and would rather see the central budget and the banking system used in this regard. The economic instruments currently used (taxes, fees and penalties) serve more to augment the budget than to provide incentives for environmental protection. Increases in the energy prices are also considered as a possible way to generate funds and protect the environment.
International cooperation
CEE-regional cooperation
East-East cooperation should be strengthened more. There is a huge similarity of problems as well as accumulated knowledge that should be shared to the benefit of the region. There have been some cases of successful cooperation within the region but these were some years ago.
Western assistance
There have been both positive and negative experiences with Western assistance. It is positive that Western banks demand certain environmental plans and standards before supporting projects. It is negative that Western assistance is often more oriented towards opening markets for their own technologies, products and experts than towards meeting Slovenian needs. Also, in a few cases Western technology has been applied or promoted which was not appropriate for Slovenian needs.
The process of getting assistance should be more transparent, and the CEE countries (MoEs) should be more involved in the preparation of terms and selection of consultants. The success of the assistance depends on how much money can be spent in the recipient country and how much knowledge can be transferred. Local consultants should be involved in foreign assistance projects as much as possible. It is also sometimes a problem that foreign consultants working in Slovenia know very little about the country or the region as a whole.
Interest groups in environmental protection
National and Local Governments
National government has the strongest role in environmental decision-making. The MoE is the most substantial force pushing for environmental interests, but its impact is limited by other, mostly economic interests. There is also an increasing impact from the local government as some environmental responsibilities shift away from the state government.
Academics
Academicians do not have enough influence. The decision-making system insufficiently takes into consideration the opinion of a wider group of experts. Experts working in the institutes belonging to the ministries usually have more impact than other experts.
Environmental NGOs and the media
The NGOs play a positive role but their impact remains relatively weak. The NGO movement is evolving, new NGOs are being formed and their impact is growing. The media also plays a positive role but, likewise, its impact could be much stronger.
Parliament and political parties
The parliament does play a role but their decisions are often difficult to implement due to technical, administrative, financial and political problems. The Greens provided a certain alternative during the last government but they could not put into practice what they promised.
Businesses
They have a strong and increasing influence. There is an element of the business community which is internationally oriented and is coping with European standards and thus plays a positive role in improving the environment.
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