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BOX 5: Investment implications of the IPPC Directive
Integrated Pollution Prevention and Control (IPPC) Directive 8
The directive replaces Council Directive 96/61/EC of September 24, 1996 on
the same subject. The purpose of the directive is to achieve the integrated prevention
and control of pollution arising from a range of listed activities. It lays down
measures to prevent or reduce emissions to air, water and land from these activities,
including measures on waste, in order to achieve a high level of protection for the
environment as a whole. The IPPC Directive represents a major change in the permitting
system for certain installations. It introduces an integrated permitting system
for industrial and agricultural activities with a high pollution potential. The
permit must contain specific conditions including emission limit values and the
application of best available techniques (BAT), and can only be issued if certain
environmental conditions are met. The companies themselves bear responsibility
for preventing and reducing any pollution they may cause. This includes using all
appropriate pollution-prevention measures — preventing all large-scale pollution;
avoiding waste production; using energy efficiently; and ensuring accident prevention
and damage limitation.
Implementing the directive
Implementing the IPPC Directive entails setting up, or restructuring, a regulatory
body (e.g. a competent authority) and any agencies that it might require.
It also requires drawing up an IPPC inventory and assessing the current situation.
Guidance documents on IPPC principles and the use of BAT must be provided.
The IPPC Directive specifies that permit conditions should include
emission limit values for various pollutants, in particular the main air-polluting
substances listed in Annex III.
General observations
• The EU waste policy is based on the waste hierarchy: the options range from
prevention as the most favourable, to the least favourable — landfilling.
• The Waste Framework Directive is not associated with significant capital costs.
Costs are related to the provision of an adequate institutional structure, the establishment
of competent authority/ies, and the preparation of waste manage-
C H A P T E R 4
E C O N O M I C D E V E L O P M E N T A N D T H E E U A C C E S S I O N P R O C E S S
The IPPC Directive imposes extensive obligations and substantial costs on industry and the government at all levels.
However, the investment implications of compliance for industry will be far greater than the direct costs of
implementing the legislation. Investments related to enforcement include mainly the setting up and operation
of the necessary institutional framework and authorities; the development of guidance documents; the training
of staff and inspectors etc.
S T R AT E G I C M O V E S 87