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2024 | OriginalPaper | Buchkapitel

Environmental Liabilities and Insurance Law in the European Union

verfasst von : Valerie Fogleman

Erschienen in: Managing Environmental Risks through Insurance

Verlag: Springer Nature Switzerland

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Abstract

Each Member State of the European Union (EU) imposes tort liability, including liability from exposure to pollutants and other environmental damage. The liabilities are set out in civil codes, laws of obligations, and similar legislation. Some Member States include liability for pure economic loss as well as bodily injury and property damage. In addition, many Member States impose liability for remediating historic land contamination that continues to pose a risk to human health and the environment.

The predominant environmental permitting legislation in the EU is EU legislation, which is accompanied in most Member States by more extensive national environmental permitting legislation and, in some Member States, environmental liability legislation. Since 2007, EU legislation has imposed liability for preventing and remediating pollution and other environmental damage including damage to natural resources.

Insurance that provides cover for environmental liabilities, including tort claims and costs of remediating environmental damage, differs substantially between Member States. Whereas large and multinational companies tend to have no problem in purchasing environmental insurance policies, the policies are not always available to companies that have sites and/or operations in a single Member State. The policies are widely available to such companies in some Member States but available only to a limited extent or not at all in other Member States. Environmental extensions to general liability policies tend to be widely available in most Member States with the caveat that cover provided by them is limited or severely limited except in Austria and Germany.

A few Member States have imposed mandatory financial security for the prevention and remediation of environmental damage under EU legislation. A much larger number have imposed mandatory financial security on persons that carry out waste operations or other specified operations. The requirements differ substantially between Member States.

This chapter examines EU and national environmental liabilities, insurance for such liabilities, and mandatory financial security for them.

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Vorheriges Kapitel Global Governance of the Environment and Implications for the Insurance Industry

Nächstes Kapitel Environmental Liabilities and Insurance Law in the United Kingdom

This chapter uses the words ‘contamination’ and ‘pollution’ to refer to damage to land/soil and the word ‘pollution’ to refer to damage to water and air. The use of the two words is not intended to denote different meanings between them.

Directive 2004/35/EC on environmental liability with regard to the prevention and remedying of environmental damage [2004] OJ L143/56 (consolidated version); https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02004L0035-20190626&qid=1568193390794&from=EN (accessed on 10.05.2023).

Palmer and Bussani (2007); see also Bussani et al. (2003), p. 113.

van Boom (2004), p. 17.

See Koziol (2012); https://www.jan-sramek-verlag.at/fileadmin/user_upload/Koziol_ComparaTortLaw_Eng_0040_2_DRUCK_eBook.pdf (accessed on 10.05.2023).

See Koziol (2008), p. 748.

See Hoffman (1991), pp. 487, 498 footnote 37.

See Schreier (2020), p. 65, section 3.1; see also Fogleman (2020), section 3.7.2; https://circabc.europa.eu/ui/group/3b48eff1-b955-423f-9086-0d85ad1c5879/library/7d116574-6f1e-47ee-a8d6-b809f1b82b5a?p=1&n=-1&sort=name_ASC (scroll down to ‘Study – Financial Security for ELD Liabilities (2020) – reports per Member State’) (accessed on 10.05.2023).

Proposal for a Directive of the European Parliament and of the Council establishing a framework for the protection of soil and amending Directive 2004/35/EC (COM(2006) 232 final, 22 September 2006); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52006PC0232 (accessed on 10.05.2023).

European Commission, Withdrawal of Obsolete Commission Proposals [2014] OJ C153/3; http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C:2014:153:FULL&from=EN (accessed on 10.05.2023).

See Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, The implementation of the Soil Thematic Strategy and ongoing activities (COM)2012, 46 final, section 2.4; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52012DC0046 (accessed on 10.05.2023); see also Heuser (2022), p. 100,053, section 5; https://www.sciencedirect.com/science/article/pii/S266700622200020X (accessed on 10.05.2023).

Church and Nakamura (1994), pp. 41–42; Ministry of the Environment (2003).

See Lewis (1983) http://www.nytimes.com/1983/02/20/weekinreview/following-us-europe-awakens-to-the-dangers-of-toxic-wastes.html (accessed on 10.05.2023); see also Betlem (1995), p. 289, 294.

See Lewis (1983) http://www.nytimes.com/1983/02/20/weekinreview/following-us-europe-awakens-to-the-dangers-of-toxic-wastes.html (accessed on 10.05.2023); Baltic Environment and Energy, Swedish Environmental Policies, History and present regulations (2007), p. 5; see also Fogleman 2015, pp. 42–61.

The following discussion on the contaminated land regimes of Member States is drawn in particular from Fogleman (2021), pp. 100–104; https://ec.europa.eu/environment/legal/liability/pdf/study/FinalReport.PDF (accessed on 10.05.2023) (click on ‘Studies’ and then ‘Study – Facilitating enforcement of the ELD by competent authorities (2021) – Final Report’ and ‘Studies’ and then ‘Study – Facilitating enforcement of the ELD by competent authorities (2021) – Member State Report’.

Article 15.5 of the Irish Constitution states, in pertinent part, that Parliament ‘shall not declare acts to be infringements of the law which were not so at the date of their commission’. See Magee v Culligan [1992] 1 IRLM 223 (per Finlay CJ; provision applies to civil as well as criminal liability).

Pérez and Eugenio (2018), p. 44; https://publications.jrc.ec.europa.eu/repository/handle/JRC107508 (accessed on 10.05.2023).

Base des sols pollués (BASOL); https://www.data.gouv.fr/en/datasets/base-des-sols-pollues/#description (accessed on 10.05.2023) (in French); see also Darmendrail (2010), p. 277; https://www.researchgate.net/publication/280784366_The_French_approach_to_contaminated_land_management_Legal_framework_and_reclamation_of_former_industrial_sites_in_urban_areas/link/566aa29c08aea0892c4a4ac6/download (accessed on 10.05.2023).

Inventaire des sites pollués (BASIAS); https://www.data.gouv.fr/en/datasets/inventaire-des-sites-pollues/ (in French) (accessed on 10.05.2023).

Directive 2010/75/EU on industrial emissions (integrated pollution prevention and control) [2010] OJ L158/25 (consolidated version); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02010L0075-20110106 (accessed on 10.05.2023).

Directive (2012/18/EU) on the control of major-accident hazards involving dangerous substances [2012] OJ L197/1; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32012L0018 (accessed on 10.05.2023).

Directive 2008/98/EC on waste [2008] OJ L312/3, as amended (consolidated version); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02008L0098-20180705 (accessed on 10.05.2023).

Council Directive 96/61/EC concerning integrated pollution prevention and control [1996] OJ L257/26 (repealed); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A31996L0061 (accessed on 10.05.2023).

Directive 2008/1/EC concerning integrated pollution prevention and control [2008] OJ L24/8, art 14(b) (consolidated version) (repealed); https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32008L0001&from=EN (accessed on 10.05.2023).

Ibid., Article 14(b).

Ibid., Article 3(5).

See Proposal for a Directive of the European Parliament and the Council amending Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) and Council Directive 1999/31/EC of 26 April 1999 on the landfill of waste (COM(2022) 156 final, 5 April 2022), explanatory memorandum, section 1; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52022PC0156R%2802%29&qid=1651130627889 (accessed on 10.05.2023).

Ibid.

Council Directive 82/501/EEC on the major-accident hazards of certain industrial activities [1982] OJ L230/1 (repealed); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:31982L0501 (accessed on 10.05.2023).

Council Directive 96/82/EC on the control of major-accident hazardous involving dangerous substances [1996] OJ L10 (consolidated version) (repealed); https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:01996L0082-20120813&from=EN (accessed on 10.05.2023).

Case C-1/03 Van de Walle v Texaco Belgium SA [2004] ECR I-7613, paras 47–50; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A62003CJ0001 (accessed on 10.05.2023).

Ibid., para 60.

Case C-188/07 Commune de Mesquer v Total France SA [2008] ECR I-4501, paras 57–59; https://curia.europa.eu/juris/liste.jsf?language=en&num=C-188/07 (accessed on 10.05.2023).

Ibid., para 82.

Directive 2011/92/EU on the assessment of the effects of certain public and private projects on the environment (codified version) [2011] OJ L26 (as amended by Directive 2014/52/EU); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02011L0092-20140515 (accessed on 10.05.2023).

Ibid., Article 3(3); ibid., Recital 14.

Directive 2000/60/EC establishing a framework for Community action in the field of water policy [2000] OJ L327/1 (consolidated version); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02000L0060-20141120 (accessed on 10.05.2023).

Directive 2008/56/EC establishing a framework for community action in the field of marine environmental policy [20008] OJ L164/19 (consolidated version); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02008L0056-20170607 (accessed on 10.05.2023).

Directive 2009/147/EC on the conservation of wild birds [2010] OJ L20/7 (codified version); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32009L0147 (accessed on 10.05.2023).

Council Directive 92/43/EEC on the conservation of natural habitats and of wild fauna and flora [1992] OJ L206/7 (consolidated version); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:01992L0043-20130701 (accessed on 10.05.2023).

Case C-297/19 Naturschutzbund Deutschland — Landesverband Schleswig-Holstein eV v Kreis Nordfriesland ECLI:EU:C:2020:533; https://curia.europa.eu/juris/documents.jsf?num=C-297/19 (accessed on 10.05.2023).

ELD Article 2(1)(c).

Ibid., Article 2(1)(b).

Commission Notice, Guidelines providing a common understanding of the term ‘environmental damage’ as defined in Article 2 of Directive 2004/35/EC of the European Parliament and of the Council on environmental liability with regard to the prevention and remedying of environmental damage 2021/C 118/01 [2021] OJ C118/1, para 151; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52021XC0407%2801%29&qid=1617956961808 (accessed on 10.05.2023).

Ibid., para 151.

ELD Article 2(1)(a).

Commission Notice, C118/23 – C118/24, para 118.

ELD Article 2(1)(a).

Ibid., Article 9.

Ibid., Annex II, Section 2.

Ibid., Sect. 1(a).

Ibid., Sect. 1(b).

Ibid., Sections 1(c) and (d).

Ibid., Article 5(1).

Ibid., Article 5(2).

Ibid., Article 6(1).

Ibid., Article 6(1)(a).

Ibid., Article 4; Annexes IV and V.

Ibid., Article 8(3).

Ibid., Article 8(4)(a).

Ibid., Article 8(4)(b).

Ibid., Article 12.

Case C-529/15 Folk v Unabhängiger Verwaltungssenat für die Steiermark ECLI:EU:C:2017:419; https://curia.europa.eu/juris/liste.jsf?num=C-529/15 (accessed on 10.05.2023).

ELD Article 12.

Ibid., Article 13.

Ibid., Article 14(1).

Pérez and Eugenio (2018), p. 18; https://publications.jrc.ec.europa.eu/repository/handle/JRC107508 (accessed on 10.05.2023).

The following discussion on the contaminated land regimes of Member States is drawn in particular from Valerie Fogleman, Improving financial security in the context of the Environmental Liability Directive (ELD); https://circabc.europa.eu/ui/group/3b48eff1-b955-423f-9086-0d85ad1c5879/library/01708073-da51-4db7-8049-6e7141c901f4/details?download=true (scroll down to ‘Study – Financial Security for ELD Liabilities (2020) – Final Report’) (accessed on 10.05.2023).

Assurpol; http://www.assurpol.fr/fr/ (in French) (accessed on 10.05.2023).

Il Pool Ambiente è il Consorzio per l’Assicurazione e la Riassicurazione della Responsabilità per Danni all’Ambiente; https://www.poolambiente.it/ (in Italian) (accessed on 10.05.2023).

Qué es el Pool de Riesgos Medioambientales?; https://www.estamos-seguros.es/que-es-el-pool-de-riesgos-medioambientales/ (in Spanish) (accessed on 10.05.2023).

Harvard Business School (2013). Self-insurance involves a large company setting aside funding for losses in the event of an unanticipated event such as a pollution incident.

See Marsh (2015), pp. 2–3; https://www.marsh.com/content/dam/marsh/Documents/PDF/UK-en/EMEA%20Environmental%20Benchmarking%20Report%202015-11-2015.pdf (accessed on 10.05.2023).

Marsh Environmental Market Update (2016); https://www.marsh.com/content/dam/marsh/Documents/PDF/UK-en/EMEA%20Environmental%20Market%20Update.pdf (accessed on 10.05.2023).

AIG (2018); https://www.aig.co.uk/content/dam/aig/emea/united-kingdom/documents/Insights/eil-claims-2018-uk.pdf (accessed on 10.05.2023).

See Fogleman (2020), pp. 179–183; https://circabc.europa.eu/ui/group/3b48eff1-b955-423f-9086-0d85ad1c5879/library/01708073-da51-4db7-8049-6e7141c901f4/details?download=true (scroll down to ‘Study – Financial Security for ELD Liabilities (2020) – Final Report’) (accessed on 10.05.2023).

Council Directive 1999/31/EC on the landfill of waste [1999] OJ L182/1; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:31999L0031 (accessed on 10.05.2023).

Directive 2016/21/EC on the management of waste from extractive industries [2016] OJ L102/15; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02006L0021-20090807 (accessed on 10.05.2023).

Directive (2009/31/EC) on the geological storage of carbon dioxide [2009] OJ L140/114; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32009L0031 (accessed on 10.05.2023).

Regulation (EC) No 1013/2006 on shipments of waste [2006] OJ L190/1 (consolidated version); https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1454069470717&uri=CELEX:02006R1013-20180101.

Directive 2012/19/EU on waste electrical and electronic equipment [2012] OJ L197/38; https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32012L0019 (accessed on 10.05.2023).

Directive 2013/59/Euratom laying down basic safety standards for protection against the dangers arising from exposure to ionising radiation [2013] OJ L013/1; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02013L0059-20140117 (accessed on 10.05.2023).

The information concerning the number of Member States as well as the information on mandatory financial security systems for ELD liabilities below is drawn in particular from Fogleman (2020)’; https://circabc.europa.eu/ui/group/3b48eff1-b955-423f-9086-0d85ad1c5879/library/01708073-da51-4db7-8049-6e7141c901f4/details?download=true (scroll down to ‘Study – Financial Security for ELD Liabilities (2020) – Final Report’) (accessed on 10.05.2023).

See European Standards 150,008:2008, Environmental risk analysis and assessment; https://www.en-standard.eu/une-150008-2008-environmental-risk-analysis-and-assessment/ (accessed on 10.05.2023).

Regulation (EC) No 1221/2009 on the voluntary participation by organisations in a Community eco-management and audit scheme (EMAS) [2009] OJ L342/1 (consolidated version); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009R1221-20190109 (accessed on 10.05.2023).

An ISO 14001 is an environmental management system certified by the International Organisation for Standardisation (ISO).

Siti di interesse nazionale are historically contaminated sites subject to State control.

Decreto legislativo 3 aprile 2006, No 152; https://www.gazzettaufficiale.it/atto/serie_generale/caricaDettaglioAtto/originario?atto.dataPubblicazioneGazzetta=2006-04-14&atto.codiceRedazionale=006G0171 (in Italian). An unofficial version of the Environmental Code is available at https://www.bosettiegatti.eu/info/norme/statali/2006_0152.htm (in Italian) (accessed on 10.05.2023).

Case C-1/03 Van de Walle v Texaco Belgium SA [2004] ECR I-7613; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A62003CJ0001. Accessed on 10 May 2023

Case C-188/07 Commune de Mesquer v Total France SA [2008] ECR I-4501; https://curia.europa.eu/juris/liste.jsf?language=en&num=C-188/07. Accessed on 10 May 2023

Case C-529/15 Folk v Unabhängiger Verwaltungssenat für die Steiermark ECLI:EU:C:2017:419; https://curia.europa.eu/juris/liste.jsf?num=C-529/15. Accessed on 10 May 2023

Magee v Culligan [1992] 1 IRLM 223

Commission Notice, Guidelines providing a common understanding of the term ‘environmental damage’ as defined in Article 2 of Directive 2004/35/EC of the European Parliament and of the Council on environmental liability with regard to the prevention and remedying of environmental damage 2021/C 118/01 [2021] OJ C118/1; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52021XC0407%2801%29&qid=1617956961808

Directive 2008/56/EC establishing a framework for community action in the field of marine environmental policy [20008] OJ L164/19 (consolidated version.); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02008L0056-20170607

Constitution of Ireland; https://www.irishstatutebook.ie/eli/cons/en/html

Council Directive 1999/31/EC on the landfill of waste [1999] OJ L182/1; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:31999L0031

Council Directive 82/501/EEC on the major-accident hazards of certain industrial activities [1982] OJ L230/1 (repealed); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:31982L0501

Council Directive 96/61/EC concerning integrated pollution prevention and control [1996] OJ L257/26 (repealed); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A31996L0061

Directive (2009/31/EC) on the geological storage of carbon dioxide [2009] OJ L140/114; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32009L0031

Directive (2012/18/EU) on the control of major-accident hazards involving dangerous substances [2012] OJ L197/1; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32012L0018

Directive 2008/98/EC on waste [2008] OJ L312/3, as amended (consolidated version); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02008L0098-20180705Directive 2009/147/EC on the conservation of wild birds [2010] OJ L20/7 (codified version); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32009L0147

Directive 2012/19/EU on waste electrical and electronic equipment [2012] OJ L197/38; https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32012L0019

Directive 2016/21/EC on the management of waste from extractive industries [2016] OJ L102/15; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02006L0021-20090807

European Commission, Proposal for a Directive of the European Parliament and of the Council establishing a framework for the protection of soil and amending Directive 2004/35/EC (COM(2006) 232 final, 22 September 2006.); https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52006PC0232

European Commission, Proposal for a Directive of the European Parliament and the Council amending Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) and Council Directive 1999/31/EC of 26 April 1999 on the landfill of waste (COM(2022) 156 final, 5 April 2022), explanatory memorandum, section 1; https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52022PC0156R%2802%29&qid=1651130627889

Regulation (EC) No 1013/2006 on shipments of waste [2006] OJ L190/1 (consolidated version); https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1454069470717&uri=CELEX:02006R1013-20180101

Base des sols pollués (BASOL); https://www.data.gouv.fr/en/datasets/base-des-sols-pollues/#description (in French)

Inventaire des sites pollués (BASIAS); https://www.data.gouv.fr/en/datasets/inventaire-des-sites-pollues/ (in French)

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Harvard Business School (2013) Environmental Risk Management; A Report by Harvard Business Review Analytical Services

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Titel: Environmental Liabilities and Insurance Law in the European Union
verfasst von: Valerie Fogleman
Verlag: Springer Nature Switzerland
Buch: Managing Environmental Risks through Insurance
Print ISBN: 978-3-031-47601-3

Electronic ISBN: 978-3-031-47602-0

Copyright-Jahr: 2024
DOI: https://doi.org/10.1007/978-3-031-47602-0_3

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