Do you know if your company is required to establish a financial guarantee to cover potential environmental damages?
Law 26/2007 on Environmental Responsibility, which transposed Directive 2004/35/EC, introduced a new administrative regime of environmental responsibility derived from the European Union framework on damage prevention and the 'polluter pays' principle.
Since then, companies within the European Union have faced more stringent environmental legislation aimed at ensuring that measures are adopted to prevent and avoid unwanted effects on the environment. In the event that such effects do occur, the entity responsible for the damage is required to bear the economic cost of the necessary measures to repair it.
One of the most significant aspects of this legislation (and all subsequent regulations developed on this matter) is that all activities listed in Annex III of Law 26/2007 are required to have a financial guarantee in place to cover any incidents associated with their activities that may cause environmental damage.
Specifically, the affected activities must conduct an Environmental Risk Assessment (ERA) for each facility, in accordance with Standard 150.008:2008 or a similar standard. While the Environmental Risk Assessment is mentioned in the regulation as a necessary tool for calculating the financial guarantee and might be interpreted as its sole purpose, its true aim is preventive. It should be used to analyze and assess the environmental risks of an activity and establish the foundation for effective management, facilitating decision-making in this area to reduce such risks.
CIRCE can assist you in conducting environmental risk assessments to determine if you are required to establish a financial guarantee
The latest order, published last October, mandates that activities listed in Annex III of Law 26/2007 must establish a financial guarantee by 2021, which requires an Environmental Risk Assessment to be conducted beforehand. For facilities involved in the intensive rearing of poultry or pigs, this requirement is extended by one additional year.
If your company is affected by the Environmental Responsibility Law, don't hesitate to contact us through our contact section. Our technical team will provide guidance and support to ensure you meet all the necessary requirements.
