1. 1 NEXT GENERATION COMPLIANCE AND ENFORCEMENT BACK TO THE FUTURE Environmental Compliance Conference Auckland, 01 and 02 november 2015 Jo Gerardu, INECE creating value through compliance1

2. 2 MEETING THEME Focus on the future: Innovative approaches to environmental regulation creating value through compliance2

3. 3 THEME FOR THIS PRESENTATION creating value through compliance Considers environmental compliance and enforcement with a particular focus on the role of INECE and other environmental enforcement networks.

4. 4 KEY MESSAGE creating value through compliance You – are the beginning, middle and end of ‘next generation’ environmental compliance and enforcement. Because you are either: implementing the plans and activities that the previous generation mapped out; modifying those same plans of previous generations, based on new information, science, and research; actually shaping what is ‘next generation’ for the next generation of practitioners, managers and executives.

5. 5 THE FORMAT OF THIS PRESENTATION creating value through compliance Introductions a: The Netherlands b: your presenter Part 1 a: Brief history and overview of INECE b: INECE Products and Developments c: Networks and their enabling role Part 2 a: ‘Next Gen’ and Back to the Future b: Overview of ‘Next Gen’ conferences c: ‘Next Gen’ areas of focus and attention Part 3 a: Other matters not covered b: Next steps for practitioners and managers c: Concluding thoughts

6. 6 Introductions (a): THE NETHERLANDS, 41.000 km2 100 Million chickens 19 bicycles 16,95 inhabitants 13,7 pigs 8 cars 4 cattle 3,7 cats 2,2 dogs creating value through compliance6

7. 7 THE NETHERLANDS AND WATER creating value through compliance7

8. 8 THE NETHERLANDS BELOW SEA LEVEL creating value through compliance8

9. 9 THE NETHERLANDS IN 1799 creating value through compliance9

10. 10 THE NETHERLANDS IN 2001 creating value through compliance10

11. 11 WATER USE WORLDWIDE creating value through compliance11

12. 12 WATER CONSUMPTION IN THE NETHERLANDS Year 1995 1998 2001 2010 2013 Liter/day/capita 137,1 131,9 130,7 120,1118,9 creating value through compliance12

13. 13 Introductions (b): YOUR PRESENTER 21 years in the Dutch Environmental Ministry 30 years involved with INECE (as cofounder) 20+ years involvement with regional networks 8 year involvement and awareness of AELERT creating value through compliance13

14. 14 Introductions (b): YOUR PRESENTER Directness of The Dutch: The Dutch are renowned for speaking their minds. Outsiders often see this as being rude or tactless. Often seen as a cultural faux pas to not have an opinion. Some studies trace this directness back to the country’s history of Calvinism. But at least you know where you stand with the Dutch! creating value through compliance14

15. creating value through compliance Part 1a POLICY CYCLE OF WINSEMIUS, 1986 Seeing the problem Seeing the problem Analysis Measures Measures Implementation Enforcement Monitoring

16. 16 HISTORY OF INECE Two important international developments in 1985: 1) A research project on 3 national case studies by OECD on enforcement. 2) A Memorandum of Understanding between the US EPA and the Netherlands Environment Ministry with follow up seminars creating value through compliance16

17. 17 HISTORY OF INECE = Result was an international enforcement conference held in Utrecht, The Netherlands 1990 = INECE as a network was created creating value through compliance17

18. 18 INECE STRATEGIC GOALS Raise awareness of the importance of environmental compliance and enforcement Strengthen capacity throughout the regulatory cycle to implement and secure compliance with environmental requirements Develop networks for enforcement and compliance cooperation creating value through compliance18 OVERVIEW OF INECE

19. 19 Environmental compliance and enforcement are the foundation for the rule of law, good governance and sustainable development creating value through compliance19 INECE PYRAMID

20. 20creating value through compliance20 2009 2013 2015 Part 1b: INECE PRODUCTS AND DEVELOPMENTS 2008 Examples of recent products

21. 21 DEVELOPMENTS 9 INECE Conferences, each published proceedings. Producing 580 papers, prepared by the international audience. The most recent conference, Canada in 2011 – produced 60 papers and 12 summaries, (with 9 papers contributed by AELERT member agencies) creating value through compliance21

22. 22creating value through compliance22 Part 1c: NETWORKS AND THEIR ENABLING ROLE Compliance and Enforcement Networks: Informal or semi-formal cooperation platform. Run by compliance and enforcement professionals, for professionals. Directed towards improving standards of practice. Global, regional or topical focus.

23. 23creating value through compliance23 NETWORKS AND THEIR ENABLING ROLE Role and Function of Compliance and Enforcement Networks: Raise awareness of importance of effective environmental compliance and enforcement. Collect, define and exchange good (international) practices. Share expertise, tools and information. Join forces for education and training. Stimulate concrete cross-border collaboration.

24. 24creating value through compliance24 NETWORKS AND THEIR ENABLING ROLE Role and Function of Compliance and Enforcement Networks: The three types of networks: Enforcement networks Information networks Harmonization networks (Slaughter, 2004)

25. 25creating value through compliance25 SEAPORT ENVIRONMENTAL SECURITY NETWORK

26. 26creating value through compliance26 SEAPORT ENVIRONMENTAL SECURITY NETWORK

27. 27creating value through compliance27 SEAPORT ENVIRONMENTAL SECURITY NETWORK

28. 28 A RECENT ACADEMIC FOCUS ON NETWORKS AND COLLABORATION creating value through compliance28 October, 2015March, 2015 NETWORKS AND THEIR ENABLING ROLE

29. creating value through compliance29 Part 2a: ’NEXT GEN’ AND BACK TO THE FUTURE There are 3 important things about ‘Next Gen’ and ‘Back to the Future’: 1) We should be sure not to lose the core ideas and principles of our history. 2) We should also take advantage of the history of INECE involvement in some of the ‘new ideas’. 3) Use the value of INECE as a way to advance the new ideas.

30. creating value through compliance30 Part 2b: OVERVIEW OF ’NEXT GEN’ CONFERENCES Washington: March 26-27-2015: Advance monitoring, remote sensing and data gathering, analysis and disclosure in compliance and enforcement. Experts shared perspectives on next generation compliance tools and technologies. See: http://inece.org/2015/04/05/next-generation-compliance- conference-concludes-at-gw-law/

31. creating value through compliance31 OVERVIEW OF ’NEXT GEN’ CONFERENCES Rotterdam: 21 and 22 April 2015: Improving Environmental Performance Next Generation compliance, tools, theory and Practice: = Innovating environmental compliance assurance. = Novel insights and approaches from social science. = Staff Development. = Undertaking effective research.

32. creating value through compliance32 OVERVIEW OF ’NEXT GEN’ CONFERENCES Rotterdam (continued): Regulation as a learning system. Compliance and enforcement across borders and international cooperation. Ethical behaviour. Interventions. Self-regulation and self-policing. See:http://inece.org/wp- content/uploads/2015/05/NextGenSummaryReport_May2015.pdf

33. creating value through compliance33 OVERVIEW OF ’NEXT GEN’ CONFERENCES Bangkok: 21 - 23 September 2015 Next generation compliance in Asia A regional conference to discuss advances in environmental compliance in Asia National Enforcement Systems in Asian Countries How Next Generation Approaches can Improve Compliance Improving the Effectiveness of our Compliance Programs Role of the Public and the Regulated Community Advanced Monitoring Technologies for Detection of Violations Data collection, management and use See: http://www.aecen.org/node/1501

34. 34 Part 2c BACK TO THE FUTURE ’NEXT GEN’ AREAS OF FOCUS AND ATTENTION = New developments on a technical and technological scale. = Experiences for more than 20 years. = Proven motivational methods from social science to be used. = Awareness that not all companies can be inspected and some only occasionally. = Use of combinations of techniques and methods. creating value through compliance34

35. 35 INECE LONG TERM CONTRIBUTION creating value through compliance35 Key areas for further INECE contributions to Next Generation Approaches: 1. Relating past lessons to contemporary thinking. 2. Design of law and regulations to maximize compliance 3. Technology transfer through networking, training and capacity building. 4. Combine these lessons learned with new technology and techniques. 5. A community for the intersection of governments, academics, NGO's, and civil society around Next Generation ideas. 6. Empowering public involvement through information and transparency.

36. creating value through compliance36 NEXT GENERATION THINKING DOES NOT NEXT GENERATION THINKING DOES NOT. = Reject the value of deterrence theory. = Diminish the role of government enforcers. = Alter the critical need for adequate trained enforcement resources. = Negate the importance of a level playing field. = Contradict the sound principle of enforcement and compliance that have provided the core approach for the national governments involved in environmental protection. = Underestimate the role of technology and technical developments..= =

37. creating value through compliance37 Part 3b: NEXT STEPS FOR PRACTIONERS AND MANAGERS International developments Fact and figures Why was INECE successful Targeted approaches Staff development International cooperation Research

38. 38 INTERNATIONAL DEVELOPMENTS In 1992 the UN conference in Rio de Janeiro, Brazil stated in Agenda 21 Section 8.21. Each country should develop integrated strategies to maximize compliance with its laws and regulations relating to sustainable development, with assistance from international organizations and other countries as appropriate. The strategies could include: (a)Enforceable, effective laws, regulations and standards that are based on sound economic, social and environmental principles and appropriate risk assessment, incorporating sanctions designed to punish violations, obtain redress and deter future violations; (b)Mechanisms for promoting compliance; Creating value through compliance38

39. 39 INTERNATIONAL DEVELOPMENTS Agenda 21, Section 8.21 (continued). (c) Institutional capacity for collecting compliance data, regularly reviewing compliance, detecting violations, establishing enforcement priorities, undertaking effective enforcement, and conducting periodic evaluations of the effectiveness of compliance and enforcement programmes; (d)Mechanisms for appropriate involvement of individuals and groups in the development and enforcement of laws and regulations on environment and development; and (e) National monitoring of legal follow-up to international instruments. Creating value through compliance39

40. 40 CHESTER BOWLES * Estimating that: = 20% of the regulated population automatically complies with any regulation = 5% attempts to evade it, and the remaining = 75% complies as long as they think that the 5% will be caught and punished * MY YEARS IN PUBLIC SERVICE, 1941-1969, 25, (1971) creating value through compliance40

41. 41 WHY WAS INECE SUCCESSFUL = We had managers that had vision and awareness. = They were able to influence political leaders. = The managers trusted and motivated their personnel. = The environmental situation asked for action on national and international level. creating value through compliance41

42. 42 TARGETED APPROACHES Effective regulation requires: = approaches differentiated with regard to levels of potential for self-regulation and compliance assurance; = based on thorough understanding of social and behavioural aspects of regulation and compliance. creating value through compliance42

43. 43 STAFF DEVELOPMENT While next generation compliance has benefited from advances in technological and social science aspects, the human aspect and importance of staff development within environmental regulatory agencies should stay a priority too. creating value through compliance43

44. 44 INTERNATIONAL COOPERATION Given the local, national, regional, and international dimensions of environmental compliance and enforcement work, international cooperation and environmental enforcement networks are vital to achieving environmental protection. creating value through compliance44

45. 45 RESEARCH The complexity of issues facing regulators and the fact that they involve economic, social, environmental and political aspects, means that robust and reliable research and data is required to validate regulatory responses. creating value through compliance45

46. creating value through compliance46 Part 3c: CONCLUDING THOUGHTS – Thought 1: ‘Think outside the box’

47. 47 CONCLUDING THOUGHTS – Thought 2: RECALLING MY KEY MESSAGE creating value through compliance You – are the beginning, middle and end of ‘next generation’ environmental compliance and enforcement. Because you are either: implementing the plans and activities that the previous generation mapped out; modifying those same plans of previous generations, based on new information, science, and research; actually shaping what is ‘next generation’ for the ext generation of practitioners, managers and executives. So what are you going to do about it?

48. 48 CONCLUDING THOUGHTS – Thought 3: Opportunities for Participation Visit the INECE Web Site Register to receive news and updates at http://inece.org http://inece.org Call for articles for the INECE web site: send short articles to inece@inece.org for the correspondents programinece@inece.org creating value through compliance48

49. 49 CONCLUDING THOUGHTS – Thought 4: Further Information: NEXT GENERATION ENVIRONMENTAL COMPLIANCE AND ENFORCEMENT: BACK TO THE FUTURE Jo Gerardu, Marcia Mulkey and Grant Pink With this presentation delivered, the recently completed paper above will now be submitted to the AELERT Research and Publications Initiative, the NZPI web site and a summary overview prepared for the INECE Correspondents Program. Further, it is our hope and aim that this paper together with the ideas and discussions generated from this conference will prompt you and your agencies to start capturing, documenting and sharing your stories for future generations. creating value through compliance49

50. 50 ACKNOWLEDGEMENTS I would like to thank: Marcia Mulkey, Visiting Scholar Temple University’s Beasley School of Law, USA; and Grant Pink, Adjunct Research Fellow, School of Law, University of New England, AUS. Marcia and Grant provided me with assistance and invaluable advice on earlier drafts of this presentation based upon their experiences in environmental compliance and enforcement and long standing and extensive involvement with INECE. creating value through compliance50

51. 51 CONTACT INFORMATION Durwood Zaelke Director of the INECE Secretariat Washington D.C. Phone: 1-202-338-1300 Email: inece@inece.orginece@inece.org gerardu@inece.org creating value through compliance51