1. Convergence of Ukrainian Legislation to EU Directives in Environment Kiev, 16 October, 2013 Jerzy Sarnacki – Environmental Legal Expert COMPLEMENTARY SUPPORT TO THE MINISTRY OF ECOLOGY AND NATURAL RESOURCES OF UKRAINE FOR THE SECTOR BUDGET SUPPORT IMPLEMENTATION

2. Formal and legal basis 2 EU-Ukraine Association Agenda - Enhanced cooperation in some 28 key sector policy areas including Environment – Chapter 6 Ukraine signed the Energy Community Treaty - in September 2010, ratified the agreement and became full right member in February 2011 – obligation to implement a number of directives Initialling the text of the EU Ukraine Association Agreement in March 2013

3. Directives included in the Annex to EU Ukraine AA 3 SECTORDIRECTIVES Environmental governance and integration of environment into other policy areas Directive 85/337/EEC on the assessment of the effects of certain public and private projects on the environment as amended by Directives 97/11/EC and 2003/35/EC* Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment Directive 2003/4/EC on public access to environmental information and repealing Directive 90/313/EEC Directive 2003/35/EC providing for public participation in respect of the drawing up of certain plans and programmes relating to the environment and amending with regard to public participation and access to justice Directives 85/337/EEC and 96/61/EC SECTORDIRECTIVES Air Quality Directive 2008/50/EC on ambient air quality and cleaner air for Europe Directive 2004/107/EC relating to arsenic, cadmium, mercury, nickel and polycyclic aromatic hydrocarbons in ambient air Directive 98/70/EC relating to the quality of petrol and diesel fuels and amending Directive 93/12/EEC as amended by Directives 2000/71/EC, 2003/17/EC and 2009/30/EC and Regulation (EC) 1882/2003 Directive 1999/32/EC on reduction of sulphur content of certain liquid fuels and amending Directive 93/12/EC as amended by Regulation (EC) 1882/2003 and Directive 2005/33/EC* Directive 94/63/EC on the control of volatile organic compound (VOC) emissions resulting from the storage of petrol and its distribution from terminals to service stations as amended by Regulation (EC) 1882/2003 Directive 2004/42/EC on the limitation of emissions of volatile organic compounds due to the use of organic solvents in certain paints and varnishes and vehicle refinishing products and amending Directive 1999/13/EC

4. 4 SECTORDIRECTIVES Waste and Resource Management Directive 2008/98/EC on waste Directive 1999/31/EC on the landfill of waste as amended by Regulation (EC) 1882/2003 Directive 2006/21/EC on the management of waste from extractive industries and amending Directive 2004/35/EC SECTORDIRECTIVES Water Quality and resource management, including marine environment Directive 2000/60/EC establishing a framework for Community action in the field of water policy as amended by Decision No 2455/2001/EC Directive 2007/60/EC on the assessment and management of flood risks Directive 2008/56/EC Directive establishing a framework for Community action in the field of marine environmental policy Directive 91/271/EEC on urban waste water treatment as amended by Directive 98/15/EC and Regulation (EC) 1882/2003 Directive 98/83/EC on quality of water intended for human consumption as amended by Regulation (EC) 1882/2003 Directive 91/676/EC concerning the protection of waters against pollution caused by nitrates from agricultural sources as amended by Regulation (EC) 1882/2003 Directives included in the Annex to EU Ukraine AA

5. 5 SECTORDIRECTIVES Nature protection Directive 79/409/EEC on protection of wild birds as amended by Directives 81/854/EEC, 85/411/EEC, 86/122/EEC, 91/244/EEC, 94/24/EC, 97/49/EC, 2006/105/EC and Regulation (EC) 807/2003 Directive 92/43/EC on the conservation of natural habitats and of wild fauna and flora as amended by Directive 97/62/EC, 2006/105/EC and Regulation (EC) 1882/2003 SECTORDIRECTIVES Industrial pollution and industrial hazards Directive on industrial emissions 2010/75/EU (IED) Directive 96/82/EC on the control of major accident hazards involving dangerous substances as amended by Directive 2003/105/EC and Regulation (EC) 1882/2003 SECTORDIRECTIVES Climate change and protection of the ozone layer Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Directive 96/61/EC as amended by Directive 2004/101/EC. Regulation (EC) 842/2006 on certain fluorinated greenhouse gases Regulation (EC) 2037/2000 on substances that deplete the ozone layer as amended by Regulations (EC) 2038/2000, (EC) 2039/2000, (EC) 1804/2003, (EC) 2077/2004, (EC) 29/2006, (EC) 1366/2006, (EC) 1784/2006, (EC) 1791/2006 and (EC) 2007/899 and Decisions 2003/160/EC, 2004/232/EC and 2007/54/EC Directives included in the Annex to EU Ukraine AA

6. 6 Regulation no. 571 of the Ministry of Ecology and Natural Resources – on preparation of baseline environmental plan for adaptation of Ukraine's legislation to the European Union (legal aspects) Cabinet of Ministers of Ukraine, Ordinance on March 28, 2012 № 156-p - on approval of National Program Adaptation of Ukraine EU legislation Legal Basis Baseline plan for adaptation of environmental legislation of Ukraine to the legislation of the European Union (Baseline approximation plan) was approved by Order of the MENR No. 659 of December 17, 2012

7. 7 December 2010, the European Commission and the Ukrainian Government signed a Financing Agreement by which both sides are committed to implement Environment Sector Budget Support Programme (35.0 M€) Overview of the legislation in environment and Baseline Harmonisation Plan Program for law making activities targeted towards facilitation of the environmental authorization system and implementation of a single window system prepared with support of SIDA TA for SBS in Environment – Component 5 provides support on elaborating plan for convergence of environmental legislation to EU regulations MENR – main coordinator convergence process

8. 8 Elements of Planning Convergence Transposition incorporation of EU environmental legislation into national laws, rules and procedures Transposition Implementation Enforcement Investments Costs of compliance Funding

9. 9 9 Elements of Planning Convergence Implementation development of institutions, human resources development, management systems etc. Transposition Implementation Enforcement Investments Costs of compliance Funding

10. 10 Elements of Planning Convergence Transposition Implementation Enforcement Investments Enforcement provision of the necessary control and sanctions system to ensure compliance with the implemented measures Costs of compliance Funding

11. 11 Elements of Planning Convergence Transposition Implementation Enforcement Investments Undertakings in infrastructure projects to achieve environmental standards Costs of compliance Funding

12. 12 SECTORDIRECTIVESMain Investment Components Investment in MLN Euro Air quality Directive 98/70/EC relating to the quality of petrol and diesel fuels and amending Directive 93/12/EEC as amended by Directives 2000/71/EC, 2003/17/EC and 2009/30/EC and Regulation (EC) 1882/2003 costs are closely tied to predictions of the use of trucks and other vehicles with diesel engines Waste management Directive 1999/31/EC on the landfill of waste as amended by Regulation (EC) 1882/2003 new landfill construction, closing of old landfills, collection/sorting systems, incineration plants Water Management Directive 98/83/EC on quality of water intended for human consumption as amended by Regulation (EC) 1882/2003 construction of iron removal plants, drinking water supply systems Directive 91/676/EC concerning the protection of waters against pollution caused by nitrates from agricultural sources as amended by Regulation (EC) 1882/2003 training, construction of manure storage facilities Industrial pollution and industrial hazards Directive on industrial emissions 2010/75/EU (IED) SO2 reduction facilities Directive 2001/80/EC on the limitation of emissions of certain pollutants into the air from large combustion plants* end of pipe equipment for achievement of necessary emission reduction

13. 13 Elements of Planning Convergence Transposition Implementation Enforcement Investments Costs of complianace Analysis of infrastructure and abatement equipment Costs of compliance Comparing directive requirements and the existing situation Calcultaing costs of investments needed (unit costs, cost models) Funding

14. 14 Elements of Planning Convergence Transposition Implementation Enforcement Investments Funding Costs of compliance Comparing demand for finance based from costing analyses, against the available funding sources Identify suitable financial sources and tools Funding

15. 15 user charges or fees public budgets environmental funds foreign grants and loans private capital the capacity of individual users to afford service charges. affordability capacity of national income to support the level of expenditures required Funding

16. 16 How did we organize the process Work of Sub-Sector/Directive Working Groups Inter-ministerial consultations Awareness/progress seminars Complementary Training Study visit to EU Member State (s) Work of Sub- Sector/Directive Working Groups Environmental Governance Air, Industrial Pollution and climate change Water Waste Industrial Pollution Nature and GMO Coordination with other donor projects

17. 17 Work of Sub-Sector/Directive Working Groups Inter-ministerial consultations Awareness/progress seminars Complementary Training Study visit to Memver State (s) Inter-ministerial consultations Establishing competent authorities for specific directives Reallocation of responsibilities Capacity builidng measures Coordination with other donor projects How did we organize the process

18. 18 Work of Sub-Sector/Directive Working Groups Inter-ministerial consultations Awareness/progress seminars Complementary Training Study visit to Member State (s) Awareness/progress seminars Start up Seminar – October,2012 1st Awareness Seminar - March 2013 2nd Awareness Seminar- December 2013 Third Seminar – April, 2014 Coordination with other donor projects Location in the selected regions How did we organize the process

19. 19 Work of Sub-Sector/Directive Working Groups Inter-ministerial consultations Awareness/progress seminars Complementary Training Study visit to Member State (s) Complementary Training Delivered by LTE and STEs of TA for SBS Training delivered in harmonisation with Working Group meetings Environmental law and requirements of the EU Directives Experiences of new Member States Coordination with other donor projects How did we organize the process

20. 20 Work of Sub-Sector/Directive Working Groups Inter-ministerial consultations Awareness/progress seminars Complementary Training Study visit to Member State (s) Study visit to EU Member State (s) Organized by TA for SB for 10 – 15 persons Time and country to be determined Scope of study tour and host institution to be determined Experiences of new Member States Coordination with other donor projects How did we organize the process

21. 21 Work of Sub-Sector/Directive Working Groups Inter-ministerial consultations Awareness/progress seminars Complementary Training Study visit to Member State (s) Coordination with other donor projects SIDA Capacity Building for Approximation Process EU Protection of freshwaters and marine environment in the wider Black Sea region Support to the implementation of Ukraine's Energy strategy in the area of energy efficiency and renewable sources of energy Coordination with other donor projects Support to the MENR on implementation of the Law on Ecological Audit (Twinning) How did we organize the process

22. 22 TA for SBS in Environment MENR Project Coordinator Independent experts MENR Technical Departments Team Leader Key Expert for Legal Component Short/Medium Term Int. and Local Experts Working Groups Drafting Convergence Plans Overall coordinator for strategy elaboration Legal Department Other Ministries and Agencies Commenting and technical input to Convergence Plans commenting draft convergence plans identyfying and proposing activities, measures timing for the Strategy Project Steering Committeee TA for SBS in Environment

23. 23 29 Specific Directives Convergence Plans Institutional gap analysis vs requirements of the EU Directives Action plans for transposition of legislation administrative, and institutional arrangements Indicative cost estimates for meeting EU Directives’ requirements Indicative investments plans and indentification of sources of funding Action plans for administrative, and institutional arrangements OUTPUTS

24. 24 National Convergene Environmental Strategy endorsed - Consilidated strategy document for all sub-sectors in environment Convergence Plans (serving for projects pipeline development) Partnership and interministerial coordination mechanisms established OUTPUTS 29 Convergence Plans - essential tools in planning the compliance with the EU Directives with identified tasks that need to be done in order to implement the specific directive Establishing inter-ministerial consultation mechanisms for development, implementation and regular update of the Strategy Until the end of 2014

25. Improved stakeholders’ involvement and participation EXPECTED RESULTS Higher efficiency of approximation to the EU environmental acquis managed by the MENR Strengthened institutional framework and the administrative capacity for the implementation of the EU environmental acquis Relevant target groups and stakeholders are aware of the EU requirements, principles and implications of the implementation Higher synergy of donor projects and donor coordination improved Increased operational level of EU association planning documents Increased efficiency in allocating resources 2 – 5 years

26. 26 Improved quality of environment Improved health of populations Preservation of existing biodiversity Development green technologies and eco-business EXPECTED IMPACT 5 – 15 years Improved conditions for investments and economic development

27. 27 Need to organize introductory workshop on start of the process Nominating of the overall coordinator - MENR Establishing Working Groups for sub-sector/Directive Nominating the coordinators for Working Groups Adopting the indicative timetable for the process of elaboration of the strategy Adopting the indicative timetable for the awareness events /selection of location Design and deliver complementary training plan LESSONS LEARNT

28. 28 Importance of involvement of regional administration through the regional seminars Stages designed according to the sub- sectors/directives LESSONS LEARNT Secured availability of both Ukrainian and international experts Efficient management of the process of establishing and activities of Working Groups Interim results delivered in the form of presentations and draft Convergence Pland Stage based approach with interim results delivered (2 – 3 round of consultations)

29. 29 Need to establish Strategy Management Unit (secretariat) providing neccessary data and securing participation in the technical working groups Strong project management aimed at overseeing, facilitation and coordination of work of STEs providing inputs to elaboration of the strategy LESSONS LEARNT Quality of facilitation of the workshops and delivery of complementary training

30. 30 Commitment on planning convergence process (National Environmental Convergence Strategy) Committment of the main stakeholders on participation in the work on convergence plans Committment of the main stakeholders to allocate resources neccessary in the planning process Committment of the main stakeholders for adjustments and amendments in the current institutional system for environmental protection and management Regional and Local Administration should be aware about the process and involved in the planning LESSONS LEARNT

31. 31 CP - essential tools in planning the implementation of EU Directives - DSCPs are living documents that require continuous updating – need to have clear responsibilities in MENR Clear set responsibility for implementation of each task will necesitate allocation of responsibilities among regional and local administration Strengthening of environmental monitoring should be planned and enforced Administrative reform of environmental authorities should take into account the strategies and plans on convergnce with EU legislation LESSONS LEARNT

32. Thank you very much for your attention ! jerzy.sarnacki@sbs-envir.com 32