‘Polluter pays’ law introduced

YORKSHIRE businesses responsible for causing major environmental damage could have to pay massive costs as a result of a strict new European directive.

The Environmental Liability Directive (ELD) is designed to prevent and remediate environmental damage based upon a “polluter pays” principle.

According to environmental lawyer Penny Simpson from the Sheffield office of DLA Piper, businesses should carry out environmental risk assessments and implement preventative procedures to avoid the risk of having to pay significant remediation expenses.

Ms Simpson, associate in DLA Piper’s litigation and regulatory group, said: “These regulations are aimed at large scale environmental incidents which result in damage to land, water or biodiversity.

“As incidents of this magnitude are thankfully rare, the regime will not come into play often.But when it does apply, it will prove extremely expensive for those found responsible for the environmental damage.”

She continued: “The level and extent of the remediation requirements in these regulations are far beyond what we have seen in legislation before and the regulations also legislate against impacts on certain receptors which have not previously been protected.

The ELD applies equally to businesses operating in sensitive natural environments or in built up areas, ranging from a large energy production plant to an independent grouse moor estate owner.

The ELD is a European directive, which should have been implemented in member states by April 2007.

Analysts are warning that the UK could now be under pressure to ensure the new regime in is use and being enforced to compensate for late implementation.

In England the ELD will be implemented via the Environmental Damage (Prevention and Remediation) Regulations 2009. Similar regulations will be made in Wales, Scotland and Northern Ireland.