NEWS RELEASE
From the office of the Green MEPs

14 May, 2003

INDUSTRY TO PICK UP BILL FOR ENVIRONMENTAL DISASTERS - EURO-MPS BACK 'POLLUTER PAYS' PRINCIPLE

ENVIRONMENTAL protection entered a new phase today when Euro-MPs backed calls to ensure the public won't have to foot the bill for environmental disasters.

The decision, which could save the taxpayer and local authorities millions, means business could be forced to insure against the full cost of environmental damage, including marine pollution or nuclear accidents, resulting from their activities.

"This is great news for the environment and will go a long way to ensuring disasters like the devastating oil spill following the sinking of the tanker Prestige never happen again," commented Caroline Lucas, Green MEP for South East England and a member of the European Parliament's Environment Committee.

"Firms will quickly realise the cost of insuring against environmental damage will become prohibitive - unless they take adequate steps to ensure the pollution does not occur in the first place."

London MEP Jean Lambert said the decision was good news for the environment, the taxpayer - and even the insurance industry.

She said: "Today's vote is excellent news for the environment and the public. It will mean the public will never again be forced to foot the bill for environmental damage as businesses will be forced to insure themselves against such risk - in exactly the same way as motorists are forced to insure themselves against claims resulting from their mistakes and negligence.

"It will come to be seen as good news for business too, especially the insurance sector.

"We've already seen the effects environmental liability claims can have on an unprepared sector when Lloyds faced an avalanche of claims relating to asbestos in the 1980s - the European Parliament has today voted for a directive that will ensure insurers are properly prepared in future.

"Of course this will raise short-term costs to the shipping and nuclear energy sectors but it will also raise environmental standards and make future disasters - and therefore claims resulting from them - less likely
to happen in the first place."

Conservative proposals to exempt businesses claiming to use 'state-of-the-art' technology were rejected in the face of Green opposition.

The Parliament also called on the European Commission to draw up tough new rules ensuring GM farmers meet the full costs of environmental contamination suffered by their conventional and organic counterparts.

Dr Lucas added: "After ten turbulent years, European environmental legislation has entered a new phase. The recent Prestige disaster has shown that existing financing systems are not sufficient to cover the
costs of a major environmental disaster, and that public authorities often end up paying for the damage.

"The Commission must now approve this progressive legislation and help the Greek Presidency reach an agreement at the June Environmental Council. The ball is now in the Commission's and Council's court."

ENDS
For more information please contact Ben Duncan on 020 7407 6280, 07973 823358 or press@greenmeps.org.uk

Note

The European Parliament have passed the proposed Environmental Liability Directive, aimed at enforcing the “polluter pays” principle across Europe. Read Friends of the Earth website on the Directive