The Industrial Emissions Directive (2010/75/EU) is due to be transposed into local legislation by 7
January 2013. It will introduce further measures to prevent and minimise pollution from industrial
activities and aims to reinforce the ‘polluter pays’ principle. Perhaps the most significant impact
from the new legislation will be for ‘installations’ to assess and monitor contaminated land by
conducting a ‘baseline report’ to establish current soil and groundwater conditions.
Many large industrial and waste management operations will already have a reasonable
understanding of soil and groundwater conditions beneath their installations as a result of current
EPA Licence conditions. However, the new requirements could have significant effects at smaller
installations that currently fall outside the EPA’s remit:
Property owners and investors should exercise due diligence when considering portfolios that
include high risk tenants (e.g. Dry Cleaners) which will be caught under the new legislation and
review lease renewals and exits accordingly to protect their assets from potential environmental
liabilities.
Insurance professionals should be mindful of ‘baseline reporting’ requirements and the potential
impacts that could trigger claims for Unknown Pre-existing Pollution Conditions as a result of
compliance with the new legislation.
January 2013. It will introduce further measures to prevent and minimise pollution from industrial
activities and aims to reinforce the ‘polluter pays’ principle. Perhaps the most significant impact
from the new legislation will be for ‘installations’ to assess and monitor contaminated land by
conducting a ‘baseline report’ to establish current soil and groundwater conditions.
Many large industrial and waste management operations will already have a reasonable
understanding of soil and groundwater conditions beneath their installations as a result of current
EPA Licence conditions. However, the new requirements could have significant effects at smaller
installations that currently fall outside the EPA’s remit:
- Dry cleaners (where VOC’s are used)
- Pharmaceutical facilities – sub IPPC threshold
- Coating activities (vehicles, metal & plastic surfaces, wood, textiles, paper, leather)
- Printing activities
- Footwear manufacturing
- Surface cleaning (including degreasing)
- Vehicle refinishing
- Wood treatment
- Vegetable oil and animal fat extraction & refining
Property owners and investors should exercise due diligence when considering portfolios that
include high risk tenants (e.g. Dry Cleaners) which will be caught under the new legislation and
review lease renewals and exits accordingly to protect their assets from potential environmental
liabilities.
Insurance professionals should be mindful of ‘baseline reporting’ requirements and the potential
impacts that could trigger claims for Unknown Pre-existing Pollution Conditions as a result of
compliance with the new legislation.
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