In the Kyoto Protocol of 1997, most Western countries committed to the emission standards set forth in the Framework Convention on Climate Change (UNFCCC) of 1992. The European Union interpreted these standards through emission maximums for every member country. Following these criteria, the Dutch government imposed individual ceilings for the top 300 COČ producing companies active in The Netherlands. Production that passes those ceilings results in penalties of 40 euros for every ton of extra COČ.   

Reducing, Trading and Compensating
The effect of the standards set forth in the Kyoto Protocol has been limited so far, as the standards were set close to actual COČ emissions. In only a few cases, production growth caused an excess output of COČ. But lately, ceilings are starting to get hit and companies feel the need to act. One way to meet the standards is to reduce the COČ output by optimizing production processes. Added benefit is the reduction of energy costs. Secondly, emission rights can be bought through the EU Emission Trading Scheme. So far, trading activity has been limited, but as ceilings start being felt, more action is expected to  take place, increasing the costs of emission rights. Finally, COČ output can be compensated by investing in COČ reduction programs elsewhere.

ARCADIS offers services to implement programs that use all three options. For example, ARCADIS takes part in the Biogas partnership, which has developed the largest landfill gas energy plant in the world, producing 170 million kWh per year of electrical power from methane extracted from Saő Paulo's Bandeirantes landfill. Biogas signed a contract in 2006 for the sale of 1 million tons of carbon credits to the German bank KfW. KfW acquired the carbon credits for buyers within the European Union's Emission Trading Scheme. 

The new Bill seeks to reduce red tape, and thereby increase economic productivity. The WABO aims that someone wishing to carry out a physical project, for example a building project, can get the necessary permits through an integrated procedure: one license from one procedure, one set of rules to follow and one enforcement agency. This offers the advantage that the separate aspects of a project are evaluated consistently and as a whole. Where possible, the license application will be processed electronically. The authorities have committed to a deadline of 26 weeks for completing a permit.
Bringing together all existing regulations and regulating agencies under this new law is a gigantic effort and it comes as no surprise that the deadline for its introduction is moved from January 1, 2008 to January 1, 2009.

One Single Environmental License
The new licensing system will replace much of the existing legislation regulating activities which affect the physical environment. Some 25 existing systems for issuing permits, licenses, exemptions, and so on are being replaced by a single environmental license. This new license will apply to the demolition, construction, establishment or use of a physical facility. Activities affected will typically be location-specific projects which have an impact on the physical environment, i.e. air, water and soil, wildlife and biodiversity, landscape and cultural-historical elements.
The modernization of the licensing system will not mean new or different standards. The WABO will not change the levels of protection provided under current law. Nor will there be any change in the competent authority's right to attach conditions to licenses. But it intends to resolve conflicts between previously separate subjects to permit.

Flexibility
The WABO is intended to give flexibility to developers by letting them choose between making a single application for an entire project or making separate applications for different project components. The Bill also allows an application to be made for a phased license. This flexibility allows a developer to weigh the pros and cons of these different possibilities and choose accordingly. Separate applications offer the benefit of getting an early start on the project. For example, if a permit is granted for the demolition of an old building, that part of the project can get started before the building permit for a new development is granted.

ARCADIS offers the expertise to advise clients on the new possibilities offered by the WABO. Please consult your account manager for more information.

This information is not intended or offered as legal or any other advice on any particular matter and should not be used or relied upon as such. Any use of material contained in this newsletter is at the user's own risk and you should not act or refrain from acting on the basis of any matter contained within this newsletter without seeking appropriate legal or other professional advice on the particular facts and circumstances. To the extent permitted by law, either ARCADIS or the editor does not accept liability for any loss, which may arise from any reliance upon information contained in this newsletter.