Strategic Analysis of the Environmental Challenges for Northwest Russia

2. Background

2.1 The Reform Process
2.2 International Environmental Co-operation


History

Some of the major environmental challenges faced by Russia today can be traced back to the start of the century when the centrally planned economic modernisation and industrialisation of the USSR were launched. The main focus was on optimising output levels and often neglecting ecological impacts. Based on the country’s abundant natural resources, extremely ambitious investment projects were launched in previously pristine environments (e.g. dams, mines, large-scale farms and industrial cities). Millions of people were moved to the cities with little consideration for the environmental effects of urbanisation. Massive clustering of industrial and agricultural activities has lead to high concentrations of pollutants with a highly negative impact on the environment.

Russia’s abundant natural resources were utilised by the state to boost production and public service levels with limited concern given to opti-mising the efficiency of these inputs, which has resulted in inefficient use of e.g. energy and water. Furthermore, due to cross subsidies from low energy prices, which are today still below world marked prices, energy intensive industries have been favoured.

Although the Soviet Union passed some of the earliest laws on toxic substance levels the second half the 20th century was marred by a long list of ecological disasters culminating in 1986 with the Chernobyl nuclear power plant meltdown.

2.1 The Reform Process

Since then the Russian governments have introduced a number of reforms to improve the environmental situation of the country. See summary in the text box below.

1987

USSR resolution "International Environmental Security" introduced

1988

USSR State Committee for the Protection of Nature created

1989

USSR submits its first annual environmental report

1991

USSR Ministry of Environmental Protection is created taking over all responsibilities from the State Committee and the first environmental law formulated

1992

Ministry of Environmental Protection and Natural Resources is created by the Russian Federation

1993

The Environmental Law is up-dated by the Russian Federation

1994

State strategy of the Russian Federation on Environmental Protection and Sustainable Development

1995

New regulations on the EIA procedure, including public participation

1996

Downgrading of Ministry of Environment to State Committee for Environmental Protection. Ministry of natural resources responsible for natural resource management

1997

National Strategy on Sustainable Development approved by the Parliament

1998-1999

National Environmental Action Programme 1999-2001

2000

Responsibilities of State Committee for Environmental Protection and Federal Forestry Service given to Ministry of Natural Resources. The two committees dissolved.

1991-2002

More than 30 new environment related laws adopted 25 multilateral environmental agreements entered into 30 bilateral environmental agreements entered into

2002

New Law on Environmental Protection signed and Environmental Doctrine adopted


Environmental strategy

The National Environmental Action Plan (NEAP 1999-2001) is one of the Russian Federation’s most significant and comprehensive strategic documents for environmental protection. The National Environmental Action Plan outlined the objectives for: improvement of the environmental situation in Russia; conservation of nature resources; the effective participation of Russia in international environmental initiatives; and implementation of priority environmental protection activities. However, it was not developed as an operational document and consequently did not specify targets, offer a ranking of activities nor provide a clear indication of financial sources. A new National Environmental Action Plan for the period 2003-2005 is presently being prepared. Its main purpose is to concretise environmental goals outlined in the Environmental Doctrine of 2002.

In spite of the reforms initiated since the dissolution of the Soviet Union, the Russian society is still far more polluting and resource consuming than other OECD countries.

2.2 International Environmental Co-operation

Russia’s International Commitments and Targets for Environmental Performance

Up through the 1990s, Russia has entered into 25 multilateral agreements and 30 bilateral agreements, which are directly targeted at or include commitment towards improved environmental protection. Russia’s status regarding the most relevant environmental conventions and protocols are presented in the text box below.

Environmental conventions and protocols ratified by the Russian Federation include:

The UN-ECE Water Convention on Protection and Use of Trans-boundary Water Courses and International Lakes

The Helsinki Convention on Protection of the Marine Environment of the Baltic Sea area with amendment

The London Protocol on Water and Health

The Marpol Convention on Prevention of Pollution from Ships

The Basel Convention on Control of Transboundary Movements of Hazardous Wastes and Their Disposal

The Framework Convention on Climate Change

The Vienna Convention on Protection of the Ozone Layer, specifically the Montreal Protocol and the London amendments

The Geneva Convention on Long-Range Transboundary Air Pollution

The Convention on Biological Diversity (including the PAN-European Biodiversity and Landscape Strategy and the PAN-European Forest process)

The Ramsar Convention on Wetlands of International Importance especially as waterfowl habitat

The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) (including harmonising of EU – Russian standards).


Non-ratified conventions and protocols relevant for Northwest Russia’s environmental challenges Include:

The Kyoto Protocol – its ratification is expected soon

The Stockholm Convention on Persistent Organic Pollutants (POP Convention) – signed, but not ratified; this convention is reportedly number two on the "waiting list of ratification"

The Espoo Convention on Environmental Impact Assessment in a Transboundary Context – signed but not ratified

The Convention on the Conservation of European Wildlife and Natural Habitats (Bern Convention) – not signed

The Cartagena Protocol on Bio-safety to the Convention on Biological Diversity – not signed

The Aarhus Convention on Access to Information, Public Participation in Decision Making and Access to Justice in Environmental Matters – not signed

The Copenhagen Amendments to the Montreal Protocol on Substances that Deplete the Ozone Layer

The Oslo-Paris (OSPAR) Convention for the Protection of the Marine Environment of the Northeast Atlantic – not signed


Furthermore, environmental co-operation with EU and international organisations, such as e.g. the WB, OECD, WTO, has intensified significantly during the 90s.

EU

The cornerstone in EU’s relation to Russia is the "Partnership and Cooperation Agreement" (PCA). This agreement was signed in 1997 and has expanded the scope of previous relations remarkably as the parties hold summits twice a year. Russia states in its strategy towards the European Union an overall commitment to secure a close and co-operative relation between the two parties including amongst other an approximation to EU environmental legislation, framework directives and technical standards.

The TACIS Regional Co-operation Indicative Programme for 2004-2006 has sustainable management of natural resources as one of its priority areas, including in particular water issues, biodiversity and sustainable use of forest resources as well as climate change. The Northern Dimension

Of particular relevance is the Northern Dimension, which operates through EU’s existing financing instruments. The main instruments are the Tacis, Phare and Interreg programmes. Furthermore, a number of regional organisations and international financing institutes are active in supporting the Northern Dimension, including the European Bank for Reconstruction and Development (EBRD), the Nordic Investment Bank (NIB), the Nordic Facility for Environmental Finance Corporation (NEFCO), and the Nordic Project Fund (NOPEF).

An environmental partnership under the Northern Dimension Environmental Partnership (NDEP) was initiated during the course of 2001 in response to calls from Russia and the international community for a concerted effort to address environmental problems in Northwest Russia. Of particular concern was the legacy of environmental damage in the region concerning water, drainage, energy efficiency and nuclear waste. With the creation of the Northern Dimension Environmental Partnership together with its Support Fund, the Russian Federation, the European Union, the international financing institutes (EBRD, EIB, NIB and the World Bank Group), and bilateral donors have a cohesive institutional framework, backed by dedicated resources, to support the solution of these problems.

The Role of International Financing Institutions and Donors

International financing institutes and donor organisations are an important source of finance for environmental investments in Northwest Russia. However, given the sheer size of the financing need, international financing alone cannot solve the environmental problems.

From an environmental perspective, increased international co-operation and signing of various conventions and charters indicate a willingness to address environmental issues. Furthermore, it has the advantage that Russia, in order to live up to the agreed standards, is required to put the environment on the agenda. Through dialogue, and concrete international support, the various multilateral and bilateral agreements increase awareness of the environmental challenges and influence the Russian decision-making process towards making more environmentally sustainable priorities.

However, as will be further substantiated in the next chapters, Russia still has a long way to go before it overcomes the environmental challenges it faces today.

2.2.2 Baltic Sea Environment

One of the key areas today for Russia’s environmental efforts and international co-operation is the Baltic Sea.

The Baltic Sea is an important commercial fishing area and attracts millions of people to its attractive recreational water environment. The Baltic Sea and its tributaries is also one of the main transbound-ary areas of environmental pollution in Northern Europe. The Baltic Sea is the largest brackish water area in the world, because of the many rivers that reduce the salinity, and because of the very low level of water exchange. These factors make the sea especially vulnerable to pollution.


An important international agreement guiding the co-operation relating to the Baltic Sea is the Convention on the Protection of the Marine Environment of the Baltic Sea Area, 1992.

The governing body of the Convention is the Helsinki Commission –Baltic Marine Environment Protection Commission – also known as HELCOM. The HELCOM works to protect the marine environment of the Baltic Sea from all sources of pollution through intergovernmental co-operation between Denmark, Estonia, the European Community, Finland, Germany, Latvia, Lithuania, Poland, Russia and Sweden.

Through its "Joint Comprehensive Environmental Action Programme" (JCP), HELCOM involves all neighbouring countries in the efforts to secure an environmentally sustainable Baltic Sea. The JCP is a 20-year programme of action approved by the Helsinki Convention in 1992. The programme was reviewed and updated in 1998.

The main objective of the JCP is to support both "preventive" and "curative" measures in the Baltic drainage basin to restore the ecological balance of the Baltic Sea by reducing pollution loads. This involves identifying key pollution sources – also called hot spots – and carrying out measures to reduce the inputs of nutrients and other harmful substances.

HELCOM concluded in its 2001 overview report that the loads of many substances have been reduced by at least 50% since the late 1980s – mainly due to the effective implementation of environmental legislation, the substitution in production of hazardous substances with harmless or less hazardous substances, introduction of cleaner technology and improved treatment of industrial and municipal wastewater. In Estonia, Latvia, Lithuania, Poland and Russia, however, reductions have been mainly due to fundamental socio-economic changes and to a lesser extent due to cleaner production, and improved treatment. And yet the environmental status is as follows:

Concentration of Nitrogen and phosphorus is too high

Eutrophication remains the most pressing problem in the Baltic Sea

Concentrations of most of the monitored hazardous substances, including mercury, lead and DDT, have decreased in marine organisms in the past 20-25 years, thanks to international environmental protection measures

Marine mammals suffer from reproductive disorders linked to the continued presence of polychlorinated biphenyl (PCB) and diox-ins in the environment

Other, as yet unknown hazardous substances are a new worry.

Cadium concentrations in fish in the Baltic Sea have increased for unknown reasons

Key Facts on the State of the Environment in the Baltic Sea – 2001

Source: Helsinki Commission – Activities 2001 Overview

In 1992, HELCOM identified 132 environmental hot spots of which 18 were in Northwest Russia. The hot spots were identified by an international group of scientists, engineers, environmental managers, financial experts and national representatives on the basis of practical economic considerations and the seriousness of their impact on the environment and human health.

Today 51 of the original 132 hot spots1 – or 39 per cent – have been improved to meet HELCOM requirements and thus deleted from the list. However, so far only one – or six per cent – of Northwest Russian hot spots have been removed from the list due to closedown of the polluting industry2. Consequently, Russia still has 17 hot spots to address.

Hot Spot No. 49 Sovetsk Pulp and Paper Mill – a case example

In 1991, the Sovetsk pulp and Paper mill discharged 35,000 tons of BOD5, which was about 35% of the total BOD5 load in the region, 3,300 tons of Ntot (59% of the total nitrogen load in the region) and 52 tons of Ptot (21% of the total phosphorus load in the region). To fulfil the requirements of HELCOM recommendations for pulp industry, a reduction to 330 tons of BOD5 (99%), 210 tons of Ntot discharges (92%) and 33 tons of Ptot discharges (32%) would be required.

Development – Sovetsk has reduced its wastewater discharges considerably between 1991-1998. BOD discharges were reduced by 95%, Ntot wastewater discharges by 98% and Ptot discharges by 99%. This is partly due to reduced production, since the wastewater flow was reduced by 65% in the same time period. The reduction of waste-water discharges per production unit has been achieved by the construction of a wastewater treatment plant, of which 60% was completed in 1994. The funds available in 1994 were only enough to support the operation of those parts already completed. The cost estimate for the modernisations is Euro 64 Million of which 26 have been allocated. However, the construction was stopped in 1998 when centralised funding ceased.

Contrary to the predictions of 1992, the Sovetsk Pulp and Paper Mill survived the pressure from the new economy. The treatment facilities are still not satisfactory and if production is increased in the future, the problem will return.

Source: Review of Progress at Industrial Hot Spots, Finnish Environment Institute, Helsinki 2002

According to HELCOM the Russian efforts have been encouraging but not sufficient to remove the hot spots from the list. There is a serious lack of funding and during 1991-98 only Euro 30.4 million were allocated for improving the environmental performance of the industrial hot spots in Northwest Russia3. As reference, a total financing need of Euro 313 millions was identified in the HELCOM Joint Comprehensive Environmental Action Programme for Northwest Russia’s industrial hot spots.

In comparison, 17 – or 50 per cent – out of Poland’s 33 hot spot identified in 1992 have been removed from the newly updated list1. A map of the hot spots is presented below and a full list of all hot spots identified in 1992 and their present status can be found in Appendix 2.

Hot Spots in the Baltic Sea4

Source: www.helcom.fi

The 18 hot spots in Northwest Russia are divided into:

Municipal and industrial wastewater treatment
Industry
Hazardous waste
Agriculture5
Coastal lagoons and wetlands
5 hot spots
7 hot spots
2 hot spots
2 hot spots
2 hot spots

The problems in Northwest Russia are by far limited to the designated hot spot locations. In addition to being some of the most critical sources of the Baltic Sea pollution, the various hot spots indicate the type of problems to be found throughout Northwest Russia causing serious threats for the local environment and the health situation of the population.

Insufficient treatment of municipal and industrial wastewater in Northwest Russia is leading to discharge of nutrients, microbiological elements and chemical toxins. In addition to local and regional consequences, the nutrients have significant transboundary impacts on the eutrophication especially for the Gulf of Finland and the Vistula and Coronean Lagoons. As can be seen from the below figures Northwest Russia is responsible for a significant share of the discharges into the Gulf of Finland.


Nitrogen and Phosphorous loading in tonnes 1997-98 from the catchment of the Gulf of Finland

Source: Finnish Environmental Institute

 

1 HELCOM press release 21/11-2002
   
2 The Pulp & Paper plant No.1, in Kaliningrad was removed as a Hot Spot in 1998 due to close down of the plant.
   
3 Review of Progress at Industrial Hot Spots, Finnish Environment Institute, Helsinki 2002
   
4 The list of hot spots has been revised in November 2002, and HELCOM is currently preparing an updated map.
   
5 Agricultural hot spots concern large scale pig farms. These have a size of more than 50,000 pigs and handling and discharging animal waste is a serious threat to regional ground and surface waters