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Bulgaria's road to Accession

4 Status on the Implementation of the Environmental Acquis

4.1 Water Quality

Status of the Environment

The period since 1989 has been characterised by significant reduction in discharges to surface water, resulting in an improvement of their quality parameters. This improvement is due to reduced industrial activity and the phasing out of some industrial enterprises, as well as to the emerging effects of improving the wastewater collection and treatment systems. Despite the positive changes registered in water bodies, there are still considerable deviations in water quality for such indicators as ammonium, BOD5 and dissolved oxygen. Dangerous chemicals are also found in high concentration in some watercourses down stream of industrial installations.

The provision of wastewater treatment is incomplete, and the introduction of modern secondary and tertiary treatment is only just starting. Sixty-five per cent of the population is connected to sewerage systems. The status of the sewerage systems has not generally been assessed. However, it is expected that the main networks are not adequate, and that their quality has deteriorated immensely. Only 60 per cent of the wastewater is currently subject to any kind of treatment. Industrial wastewater discharged to surface water bodies accounts for 35 per cent of total discharges. The processing industries (chemicals, oil refining and steel industry) contribute about 70 per cent of this industrial wastewater. Thirty-eight out of 52 urban WWTPs have biological treatment, and these plants account for about 50 per cent of the discharged water. Only 25 of the 104 settlements with more than 10,000 inhabitants have urban WWTPs.

Status of Transposition

The Water Act of 1999 transposes the main principles of the Water Framework Directive. It orders the regulation of water resources and quality through four River Basin Districts, and identifies the competent authorities for river basin management. The principles for permitting, inspections and monitoring are also established. Some amendments are expected, mostly relating to the preparation and implementation of water basin management plans.

The water quality objective-oriented directives have been transposed either directly by the Water Act or through secondary regulations. This applies to the Regulation on the Quality of Water Intended for Human Consumption, the Regulation on the Research, Use and Protection of Groundwater, and the Regulation on the Quality of Fish and Shellfish water, while a Regulation on the Quality of Bathing Water is still under consultations.

Also the emission-control directives have been subject to transposition. The Urban Wastewater Directive is introduced through the Regulation on Setting Indicators and Standards for the Contents of Harmful Substances in industrial Wastewaters Discharged into Sewerage Systems and the Regulation on Requirements for Admissible Contents of Harmful Substances in Wastewaters from Urban Wastewater treatment Plants and from various Types of Production Activities. Also the Nitrates Directive is introduced through the Regulation on Protection of Water from Nitrate Pollution.

Status of Implementation

The implementation of the requirements of the regulation on the discharge of dangerous substances is to be met before 2007. At present a full review of the sources of pollution has been completed, and most apparatus required by the Environmental Executive Agency and the Regional Environmental Inspectorates is in place. For large industrial complexes, this regulation will be co-ordinated with the implementation of the Directive on Integrated Industrial Pollution Prevention and Control.

The designation of sensitive water bodies is scheduled for 2003. The regulation of these water bodies and nearby territories will be further extended through the river basin management plans. In addition, the designation of vulnerable zones is to be prepared in line with the Nitrate Directive. Owing to the low level of chemical fertiliser in use, the contamination of groundwater by nitrates is not considered to be acute. At the moment the implications of such regulations are difficult to establish. However, co-ordination with the agro-environmental department of MoAF has been established, and programmes within SAPARD are expected to promote codes of good farming practices.

Four river basin directorates were established during 2002, with staff transferred from the Regional Environmental Inspectorates. Additional staff is to be transferred from the regional inspectorates on an incremental basis, and on top of that some 250 staff are to be recruited for the directorates as part of the general capacity building programme.

The issue of permits is delegated to the new directorates, while monitoring and enforcement are intended to rest at the regional inspectorates in order to separate these functions. The emission limit values are on par with those of the EU, and a mechanism has been established for setting up individual emission norms for point pollution sources.

The full implementation of the Water Framework Directive is scheduled to be in line with the timeframes given to EU Member States. The main challenge is to bring the River Basin Directorates into operation, and to prepare river basin management plans according to the principles of the directive. The Iskar, a tributary of the Danube, has been designated as pilot region for applying planning and management tools. These will be obtained from the EU network on Common Implementation of the Water Framework Directive, which will submit tools and recommendations for EU and accession countries by the beginning of 2003.

Several EU Phare Twinning projects are assisting in transposing and implementing the Water Framework Directive. With the assistance of a twinning project, the organisational structure has been designed indicating the service levels and tasks for the four water basin authorities. The project has prepared a new structure for permits for the use and discharge of water. The preparation of training materials and the conducting of training for regional environmental inspectorates have also been addressed. Further Phare Twinning assistance to enhance the capacity of the new river basin bodies is scheduled for the 2002 programme. This will be complemented by a planned DANCEE project on assisting the Water Directorate for the Black Sea region to set up management and investment plans.

The implementation of organisational structures given in the framework directive and the daughter directives are to be realised before 2007, and subsequent planning activities will be in line with the timetables for the EU Member States. However, the Bulgarian Government has requested an extended transitional period for implementing the investment heavy directives, i.e. the Urban Waste Water Directive.

The current plan for the construction of wastewater treatment facilities stipulates that 36 plants are to be constructed before 2006. So far the construction of ten plants has commenced. However, an additional 70 plants for towns with more than 10,000 PE and additional 200 plants for small towns between 2,000 and 10,000 PE are still to be constructed. DANCEE has equipped three wastewater treatment plants with mechanical and biological treatment, as well as sludge dewatering equipment. A Swiss donor has equipped two plants, of which one is co-funded with the Danish Ministry of Environment.

The implementation of the drinking water and wastewater action programmes is estimated to be the most costly of the environmental sectors. The investment costs alone will amount to Euro 2.0 – 3.4 billion depending on the coverage of tertiary wastewater treatment and the extent to which old distribution networks are replaced. This amounts to 36 – 40 per cent of the compliance costs for meeting the EU environmental acquis. These cost estimates are based on the price assessment given in the first set of action programmes. Thus, there is a need for updating these.

The action plans for construction of collection and wastewater treatment facilities were prepared in 1999. There are different plans for modernising the sewerage system, for the water supply system and for wastewater treatment. The planning process has been complicated by the fact that several authorities are involved. MoEW is the planning authority for wastewater treatment, while the planning authority for water supply and sewerage networks rests with MoRDPW. The municipalities are investment and implementation authorities. In addition, the operation of water services is usually undertaken by regional water utilities directed by MoRDPW.

This fragmentation has obstructed integrated planning for the full water cycle, through which improvements in water supply systems should be immediately taken into account technically and financially when other water facilities are being developed. A DANCEE project assisting in preparing one ISPA application for the water sector has demonstrated the gains of integrated planning, and it seems that more ISPA applications in future will consider the full water cycle. Also the current revisions of the national action programmes are co-ordinated to a higher extent than previously.

A policy to engage private sector participation in the investments and operation of water utilities was introduced by the middle of the 90s. The engagement of the private sector may enhance the management of the utilities, and will also potentially improve the creditworthiness of projects – so allowing the EIB and other IFIs to play a more prominent role in financing the necessary investments. Assets would to be owned in partnership between the municipalities and the state, while the operation is contracted to concessionaires. So far only Sofia water utility has contracted a concessionaire, but private sector participation in Varna and Shuman has been pending for several years. The process of preparing the water sector for private sector participation is continuing. Currently a study is analysing the options for establishing an independent regulatory body in this field.

Also the application of the ISPA programme has been somewhat slow. Until now the EU has approved four projects, but no contracts have yet been signed with any of the contractors. A further eleven projects are in the ISPA pipeline.

There are probably several reasons for the slow pace of implementation. Several governmental bodies are involved, and thus a broad stakeholder circle needs to be engaged – many with new functions given to them only during the last years. The approval of ISPA projects has also been hampered by cumbersome procedures. Sometimes these are subjected to adjustments during the course of project preparation. As an example, the threshold value for low-income affordability has been altered for projects where feasibility studies were already completed. This put a stress on project preparation, and sometimes led to the unanticipated use of foreign technical assistance.

The municipalities themselves have undergone major reforms aimed at giving them more political and economic autonomy. While Sofia municipalities and other larger cities hold most of the staff capacity to meet the water management obligations and to take active part in the planning and implementation of the modernisation programmes, it is obvious that small municipalities with few professional staff resources face major shortcomings.

This may be part of the reason why the piloted five-year Local Environmental Action Programmes prepared by municipalities have had few links with national planning and the selection of water sector investments. However, the potential for these local plans to strengthen the horizontal planning at municipal level is recognised. The plans may be instrumental in local priority setting and in balancing between investments in different sectors.

Major Challenges

The roadmap for EU accession focuses on implementation of the investment heavy directives, in particular the urban wastewater directive. Improved administrative capacity of regional environmental inspectorates and the newly formed River Basin Directorates is also needed.

The EU Commission is committed to provide further assistance to the new river basin directorates. In the past bilateral donors have supplemented the EU programmes. It is found that there still is a tremendous need for bilateral donor assistance.

The practical planning and co-ordination of investments as carried out by project implementation units in MoEW and MoRDPW needs to be strengthened. Moreover, action plans need to be updated with attainable goals within agreed transitional periods. This will entail a revised analysis of how to engage private sector financial sources, and also a phased implementation plan giving priority to projects with the highest environmental benefits.

Given the low affordability in some regions, the application of low cost technical solutions may also be considered. In this area there is certainly scope for additional pilot and demonstration projects.

4.2 Air Quality

State of the Environment

Shortly after the transition in 1989, the Bulgarian Government identified improvement of air quality to be a main priority area. As a consequence the country was one of the first in Central and Eastern Europe to institute environmental action plans. A series of action plans was prepared to address different aspects of air quality. The general goal was to meet air quality standards and emission limits agreed upon in international treaties and conventions. Concrete targets were also set, including reducing the emission levels for sulphur dioxide, heavy metals and persistent organic pollutants by 50 to 80 per cent from 1990 to 2010. Later, when EU accession became a priority, the requirements in the EU environmental acquis became the focal point for the government policy on air quality.

Air quality has improved significantly during the last decade, with sulphur oxides and nitrogen oxides both being reduced by about 35 per cent. This is partly due to contraction of economic activity and partly due to environmental improvements. Sulphur oxides in particular are still very high in terms of emissions per capita with five times higher emissions than the OECD Europe average. When economic activities are resumed, it is likely that the gained effect may vanish if air pollution is not decoupled from economic activity.

High levels of air emissions pose high risks to human health and the environment. The admissible concentration limits are exceeded in many of the densely populated regions. There are 14 locations defined as hotspots with an extraordinarily high level of air pollution. These are mainly in large urban centres and in regions where large industries are emitting pollution. In some cases, limit values have been exceeded more than three times.

About 2,500 enterprises are recorded as polluting the ambient air with harmful substances. The energy sector is the biggest source of this pollution. The sector generates 83 per cent of the national load of sulphur dioxide, 30 per cent of nitrogen dioxide, and 41 per cent of particulates. The energy sector is also the main contributor of ferrous emissions and non-ferrous metals, with 32 per cent of mercury emissions originating from thermal power plants. Combustion processes are also the main source of dioxins and furans. Concerning VOC compounds, road traffic contributes to 42 per cent while industry accounts for 12 per cent of the emissions. Traffic also contributes 72 per cent of methane emissions.

Status of Transposition

The transposition of the EU legislation in the air sector was started at an early stage. The Ambient Air Quality Framework Directive of 1996 was actually partly transposed in the Clean Air Act of the same year. With the amendments in 2000, this law encompasses nearly all the provisions of the directive.

Most of the daughter directives have also been transposed into the Clean Air Act and its sub-ordinate regulations. This includes the Directives on limit values for Sulphur Dioxide, Nitrogen Dioxide and Related Substances, as well as the Volatile Organic Compounds Directives and the Directives on Petrol and Diesel Fuels Quality. The remaining legislation is to be transposed before the overall deadline of 2003.

Status of Implementation

The EU requirements concerning air quality assessment and management as given in the air quality framework directive are to be fully implemented during the coming five years.

An ambient air quality-monitoring programme is in place, with sampling and analytical procedures more or less in compliance with the EU guidelines. Bulgaria was incorporated in the Monitoring and Information network for EU concerning air pollution (EUROAIRNET) in 1997. Forty-two measuring points from the MoEW’s national system of environmental monitoring are included in the European network. Information is collected and processed according to set practices. The challenges here are mainly to enlarge the monitoring network and to introduce automatic data processing and more advanced apparatus, so allowing the inspectorates and the Environmental Executive Agency to apply ISO and EN testing methods and thereby to be accredited according to international standards.

In principle, the management of air quality data is in place. The Environmental Executive Agency has set up an information database and public information on air quality is provided by regular bulletins. However, the MoEW still sees information dissemination as one of the areas where improvements are most needed. This includes compilation and dissemination of technical data on air quality in a systematic manner. Other requirements relate to pedagogical dissemination of air quality and other environmental information to teachers and to their secondary and primary school pupils.

Preliminary assessments are carried out for zones where the air quality is violating the set limits. The Environmental Executive Agency and the regional environmental inspectorates have already identified zones where different levels of air quality standards are to be imposed. The zones for which the action plans are to be prepared are currently being selected.

Both the planning and enforcement of air quality measures need strengthening. A starting point can be taken in a recently completed EU Phare Twinning project aimed at preparing and implementing an air quality management plan for attaining air quality limit values in an urban area where those values have now been significantly exceeded. Pernik was the test case, being the town with the poorest air quality in comparison with the other hotspots.

Thus, the EU requirements for setting up the planning and monitoring system for air quality control is in progress and is likely to be completed before 2007. The compliance with the concrete air quality norms in the field is much more challenging. The actions to be taken will address a wide range of economic sectors. Bulgaria will need to manage pollution from vehicles, fuels, power plants, and large industrial and small stationary sources.

The implementation of the directive on sulphur dioxide and other substances is linked to the air quality management planning for effected regions. In some zones the plans of action to improve the air quality will be relatively easy to implement, but more commonly the remediation is linked to the restructuring of large combustion or industrial facilities for which an extended transitional period is also to be requested.

Managing pollution from vehicles remains a significant problem due to an ageing car fleet and an increasing number of vehicles. Modernising the car fleet and imposing better emission controls are aspects of the remediation. Other aspects are to maintain and even expand the current system of public transportation. A few donor projects have aimed at improving the public transportation systems, including an EU Phare Twinning project on modernising public buses in Sofia, but in general the emphasis on reducing air emissions through better public transportation seems to lack high priority from both the government and donors.

The energy sector is the biggest source of long-range air pollution, as indicated already. The heavy pollution is caused by a combination of poor energy sources such as lignite and coal with high sulphur content as well as obsolete combustion technologies. The Danish Ministry of Environment has been one of the donors demonstrating better combustion technologies and flue gas cleaning technologies at thermal power plants with significant environmental benefits. In two projects, The Danish Ministry of Environment and a Swiss donor have contributed jointly to air pollution reduction. However, modernising this sector is impeded by slow implementation of privatisation programmes, with plants being in an intermediate stage where donor funding is not applicable and private environmental investments are premature. This is a contributory factor to why donors in general and the ISPA programme in particular refrain from supporting investments in projects on improving air quality directly. At present, only one air quality project has been proposed and this has been put on hold until the restructuring of the plant in question has been completed.

Below is a list of directives for which extended transitional periods are requested:

Measures to control VOC emissions resulting from storage, loading and unloading as well as transport of petrol are addressed by the first VOC directive. Technical measures have been taken to introduce safe unloading of mobile containers at terminals. Measures have also been taken to reduce petrol loss from mobile containers during transport. All terminals and service stations shall be subject to environmental impact assessments during the coming five years. Detailed investment plans will be derived from these assessments. The overall cost of implementation is estimated to Euro 300 million of which nearly all is to be provided through private means.²

Reduction of the sulphur content in fuel will bring substantial improvements of the air quality. This is the subject of the Sulphur contents directive. The amount of sulphur in diesel is about 0.20 per cent in comparison with the EU standard of 0.05 per cent. The contents in heavy fuels may currently amount to as much as 3 per cent. A gradual harmonisation to the EU standards is expected. A constraining factor is the inability of the national refinery Lukoil Neftochim to produce according to stricter standards. The current process technology has to be replaced completely. The cost of reconstruction is estimated to Euro 1.5 billion and will last for five years.³ This will have significant implications for the economy of Bulgaria as the refinery contributes to as much as 17 per cent of the GDP.

Major Challenges

The scale of the efforts is reflected by the fact that compliance costs will account for 40 to 55 per cent of the overall cost of complying with the environmental acquis.⁴ As the private sector, including the energy and manufacturing industry, is going to meet more than half of these costs, it is evident that realisation will be closely linked to the overall structural reforms of the Bulgarian business sector. However, investment by the public sector in air quality improvements is also to be increased. Especially the current low level of ISPA support needs to be reviewed.

For the directives requesting extended transitional periods there is a need for establishing realistic and attainable action plans. Technical studies on the problems and the remediation activities need to be supplemented and realistic financing strategies are to be applied. Also the horizontal planning (municipal plans) for the hotspot areas needs to be targeted.

Further assistance to the monitoring, inspection and enforcement regimes is generally needed. The assistance may address concrete measures related to upgrading of the analytical apparatus but also staff training in the regional inspectorates is needed.

4.3 Solid Waste Management

Status of the Environment

In Bulgaria, municipal waste has traditionally been deposited at dumpsites. Some 2,500 uncontrolled landfills have historically provided this capacity. At present 680 landfills are in operation, but only 2 of these comply with the EU requirements. Major towns and cities have been provided with organised waste collection. The rural housing making up about 23 per cent of the population has been without waste collection and disposal services.

Industrial waste has been land-stored at the sites belonging to the enterprises, and the rest has been deposited at municipal landfills. The thermal power plants and chemical industries are the biggest waste generators. Industrial waste generation makes up about 75 per cent of all waste generation. The past statistics have though been somewhat inaccurate, as reporting was not systematically imposed. Data on waste from mining and primary processing has been particularly scarce.

Hazardous waste has either been deposited at the site of the producers or it has entered into the municipal and industrial waste streams. A few incineration plants have been in operation, but without meeting EU requirements. Current statistics are based on the National Catalogues on Hazardous Waste, which are going to be replaced. 1.3 million tons was reported for 1998. About 30 enterprises accounted for more than 90 per cent of hazardous waste production; altogether 550 enterprises were registered as hazardous waste producers. The huge amount of waste already stored at uncontrolled landfills and the leakage from tailing ponds from the mining industry is posing a major challenge.

Status on Transposition

Waste management is regulated by the 1997 Law on Reduction of the Harmful Impact of Waste on the Environment. The law introduces the concept of a waste management hierarchy and the provisions for setting up a disposal and waste recovery system as stipulated in the EU Waste Framework Directive. Full compliance with the directive will be achieved later this year, when drafted amendments to the law are enacted.

The EU Hazardous Waste Directive is almost fully transposed. Only the requirements regarding reporting to the European Commission is pending, and is to be transposed upon accession.

Incineration of waste is regulated through several EU directives, of which the Hazardous Waste Incineration Directive and the Municipal Waste Incineration Directive covering new plants are fully transposed. There are eight smaller incinerators in Bulgaria, but these will be closed during the coming years except for one hospital waste incinerator meeting EU standards that is currently under construction with DANCEE assistance.

The EU Landfill Directive was partly transposed in 2000, while gaps related to procedures on waste reception, waste categorisation, reporting on land filling activities as well as procedures for closure of dumpsites are scheduled to be transposed in 2003.

The remaining transposition themes are related to the EU Packaging Waste Directive and the Directive on Disposal of PCBs and PCTs. Two EU Phare projects address these issues, and a full transposition is expected within the overall deadline of 2003.

Status on Implementation

The current national waste management plan takes all the EU waste management principles into account. A list of some 60 investments and actions has been stipulated. The main challenge for the coming revised plan is to prepare a priority list that can realistically be financed and which can meet the requirements of the investment heavy directives – in particular the landfill directive.

It is likely that the regional and municipal planning that is now at an embryonic stage will serve as an instrument to facilitate better co-ordination between national waste management planning and the priorities of the districts and municipalities. Dutch and British donors have assisted in preparing pilot versions of municipal waste management plans.

The permitting regime for municipal and hazardous waste has been designed and is in the process of being implemented. The MoEW is the competent authority with the regional environmental inspectorates serving as controlling bodies and the Environmental Executive Agency as the monitoring and co-ordinating body. Permits are to be issued to waste generators on a time-limited basis. Waste management operators are also regulated through permits. In case of landfills, permits are issued jointly with the mayor of the concerned municipality. A system for monitoring waste management activities and for reporting and keeping a monitoring system has been designed according to EU requirements as well.

The principle of "polluters pay" has been implemented to the extent that waste generators are to pay for the collection and safe treatment of all types of waste. However, municipal and national budgets are expected to co-finance investments in landfills and other facilities. The low affordability of households outside the big cities and the pressure on the public budgets in general are major constraining factors when setting up environmental financing plans in this field.

Generally the modalities for organising the waste management, including private sector participation in operating and owning of waste management facilities, are not yet fully developed. Currently the ownership of landfills rests with the municipalities, but the regulatory system is already providing for private waste management operators.

So far recycling of waste has not been subject to systematic efforts, although valuables are reused by informal activity. Waste minimisation has not been implemented in a structured manner either. However, projects are prepared for construction of reloading centres along the Black Sea coast.

Extended transitional period is requested for the following directives:

According to estimates based on cost included in the national waste management plan and compiled by the World Bank, the investments and the operating and maintenance costs associated with the compliance of waste-related directives will range between Euro 850 – 1,150 million and Euro 93 – 132 million respectively. Derogation of the Packaging Waste Directive could reduce the costs by Euro 400 million.

The implementation plans for the packaging waste and the PCB and PCT directives are to be prepared with assistance by two EU Phare Twinning projects. At this stage it is unclear as to whether the transitional periods can be shorted.

It is expected that at least 56 regional landfills will be constructed in order to cater for the national demand for controlled landfilling. The preparation of these projects should be faster and the number of projects should be scaled up dramatically if this target is to be achieved. At the present time 14 of these landfills are already constructed or under construction. This includes an inter-municipal demonstration project funded by The Danish Ministry of Environment in Vratza and Metza municipalities that combines the construction of a new landfill according to the landfill directive and the introduction of waste collection and recycling management plans.

The application of the ISPA programme has been relatively slow, and until now no project has reached the construction stage. A package of six regional landfills and closure of numerous dumpsites was identified for ISPA funding in 2000, and two years later the project has now matured with Danish assistance to the point where construction works can be contracted. The main barriers in preparing such projects are forming suitable networks for co-operation between municipalities, which have to agree on a common landfill and in turn set up common management plans.

The safe disposal and management of hazardous waste is still at an early stage, and the aim is to establish one national and four regional deposit facilities that will be funded by ISPA. This project has not yet been approved. In connection with the feasibility study, a system for registering hazardous waste streams has been prepared with Danish assistance. A permitting system is in the process of being implemented, but an industrial association has raised some concerns as to the rigidity where even the smallest amount of chemicals is subject to a permit.

Major Challenges:

As stated by the EU Commission a key task is to prepare realistic action plans for the directives where extended transitional periods have been requested. These plans have to match the EU requirement with the financial and personnel resources available.

An immediate challenge lies in improving the efficiency with which ISPA projects are selected and implemented. In particular, the present procedure for the selection and planning of regional landfills including hazardous waste treatment facilities seems to pose a barrier. The proposed ISPA project for construction of a national hazardous waste system is likely to be reviewed.

While investment projects at a larger scale primarily are to be funded by local and ISPA means, there is still a need to prepare a pilot project that demonstrates the application of low-cost technologies for waste handling and storage. This is a suitable area for bilateral support. Also the demonstration of methods of organising waste managing, waste collection, waste sorting, waste recycling, and management of landfills remains to be further developed. In this respect additional demonstration projects like the DANCEE project for the regional landfill for Vratza and Mezdra municipalities can be initiated.

4.4 Nature Protection

Status of the Environment

Bulgaria’s natural and biological resources are very rich. The country is home to a wide variety of flora and fauna species. About 200 endemic species of the Balkans are found here. During the past three years 327 birds, 389 plants, and 473 animals have been registered as protected species. A total of 16 species are on the list of globally endangered species.

There are 48 ornithological sites of EU importance, 34 of which are part of the Corine biotopes network. Forest coverage is 30 per cent of the territory. In relation to the protection of wild birds and habitats, 140 sites are identified as meeting the requirements to becoming Special Areas of Conservation (SAC). They are estimated to cover 12 per cent of the national territory.

Three categories of protected areas are exclusively state-owned; these are i) reserves, ii) maintained reserves and iii) national parks. Other categories such as nature monuments, nature parks, and protected sites might also include municipal or private ownership. The classification and management of protected sites is currently being revised according to the terminology given in the EU habitat directive.

Distribution of nature reserves and protected areas

Two laws, namely Law on Protected Areas and the recently enacted Biodiversity Act, together compose the main legislative framework for nature protection. The latter transposes the requirements given in the Habitats and Wild Birds Directives, and the law creates a legal base for establishing the necessary administrative structure for the implementation of the EU regulation on endangered species, connected with the CITES Convention.

Status of Implementation

The Habitats Directive and the Wild Birds Directive specify that certain qualifying sites should be classified and designated as Special Areas for Conservations, and that complementary management practices are to be introduced, ensuring protection of the ecological values.

A National Ecological Network of protected sites is in the process of being formed before 2006, and is intended to cover 10–12 per cent of the national territory. All protected sites will be categorised as SACs and the network is expected to become Bulgaria’s contribution to the Natura 2000 Network when Bulgaria joins the EU. Thirty per cent of the SACs are already protected through the Law on Protected Land.

Some of the future ecological network has already been officially designated. The Pirin National Park and the Sreburna Nature Reserve are recognised as world natural heritage sites under the 1972 Convention on the Protection of the World Cultural and Natural Heritage. Seventeen areas are listed as biosphere reserves under UNESCO’s Man and Biosphere Program. Five wetlands of a total area of 2,803 ha are included in the Ramsar List. Studies indicate that 54 per cent of ornithologically important sites are already protected to some degree, while the remaining 46 per cent are currently not subject to protection.

A project with Danish support has just been launched with the aim of identifying and registering potential sites to be designated as Special Areas for Conservation and for preparing for registration according to the NATURA 2000 criteria.

The restricted use of protected zones according to the law on protected areas is already guaranteed. Here the challenge is to prepare management plans and in turn to operate the protected land accordingly. Three management plans are approved while additional twenty-two plans are currently under preparation.

The protection of other territories categorised as SACs is somewhat more challenging. This is especially the case for privately owned land. Here, measures are to be developed for negotiations with the owners and for providing compensation. Such systems are not yet in place. However, a link has been established between the MoEW and the agri-environment department of MoAF that administers the SAPRAD programme. Potential synergy may be established. Restricted use of agricultural land and forest can potentially be supported under the SAPARD programme and compensation can be provided to the farmers.

The engagement of civil society and NGOs is quite well elaborated in the area of nature protection, due to a general awareness and the presence of well-functioning NGOs with international networks. NGOs have amongst others carried out campaigns on increasing the readiness of Bulgaria to build up the European NATURA 2000 network.

One of the major challenges is related to the staff shortages. However, staff numbers are being increased currently, and the staff number at the National Park Directorate has grown to 175 persons. The number of experts on protected territories and biological diversity at the regional environmental inspectorates has also reached 57 persons.

Another challenge relates to the enforcement of the restrictions. There will probably be a gradual process of establishing the balance between local economic activities and the protection of nature. Several projects under the GEF instrument are addressing such practices for coexistence.

More strict enforcement is planned for the endangered species regulation related to the CITES convention on trading with endangered species. A Phare Twinning project is currently assisting in preparing for appropriate administrative structures.

Major Challenges

One of the immediate tasks is to establish a NATURA 2000 network of Special Areas of Conservation that will protect valuable biotopes and habitats. Projects and activities are in place to completing the first phase of the task.

The subsequent task is to set up a procedure for approval of SACs and to protect the areas against unsustainable usage. For private land this will entail a practice for imposing restricted use against economic compensation.

Also management plans for the SACs are to be prepared and carried out. The scale of such tasks is comprehensive, taking into account that up to 12 per cent of Bulgaria’s territory potentially is to be targeted. Therefore, different modalities for site management should be developed which can serve as models for different SAC categories. In buffer zones and likewise areas practices should be piloted allowing light economic activity for local farmers and hunters.

4.5 Industrial Pollution Prevention

State of the Environment

Bulgaria’s historical emphasis on heavy industry caused substantial damage to its environment. In some areas, smelters have so polluted the soil and water with lead, arsenic, and cadmium that much of the surrounding land is unusable for agriculture. Other major industrial polluters include the oil processing and chemical industries. In 1998, these industries alone accounted for 47 per cent of the total discharged industrial wastewater, and about 90 per cent of the total quantity of hazardous waste in the country. Moreover, most industrial waste is still disposed of in uncontrolled landfills, creating a potential risk of pollution of neighbouring territories.

On the other hand, a considerable decrease in current pollution has been observed for all »hot spot« regions, because of the effect on Bulgaria’s industrial sector of the transition from central planning to a market-based economy and because of certain pollution control measures taken in recent years. Nonetheless, a number of industrial plants still emit higher concentrations of certain harmful substances. Many of these are in densely populated towns and villages. Local air pollution is often further exacerbated by intensive motor transport. There is concern that environmental emissions could rise if growth in its economy results in increased industrial activity.

Status of Transposition

The basic legal framework for transposition of the IPPC and Seveso II Directive requirements was established with the adoption of the Environmental Protection Act in late September 2002. An IPPC Regulation has been drafted and is currently undergoing consent procedure. The Counsel of Ministers should adopt it by the end of January 2003. The legal requirements of the recently revised Large Combustion Plant Directive have not yet been transposed. The plan is to transpose the LCP requirements through a new Governmental Ordinance under the Clean Air Act. The Solvents Directive is expected to be fully transposed by the end of 2002 by a draft regulation on solvents emission reduction that is currently under consultation. This regulation will also be issued under the Clean Air Act.

Status of Implementation

The combination of old facilities requiring upgrading and lack of investment funds for technological upgrading and pollution control poses special problems for Bulgaria in the implementation of the EU Directive on integrated pollution prevention and control (IPPC) and other requirements in this sector. To meet this challenge, Bulgaria has requested the following transition periods ("TP"):

Preliminary inventories indicate that 250 plants are subject to IPPC requirements. Processing of an integrated permit for a larger industrial facility will require additional staff. Because of the cross-media approach to industrial pollution control for emissions to air, land, and water is required under the IPPC Directive. Officials responsible for permitting and enforcement of industrial pollution legislation will need to make complex judgements about the trade-offs between different process options for each plant and about emissions to different environmental media. The World Bank estimates that Bulgaria’s public sector will have to invest around 4.0 millions Euro (or from 67,000 Euro to 227,000 Euro per year) to administer the IPPC Directive. A mutual Bulgaria/Denmark project on cost analysis of the implementation of IPPC is currently being carried out.

In April 2002, a 5-person unit was established within the Executive Environment Agency specifically to prepare integrated permits, in co-ordination with the Regional Inspectorates for Environment and Waters (RIEWs). In 2003, this unit is expected to grow to 15 persons over the coming year and an additional 45 inspectors (three on average per Regional Inspectorate) are to be recruited.

Under the legal structure established by the 2002 Environmental Protection Act, integrated permits will be signed individually by the Minister of Environment and Waters from 2003 on. Since the permits will be administrative decisions taken at ministerial level, the only way to appeal the standards established in the permits will be to bring a case before the Supreme Administrative Court of Bulgaria. This has raised concern among the industrial operators that will be subject to the IPPC requirements.

The major financial burden will of course fall on the private sector. Some of the costs of achieving the EU standard of best available techniques (BAT) will be incurred in any case in carrying out process upgrades needed to be competitive in the global marketplace. Nonetheless, most industrial facilities coming within the IPPC Directive requirements will require major investment in order to meet the EU standard of BAT, at a time when there is little domestic capital available for such investment. The World Bank estimates that Bulgaria’s public sector will have to invest around 4.0 MEUR (or from 67,000 Euro to 227,000 Euro per year) to implement the IPPC Directive.

Bulgaria has sought bilateral assistance, also from Denmark, to enable it to meet the challenge of integrated permitting. A previous DANCEE project took five industrial facilities through a pilot phase exercise of applying for and negotiating the conditions of integrated permits, as a precondition for receiving major loans from the World Bank for installing new technologies and pollution controls measures. The current DANCEE project aims to build the additional capacity needed to regulate and handle the approximately 400 integrated permits that Bulgaria has committed itself to issue within the next 5 years (some 75 each year). The project has helped the MOEW to finalise a draft regulation on integrated permitting which will be adopted by Government Decision in February 2003, as well as to develop a manual on integrated permitting and guidelines on BAT for three industrial sectors: incineration, surface treatment and organic chemicals production. The project is also developing a strategic investment plan for the IPPC Directive, for the MOEW to use in its accession negotiations and implementation planning.

The Large Combustion Plant (LCP) Directive applies to emissions from combustion plants with a rated thermal input greater than 50 MW - typically power plants, oil refineries, and big industrial boilers. Bulgaria’s implementation of the LCP requirements is well advanced, but a national plan to reduce total annual emissions from LCPs has not yet been established. From Bulgaria’s point of view, the most urgent investment priority is for combustion installations put into operation after 1 July 1987 that are not yet in compliance with the 1988 Directive’s emission limit values.

But the new requirements introduced with the 2001 amendment are also a concern. All plants licensed after 2001 must meet even more stringent emission limit values, and "existing plants" (licensed before 1987) must either retrofit by 2008 to reduce emissions to the same level as plants licensed after 1987, or phase out after an additional 20,000 hours of operation after the 2008 deadline. Bulgaria will therefore request a transition period for these new requirements.

A rough estimate of the costs of compliance for existing power plants – with national regulations as well as with the original un-amended LCP directive - is 362 million Euro. This estimate includes: flue gas de-sulphurisation at Maritsa East 1 (2x300 MW), Maritsa East 2 (4x215 MW) and Maritsa East 3 (4x215 MW) plants projected to cost 31 million Euro; low NOx burners in most coal-fired plants and gas reburning at Russe projected to cost 22 million Euro; and the upgrading of electrostatic precipitators projected to cost 27 million Euro⁵. Bulgaria is actively seeking sources of financing for these improvements, but lack of clarity concerning the status of privatisation for Bulgaria’s energy sector has impeded the process of securing funding for environmental investments. A cost assessment for compliance with the 2001 amendment to the directive will be completed by the end of 2002 but the implementing costs are expected to be at least two times greater since the improvement measures will have to cover all 36 existing LCPs.

The Seveso II requirements aim at the prevention of major industrial accidents, and also include measures for accident response. The institutional framework for implementation of Seveso II requirements will be set up in 2002. The MOEW has already identified how many installations fall within the scope of the Directive (67 installations: 35 top tier and 32 lower tier). The financial implications of implementing the Seveso II requirements in Bulgaria have not yet been assessed.

Major Challenges

There is a need for providing information to industry, perhaps through a BAT Centre, on the technologies that are considered to comply with the IPPC requirements.

Likewise procedures should be prepared for co-ordinating how the RIEWs, River Basin Directorates, the EEA and the MOEW will be involved in the permitting process.

The action planning for implementing the IPPC directive is to be strengthened. This includes the establishing priorities among industrial sectors for phasing in integrated permitting.

Finally there is a challenge in setting up a system of financial incentives or a financing mechanism such as an industry-oriented environmental credit scheme, to support the necessary retrofitting of industrial facilities.

4.6 Chemicals Control

The EU requirements with respect to chemicals control are aimed at facilitating trade in chemicals and chemical products through mutual recognition of safety tests, harmonised labelling and packaging standards, and other measures to minimise risk to health and the environment. If the proposed EU Strategy for a future Chemical Policy goes into effect, thousands of chemicals already in use within the EU will undergo review and assessment, a burden that the new Member States will be expected to share.

Like the other CEC Candidate Countries, Bulgaria lacked similar marketplace controls during its socialist period. Large and significant gaps therefore exist in Bulgaria’s regulations concerning chemicals safety, and it still has much to do to establish the new administrative structures and analytical capacity required to implement the various EU directives and regulations in this sector.

Status of Transposition

Bulgaria’s framework Law on Protection against Harmful Impact of Chemical Substances, Preparations and Products was adopted in 2000 and entered into force in February 2002. The legal basis for implementing the EU framework law for this sector was completed in 2002 with the adoption of three additional regulations: the Regulation on the Notification of New Chemical Substances; the Regulation on the Classification, Packaging and Labelling of Chemical Substances, Preparations and Projects; and the Regulation on Evaluation and Control of the Risks of New Substances.

Further transposition of the Animals in Scientific Experiments Directive awaits a regulation expected by the end of 2002. Transposition has not started for the Asbestos Directive, other than the setting of limit values for asbestos emissions. The Regulation on the Permitting of Biocide Products was recently adopted, which will help to complete transposition in this area.

Bulgaria has ratified the Vienna Convention on the protection of the ozone layer and also the Montreal Protocol on substances that deplete the ozone layer.

With respect to the EU requirements on genetically modified organisms (GMOs) and genetically modified micro organisms (GMMs), the 2002 Regular Report notes that Bulgaria failed to meet its scheduled aim of transposing EU GMO law by the end of 2001. The draft law on GMOs is still awaited.

Status of Implementation

Bulgaria has indicated that it will have fully implemented the chemicals acquis by 2002. This appears unrealistic, even though the MOEW has received significant technical assistance in this area.

The Commission noted in its 2002 Regular Report that "further progress has been made with the adoption in July 2002 of implementing legislation on import and export of certain dangerous substances and on risk assessment of new chemical substances to human health and the environment. Guidance to exporters on their obligations under the laws on import and export of dangerous substances will be issued in the framework of a Phare Twinning Project. However, there still remain other implementation measures to be completed. Nor have implementation measures been taken yet on the Risk Assessment Regulation."

The above-mentioned Phare Twinning Project started up in September 2001 with partners from the German Ministry of Environment and the Austrian Federal Agency of Environment. The objectives for the project included completing the transposition of the legislative acts of the EU in the field of chemical substances and the first steps in the implementation of their requirements. Amongst other activities, the project involved: developing a detailed phased programme for the implementation of the regulations under the Law on Chemicals; analysing the current situation with the Bulgarian administration; developing training programmes for Control Authorities, and developing a project for Pilot Notification of new chemical substances. One of the main results of this Twinning Project is expected to be the formulation of a detailed Implementation Plan for this sector.

The bulk, if not all, of implementation measures are still to be taken with regard to the protection of Animals in Scientific Experiments Directive, the Asbestos Directive and the Biocides Directive.

The biocides requirements are particularly demanding. As an initial implementation measure, an Expert Team in the Ministry of Health has been given responsibility for issuing authorisations, setting down conditions of use, and labelling requirements. Bulgaria’s 2002 Progress Report states the intention of preparing a detailed plan for the implementation of the biocides requirements, including strengthening of administrative capacity, by the end of 2003. Bulgaria aims to fully implement the biocides requirements by 2006.

Bulgaria has not yet fully implemented the EU requirements with respect to ozone depleting substances (ODS). Bulgaria’s Law No 254 on Chemicals puts in place a system for permitting and controlling the import, export and transformation of ODS, and the intention is that this law will be amended in order to fully implement the EU requirements in this area. A partial framework is already in place for authorising the use of hydrochlorofluorocarbons. Bulgaria is developing, with DANCEE assistance, a National Programme to phase out ozone-depleting substances.

Implementation measures are lacking for the EU requirements with respect to GMOs. In 2001, the World Bank considered the costs of implementing the EU requirements for GMOs and for chemicals. It made the point that since one of the benefits of approximation will be easier access for Bulgarian chemicals and GMOs to the EU market, the richer producers will be more willing to accept the cost of the changes.

Major Challenges

The chemical sector requirements will require further development of the capacity to analyse substances for hazard characteristics and for carrying out risk assessment, if Bulgaria is to fully participate in the burden of review and assessment of the thousands of chemicals already in use. This capacity will also be important for taking the necessary regulatory decisions on any new substances that may be notified to Bulgarian authorities. Implementation of the EU biocides requirements will require similar skills. Bulgaria’s current institutional framework for control of chemicals may need review and consolidation, as part of the additional measures needed to prepare for the EU requirements in this sector.

4.7 Radiation Protection

The EU requirements on radiation protection are aimed at providing the public and workers with sufficient protection from radiological sources. Bulgaria’s nuclear power industry is one potential source, but medical exposures and consumption of foodstuffs are other areas regulated under EU law.

Status of Transposition

Bulgaria has now fully transposed the requirements of the Basic Safety Standards Directive through the Basic Norms of Nuclear Safety, adopted in 2000, and amendments to the Law on the Safe Use of Nuclear Energy.

In April 2002, the government adopted the regulation on the maximum allowable radioactive contamination for agricultural products and the regulation on the requirements to limit the radioactive contamination of foodstuffs. Governmental Orders are now being drafted to assist in transposition of the EU requirements with respect to medical exposures, information to the public and outside workers by 2003. Work has not yet commenced on transposition of radioactive waste shipment requirements.

Status of Implementation

At least three ministries have a stake in the radiation protection issue – the MOEW, the Ministry of Health, and the Ministry of Energy and Energy Resources - and they have had difficulty agreeing on which agency will be responsible for the various requirements with respect to radiation protection. Though there is progress in this sector, lack of clarity concerning competence for key EU obligations continues to pose obstacles. For example, the list of authorities involved in providing information to the persons organising emergency assistance in the event of a radiological emergency is long. On the energy side, the former Committee for the Use of Atomic Energy for Peaceful Purposes (CUAEPP) has recently been transformed into a Nuclear Regulatory Agency and the NRA is expected to play a major role in radiological safety measures.

The Directive on health protection of individuals in relation to medical exposure is expected to pose significant costs to Bulgaria’s medical and dental practices. The EU requirements include mandatory diagnostic reference levels for examinations using radiological equipment and establishes dose constraints for individuals helping to support those undergoing medical exposure, as well as acceptability criteria for radiological installations. Much of the radiological equipment currently in use by dentists and hospitals will need replacement to meet these standards.

According to the Environmental Protection Act, the Executive Environment carries out radiation monitoring of the environmental components through its radiation-monitoring network. The radiological parameters of the air, water and soil are monitored regularly. At the same time, the Executive Environment Agency administrates the national automated system for permanent control of the radiation gamma font. The system consists of 26 local stations covering the territory of the whole country and ensuring reliable information in case of increase of gamma radiation within the territory of Bulgaria or in case of trans-boundary pollution. Eight more stations, situated at a distance of about 2km from the Bulgarian nuclear power plant "Kozlodui", are included in the national automated system. The system ensures real time data for the State Civil Protection Agency and the Emergency Centre at the Nuclear Regulatory Agency and therefore assures due implementation of environmental and population protection measures in case of radiation accident.

Major Challenges

On the institutional side there is a need for clarification of the allocation of competencies between the MOEW, the Ministry of Health and the NRA for the Basic Safety Standards Directive, information to the public in the event of a radiological emergency and other requirements in this sector. Also, the NRA is not adequately staffed to meet its obligations with regard to radiological safety.

Regarding investments the needs at the immediate level are to replace out-of-date radiological diagnostic equipment in dentists’ surgeries and hospitals.

4.8 Noise

Most of the EU’s current requirements in this sector are product standards, although the newest EU directive in this area addresses ambient noise as well. Bulgaria is still at the beginning in its approximation of the EU product standards with respect to noise, having taken few steps to transpose these requirements.

Bulgaria’s 2002 Progress Report indicates that all of its awaited laws in this sector will be based on the EU framework directive on noise from outdoors equipment.⁶ It plans to issue a Law on Technical Requirements to the Products to transpose the requirements, and to introduce thirteen national standards in conformity with the EU product requirements.

With regard to noise from household appliances, requirements are intended to be introduced into Bulgarian law by a regulation based on Article 7 of the Consumers and Trade Rules Protection Act.⁷ The intention is that this regulation will be adopted by the end of 2002.

Status of implementation

Bulgaria has much to do to implement the EU requirements. An implementation plan for achieving compliance with the EU requirements for noise from household appliances will be issued by the end of 2003.

Concerning the requirements for noise from equipment used outdoors, the Chairman of the State Agency for Standardisation and Metrology will issue authorisations to carry out conformity assessments. This State Agency will also be responsible for market surveillance.

Major Challenges

The major challenge in this sector will be to develop accredited laboratories with capacity for testing noise levels emitted by products according to the methodologies required under the EU laws. It will also be important to be sure that all Bulgarian producers have information about the EU requirements, and sufficient time to make the technical changes to their products needed for compliance. Since compliance with the EU standards is an essential prerequisite for placing products on the internal market, Bulgarian producers will need to meet these standards if they are to remain in operation.

4.9 Horizontal Measures

The EU horizontal requirements include such measures as access to environmental information and environmental impact assessment (EIA) of proposed development projects and current big polluters. The EU has placed great emphasis on the need to set these procedures in place as quickly as possible, not least of all because EIA with public participation is a fundamental pre-condition for eligibility of infrastructure projects for EU funding.

The Ministry of Environment and Waters has given priority to informing the public about environmental matters and attracting the attention of various groups to environmental concerns. It co-operates closely with a number of nongovernmental organisations (NGOs) on various activities, including programmes »For Clean Environment«, »Driving with unleaded fuel«, »European Day without cars« and a »National Week for Clean Environment«. The tool of environmental assessment has been used actively in Bulgaria since the coming into force of the Environmental Protection act in 1991.

Status of Transposition

In September 2002, Bulgaria adopted the Environmental Protection Act, which – as the 2002 Regular Report notes - provides the "necessary legislative framework for further progress on environment impact assessment and access to information".⁸ It has a specific Chapter on Public Access to Environmental Information, which according to the MoEW "fully complies" with the new Directive on public access to environmental information and to the Aarhus Convention principals. Though Bulgaria has not yet ratified the Aarhus Convention on Access to Information, Public Participation and Access to Justice in Environmental Matters, it is taking steps to ratify this convention in 2003.

Bulgaria’s EIA requirements have been modified over the years to take into account Bulgarian EIA practice and experience of EU Member States. The 2002 Environmental Protection Act repealed Bulgaria’s existing legislation and set in place provisions fully in compliance with the EU requirements. The Act also encompasses transboundary EIA, in line with Bulgaria’s ratification in 1995 of the UN ESPOO Convention on Environmental Impact Assessment in a Transboundary Context. The MOEW intends to transpose the more recent EU legislation on strategic environmental assessment (SEA) by the end of 2003.

Status of Implementation

Environmental information is one of the key responsibilities of the Executive Environmental Agency (EEA) under the MOEW. The EEA co-ordinates Bulgaria’s environmental monitoring system and issues information on the state of the environment in the form of a monthly report and an annual report on the State of Environment. The monitoring information can be accessed on the MOEW website, (www.online.bg), which has a "Dialogue with the Public" option. The EEA is actively seeking support from donors for improving its capacity to ensure public access to environmental information, including establishment of a Public Information Centre at the premises of the EEA and production of brochures for the public on their Aarhus Convention-related rights.

Responsibility for implementing the EIA directive is shared between the MOEW and the Regional Inspectorates for Environment and Waters. Bulgaria has carried out EIA procedures since 1991, and most of the systems and measures required for implementation of the EIA directive are in place. Public participation is an important part of the EIA procedure. Public hearings are conducted and EIA reports are made available at least one month prior to those hearings. A consultative process is in place to ensure that any member of the public and any concerned environmental authority can express their opinion on the information supplied by the developer. The decisions are published. Further consultation and public information requirements will be introduced in 2003 on the basis of the provisions laid out in the new Environmental Protection Act.

In 1999, an inter-ministerial commission on EIA was established with the MoEW involving representatives from the MH, MAF, MRDPW and national experts. A Dutch financed project has helped the MoEW with its implementation of the EIA plans and programmes, and improvement of inter-institutional co-ordination. Norway has provided assistance in a 2002 project to create and purchase technical equipment for 6 information and public relations centres in six Ministry regional inspectorates.

Like many Member States, Bulgaria is still in the early stages of implementing the more recent EU requirements with respect to strategic environmental assessment (SEA). Currently, the only programmes, which are subject to SEA, are protected area management plans and territorial development plans. One of the challenges for Bulgaria will be how to ensure public debate on a project, plan or programme during EIA or SEA process.

The immediate challenge lies in developing further administrative capacity for improved dissemination of information to the public and for responding to requests for information from the public.

There is also a need for further development of best practices concerning how to foster better public participation in the process of considering the environmental impacts of proposed projects. Lastly strategic environmental assessment with respect to plans and programmes in other sectors is yet to be introduced.

4.10 International Conventions

The responsible body for international and bilateral co-operation in the field of the environment in Bulgaria is the Directorate on Strategies, European Integration and International Co-operation of MOEW. As the following table indicates, Bulgaria is on par with the other CEC Candidate Countries in terms of its accession to the major international environmental instruments.

* R= Ratification, acceptance, approval or succession; A= Accession

Bulgaria has followed up on many of its international convention obligations by putting national action plans in place. In 1999, the Council of Ministers adopted a National Strategy for Biodiversity Conservation 1999 – 2003 as required by the Convention on Biological Diversity. In accordance with its commitments from the Montreal Protocol, Bulgaria has put in place a National Programme on ozone depleting chemicals.

In 1998, Bulgaria ratified the VOC Protocol to the UNECE Convention on Long-range Transboundary Air Pollution, and in 1999, the Danube Convention. In addition, Bulgaria is one of the few countries to have ratified the Basel Convention Export Ban Amendment.

From a regional point of view, Bulgaria is one of the six countries bordering the Black Sea, one of the world’s most remarkable regional seas for its isolation (only the Bosphorus Straits as outlet) and for the size of its drainage basin (almost one-third of continental Europe). The Convention for the Protection of the Black Sea against Pollution was signed by Bulgaria in 1992, and ratified in 1993. Bulgaria has also ratified the Convention’s three Protocols (control of land-based sources of pollution, dumping of waste and joint actions in case of accidents e.g. oil spills). It participates actively in the various regional projects and programmes of the Black Sea Environmental Programme, including the current Global Environment Facility (GEF) Black Sea Ecosystem Recovery Project.

Bulgaria has also concluded bilateral environmental agreements with almost all its neighbours, including Romania, Greece, Macedonia and Turkey. Bulgaria also has environmental co-operation agreements with Italy, Ireland, Slovak Republic, Denmark, Austria, Germany, Czech Republic, Hungary, Russia, the Netherlands, and Poland.

4.11 Climate Change

Bulgaria ratified the United Nations Framework Convention on Climate Change (UNFCCC) in March 1995 and so far has complied with its requirements. In accordance with the international efforts to reverse global climate change, Bulgaria ratified the Kyoto Protocol to the Convention on 17 July 2002. Achievement of its Kyoto target will require Bulgaria to conduct an active policy to reduce greenhouse gases (GHG). During the First Commitment Period (2008-2012), the expected yearly average amount of the total aggregated emissions is expected to be under the commitment made to reduce its total emissions by 8 per cent from the base year of 1988.

The National Climate Change Action Plan (NCCAP) adopted in 2000 sets forth the national GHG mitigation policies and measures by sector. The responsible body for the realisation of the plan is the Inter-ministerial Committee on Climate Change. The NCCAP also promotes the participation in the Kyoto Protocol Mechanisms, namely Joint Implementation (JI) and International Emissions Trading (IET). The Bulgarian Government gives high priority to participation in both mechanisms.

Bulgaria expects that many of the measures it is taking to approximate to the EU acquis will help to reduce GHG. A regulation under the Clean Air Act scheduled for approval by the end of 2002 will define the competent institutions and procedures for gathering information on pollutants, including GHG emissions. New policies and regulations for liberalising the electricity and gas⁹ markets will provide energy efficiency incentives by, inter alia, removing subsidies.

In addition, there is now a significant potential for emission trading should additional measures be implemented. According to the Third National Communication on Climate Change submitted to the UN in July 2002, the restructuring of the industrial and power sectors will result in 22-30 per cent lower CO₂ emissions for the period 1995 – 2015.

The possibility to reduce GHG emissions has been limited by lack of funding for energy efficiency improvements. Many of the most energy intensive enterprises became non-competitive and closed in the period 1998 – 2001. But privatisation has brought in new owners ready to implement low cost energy efficiency measures. As a result, national GHG emissions were reduced by 14 per cent in two years from 1997 to 1999.

Bulgaria has a big potential for emissions reduction through projects in the field of energy efficiency in the industry and building sectors, including development of the natural gas household network. Additional emission reductions in the amount of 10-15 million tons CO₂-equivalent are considered possible. Under the Kyoto Protocol’s joint implementation (JI) mechanism, Bulgaria and other EIT countries may sell any "additional" reductions in emissions to other Annex I countries that may need to buy emission reduction units (ERU) to meet their climate change commitments. Bulgaria is therefore taking steps to attract investments in energy efficiency and other measures in the power, heating, transport and industrial sectors, through the JI mechanism.

Bulgaria has put in place procedures for evaluation of JI projects. A Steering Committee of representatives from all relevant ministries and organisations is authorised to present a final proposal for the approval of JI projects to the Minister of the Environment and Water. A Joint Implementation Unit in the MoEW was established on 1 July 2000 with support from the Netherlands. The staff of the JI-Unit assists in developing JI policy, co-ordinating joint implementation activities, negotiating on credit sharing, and communicating with the project developers.

A pilot JI project took place in 2001 in the City of Pleven, and Bulgaria has entered into a JI agreement with the Netherlands for future projects for cooperation in reducing emissions of greenhouse gases. This co-operation aims at the transfer of emission reduction units of an average of 3 Mt CO₂-equivalent per year during the commitment period 2008-2012. Decisions on the transfer are taken on a project-by-project basis by means of International Emission Reduction Unit Procurement Tender (ERUPT).

A host Country Umbrella Agreement between the Republic of Bulgaria and the International Bank for Reconstruction and Development, as trustee of the Prototype Carbon Fund was negotiated and will be signed by the end of November 2002. Two projects will be implemented in the areas of energy efficiency and biomass utilisation. Bulgaria has also signed a JI agreement with Austria, and is in different stages of negotiations with Denmark, Canada and Switzerland.

The MEW hopes to bring in other JI investments in energy efficiency and other measures and has expressed a particular interest in developing methane utilisation projects for the landfills that Bulgaria needs to develop to meet the EU Landfill Directive requirements. But to take full advantage of the JI opportunity, Bulgaria will need to develop its institutional capacity and legal framework by 2007, including finalisation of a national system for assessment of greenhouse gas emissions.

The challenges ahead for Bulgaria include setting in place the legal, administrative and practical instruments for carrying out more accurate assessment of Bulgaria’s GHG emissions. The Ministry of Environment and Water, the leading player in developing and enforcing climate change policy, has insufficient capacity to develop policies and establish the different systems required under the Kyoto Protocol, particularly for participation in the flexible mechanisms. Establishment of the different systems needs to be co-ordinated with EU decisions and the necessary capacities must be established and developed. In particular, more staff needs to be allocated to climate change activities.

External assistance has been the main source of funding for climate-related activities. One of the possibilities to receive bilateral or multilateral support for strengthening of the institutional capacity is to follow Decision 3/CP.7, of the Marrakech Declaration, stating that capacity building should be a continuous process, country driven and supported by Annex II countries.

In order to fulfil the commitments under both the Convention and the Kyoto Protocol, besides the capacity building and the establishment of all necessary national systems, Bulgaria needs to develop a National Strategy on Climate Change and a detailed strategy on JI and emissions trading. Moreover, administrative capacity for identifying, preparing and negotiating JI projects needs to be strengthened. Because of the technical difficulties in preparing JI projects that attract outside investment, there is expected to be a need for technical assistance in building the implementation structures for JI for some time to come.

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