FERMA opposes pollution fund created by European Commission
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The Federation of European Risk Management Associations says it is opposed to the creation of a pollution fund by the European Commission to cover environmental liability and losses resulting from industrial accidents.
The Brussels-based organization that represents risk managers in 20 European countries said such a fund is not needed and may increase the risk of pollution, FERMA said in a Friday statement.
The announcement comes in response to a consultation by the European Commission after a proposal for the establishment of a compensation fund to cover environmental liabilities resulting from major industrial accidents, according to the statement.
"It is contrary to the polluter-pays principle established in the Environmental Liability Directive," said Pierre Sonigo, FERMA's secretary general, who also is responsible for FERMA's environmental liability activities, in the statement. "It is even likely to work against the process of risk management, rather than encouraging companies to take responsibility for the consequences of their own activities."
FERMA noted that a compensation fund is not needed because existing national environmental regulations are strong, insurance coverage is available in the commercial market, and it would not incentivize businesses to properly mitigate against such risks.
Instead, the European Commission should promote the availability of insurance coverages, self-retention and better risk management in the industrial sector, and reduce taxes on environmental policies, FERMA said in the statement.
The European Commission did immediately return requests for comment.
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