NNDKP Environment Flash No. 11/2024

1. EU DEVELOPMENTS SELECTION [1]

1.1. The Council adopted new rules on urban waste water treatment

On 5 November 2024, the Council adopted the revised directive on urban wastewater treatment.

The new directive reforms Directive 91/271/EEC.

Among other, under the revised directive:

  • Member States must collect and treat wastewater from all agglomerations of more than 1,000 population equivalents;
  • By 2035, all agglomerations between 1,000 and 2,000 population equivalents must have collecting systems in place and wastewater sources must be connected to them;
  • For these agglomerations and within the same term, Member States will have to remove biodegradable organic matter from urban wastewater before it is discharged into the environment.

Furtheremore, the revised directive also introduces an energy neutrality target, meaning that by 2045 urban wastewater treatment plants treating a load of at least 10,000 population will have to use energy from renewable sources generated by the respective plants.

The directive is to be signed and published in the EU’s Official Journal and will enter into force on the 20th day after publication.

1.2. Romania referred before the Court of Justice of the European Union for failing to collect and treat urban waste water properly

On 13 November 2024, the European Commission decided to refer Romania to the Court of Justice of the European Union for failing to fully comply with the collection and treatment obligations set in the current Directive 91/271/EEC concerning urban waste-water treatment.

According to the press release, in Romania, 150 large agglomerations (with more than 10,000 inhabitants) fail to fulfil the directive’s requirements concerning collecting systems. In 154 agglomerations, urban waste water entering collection systems is not treated properly. Also, in 155 large agglomerations, Romania is failing to provide a more stringent treatment before discharging waste water into sensitive areas. All these non-conformities should have been corrected by 31 December 2015.

The Commission sent Romania a letter of formal notice in June 2018, followed by an additional letter of formal notice in October 2020 and a reasoned opinion in February 2022. The Commission considers that the efforts made by the Romanian authorities have been insufficient. In this context, it remains to be seen how Romania will (also) adapt to the new requirements of the revised directive mentioned at point 1.1. above.

1.3. Interpretation of CSRD

The EU’s Official Journal of 13 November 2024 published the Commission Notice on the interpretation of certain legal provisions on sustainability reporting introduced by Directive 2022/2464 (“CSRD”).

The CSRD introduced new sustainability reporting requirements for certain undertakings by amending the Accounting Directive (Directive 2013/34/EU), the Audit Directive (Directive 2006/43/EC), the Audit Regulation (Regulation (EU) No 537/2014) and the Transparency Directive (Directive 2004/109/EC).

Among others, sustainability reporting requirements oblige certain companies to publish sustainability information in accordance with certain relevant reporting standards.

The date of application of the sustainability reporting requirements varies depending on the specific reporting requirement and the company category (i.e., large undertaking, small and medium-sized undertaking or parent company of large groups).

1.4. The Council adopts new regulation on environmental, social and governance (ESG) rating activities

On 19 November 2024, the Council adopted a new regulation on environmental, social and governance (ESG) rating activities. The new regulation aims to make rating activities in the EU more consistent and transparent in order to increase investor confidence in sustainable financial products.

ESG ratings provide an opinion on the sustainability profile of a company and assess their impact on society and the environment as well as their exposure to sustainability risks.

The regulation will be published in the EU’s Official Journal and will enter into force 20 days later. It will start to apply 18 months after its entry into force.

1.5. The Council adopts EU certification framework for permanent carbon removals, carbon farming and carbon storage in products

On 19 November 2024, the Council adopted a new regulation establishing the first EU-wide certification framework for permanent carbon removals, carbon farming and carbon storage in long-lasting products.

Certification systems will therefore be put in place so that interested operators can demonstrate compliance with the regulation.

The general criteria that carbon removal activities will have to meet in order to be certified are:

  • delivering a quantified net benefit in terms of carbon removal or soil emission reduction;
  • exceeding legal requirements for individual operators and financial viability due to the incentive effect of the certification;
  • ensuring long-term carbon storage while minimizing the risk of carbon release;
  • generating co-benefits for one or more sustainability objectives without significant environmental damage.

This voluntary framework is designed to facilitate high-quality carbon removals and high-quality emission reductions from soil and help the EU reach its objective of climate neutrality by 2050.

The regulation will be published in the EU’s Official Journal and will enter into force 20 days later, becoming directly applicable in all Member States.

2. NATIONAL DEVELOPMENTS SELECTION [1]

2.1. Draft legislation on the organization and functioning of the National Agency for Environment and Protected Areas

On 6 November 2024, the draft Government Decision on the organization and functioning of the National Agency for the Environment and Protected Areas („NAEPA”) was published on the website of the Ministry of Environment, Water and Forestry, for public consultation.

The draft legislation sets out, inter alia, the structure, organization, powers, tasks and functioning of the new body, resulting from the merger of the National Agency for Environmental Protection and the National Agency for Protected Natural Areas.

Important changes include:

  • the functioning within NAEPA of territorial structures, without legal personality, organized at the level of directorates, in each county and in Bucharest municipality;
  • the functioning within NAEPA of the National Scientific College for Protected Natural Areas, with the role of scientific authority, composed of 11 members with proven competence and experience in the field of conservation and management of protected natural areas;
  • the establishment of the General Directorate for Impact Assessment and Authorization which will be responsible, inter alia, for the environmental impact assessment procedures and the issuance of the environmental agreement for projects subject to the procedure whose location covers two or more counties as well as for the application of the procedure for the issuance of the environmental authorization for activities subject to authorization that are carried out in two or more counties.

NAEPA’s powers shall include:

  • ensuring the implementation at national level of policies, strategies and legislation in the field of environmental protection and protected natural areas;
  • regulating plants/projects from the point of view of the appropriate assessment procedure, which are not directly related to or necessary for the management of protected natural areas of Community interest, but which could significantly affect them, alone or in combination with other plans or projects, in accordance with the legal provisions in force;
  • drawing up the list of contaminated/potentially contaminated sites, deciding on the need for preliminary and/or detailed investigation and assessment of contaminated areas, analyzing and approving remediation programs for areas where soil and subsoil are affected.

The territorial structures will be responsible, inter alia, for:

  • conducting the environmental impact assessment procedure and issuing environmental agreements for projects subject to the procedure whose sites are located on the territory of the respective county or Bucharest municipality;
  • conducting the environmental assessment for plans and programs and issuing the environmental permit for all plans and programs subject to the procedure whose sites are located in the territory of the respective county or Bucharest municipality;
  • applying the provisions of Law No. 278/2013 on industrial emissions;
  • applying the procedure for issuing the environmental authorization, for activities located on the territory of the respective county or Bucharest municipality.

2.2. Draft Emergency Ordinance on amending and supplementing the provisions on the regime of protected natural areas, conservation of natural habitats, wild flora and fauna

On 7 November 2024, the draft Government Emergency Ordinance amending and supplementing the Government Emergency Ordinance No. 57/2007 on the regime of protected natural areas, conservation of natural habitats, wild flora and fauna was published on the website of the Ministry of Environment, Waters and Forestry for public consultation.

Provisions of interest include the following:

  • introduction of an express definition of conservation measures;
  • imposition of the obligation to mark protected natural areas sites with information boards and/or signposts;
  • extending the prohibition of activities likely to cause pollution, damage to habitats or disturbance to protected species, to projects both inside and outside protected natural areas, if they are likely to have a significant impact on the conservation objectives of Natura 2000 sites.

The proposal aims to ensure Romania’s obligations to correctly and fully transpose the provisions of the Habitats Directive and the Birds Directive and to avoid advancing the infringement procedure launched by the European Commission in Case 2020/2297 against Romania for these non-conformities.

More information on the infringement procedure  can be found in NNDKP`s Environment Flash No. 10/2024 available here.

2.3. Draft Emergency Ordinance for amending and supplementing national provisions transposing CSRD

On 8 November 2024, the draft Emergency Ordinance amending and supplementing Law No. 162/2017 on statutory audit of annual financial statements and consolidated annual financial statements (“Law 162/2017”), as well as the Government Emergency Ordinance No. 75/1999 on financial audit activity was published on the website of the Ministry of Finance.

Among others, the draft covers the requirements for carrying out assurance on sustainability reporting as well as specific requirements for statutory audit, for example:

  • introducing new definitions (key sustainability partner, sustainability reporting and reporting assurance etc.);
  • introducing licensing conditions for persons wishing to carry out sustainability reporting assurance (in particular in terms of practical training, competency exam);
  • establishing specific training requirements for financial auditors, as well as for individuals and financial auditors from another Member State in the process of being approved as financial auditors until 1 January 2026 to carry out sustainability reporting assurance;
  • regulating the issues related to the drafting, content and signing of the assurance report on sustainability reporting in accordance with the assurance standards;
  • sanctions for violations in the area of sustainability reporting.

The Romanian version of this newsletter is available here.

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