The business is requesting improvements to the resolution for documenting instances of damage and to avoid unnecessary duplication of existing norms

09/ 06/ 2023

Currently, the government is considering a draft resolution by the Cabinet of Ministers titled Certain Issues of the Functioning of EcoThreat and Documentation of Environmental Damage (Resolution on EcoThreat). The European Business Association supports the implementation of a separate regulation for EcoThreat as an information and communication system, which consists of a website and a mobile application for documenting environmental threats in Ukraine. However, the document contains several ambiguous statements that propose regulating some issues that have already been legislatively defined. 1) Introduction of a new type of unscheduled environmental inspection. The Resolution on EcoThreat introduces an algorithm for conducting inspections (surveys) of locations where potential harm and damage to the natural environment may occur resulting from emergencies, events, and/or destruction caused to the natural environment by the armed aggression of the Russian Federation against Ukraine. Inspections are carried out by representatives of the State environmental inspectorate of Ukraine. If necessary, they may use measuring devices and other equipment, collect samples and perform instrumental and laboratory measurements of all ecological indicators. The basis for such inspections can be electronic submissions through the online platform EcoThreat and any other written, electronic, or verbal communication. An order is issued to conduct the inspection, and a report is prepared based on the results. However, environmental inspections are already conducted at enterprises, regulated by separate legislative acts, including the special Law on the Basic Principles of State Supervision (Control) in Economic Activity Sphere No. 877-V and similar regulations. 2) Duplication of the procedure for determining harm and damage to the environment caused by military actions. According to the Resolution on EcoThreat, the inspection (survey) of locations where harm to the natural environment occurs may assess the damage caused to the environment as a result of the armed aggression of the Russian Federation against Ukraine. At the same time, the procedure for determining the harm and losses caused to Ukraine as a result of the armed aggression of the Russian Federation (Cabinet Resolution No. 326 of March 20, 2022) establishes unified approaches and basic requirements for assessing damage, particularly to land resources, subsoil, forests, water resources, atmospheric air, nature reserves, and similar entities. Currently, at least 7 methodologies have been approved for determining environmental damage resulting from the armed aggression of the Russian Federation. The Appendix to the procedure provides a comprehensive range of methods for assessing the damage suffered, including conducting an analytical assessment of damage, a standardized independent inspection of damage, or the outcome of judicial expertise. For instance, in the case of a standardized check of damage conducted by government authorities or local self-government bodies, the amount of losses resulting from combat actions, terrorist acts, sabotage, and missile and bomb strikes caused by the Russian Federations armed aggression is determined. An assessment report is prepared by government authorities or local self-government bodies based on the results of the standardized assessment of losses. Furthermore, in the case of damage or destruction of buildings or structures, including those owned by economic entities, which is a direct consequence of the armed aggression of the Russian Federation, their documentation is carried out following the procedure for Urgent Works to Eliminate the Consequences of the Armed Aggression of the Russian Federation Related to Damage to Buildings and Structures (Cabinet Resolution No. 473 of April 19, 2022). An assessment report is prepared based on the survey of the damaged objects. Therefore, identifying the consequences of environmental damage and determining the harm caused by military actions is sufficiently regulated at the legislative level. Hence, this issue should be removed from the resolution. Olga Boiko. The EBA Coordinator of the Industrial Ecology and Sustainable Development Committee. According to the latest data, the amount of damage caused by the Russian Federation to Ukraine’s subsoil, atmospheric air, water, and land resources exceeds 8 trillion hryvnias. As noted by the Ministry of Ecology, seven methodologies developed by the State environmental inspectorate and the Ukrainian Geological Survey are used for calculation purposes. Therefore, it can be concluded that the mechanisms for documenting damage and determining losses are functioning. In this case, another conclusion suggests that the Resolution on EcoThreat primarily introduces a new type of unscheduled environmental inspection, particularly those conducted on businesses, which should comply with existing legislation. «The proposed resolution on EcoThreat, which grants excessive and not entirely inherent powers to regulatory body representatives while narrowing the rights of entrepreneurs defined by legislation, may send a negative signal to the business community. These representatives have been dedicating their efforts for over a year to supporting the countrys economy by preserving jobs, paying taxes, providing humanitarian assistance to the population, supporting medical institutions, assisting internally displaced persons, establishing shelters for the population, strengthening cities, aiding the military, and more», - said Olga Boiko, Coordinator of the Industrial Ecology and Sustainable Development Committee at the European Business Association. Therefore, to prevent duplication of existing legislative procedures, potential discretion in the powers of the regulatory body, and to avoid putting pressure on businesses, we appeal to the government to request revisions to the resolution on EcoThreat and not to adopt it in its current form.

Currently, the government is considering a draft resolution by the Cabinet of Ministers titled “Certain Issues of the Functioning of EcoThreat and Documentation of Environmental Damage” (Resolution on EcoThreat). The European Business Association supports the implementation of a separate regulation for “EcoThreat” as an information and communication system, which consists of a website and a mobile application for documenting environmental threats in Ukraine.

However, the document contains several ambiguous statements that propose regulating some issues that have already been legislatively defined.

1) Introduction of a new type of unscheduled environmental inspection.

The Resolution on EcoThreat introduces an algorithm for conducting inspections (surveys) of locations where potential harm and damage to the natural environment may occur resulting from emergencies, events, and/or destruction caused to the natural environment by the armed aggression of the Russian Federation against Ukraine.

Inspections are carried out by representatives of the State environmental inspectorate of Ukraine. If necessary, they may use measuring devices and other equipment, collect samples and perform instrumental and laboratory measurements of all ecological indicators.

The basis for such inspections can be electronic submissions through the online platform “EcoThreat” and any other written, electronic, or verbal communication. An order is issued to conduct the inspection, and a report is prepared based on the results.

However, environmental inspections are already conducted at enterprises, regulated by separate legislative acts, including the special Law on the Basic Principles of State Supervision (Control) in Economic Activity Sphere No. 877-V and similar regulations.

2) Duplication of the procedure for determining harm and damage to the environment caused by military actions.

According to the Resolution on EcoThreat, the inspection (survey) of locations where harm to the natural environment occurs may assess the damage caused to the environment as a result of the armed aggression of the Russian Federation against Ukraine.

At the same time, the procedure for determining the harm and losses caused to Ukraine as a result of the armed aggression of the Russian Federation (Cabinet Resolution No. 326 of March 20, 2022) establishes unified approaches and basic requirements for assessing damage, particularly to land resources, subsoil, forests, water resources, atmospheric air, nature reserves, and similar entities. Currently, at least 7 methodologies have been approved for determining environmental damage resulting from the armed aggression of the Russian Federation.

The Appendix to the procedure provides a comprehensive range of methods for assessing the damage suffered, including conducting an analytical assessment of damage, a standardized independent inspection of damage, or the outcome of judicial expertise. For instance, in the case of a standardized check of damage conducted by government authorities or local self-government bodies, the amount of losses resulting from combat actions, terrorist acts, sabotage, and missile and bomb strikes caused by the Russian Federation’s armed aggression is determined. An assessment report is prepared by government authorities or local self-government bodies based on the results of the standardized assessment of losses.

Furthermore, in the case of damage or destruction of buildings or structures, including those owned by economic entities, which is a direct consequence of the armed aggression of the Russian Federation, their documentation is carried out following the procedure for Urgent Works to Eliminate the Consequences of the Armed Aggression of the Russian Federation Related to Damage to Buildings and Structures (Cabinet Resolution No. 473 of April 19, 2022). An assessment report is prepared based on the survey of the damaged objects.

Therefore, identifying the consequences of environmental damage and determining the harm caused by military actions is sufficiently regulated at the legislative level. Hence, this issue should be removed from the resolution.

Olga Boiko The EBA Coordinator of the Industrial Ecology and Sustainable Development Committee

According to the latest data, the amount of damage caused by the Russian Federation to Ukraine’s subsoil, atmospheric air, water, and land resources exceeds 8 trillion hryvnias. As noted by the Ministry of Ecology, seven methodologies developed by the State environmental inspectorate and the Ukrainian Geological Survey are used for calculation purposes. Therefore, it can be concluded that the mechanisms for documenting damage and determining losses are functioning. In this case, another conclusion suggests that the Resolution on EcoThreat primarily introduces a new type of unscheduled environmental inspection, particularly those conducted on businesses, which should comply with existing legislation.

«The proposed resolution on EcoThreat, which grants excessive and not entirely inherent powers to regulatory body representatives while narrowing the rights of entrepreneurs defined by legislation, may send a negative signal to the business community. These representatives have been dedicating their efforts for over a year to supporting the country’s economy by preserving jobs, paying taxes, providing humanitarian assistance to the population, supporting medical institutions, assisting internally displaced persons, establishing shelters for the population, strengthening cities, aiding the military, and more», – said Olga Boiko, Coordinator of the Industrial Ecology and Sustainable Development Committee at the European Business Association.

Therefore, to prevent duplication of existing legislative procedures, potential discretion in the powers of the regulatory body, and to avoid putting pressure on businesses, we appeal to the government to request revisions to the resolution on EcoThreat and not to adopt it in its current form.