1.2. Common environmental concepts

The main aim of environmental protection/management is preserving the quality of the environment, protecting human health and ensuring rational use of natural resources. Environmental protection takes advantage of a number of principles which are accepted worldwide and often introduced within the framework of international agreements. These principles need to be followed in policy design and can serve as a reference for auditors. The major environmental concepts explained below.

The precautionary principle

The precautionary principle is a risk management tool that may be invoked when there is scientific uncertainty about a suspected risk to human health or to the environment originating from a certain action or policy. For instance, should doubts arise about the potentially harmful effects of a product, and should – following an objective scientific evaluation – uncertainty persist, instructions may be given to stop the distribution of the product or to remove it from the market. [Source: European Risk Forum (2001). The Precautionary Principle. Application and Way Forward]

Where there are threats of serious or irreversible damage, a lack of scientific certainty is not used as a reason for postponing cost-effective measures to prevent environmental degradation. It means that the precautionary principle allows regulatory action to be taken even if a risk has not been established with full certainty.

Policy measures for preventing climate change and those for regulating cultivation and the use of genetically modified organisms (GMOs) are well-known examples of applying the precautionary principle.
 

Audit example Victorian Auditor-General’s Office, Australia (2015) Unconventional Gas: Managing Risks and Impacts This audit examined whether Victoria is well placed to effectively respond to the potential environmental and community risks and impacts of onshore unconventional gas activities in the event that these proceed in this state. Conclusions: Victoria is not as well placed as it could be to respond to the environmental and community risks and impacts that could arise if the moratorium is lifted allowing unconventional gas activities to proceed in this state. DEDJTR did little to assess the risks and/or plan how it could strengthen the regulation of these activities prior to 2012 despite growing public concerns about the potential risks. DEDJTR initially assumed that exploration for unconventional gas could be managed using the existing regulatory framework with minor amendments and therefore only minimal changes to licence conditions, regulations, codes and guidance materials were warranted (read more).

Tip for an auditor The precautionary principle is used to determine whether an action should be taken in the face of incomplete data. It can be used when developing audit questions. Where environmental risk is uncertain or unknown but the consequences of the risk materialising would be great or damage would be irreversible, it should be assumed that the risk is significant and protection measures should be planned accordingly.

The prevention principle and the rectification-at-source principle

The prevention principle aims to prevent environmental damage, such as damage to protected species or natural habitats, water and soil, rather than to react to it. [Source: European Parliament (2015). The precautionary principle. Definitions, applications and governance]

Preventing environmental harm is always cheaper than covering the cost of reclamation, and restoring previous conditions is sometimes impossible (e.g. because of the extinction of a species). The prevention principle states that a harmful activity should be avoided in the case of certain unfavourable consequences. However, if the benefits to society are higher, the principle might not be applied. The prevention principle has laid down the grounds for rules on the transportation of hazardous wastes (e.g. the Basel Convention).

Audit example SAI Slovenia (2017) Efficiency in preventing light pollution of the environment The audit report ‘shed a light’ on this often overlooked part of pollution caused by human activities. The audit revealed the following: Slovenia is one of few countries which legally regulated the field of light pollution as early as 2007. The objectives of three times less sky glow and a 20% reduction in energy consumption were set to be achieved by 2016. However, restrictions pertaining to electric power no longer ensure pollution reduction due to development of more energy efficient illuminants. The regulation does not define admissible light spectrum or colour temperature. The colour of the illumination, however, is strongly related to impact on nature, humans and the way light disperses in space. The Ministry does not monitor the situation in the field of light pollution regularly and comprehensively. However, the Inspectorate exercises regular control but not enough for comprehensive monitoring of the situation. SAI Slovenia has recommended that the Ministry should better identify the situation and redefine the applicability of current legislation and adopt the necessary changes (read more).

In addition, there is the rectification-at-source principle, which seeks to prevent the creation of pollution or nuisance at its source, rather than subsequently trying to counteract their effects. This means that the effects on the environment should be taken into consideration at the earliest possible stage in all technical planning and decision-making processes. For example, waste should be treated as close as possible to the place where it is produced in order to keep the transport of waste to a minimum. [Source: Krämer, L. (2003). The Genesis of EC Environmental Principles]

The polluter pays principle

The polluter pays principle requires the polluter to bear the cost of measures to reduce pollution according to the extent of the damage done to society or the exceeding of an acceptable level (standard) of pollution. [Source: OECD (1972). Recommendation of the Council on Guiding Principles concerning International Economic Aspects of Environmental Policies]

This principle is important from the point of view of public finances and is mentioned in Principle 16 of the Rio Declaration on the Environment and Development.

The polluter pays principle leads to environmental liability, which aims to prevent and remedy environmental damage. Environmental liability is an obligation based on the principle that a polluting party should pay for the damage it causes to the environment through its activities.

In some countries, environmental liability is a strict liability if the damage can be attributed to a specific party. Strict liability means that a person is legally responsible for the damage and loss caused by their acts and omissions regardless of culpability (including fault in criminal law terms).

The EU Environmental Liability Directive defines environmental damage as damage to protected species and natural habitats, damage to water and damage to soil. The directive can only be applied if there is a clear causal link between the activity and the damage.

Audit example NAO Estonia (2015) Processing of hazardous and radioactive waste NAO Estonia audited whether the state had organised the treatment of radioactive waste according to requirements and thereby prevented any threat to the environment and people’s health. Audit recommendation: “The Environmental Board has not considered whether to require a financial guarantee for the treatment of radioactive waste or justified why no guarantee is required. There are currently no possibilities for the treatment of natural radioactive waste in Estonia. 255 tonnes of such waste had been generated by 2013 and another 70 tonnes more may be generated every year. Requiring a guarantee would give the state additional assurance that radioactive waste would be finally treated and that it would not have to find the money to treat such waste itself if the producers of the waste were unable to perform their obligations” (read more).

Tip for an auditor Environmental liability and the polluter pays principle can be used when developing audit questions and criteria. Main aspects to keep in mind when planning the audit could be: the person responsible for the environmental pollution should also be responsible for covering the related costs. the polluter should pay for the damage they have caused to the environment.

Public goods and ecosystem services

Public goods are those that, if made available to one person, automatically become available to others. Public goods are not diminished when they are shared; they are non-rivalrous and non-excludable. This means that the use of these goods by one individual does not reduce their availability to others, and individuals cannot be effectively excluded from their use. [Source: Oakland, W. H. (1987). Theory of public goods. In Handbook of public economics (Vol. 2, pp. 485-535). Elsevier (Wikipedia)]

Public goods are many environmental resources like water quality, open space, biodiversity, a stable climate, etc. Environmental quality is considered a public good that must be consumed in equal amounts by all.

The private market tends to undersupply these goods since it is difficult to charge people for benefitting from these goods or services once they are provided.

Global public goods are goods with benefits that extend to all countries, people, and generations. Global public goods are necessities that must not be destroyed by any one person or state.

Thinking exercise Can you name any global public goods related to the environment and nature?

There is some overlap between the concepts of ecosystem services and public goods. 

Ecosystem services are the benefits to humans provided by the natural environment and from healthy ecosystems. Ecosystems provide countless vital services, thus sustaining life on Earth. Such ecosystems include, for example, agroecosystems, forest, grassland, aquatic ecosystems. [Source: Millennium Ecosystem Assessment (MA). 2005. Ecosystems and Human Well-Being]
 

The term ‘ecosystem’ refers to the living and non-living elements of nature in a given area that form a complex network of interactions. We can talk of a forested area or a body of water as an ecosystem, for example.

These ecosystems, functioning in a healthy relationship, offer things like natural pollination of crops, clean air, water purification, biowaste degradation, extreme weather mitigation, formation of the atmosphere, climate regulation, human mental and physical wellbeing, etc. For centuries, we have been used to taking clean water and climate regulation for granted, and we only notice these things when the natural balance is disturbed. It is significantly easier and cheaper to prevent harm to the environment than remedy a disaster once it has occurred.

Tip for an auditor When searching for environmental issues in the initial phase of planning an audit, an auditor can look for activities that may have an effect on ecosystems, including: emissions (into the air, into water and on land) the use of resources (extraction of minerals, fishing, logging, etc.) displacement of materials and changes in the structure of habitats (area development, road construction, etc.) Such activities can have local, regional or global impact.

Audit example SAI Canada (2018) Spring Reports of the Commissioner of the Environment and Sustainable Development to the Parliament of Canada. Report 3 – Conserving Biodiversity The audit focused on whether Environment and Climate Change Canada provided national leadership and coordination to conserve Canada’s biodiversity. It also examined whether responsible federal departments and agencies were working to meet selected biodiversity conservation targets (read more).

Human rights and the environment

A safe, clean, healthy and sustainable environment is integral to the full enjoyment of a wide range of human rights, including the rights to life, health, food, water and sanitation. Without a healthy environment, we are unable to fulfil our aspirations may not even have access to the minimum standards of human dignity. 

In recent years, the recognition of the links between human rights and the environment has greatly increased. The number and scope of international and domestic laws, judicial decisions and academic studies on the relationship between human rights and the environment are growing rapidly. Many States now incorporate the right to a healthy environment in their constitutions.
 

Reading suggestion! See the resolution about human rights and the environment adopted by the UN Human Rights Council on 22 March 2018.

Public participation and access to environmental information and justice in relation to environmental matters

Many claim that public participation is a crucial element in environmental governance which contributes to better decision-making. In many cases, environmental problems are induced by the behaviour of people and therefore cannot be solved by the government alone. Involving the public in environmental discussions both increases transparency and accountability, thus supporting good environmental governance depends on it. Public participation in decision-making is a strict requirement in the process of Environmental Impact Assessment.

For effective public participation, the public needs access to accurate and comprehensive environmental information. Everyone has the right to receive environmental information that is held by public authorities. This can include information on the state of the environment, but also on policies or measures taken or on the state of human health and safety, where this can be affected by the state of the environment. It also means that public authorities should actively disseminate environmental information in their possession.

In addition, there is the right to access to justice on environmental issues. This means the right to review procedures to challenge public decisions that have been made without respecting public participation and access to information rights or environmental law in general.

In June 1998, the United Nations Economic Commission for Europe (UNECE) Convention on the Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters was adopted. 

Reading suggestion! DG Environment by Milieu Consulting (2019). Study on EU implementation of the Aarhus Convention in the area of access to justice in environmental matters. Final report.

Thinking exercise What might be the biggest challenges in your country in relation to public participation, access to information and justice in environmental matters?

Public participation and access to environmental information and justice is related to SDG 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.