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Environmental Policy
Research
Background
The last decade was marked
by progressive development of various environmental policy instruments
to prevent and/or mitigate adverse impacts on population health and the
environment. One of the recently developed economic tools to manage
environmental risks1
is environmental insurance. Environmental risk insurance (ERI) policies
are to provide proper compensation for environmental damages and/or
harms. Moreover, this is an important means to pool resources for
environmental health protection and ensure environmental safety of
industrial facilities.
The lack of effective
mechanisms to finance environmental protection measures and ensure
proper compensation for environmental damage is among key reasons for
environmental deterioration in the Russian Federation. Therefore,
effective ERI mechanisms are urgently needed to strengthen
environmental protection and management in the country. Despite
existing legal provisions for applying insurance policies to cover
environmental risks Russian ERI system is still in the making and
considerable effort is required for bringing it in line with the
international standards.
Research aim and objectives
The aim of the current research is
to explore opportunities for more consistent application of
environmental risk insurance in the Russian Federation to strengthen
environmental protection and management policies.
Given the research aim the following
research objectives were defined:
- to review international experience in managing
environmental pollution-related health risks through insurance;
- to explore the environmental risk assessment and
management policies in the Russian Federation;
- to design a program on voluntary insurance of
environmental health risks resulted from industrial pollution for a
selected model region (regional2
pilot);
- to devise recommendations on implementing
environmental risk insurance (ERI) at the regional level for the
Environmental Department of the Administration/regional MNR Office of
the model region;
- to write a policy paper on ERI as a tool to address
environmental liabilities for the Ministry of Natural Resources of the
Russian Federation.
Research methodology
The following methods will be applied at
the different steps of the current research to accomplish the research
objectives.
- Review of research literature available;
- Analysis of legislation and regulations;
- Structured interviews with recognized
experts/practitioners engaged in environmental risk assessment (ERA)
and environmental insurance (ERI) activities;
- Questionnaires;
- Semi-structured interviews with key
stakeholders: government officials, private businesses
(enterprises-'polluters', environmental consulting groups, and
insurance companies), and civil society institutions;
Project design and work plan
Project term - 12 month (March 2004 -
February 2005)
Research activities are divided into five
modules:
(March 2004 - April 2004)
(April
2004 - June 2004)
(May
2004 - August 2004)
(September
2004 - January 2005)
(December
2004 - February 2005)
Module 1.
Inception (March 2004 - April 2004)
| 1.1 |
Reviewing research literature on
the development of approaches to assessing and managing environmental
risks including environmental insurance, as well as existing policies
and practices of addressing environmental pollution liabilities.
At
this stage of the research the fellow plans to focus on latest research
publications mostly those available via Internet and in local
libraries.
Trips to Budapest included into the fellowship activities is considered
as an opportunity to work at the CEU library.
|
| 1.2 |
Preparing to interviews with
environmental risk assessment (ERA) and ERI experts and practitioners
(international and domestic): establishing contacts with potential
interviewees, designing questionnaire(s).
|
| 1.3 |
Applying for membership with
international organizations whose mission is to promote collaboration
and networking within interdisciplinary community interested in
environmental risk assessment and management issues.
It
is planned to affiliate with
Society
for Risk Analysis - Europe (SRA-E)
Society of Environmental Toxicology and Chemistry
Europe (SETAC Europe)
International Association for Impact Assessment
(IAIA)
Among key benefits from membership in these organizations is free
online access to international journals on the research topic, Member
directories and other special services and information sources. |
Module 2.
Review and analysis of international experience in managing
environmental risks resulted from industrial pollution through
insurance: methodological development and best practices (April
2004 - June 2004)
| 2.1 |
Visiting an international forum
on environmental risk assessment and management.
The
purpose of this visit is twofold: (i) to get access to the information
on the latest developments in environmental risk assessment and
management, environmental liability and insurance; (ii) to use wealth
of networking opportunities to make contacts with and/or interview
experts and practitioners attending these international events.
It is planned to attend International Association for Impact Assessment
(IAIA) Annual Meeting (April 24-30, 2004, Vancouver, Canada);
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| 2.2 |
Survey of international ERA and
ERI experts/practitioners through telephone interviews OR questionnaires
with the purpose to collect information on modern approaches to and
trends in assessing and managing environmental risks with special
emphasis on ERI mechanisms.
|
| 2.3 |
Analysis of the collected data
on ERA and ERI international best practice.
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Module 3.
Analysis of Russian situation in the field of developing environmental
risk assessment and environmental risk insurance mechanisms (May
2004 - August 2004)
| 3.1 |
Analysis of Russian legislation
on addressing environmental liabilities associated with industrial
pollution, assessment of technological and environmental risks,
assessment of natural hazards;
|
| 3.2 |
Analysis of ERA and ERI practice
in the Russian Federation
reviewing
of research literature;
conducting interviews with national ERA and ERI
experts and practitioners, OR sending them questionnaires;
|
| 3.3 |
Preliminary negotiations with
regional stakeholders on selecting a model region (see below)
It
is planned to arrange negotiations with key stakeholders in the regions
with developed practice of environmental risk assessment and insurance
to explore opportunities to establish a regional pilot project within
the given research project.
A series of telephone interviews with representatives of key
stakeholders (regional government, environmental authorities,
businesses (insurers and potential policyholders), civil society
institutions) will be conducted. These interviews will aim to identify
interest of stakeholders to ERI as a tool to improve regional
environmental policy and investigate capacity for implementing ERI
mechanisms within for management of environmental health risks
associated with industrial pollution. It is anticipated to identify key
local resource persons for the proposed regional pilot.
At present, five Russian regions (Oblasts) are considered as candidates
for model regions in accordance with preliminary negotiations: Moscow
Oblast, Sverdlovsk Oblast, Lipetsk Oblast, Tomsk Oblast, and Vologda
Oblast.
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| 3.4 |
Interim reporting: developing a
draft research paper on using insurance policies to address
environmental pollution liabilities with focus on developments in the
Russian Federation; preparing interim Activity Report, interim
financial report.
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Module 4.
Application of research findings: development of an environmental risk
insurance program (the regional3
pilot project) (September 2004 - January 2005)
| 4.1 |
Formulating policy options for
promoting ERI in relation to industrial pollution. In particular, these
options should consider insuring environmental risks from both
accidental and normal operations.
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| 4.2 |
Discussion of the proposed
options with national and international experts and incorporating
expected comments and suggestions.
|
| 4.3 |
Selection a model region to
implement pilot project within the current project 4
based on preliminary negotiations; |
| 4.4 |
A 'scout' trip to the selected
model region
This trip aims to set up an agreement with regional MNR office and/or
environmental department of the regional administration for confirm
preliminary agreements on cooperation within the regional pilot and
present the project to the key partner.
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| 4.5 |
Conducting a promotional
workshop for stakeholders on ERI benefits and its role in environmental
protection and management.
The workshop objectives are as follows:
- Discuss regional experience on the assessment
of environmental risks associated with industrial pollution
- Discuss benefits of environmental insurance as
a tools for managing environmental risks
- Present the proposed regional pilot project on
introducing ERI into regional environmental policy process
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| 4.6 |
Designing a regional programme
on voluntary insuring environmental health risks from both accidental
and normal operations.
The
regional office of Russian Ministry of Natural Resources (MNR) and the
regional government (regional Administration) will be considered as
state clients for this program.
Extensive consultations with key stakeholders (regional government,
businesses (insurers and potential policyholders), civil society
institutions) will be conducted in the course of programme development
to ensure meeting local needs and interests. Two trips into the region
are planned to ensure active collaboration with local experts and/or
interested parties.
|
| 4.7 |
Conducting a closing workshop in
the model region aimed to present the programme on voluntary insuring
environmental health risks
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| 4.8 |
December progress reporting
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Module 5.
Project summary: developing policy recommendations (December
2004 - February 2005)
| 5.1 |
Developing recommendations based
on pilot project and developing final project papers:
At
the final stage of the project the fellow will focus on producing
recommendations on implementing ERI policies at the regional level in
Russia with the potential of upscaling them to the federal level. These
recommendations are to be addressed to the regional MNR office and/or
environmental department of the regional administration.
Moreover, the final research paper on approaches to ERI implementation
to address environmental pollution liabilities in the Russian
Federation will be developed. The key product of the project is a
policy paper on ERI as a tool to address environmental liabilities in
Russia prepared for Ministry of Natural Resources of the Russian
Federation.
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| 5.2 |
Final reporting: preparing final
Activity Report and final financial report to be developed.
Since late April 2004 the individual website with project-related
information will be maintained.
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1
The author will use the definition of environmental impact as any
change in the level of a pertinent environmental risk. Environmental
risk, in turn, is defined as a measure of probability and magnitude of
negative environmental consequences (harm to human health or damage to
the biophysical environment) caused my industrial developments.
2 The fellow considers
option for implementing pilot project at municipal level rather than
regional level
3 At the moment the fellow
considers an option for the local focus of the pilot project instead of
the regional one. This implies involvement of the local government
(municipality) into the project as key local partner and possibly
client for the program on environmental health risk insurance to
develop.
4 When selecting a model
region the fellow has considered opportunities for combining her
regional pilot project with ongoing pilot projects run by Ecoline EA
Center where she has worked as a project manager.
For the period of fellowship year Ecoline EA Center will have been
implementing two large international projects on introducing strategic
environmental assessment (SEA) and integrated assessment and planning
(IAP) into regional decision-making process to promote environmentally
and socially sound regional development. Tomsk Oblast and Vologda
Oblast are among target regions for these projects.
Ecoline EA Center intends providing in-kind support to the given
individual research project if one of these regions is found suitable
for implementing a regional pilot project. This can include involving
local experts working for Ecoline EA Center's project as local resource
persons and/or consultants for the individual research.
Due to IPF budget limitations it is Vologda Oblast which is tentatively
selected as a project model region. The budget estimates for regional
pilot project are based on travel, accommodation, and subsistence costs
defined for this region.
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