Romanian Industry and Environment

Cristiana Ion

Director, The Ministry of Industry and Trade

The Ministry of Industry and Trade is a special authority of public administration and accomplishes the role of state authority, synthesis, coordination and control entity in these areas. The Government Decision no. 864/1999 settles the organization and functioning of the Ministry of Industry and Trade.

One of the responsibilities of MIT is program initiation and endorsement for the reduction of environmental impact and the ecological restoration of areas affected by industrial activities.

For the Ministry of Industry and Trade, environment protection issues represent an essential part of the Romanian industry restructuring strategy. Reaching the right balance between the efficient use of material and human resources and the environment quality conservation, particularly in terms of Romania's integration into the regional, European and international economic structures, is an objective included in all restructuring strategies (both national and sectorial ones).

The main objective of the long and medium term industrial development strategy is " the establishment of a modern, competitive, export-oriented industry, which will contribute to an accelerated, long-term, sustainable economic growth".

From the operational objectives of the above-mentioned strategy, two are worth mentioning in this particular context: "the efficient utilization of available resources" and "the compatibility of technologies and industrial products with the environment".

Selective restructuring targets, besides the support of strategic sectors, the reduction of energy intensity, as well as the reduction of industrial activity environmental impact, through industrial policies and adequate financial/economic instruments.

Thus, beginning with 1992, among the economic agents reorganization criteria, environment-related ones were included, such as: industrial activity compatibility with environmental parameters, efficient utilization of raw materials, energy consumption reduction - essential elements of the industrial sustainable development concept defined as "the industrialization model which allows a greater contribution of industry to the economic and social benefits for the present and future generations, without affecting the environmental resources".

Romania, as a future member of the EU, must be prepared to assume joint responsibility along with other member states, as it is stipulated in the 5 th EU- Environment Protection Action Program "Towards Sustainability" (1992), elaborated after the Environment and Development Conference.

Romania has to adjust to the new consumption and production models (less polluting products) by:

• using less polluting technologies, with reduced energy and material consumption levels;
• promoting renewable resources;
• reducing economic factors pressure on environment;
• internalization of negative environmental externalities.

This approach is determined both by external and domestic competitive economic constraints and by political factors, through the obligations assumed by Romania upon the ratification of international agreements, conventions and protocols on environmental protection.

In this context, actions were initiated aiming to support and promote clean technologies and products, as follows:

• promoting a simulative co-financing policy for pollution control projects, in view of complying with international environment protection standards (allocation of budgetary funds, customs taxes exemption or reduction for low environment impact  equipment);
• allocation, beginning with 1996, of significant budgetary funds in order to co-finance the technological application of research results;
• selection from restructuring strategies and support of certain modernization and rehabilitation projects with direct and indirect effects on pollution control, in order to attract foreign investors and external financial resources;
• promoting cooperation with international organizations in order to identify solutions to regional pollution problems;
• supporting a priority research program for the development of products, technologies and installations capable to meet the requirements of an environment related legislation in line with international standards.

After the inventory and prioritization of industrial activity pollution problems, the "Reduction of Industrial Pollution Program" was elaborated.

This program includes about 400 projects, of which more than 70% refer to industrial polluting sources from the 14 intensely polluted areas (priority areas mentioned in the "Environment Protection National Strategy "/1992).

Most of these projects are of the" win-win" type, resulting in both economical efficiency increase and industrial pollution reduction in terms of "the best possible solution" identified by cost-benefit analysis.

The objectives of the "Reduction of Industrial Pollution Program" are, mainly:

• stimulation of non-polluting industrial activities, to reach a gradual compliance with environment-related international regulations;
• observance of the obligations resulting from international environment conventions, and from bilateral and multilateral agreements to which Romania is a part;
• optimization and development of the self-control system for polluting emissions at the economic agents level.

The estimated financial input for industrial pollution reduction to acceptable levels over the next 10 years is about 3,6 billion USD, 60% of which is estimated to be covered from internal sources and 40% from external sources.

The industrial branches mainly responsible for environment pollution require a substantial financial effort (energy industry 35% from the total amount, chemical and petrochemical industry 20%, metallurgic industry 14%, cement industry 4%).

The "Reduction of Industrial Pollution Program" is correlated with regional programs and with the National Environment Action Program (NEAP).

The first form of NEAP was approved by the Government and was presented at the third Pan European Conference of Environment (October 1995, Sofia).

Elaborated under the coordination of an inter-ministerial group, with financial support and technical assistance from the Danish Government, NEAP includes short and medium term environment projects.

At present, NEAP has been up-dated and, through GD 540/28 VIII 1998 on the establishment and operation of the inter-ministerial committee for the promotion and monitoring of NEAP, the premises were set up for the transformation of this document into a working instrument aiming at project implementation.

The present form of NEAP contains 42 short term projects for economic agents with industrial activity and some environment protection action programs for the following sectors: mining, oil, wood processing, etc.; the value of all these projects amounts to about 1billion EURO.

Most of the projects involve technological rehabilitation actions with major effects on environment pollution reduction and polluting emissions self-control systems. The projects referring to remediation installations and equipment are less numerous. This project structure corresponds to one of the main principles of industrial development strategy applied worldwide, that is pollution mitigation and elimination by acting first of all on the cause  and later on the residual polluting effect.

The projects have been selected and prioritized, formulated and presented in such a manner so as to facilitate access to financial resources. Selection and prioritization criteria for economic agents with industrial activity are:

• level of impact on environment and health (intensely polluted areas, "hot spots" in the Danube basin);
• financial economic situation (viability)of the industrial unit;
• importance of the company in the industrial sustainable development strategy;
• managerial and organization capability  for project implementation;
• possibility of project integration in other complex projects targeting environment protection.

The estimated effects of the implementation of industrial pollution control projects are:

• reduction of NOx emission by 20%, of SOx emission by 30% and of volatile organic compounds without methane by 15% in 2005, compared to 1990;
• CO2 emission reduction by 10% in 2010 compared to 1989;
• ecological rehabilitation of the degraded water streams until 2005;
• compliance with international standards of emissions  at the flow into a larger water course;
• reduction of surfaces occupied by refuse dumps from 31 he/1million tones of extracted lignite (1995) to 12 he/1million tones extracted lignite (2005);
• restoring to the economic circuit of over 50% of the soils infested with petroleum products, until 2005.

The general problems of the transition to a market economy make it difficult for economic agents to implement the envisaged projects of industrial pollution control. Obviously, the main obstacle is lack of financial resources; at the same time the applicable legislation is permanently adapted and new regulations are issued.

However, industrial companies became more and more aware of the importance of a responsible approach of environment matters and accepted the following Decalogue:

• to be sensitive and responsible to the public concerning the products and technological processes;

• to develop and make products which can be safely manufactured, transported, used and stored;

• to make health, safety and environment issues a priority for all products and processes;

• to operate plants in such a way as to care for environment and for human health and safety;

• to supply customers with adequate indications concerning the safe handling, use and storage of the products;

• to support and promote the research of products, processes and wastes effects on health, safety and environment;

• to participate, at all administrative levels, in the elaboration of appropriate legislation and standards, in order to protect the community, working place and environment;

• to promote energy and resources conservation, as well as waste minimization and recycling;

• to develop, in all employees, the environmental responsibility and the need to be always prepared for potential pollution sources which can be associated with technological processes;

• to promote progress, by sharing experience and offering assistance to producers, handlers, transporters of similar materials with the ones we produce.

The implementation of an environment management system involves a holistic approach of environment issues, pointing out the economic relevance of environment impact and the increased efficiency of the human and material effort in the process of complying with environment protection regulations.

In 1997 were approved, as Romanian standards, ISO 14001, 14004, 14010, 14011, 14012.  So far, Oltchim and Tofan-Grup have been certified; other important companies like CONEL, SNP-Petrom, Petromidia, Rafo, Sofert, Chimcomplex, Carom, etc. are willing to introduce environment management systems.

The energy sector needs significant resources in order to diminish the installations negative environment impact. One of the main objectives of the industrial development strategy is the rehabilitation of the national energetic system.

The energy industry accounts for approximately 65% of air pollution and, as a result, the main actions should be directed to the reduction of atmospheric pollution.

Thus, for the thermal sub-sector, several short-term actions are envisaged:

• use of low sulfur content fuel oil, especially at the thermal power plants situated in urban and tourist areas;
• improvement of burning processes control;
• increased performance of electro-filters through automatic  control systems;
• using dust-collectors in the coal storing areas.

Another environment-related objective in the energy sector is an improved environment impact of hydro-energetic works. The idea is to put in place a measuring and monitoring system for various environment parameters and a related-data base; appropriate measures can be taken following the analysis of the evolution, in time, of said parameters.

In point of the nuclear energy sub-sector the following measures are envisaged:

• to maintain the installations nuclear safety level in accordance with international standards;
• to reduce radiation doses and radioactive emissions by the optimization of operation and maintenance procedures;
• to put in place a rigorous environment parameters control system.

All these actions are in line with the directives and provisions of one of the documents adopted at the 4 th Environment Pan European Conference, 23-25 of June 1998, at Aarhus-Denmark, under the main title '"Environment for Europe"; the document is titled "Energy conservation and Energy Efficiency Initiative".

The other documents adopted during the Conference are:

• Convention concerning the public access to environment information and decision;
• Two Convention Protocols concerning long-distance cross-border atmospheric pollution (Geneva);
• Pan European Strategy for leaded gasoline elimination.

In the context of the last document, I want to point out that there is a national program for the elimination of leaded gasoline by the year 2005. Also, the Ministry of Industries and Trade has a program for reducing polluting emissions from all kinds of vehicles.

The products in this field should be in line with the international and European specific standards on smoke and pollutant emissions, noise level, traffic safety, ABS and ASR, etc.

Due to the competition pressure and the strict enforcement of regulations, the products in this category must be at the level of those offered by well known companies, in point of such parameters as: pollution level, fuel consumption, performance, reliability, maintainability, safety, design, comfort, optional equipment.

Here there are some characteristics of the future products in this category:

• zinc-plated body in compliance with the legislation on shock resistance in force since 1996 in Europe;
• surface protection materials, modern and ecological, which become compulsory under the terms of recent regulations;
• engines equipped with anti-pollution devices, including electronic injection and ignition, catalytic silencer;
• significant percentage of plastic pieces, especially in the body and interior, but also in some mechanical parts; modern, entirely recyclable plastic materials will be used, thermoplastic and thermo-rigid.

In the preparation process and for the implementation of all these programs we have collaborated, and we still do, with various international organizations and Governments of countries like Denmark, the Netherlands, Canada, and the USA. I would like to offer some examples mainly of recently completed or ongoing programs with foreign funding:

within the collaboration agreement between the Romanian Ministry of Industries and Trade and the Canadian Ministry of Industry, after concluding with good results the environment component within the Program for reform implementation in the petroleum sector ( beneficiaries: SNP Petrom, ROMGAZ, CONPET, ANRM and MIT), we started the first phase of a project in the hydro-energetic field  having the following components:

• elaboration of an action plan for environment protection in the hydro-energetic sector;
• development of an integrated management system of hydrographic basins with hydro-energetic works;
• development of professional capabilities of the staff having environment protection responsibilities.

Both our Canadian partners and we intend to continue this project by pilot applications in this sector.

• Within the Agreement between the Romanian Ministry of Waters, Forests and Environment Protection and the Danish Environment Ministry on the co-operation in environment protection , signed in January 1994, projects have been and are still being implemented on pollution reduction, energy consumption reduction in the cement industry (MOLDOCIM Bicaz and CASAVAL Deva) and the wood industry (SILVAROM Bucharest and, possibly, 4 other companies: SPECIAL Sibiu, SARMEX Satu Mare, MONTANA Campeni, MOBINS Bucharest), the use  of thermal water energy (Otopeni).
• Within the Memorandum of Understanding - Economic Co-operation Program between the Romanian Government and the Dutch Government, signed at the Hague on 5 th March 1998 and ratified through Law no.163/1998, program which has an important environment component, "joint implementation"-type activities have been carried out targeting greenhouse gases emission reduction measures at RAFO Onesti.  The very fruitful co-operation in the field started in 1996 with a project in the energy sector implemented by SEP and CONEL; the result was a reduction of fuel specific consumption, with good effects on CO2 emissions and on production costs of electric and thermal energy at 12 coal-driven plants.

Another especially important program aims at implementing the provisions of the Montreal Protocol on ozone depleting substances, part of the National Program for the phase-out of these substances. Such projects are ongoing in 6 companies, with the joint effort of the companies themselves and of the Multilateral Fund for the Montreal Protocol, which provides financial support.

As you could notice, the industry has ambitious environment-related projects and programs. To turn them to reality we need both access to clean technologies and the appropriate financial formula - domestic and foreign resources - to obtain the best efficiency of invested capital.

Romania, as a candidate country to EU accession, has based its industrial development strategy on the concept of sustainable development and is interested in co-operation for finding forms, methods and mechanisms to solve industrial pollution problems, given the global effect of pollution and its impact on environment and population health.

The Romanian industry starts to act in the right direction realizing that environment protection is a component of competitiveness.