B U S I N E S S
Tying the Green Knot
By Sarah Roe
Can business and government cooperate on environmental issues?The current antagonism over environmental issues between business and government in the region is a relatively new phenomenon. In the past, all companies were state-owned and enjoyed close links with the system. Since privatisation, however, all that changed.
Business is only just now starting to see the importance of negotiating with the government, and government officials are beginning to seek input from industry when making laws or setting targets, explained Vladimir Dobes of the Czech Republic's Cleaner Production Center.
Dobes made his remarks at the Industry-Government Dialogue on EU Enlargement, held March 17-19 in Szentendre, Hungary. After laying problems on the table, representatives from both business and government agreed to work more closely together on environmental issues in the future.
Many Central and Eastern European (CEE) company representatives complained that governments do not consult them when passing new environmental legislation and that they have unrealistic goals for implementation. Packaging giant Tetrapak, for example, repeatedly claimed that the Hungarian government's product fee system is unfair and unworkable. Under the new system, paper-packaging firms must recycle 45 percent of their products before they can avoid paying the environmental product fee. That, according to Tetrapak Environmental Manager Eva Baka, is impossible given the lack of a consumer waste collection network and the absence of incentives for people to recycle. "It's the consumers' and municipalities' responsibility too so we need strong communication with them," she emphasised.
Other firms complained that governments operate double standards when dealing with environmental problems. Local companies should also comply with the rules in the long term, said Derek Norman of the Pilkington Group, a multinational glass producer. "We expect that a new investment by a Western company will be required to operate to high standards, even though a nearby factory - long established - is belching out pollution. There must be a plan for the older factory to meet similar high standards, even if it takes ten years," he said. Norman added that it is unreasonable for a Western company to clean up inherited environmental liabilities.
Speakers noted that the most successful examples of dialogue could be seen in powerful sectors such as the oil, coal and chemical industries. Hungary-based Borsodchem, the country's second largest chemicals company, found that communication with the government greatly improved in recent years. "The new government came in force last year and it's quite a workable route which we have to the ministries of industry and environmental protection," noted Borsodchem CEO Laszlo Kovacs. But participants learned that less influential groups such as agricultural and small- and medium-sized companies tend to have little input to decision-making.
Speakers stressed that a valuable business-government dialogue will be a determining factor in accession to the EU. Leena Nurmento of Finand's FORTUM Power and Heat explained that, before Finland joined the EU, it was beneficial to work closely with other accession countries, at that time Sweden and Austria. Regular negotiations with industry, government, non-profit organisations and lobbying groups accelerated the long and often frustrating process, she said. Nurmento added that networking with parliamentarians could also be useful and advised that applicant countries work together with lawmakers in Brussels. "You should have the possibility to participate in the preparation of European legislation within the EU. Otherwise there will be many difficulties in the future," she warned.
The Szentendre event, organised by the Regional Environmental Center and the European Round Table of Industrialists, brought 80 participants together from industry, government and non-profit organisations from both EU and Central and East European (CEE) countries.
Knots that have been tied
Poland: An ambitious nation-wide project to collect and reprocess used oil in Poland has been started by Rafineria Jedlicze. The refinery has built up a network of collectors throughout the country and has set a target to recycle 50 percent of oil on the market. "We have a lot to do," admitted Environmental Manager Waldemar.
Hungary: Maria Erdos of Hungarian Oil and Gas company MOL says environment is high on the corporate agenda as EU accession approaches. Complying with EU standards could cost the company over EURO 4 million. MOL has four of its units certified to the environmental management system ISO 14000. It is currently working on improving product quality, reducing emissions to the environment, improving its Health Safety and Environment (HSE) integrated control system and implementing an HSE information system.
