The Environment Commission of the Spanish Congress of Deputies has taken a first step to recognize corporate environmental responsibilities outside Spain

Press notes, Terrassa, 27 June 2007

Today, the 27th of June the Environment Commission of the Congress of Deputies ratified a “Draft law of environmental responsibility”.

During the parliamentary process, the Spanish NGO, Observatory of the Debt in Globalización (ODG) 1 asked all the parliamentary groups to introduce an amendment to the law which had not been initially proposed in the rough draft presented by the Government.

The purpose of the amendment was to assure that Spanish companies which undertake activities outside the European Union, and make use of public support mechanisms for Spanish foreign investment, are held to a level of environmental responsibility equivalent to that demanded of companies in Spain.

The parliamentary groups: Grupo Popular, Grupo Parlamentario Convergència i Unió, Grupo Parlamentario Izquierda Unido - Initiativa per Catalunya Verds and Grupo Parlamentario Esquerra Republicana submitted the amendment proposed by the ODG as their own in the parliamentary procedings.

In the final phase of the parliamentary proceedings, the Socialist Parliamentary Group presented a revised amendment that covered only some of the objectives proposed in the initial amendment.

After negotiations, all the parliamentary groups approved the following amendment:

Additional disposition (new). Foreign Environmental Responsibility.

1. Operators which carry out economic or professional activities regulated by this Law in States that do not form part of the European Union and which are beneficiaries of public instruments of support for Spanish foreign investment, will be obliged to prevent environmental damages or to repair them. To this end, they will have to adopt measures for prevention, avoidance and repair that are covered by this Law, with the scope and purpose anticipated by this law.

The provision in the previous paragraph does not exempt fulfillment of any other existing legal obligations in the State in which this activity is made.

2. Operators who fail to fulfill obligations anticipated in the previous section, will be forced to return all the public aid or support for the foreign investment received for the development of said activity and they will not be able to receive similar aid for a period of two years.“

The ODG appreciates that the parliamentary groups decided to introduce elements of international environmental responsibility in the draft law, and hopes that this position is maintained during the next phases of the parliamentary proceedings.

ODG also explicitly expresses its gratitude to the parliamentary groups that decided to support the proposal raised by the ODG, an amendment that in our understanding guaranteed a level of environmental responsibility superior to that finally approved. (see Annex 1 below)

Finally, ODG laments that important aspects, such as the requirement to establish a financial guarantee to cover possible foreign impacts, or the requiremnt to establish an explicitly stricter system of environmental responsibilities in the event of possible breaches of the legislation, has been removed from the approved amendment.

Given this situation, the ODG understands that this is a first step toward an adequate legislative framework for incorporation of the new global environmental responsibilities that must be assumed by Spain, and we hope that the legislation will continue to deepen in this direction.

For any clarification or greater detail, please contact:

Miquel Ortega Cerdà: miquel.ortega@debtwatch.org
Jesus Carrión: jesus.carrion@debtwatch.org
Mónica Vargas: monica.vargas@debtwatch.org

ANNEX 1. INITIALLY PROPOSED AMENDMENT BY THE ODG

“In the event that operators undertake activities outside of the European Union and count on support from public mechanisms of support for Spanish foreign investment (FIEX, PROINVEX, insurance from the Spanish Export Credit Company - CESCE- acting on behalf of the Spanish State, similar lines of financing for internationalization from the Institute of Official Credit (ICO), FAD credits orsimilar mechanisms):

a) The operator will be subject to the attribution of responsibilities, obligations of prevention, avoidance and repair of environmental damages, as well as to the establishment of financial guarantees, that would be applicable to them as if they undertook these activities in Spanish territory. These obligations do not exempt operators from the fulfillment of any other existing legal obligation in the country where the activity is undertaken.

b) Without prejudice to the duties established in article 42 interested parties will include the following:

• Any legal non-profit entities of the country where the activity is carried out which fulfill the following requirements:

1.º Which have in the objectives declared in their statutes the protection of the environment in general or that of some of its elements in particular.
2.º Which have been constituted legally at least two years before the exercise of the action and which have actively exercised activities necessary to reach the objectives anticipated in their statutes.
3.º Which according to their statutes develop their activities in a territorial scope that is affected by the environmental damage or the threats from damage.

• As well, the holders of titles to lands where measures for the prevention, avoidance or repair of environmental damages must be undertaken.

c) The General Administration of the State will take necessary measures so that operators responsible for environmental damage or for threated imminent damage in countries not pertaining to the European Union, assume the costs that they have caused.”

Justification:

In the event that the operator undertakes its foreign activities counting on the support of Spanish public resources, there must exist an absolute guarantee under which it is subject to a level of environmental responsibility equivalent to that demanded in Spain. Only thus is it possible to assure, promote and defend the economic, social and cultural rights of citizens in global surroundings and in agreement with Spanish adhesion to the PIDESC Pact within the framework of the United Nations. “

For further information, please contact:

OBSERVATORY OF THE DEBT IN GLOBALIZACIÓN (ODG)
C/Colom, 114 - Edifici Vapor Universitari
08222-Terrassa
www.observatoriodeuda.org
Telf. /Fax 34.93.785.13.18.

The original press release in Spanish can be found at
http://www.debtwatch.org/documents/novetats/nota_prensa_28.06.2007.pdf