Financial Provisions

This report summarizes the evaluation of three pre-existing calculation tools for determining financial provision for unforeseen environmental liabilities. The tools, developed in Spain, the Netherlands, and Ireland, were assessed for wider application in different jurisdictions. The report concludes that all three tools have potential for use in other regions, with some considerations for their specific purposes and contexts.

This document provides a practical guide for regulators on using financial provisions for environmental liabilities. Building on a previous report on financial provisions, this guide explains terminology, gives an overview of financial systems, and offers advice on calculating the amount of financial provision needed. It also explores different types of financial provisions and their advantages and disadvantages.

This report presents the findings of a year-long project on financial provisions for environmental liabilities in Europe. The project examined various financial tools and their suitability to cover foreseen and unforeseen environmental liabilities, with the aim of protecting the environment and the public purse. The report also presents case studies where financial provisions have succeeded and failed, and includes recommendations for a second year of research.