CYIL 2011

ONDŘEJ VÍCHA CYIL 2 ȍ2011Ȏ – to achieve the highest sustainable economic growth and employment and a rating standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy, – to contribute to sound economic expansion in Member as well as non member countries in the process of economic development; and – to contribute to the expansion of the world trade on a multilateral, non discriminatory basis in accordance with international obligations. The Polluter-Pays Principle was adopted by the OECD Council in 1972 as an economic principle for allocating the costs of pollution control. The principle was further developed by OECD Recommendations issued in 1974 and 1989. The principal OECD Recommendations which govern the application of the PPP are: – Recommendation on Guiding Principles concerning International Economic Aspects of Environmental Policies [adopted by the OECD Council on 26th May 1972, C(72)128 final], – Recommendation on the Implementation of the Polluter-Pays Principle [adopted by the OECD Council on 14th November 1974, C(74)223 final], – Recommendation on the Application of the Polluter Pays Principle to Accidental Pollution [adopted by the OECD Council on 7 July 1989, C(89)88 final]. In 1972, the OECD Council adopted the Recommendation on Guiding Principles Concerning International Economic Aspects of Environmental Policies (hereinafter the “1972 OECD Recommendation”) 3 which incorporates, at the international level, the first formulation of the Polluter-Pays Principle. The Recommendation sought to encourage sound environmental management and to harmonise methods for allocating the cost of pollution to avoid distortions in prices for products entering international trade. It provides that: “The principle to be used for allocating costs of pollution prevention and control measures to encourage rational use of scarce environmental resources and to avoid distortions in international trade and investment is the so-called ‘Polluter-Pays Principle’. This principle means that the polluter should bear the expenses of carrying out the above-mentioned measures decided by public authorities to ensure that the environment is in an acceptable state. In other words, the cost of these measures should be reflected in the cost of goods and services which cause pollution in production and/or consumption. Such measures should not be accompanied by subsidies that would create significant distortions in international trade and investment.” The 1972 Recommendation provides that the PPP “should be an objective of Member countries; however, there may be exceptions or special arrangements, particularly for the transitional periods, provided that they do not lead to significant distortions in international trade and investment”. The Recommendation also addresses environmental standards, national treatment and non-discrimination, control procedures and compensating for import levies and export rebates.

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3 Recommendation adopted by the OECD Council on 26th May 1972, C(72) 128.