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Risks created by economic activities

As a result of economic activities, new and complex environmental problems have appeared, that cannot be characterized by any one specific environmental quality indicator. In order to characterise the essence of these problems, two terms have been introduced: hazard and risk.

The elaboration of national ‘risk’ concepts, improvement of legislation and introduction of risk assessment in Europe was promoted by the requirements of EU directives. However, there is no unified approach to risk assessment yet. No unified concept has yet been developed in Latvia, nor have risk assessment procedures and methods for application been established yet. At present, the determination of hazard and the control of hazardous objects is carried out by various institutions within the scope of their duties.

In 1992, Latvia signed the convention ‘On Transboundary Impacts of Industrial Accidents’. The Convention provides that all member states will take the necessary steps to reduce the risk of industrial accidents.

There are three types of risk:

• risk of industrial and transport emergencies, or accident risk;
• risk of accumulated pollution;
• risk of transboundary pollution.

In Latvia, the main causes of risk caused by economic activity may be divided into the following groups:

• old, worn-out, and therefore unsafe equipment, technologies, transport vehicles, infrastructure and industrial installations;
• stocks of raw materials, by-products, pesticides, artificial fertilisers and other chemical substances left without control during the course of privatisation of land and production enterprises;
• wastes left by the Soviet army;
• lack of automatic warning systems and control equipment;
• low level of individual responsibility;
• lack of information about the dangerous impact of various substances, as well as about the potential consequences of disregarding technical processes;
• transboundary impact of industrial, transport and nuclear accidents, and general transboundary pollution.

General measures:

Elaboration of the concept of controllable risk. This includes the elaboration of risk assessment procedures, the choice of appropriate methods for risk calculation, and the adoption of risk criteria.

Gathering of information about the source of risk or hazardous objects and the allocation of specific responsibilities.

Instruments for implementation of this measure:

• law ‘On Chemical Substances’ (being drafted);
• laws ‘On Environmental Protection’, ‘On Prohibiting the Operations of Enterprises, Institutions and Organisations’;
• regulations ‘On Procedures and Criteria for Risk Calculation’, standards, norms (to be elaborated);
• law ‘On Hazardous Wastes’;
• registration, system of permits, monitoring;
• risk assessment, safety reports;
• implementation of the requirements and recommendations of international agreements;
• State Environmental Expertise, EIA.

Implementation of ‘good housekeeping’ activities (see Box 17).

Enterprises should assume the major responsibility for their actions, however, respective legislation and tax policy are necessary for the promotion and implementation of this measure. The most important instruments are:

• information, and educating enterprise management and staff and local governments.

Increasing local government responsibility for gathering information on sources of risk.

Introduction of modern technologies and equipment, replacement of old equipment, and substitution of hazardous raw materials with less hazardous materials. This is one of the most efficient measures, since it combines both technological improvements and decreases the risk of pollutant emissions and accidents. The necessary instruments could be:

• enactments, regulations, standards and norms that would promote the introduction of new technologies and the replacement of out-dated equipment;
• favourable tax policies, soft loans;
• government subsidies for urgent upgrading of equipment and technologies for enterprises that are economically important and when the existing system poses an increased risk to a larger area;
• in planning for a new enterprise, the principle of ‘best available technology’ should always be applied;
• risk assessment;
• EIAs for new equipment and enterprises. (see `Environmental Impact Assessment (EIA)`)

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Last updated: November 8, 1996. The information prepared by Valts Vilnitis: fuxis@varam.gov.lv