Financial Provision for Environmental Liabilities

The prevention and remediation of environmental damage at contaminated sites, and from the closure of authorised activities, is a strategic priority for the EPA.  To this end, operators under various authorisation regimes (waste, industrial emissions directive and integrated pollution control licensing, and dumping at sea permitting) are required to make adequate financial provision for the potential environmental liabilities associated with:

  • closure and restoration/aftercare and
  • response to, and completion of remedial measures in the event of, an incident.

The EPA published Guidance on assessing and costing environmental liabilities in 2014, and provided other supports by way of unit cost rates for verification of any costings, a FAQ document and webinar.

The EPA published Guidance on financial provision environmental liabilities in 2015, and provided other supports by way of templates for the financial instruments to be used in making financial provision.

The guidance package above replaces the previously issued 2006 guidance and provides clear direction on the standards necessary to comply with relevant licence and permit conditions relating to:

  • planning for and costing closure and restoration/aftercare (variously referred to in licences as CRAMP, DMP or RMP),
  • assessing and costing potential incidents (referred to in licences, sometimes in combination with the closure documents referenced above, as ELRA), and
  • making financial provision (preferably by way of the following forms of instrument which are, in principle, acceptable to the EPA; secured fund, on-demand performance bond, parent company guarantee, charge on property and environmental impairment liability insurance).

Irrespective of the type of financial instrument used, all financial provisions must be:

  • secure,
  • sufficient, and
  • available when required.

Learn More

Guidance and Webinars

Guidance on financial provision for environmental liabilities

Guidance on financial provision for environmental liabilities - EIL insurance

Guidance on assessing and costing environmental liabilities

Guidance on assessing and costing environmental liabilities – unit cost rates for verification

Guidance on assessing and costing environmental liabilities – frequently asked questions

Guidance on assessing and costing environmental liabilities - webinar (available free to register) at BrightTALK

Templates

Secured fund - account charge template

Secured fund – drawdown agreement template

On-demand performance bond template

Parent company guarantee template

Useful Links

Central Bank of Ireland Registers of Financial Services

Ratings of bond providers: Standard and Poor’s and Moody’s