In recent years, the EPA has made significant progress in ensuring licensees make financial provision (FP) to cover environmental liabilities at licensed sites. Financial provision is required to pay for site remediation or aftercare and for any potential clean-up that may be required e.g. following an incident. Having adequate financial provision in place is essential to manage environmental risks and to minimise the exposure of the State to the cost of remediating environmental damage if operators fail to do so.
There are some common terms in relation to this section that are explained below:
Financial Provision:Is a means by which a licensee can set aside finances in order to cover the costs that have been identified in a CRAMP and/or ELRA.
ELRA: An Environmental Liabilities Risk Assessment considers the risk of unplanned events occurring during the operation of a facility that could result in unknown liabilities materialising.
CRAMP: A closure plan or Closure, Restoration and Aftercare Management Plan including costings that deal with site decommissioning and known liabilities for the facility at closure.
Financial Provisions at the end of Q1 2021
|The total costs agreed for environmental liabiities increased to €933m by end of Q1 2021 (as identified in ELRAs completed).|
|The total value of Financial Provisions in place for priority facilities by the end of Q1 2021|
The chart below indicates the progres the Agency has made over recent years with regard to agreeing the financial costings and provisions at licensed sites.
Further information and guidance regarding Financial Provisions is available on the EPAs website.