The “Green Maze”: Environmental Obligations for Cement Companies in Greece and Cyprus

Written by Efi Thoma *

The cement industry plays a crucial role in the infrastructure development of both Greece and Cyprus. However, this essential sector also carries a significant environmental footprint. From quarrying raw materials to the energy-intensive production process, cement companies face increasing scrutiny and stringent legal obligations aimed at mitigating their impact on the environment. This article delves into the key environmental issues and the pertinent legal frameworks in Greece and Cyprus that cement manufacturers must navigate.

Both Greece and Cyprus, as members of the European Union, are bound by a substantial body of EU environmental law. This includes cornerstone directives such as the Environmental Impact Assessment (EIA) Directive, the Industrial Emissions Directive (IED), the Waste Framework Directive, and legislation addressing climate change and biodiversity. These EU regulations are transposed into national law in both countries, forming the bedrock of their environmental legal frameworks. Cement companies in both jurisdictions face similar environmental challenges, such as:

  • Air Emissions: The production of clinker, a key component of cement, releases significant amounts of greenhouse gases (primarily CO2), as well as other pollutants like nitrogen oxides (NOx), sulfur dioxide (SO2), and particulate matter (PM).
  • Quarrying Impacts: Extraction of raw materials such as limestone and aggregates can lead to habitat loss, landscape alteration, soil erosion, and water pollution.
  • Waste Generation: The cement production process generates various types of waste, including dust, refractory materials, and sludge, requiring proper management and disposal.
  • Energy Consumption: Cement manufacturing is an energy-intensive process, contributing to overall energy demand and associated environmental impacts.
  • Water Usage: Water is used in various stages of cement production, and its management and potential discharge require careful consideration to prevent water pollution.

Greece has incorporated EU environmental directives into its national legislation, creating a comprehensive framework for regulating industrial activities, including cement production. Key legal instruments include:

  • Law 1650/1986 on the Protection of the Environment (as amended): This framework law establishes general principles for environmental protection and lays down procedures for EIAs and permitting. Cement plants are typically categorized as high-impact activities requiring detailed EIAs before operation and significant modifications.
  • Presidential Decree 100/2014 transposing the IED: This decree sets out stringent requirements for large combustion plants and industrial installations, including cement plants, regarding emissions to air, water, and land, as well as energy efficiency and waste management. Operators are required to obtain integrated permits that incorporate Best Available Techniques (BATs) to minimize their environmental impact.1
  • Legislation on Greenhouse Gas Emissions Trading Scheme (EU ETS): Greek cement companies fall under the EU ETS, requiring them to monitor, report, and surrender allowances for their CO2 emissions. This mechanism incentivizes emission reductions and investments in cleaner technologies.
  • Laws on Waste Management: Cement companies are obligated to manage their waste in accordance with national and EU waste legislation, prioritizing prevention, reuse, recycling, and proper disposal of hazardous and non-hazardous waste.
  • Legislation on Biodiversity Protection: Quarrying activities must comply with laws protecting Natura 2000 sites and endangered species. EIAs must thoroughly assess potential impacts on biodiversity and propose mitigation measures.
  • Water Resources Management Law 3199/2003 (as amended): Cement plants utilizing water resources or discharging wastewater must comply with regulations aimed at protecting water quality and ensuring sustainable water use.

Cyprus has also transposed EU environmental legislation into its national legal order. Key pieces of legislation relevant to cement companies include:

  • The Environmental Impact Assessment Law (N. 140(I)/2018): This law governs the EIA process for various projects, including cement plants and quarries. It mandates the submission of detailed environmental impact studies, public consultation, and the incorporation of environmental conditions into development permits.
  • The Integrated Pollution Prevention and Control Law (N. 127(I)/2003) (as amended), transposing the IPPC Directive (now IED): This law requires cement plants to obtain integrated permits based on BATs to prevent and control pollution across different environmental media.
  • The Greenhouse Gas Emissions Trading Scheme Laws of 2005 to 2020 (as amended): Cypriot cement companies are participants in the EU ETS, facing similar obligations as their Greek counterparts regarding CO2 emissions.
  • The Waste Law (N. 185(I)/2011) (as amended): This law sets out the framework for waste management in Cyprus, obligating cement companies to manage their waste streams responsibly.
  • The Protection and Management of Nature and Wildlife Law (N. 153(I)/2003) (as amended): Quarrying activities must adhere to regulations safeguarding protected areas and species. EIAs must address potential impacts on biodiversity.
  • The Water and Water Resources Law (N. 22(I)/2011) (as amended): Cement plants' water usage and wastewater discharges are regulated under this law to protect water resources from pollution and ensure sustainable management.

In both Greece and Cyprus, environmental authorities are responsible for monitoring compliance with environmental legislation and enforcing the relevant laws. Non-compliance can lead to significant penalties, including fines, operational restrictions, and even plant closures in severe cases. The legal landscape for cement companies is constantly evolving. Key emerging trends include, as follows:

  • Increased Focus on Decarbonization: Pressure is mounting to reduce CO2 emissions from the cement sector through technological advancements, alternative fuels, and carbon capture and storage technologies. Legal frameworks are likely to further incentivize and mandate these transitions.
  • Circular Economy Principles: There is a growing emphasis on incorporating circular economy principles into cement production, such as utilizing waste materials as alternative raw materials or fuels. Legal frameworks may evolve to facilitate and encourage these practices.
  • Stricter Biodiversity Protection: Regulations concerning quarrying and its impact on biodiversity are likely to become more stringent, requiring more comprehensive mitigation and restoration measures.
  • Enhanced Transparency and Reporting: Increased public awareness and regulatory focus are driving greater transparency in environmental performance and reporting by industrial operators.

For cement companies operating in Greece and Cyprus, a thorough understanding and proactive compliance with the complex web of environmental laws is not merely a legal obligation but also a crucial aspect of sustainable business practice. By embracing cleaner technologies, efficient resource management, and transparent operations, cement manufacturers can navigate the "green maze" effectively, mitigate their environmental impact, and contribute to a more sustainable future for both countries. Failure to do so can lead to significant legal and reputational risks in an increasingly environmentally conscious world. Consulting with legal experts specializing in environmental law in Greece and Cyprus is highly recommended to ensure full compliance and proactive risk management.

* Efi Thoma is a Dual-Qualified Lawyer (LL.B.,LL.M.,IMES) member of Cyprus & Greece Bar Associations (contact details: ethoma@legalexpertscy.com)

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