Environmental assessment mandates are another significant form of environmental law. Such mandates generally perform three functions: (1) identification of a level or threshold of potential environmental impact at which a contemplated action is significant enough to require the preparation of an assessment, (2) establishment of specific goals for the assessment mandated, and (3) setting of requirements to ensure that the assessment will be considered in determining whether to proceed with the action as originally contemplated or to pursue an alternative action. Unlike command-and-control regulations, which may directly limit discharges into the environment, mandated environmental assessments protect the environment indirectly by increasing the quantity and quality of publicly available information on the environmental consequences of contemplated actions. This information potentially improves the decision making of government officials and increases the public’s involvement in the creation of environmental policy.

The United States National Environmental Policy Act (1969) requires the preparation of an environmental impact statement for any “major federal action significantly affecting the quality of the human environment.” The statement must analyze the environmental impact of the proposed action and consider a range of alternatives, including a so-called “no-action alternative.” The statute and regulations imposed by the Council on Environmental Quality, which was established under the 1969 act to coordinate federal environmental initiatives, require federal agencies to wait until environmental impact statements have been completed before taking actions that would preclude alternatives. Similarly, the European Union (EU) requires an environmental impact assessment for two types of projects. So-called “annex-I Projects” (e.g., oil refineries, toxic waste landfills, and thermal power stations with heat output of 300 or more megawatts) are generally subject to the requirement, and “annex-II Projects” (e.g., activities in chemical, food, textile, leather, wood, and paper industries) are subject to an environmental impact assessment only where “member states consider that their characteristics so require.” Such assessments must describe and evaluate the direct and indirect effects of the project on humans, fauna, flora, soil, water, air, climate, and landscape and the interaction between them.

Economic incentives

The use of economic instruments to create incentives for environmental protection is a popular form of environmental law. Such incentives include pollution taxes, subsidies for clean technologies and practices, and the creation of markets in either environmental protection or pollution. Denmark, The Netherlands, and Sweden, for example, impose taxes on carbon dioxide emissions, and the EU has debated whether to implement such a tax at the supranational level to combat climate change. In the United States, water pollution legislation passed in 1972 provided subsidies to local governments to upgrade publicly owned sewage treatment plants. In 1980 the U.S. government, prompted in part by the national concern inspired by industrial pollution in the Love Canal neighbourhood in Niagara Falls, New York, created a federal “superfund” that used general revenues and revenue from taxes on petrochemical feedstocks, crude oil, and general corporate income to finance the cleanup of more than 1,000 sites polluted by hazardous substances.

By the 1990s, “tradable allowance schemes”, which permit companies to buy and sell “pollution credits,” or legal rights to produce specified amounts of pollution, had been implemented in the United States. The most comprehensive and complex such program, created as part of the 1990 Clean Air Act, was designed to reduce overall sulfur dioxide emissions by fossil-fuel-fired power plants. According to proponents, the program would provide financial rewards to cleaner plants, which could sell their unneeded credits on the market, and allow dirtier plants to stay in business while they converted to cleaner technologies.

Set-aside schemes

A final method of environmental protection is the setting aside of lands and waters in their natural state. In the United States, for example, the vast majority of the land owned by the federal government (about one-third of the total land area of the country) can be developed only with the approval of a federal agency. Europe has an extensive network of national parks and preserves on both public and private land, and there are extensive national parks in southern and eastern Africa in which wildlife is protected. Arguably, the large body of law that regulates use of public lands and publicly held resources is “environmental law.” Some, however, maintain that it is not.

Many areas of law can be characterized as both “set aside” and regulatory. For example, international efforts to preserve wetlands have focused on setting aside areas of ecological value, including wetlands, and on regulating their use. The Ramsar Convention provides that wetlands are a significant “economic, cultural, scientific and recreational” resource, and a section of the Clean Water Act, the primary U.S. law for the protection of wetlands, contains a prohibition against unpermitted discharges of “dredge and fill material” into any “waters of the United States.”