Constitution of the Republic of Slovenia

The Constitution of the Republic of Slovenia contains several provisions which directly or indirectly provide for the basic legal framework of environmental protection. Article 5 of the Constitution thus already introduces the principle of sustainable development by providing that “the state shall provide for the preservation of the natural wealth and cultural heritage and create opportunities for the harmonious development of society and culture in Slovenia”. Further, most relevant constitutional principles in the field of environmental laws are implemented through the following:

• the principle of limitation of (private) property (i) by its ecological function (Article 67), and (ii) by means of expropriation in public interest (Article 69);
• the provisions regarding (i) the right to use of public goods and exploitation of natural resources (Article 70), and (ii) restrictions on the use of land and protection of agricultural land (Article 71);
• the right to (i) a healthy living environment (Article 72), and (ii) to drinking water and the provision thereof on a non-profit basis (Article 70a); and
• the obligation of (i) the general public to protect the natural sites of special interest and rarities, and (ii) the state and local communities to promote and preserve the natural heritage (Article 73).

Key Statutes

The above principles are implemented by the Environmental Protection Act as the framework act in the field, which is supplemented with several sectoral laws and regulations, such as:

• the Nature Conservation Act and Water Act and implementing measures in the field of nature preservation (as well as some specific acts governing designated natural parks);
• several acts and regulations in the field of waste treatment and management;
• acts and regulations in the field of pollution prevention and protecting the quality of air, soil and water;
• the Spatial Management Act and the Building Act in the field of spatial management; and
• the Animal Protection Act.

The key statutory principles of environmental protection are:

• the principle of sustainable development;
• the principle of circular economy;
• the principle of comprehensiveness;
• the principle of co-operation;
• the principles of prevention, precaution and encouragement;
• the “polluter pays” principle;
• the principle of subsidiary liability;
• the principle of publicity;
• the principle of permissibility of activities affecting the environment; and
• the principle of ecological function of property.

Policy

The most relevant policy-level document is the National Environment Protection Programme (the “Programme”), adopted in 2020, which defines the long-term goals, guidelines and measures in the field, with programmes of measures until 2030.

Every four years, the Ministry of the Environment and Spatial Planning prepares a comprehensive report on the environment in Slovenia. On the basis of this, the ministry reviews the adequacy of the Programme and, if necessary, proposes appropriate amendments to it. The government adopts an operative programme in order to implement the Programme and binding international treaties and conventions, strategies and applicable acquis communautaire. Local communities then adopt local environment protection programmes and operative programmes, which are in line with the national Programme.

The Programme is in the process of being supplemented with relevant sections addressing the due development, establishment and governance of public services in the field of environmental protection. 

Another notable policy-level document is the Resolution on Slovenian Climate Long-Term Strategy until 2050, adopted in 2021.

Regulation and Enforcement

In Slovenia, regulatory and enforcement competencies related to environmental issues on the national level tend to be centralised; the main government body in charge of the environment is the Ministry of the Environment and Spatial Planning. Its goal is to provide a healthy living environment for all inhabitants of the Republic of Slovenia, by promoting and co-ordinating efforts towards sustainable development based on the efficient and economical use of natural resources and by ensuring social well-being.

On the local level, communities and municipalities play a relevant role specifically in the area of spatial planning, monitoring, nature preservation and informing the public.

There is no specific independent regulator established in the environment field, but there are several bodies within the Ministry of the Environment and Spatial Planning in charge of various tasks, such as the following.

• The Slovenian Environment Agency performs environmental monitoring and expert services as well as leading administrative proceedings in the field (eg, environment impact assessments).
• The Inspectorate for the Environment and Spatial Planning does most of the heavy lifting in overseeing the implementation of the environmental laws. It supervises the implementation of regulations in the field of housing and surveying, as well as in the fields of environmental protection and nature conservation, water management, industrial pollution and genetically modified organisms. It also performs administrative and expert tasks in the field of cross-border shipment of waste, with the exception of radioactive waste. The inspectorate is internally divided into two operational units – the Environment and Nature Inspection Service and the Construction, Surveying and Housing Inspection Service.
• The Slovenian Water Agency is in charge of water management.
• The Slovenian Nuclear Safety Administration performs professional, administrative, supervisory and development tasks in the areas of radiation and nuclear safety, radiation practices and the use of radiation sources, protection of the environment against ionising radiation, physical protection of nuclear material and facilities, non-proliferation of nuclear weapons, and protection of nuclear goods.
• The Surveying and Mapping Authority is a national land-surveying service and is responsible for conducting administrative procedures and deciding in administrative cases at the first instance, issuing data from geodetic databases, and performing other administrative services and land-surveying tasks.

Criminal Liability

In addition to administrative inspection proceedings and fines imposed in misdemeanour proceedings, certain acts and activities affecting the environment can qualify as a criminal offence as prescribed by the Criminal Code. These are prosecuted by the state prosecutor’s office in the courts of general jurisdiction. The Criminal Code provides for 15 different criminal offences in the field, with imprisonment sentences ranging from six months to eight years, or even 12 years if the offence results in human casualties.

Under the Liability of Legal Persons for Criminal Offences Act, companies and other legal entities can also be held liable for criminal offences in this respect and can face material sentences. See 6.1 Liability for Environmental Damage or Breaches of Environmental Law for more information on this.

In case of environmental incidents and breaches of law or permits, the supervising authority – ie, the competent inspectorate – when performing inspection proceedings has, among others, the following investigative and access rights:

• the right to enter business premises of natural and legal persons and to inspect the device or plant in which the source of environmental pollution is located, as well as to inspect other documents, goods, business books, contracts, etc;
• the right to interrogate parties and witnesses;
• the right to examine, reproduce and seize documents or other objects;
• the right to obtain and use personal and other data from official records and other databases;
• the right to take samples of the goods, materials and equipment and carry out examinations of the samples taken;
• the right to photograph or record the persons, premises, facilities, installations, etc; and
• the right to obtain other documents and perform other actions necessary to determine the level of environmental pollution or other infringements of the law.

In certain cases, the inspecting authorities even have the right to make a fictitious purchase in order to establish the infringement or to collect data on the infringing party.

In the case of plants and devices that cause industrial emissions, the inspectorate can also prepare an inspection plan beforehand which includes the ordinary and extraordinary measures, procedures and other specifics in respect of maintaining control and performing inspections of these plants and devices.

Types of Environmental Permits and Consents in the Republic of Slovenia

According to the Environmental Protection Act, an environmental permit (okoljevarstveno dovoljenje) is required for operation of the following facilities.

• A device or installation in which an activity that causes industrial emissions will be performed (eg, oil refinery, cement plants, metal foundries, certain chemical plants). The types of activities and installations that cause industrial emissions, measures to prevent such pollution and other specifics are determined in the decree on activities and installations causing industrial emissions.
• A device or installation other than those defined under the first point above that causes emissions to air, water or soil above the prescribed emission limits. Detailed specifics are provided in the decree on the emission of substances into the atmosphere from stationary sources of pollution.
• A plant (this also applies to making changes in a plant) that uses or holds certain harmful materials and substances as per the decree on the prevention of major accidents and mitigation of their consequences.

Prior to starting any activity (eg, construction) that is likely to have a significant impact on the environment, an environmental impact assessment procedure must be carried out in which the Ministry of the Environment and Spatial Planning grants the environmental consent (okoljevarstveno soglasje) and determines the conditions for carrying out such activity.

Procedure for Obtaining Environmental Permits and Consents

The procedure for obtaining any of the above-listed environmental permits starts with filing an application to the Ministry of the Environment and Spatial Planning. In certain cases, it is necessary to ensure the participation of the public interested in the procedure in order to obtain the environmental permit. The interested public can express opinions and make comments about the proposed application and the underlying case projects and studies, as well as about the proposed decision of the Ministry of the Environment and Spatial Planning on the environmental permit. The ministry has to take these opinions and comments into consideration and include them, as well as the ministry’s position on them, in the decision on granting or rejecting the environmental permit. The deadline for making a decision is three to six months, depending on the type of environmental permit applied for. As a legal remedy against the decision on the environmental permit, a claim can be filed with the competent administrative court.

The procedure for obtaining environmental consent is also started before the Ministry of the Environment and Spatial Planning. Where the potential impact on the environment is connected to the proposed construction, the procedure for the environmental impact assessment and the procedure for issuing the building permit are joined in an integral procedure before the Spatial Planning, Construction and Housing Directorate of the Ministry of the Environment and Spatial Planning. If the potential impacts are not linked to the construction, then the environmental consent is given by the Environment Directorate of the Ministry of the Environment and Spatial Planning. In every case where an environmental impact assessment study is prepared, the participation of the interested public must be ensured. The deadline for the decision is three months from the date of the complete application.

Under Slovenian law, three main types of liability can be imposed in relation to environmental damage and breaches of environmental law.

Administrative Liability

Administrative liability under the Environmental Protection Act is primarily intended to return the environment to its original state. Under the administrative liability, the inspectorate authorities are able to impose certain measures to ensure compliance with environmental protection rules and impose fines for acts defined as misdemeanours. The polluter pays principle is applicable in respect of certain types of activities and requires the polluter to undertake all necessary measures to prevent the occurrence of environmental damage or to rehabilitate the environment.

Civil Liability

Civil liability according to the general rules of the Obligations Code may be imposed where the environmental burden causes lawfully recognised damage to a third party who then has the right to demand damages in a litigation procedure.

Criminal Liability

Criminal liability is prescribed in the Criminal Code for 15 criminal acts against the environment and natural resources, with sentences of imprisonment ranging from six months to eight years, or even 12 years if the offence results in human casualties. Under the Liability of Legal Persons for Criminal Offences Act, companies and other legal entities can also be held liable for criminal offences in this respect and can face material sentences, including monetary fines and even termination of the company.

Under the polluter pays principle implemented in the Slovenian environment protection legislation, the operator or landowner who is responsible for the incident will be responsible for undertaking the measures that are necessary and imposed for the rehabilitation of the environment. Therefore, the current operator or owner is not liable for incidents which occurred while the relevant assets were still operated or owned by another person.

Nonetheless, if environmental damage occurs and, after the damage has occurred and before the remediation has been carried out, the polluter disposes of the assets with which it carries out certain types of environmentally burdensome activities, specifically enumerated in the law, the contract by which it disposes of these assets must include a provision to the effect that the person acquiring such assets will also assume the obligations and costs of remediation; otherwise the contract is null and void.

Notably, the law also provides that where more than one person is responsible for the damage and the exact liability of each person cannot be established, those persons shall be jointly and severally liable.

Different types of liability applicable to environmental incidents under Slovenian law are described in 4.1 Key Types of Liability. In respect of those liabilities the following defences, limits and conditions should be considered:

• expiration of limitation periods in respect of administrative, civil and criminal liability;
• where the environmental damage is not caused intentionally or is due to gross negligence, administrative liability may be imposed only in respect of performance of certain types of activities, specifically enumerated in the law;
• in the case of civil liability, all four elements of civil liability have to be established –
1. there is harm;
2. the harm shall arise from an unlawful act or omission;
3. there is a causal link between the harm that has occurred and the unlawful act or omission; and
4. the responsibility of the person who caused the damage must be established;
• criminal liability for certain criminal acts will only be established if the damage to the environment was caused by violation of the applicable rules;
• a legal entity’s responsibility for a criminal act will only be possible under the conditions described under 6.1 Liability for Environmental Damage or Breaches of Environmental Law.

In respect of administrative and civil liability as described under 4.1 Key Types of Liability, the responsibility of a corporate entity will not differ from the liability of an individual.

However, special conditions apply for the criminal liability of a legal entity. In particular, under the Liability of Legal Persons for Criminal Offences Act, the individual who committed the criminal act must have committed the act in the name or on behalf of, or for the benefit of, the legal entity. Additionally, one of the following conditions will have to be met:

• the act amounting to a criminal act was an execution of an unlawful decision, instruction or approval by the management or supervisory bodies of the legal entity;
• the management or supervisory bodies of the legal entity influenced the perpetrator or enabled them to commit the criminal act;
• the legal entity obtained illegal proceeds from the criminal act or obtained items through a criminal act; or
• the management and supervisory bodies of the legal entity omitted their due supervision over the subordinated workers.

Slovenian provisions for protection of the environment do not provide for liability of the shareholders or a parent company for environmental damage or breaches of environmental law committed by a legal entity they own or control. However, under Slovenian corporate law there is a so-called “principle of mandatory instructions”, according to which, the parent company may be liable to its subsidiary for the instructions given by the parent company to the subsidiary and which ultimately cause harm to the subsidiary.

The Environmental Protection Act foresees monetary fines for breaches of rules for protection of the environment which can be imposed on a responsible individual within a legal entity.

Such individuals may also be held liable under criminal law, in which case, they may be subject to a monetary fine or even imprisonment ranging from six months to eight years, or even 12 years if the offence results in human casualties.

Additionally, a third party who incurs harm may also bring a civil claim against the directors or other officers of a legal entity. In such event, the general rules for civil liability as laid down in the Obligations Code will apply and the four elements of civil liability described in 5.2 Types of Liability and Key Defences will also have to be established in relation to the relevant director or officer.

Insurance against personal liability for directors and other officers is available under the directors’ and officers’ (D&O) insurance policies.

Slovenian environmental law does not foresee the specific liability of financial institutions or lenders involved in financing projects that result in environmental damage or breaches of environmental law caused by the borrowers.

Lenders do not need to protect themselves from liability risk as there is no basis upon which to establish their responsibility for environmental damage or breaches of environmental law caused by their borrowers.

While it remains to be determined by court practice to what extent private persons can directly enforce constitutionally guaranteed rights and, since the Environmental Protection Act does not provide for specific civil law liability, claims for compensation and certain other remedies can be brought under the generally applicable civil law rules.

Under the general civil liability rule provided in the Obligations Code, any person causing damage to another must compensate the other party for damages unless they can prove that they were not guilty of causing the damage. Objective (no-guilt) liability is provided for in instances where damages are caused by objects or activities which represent a greater damage risk or in certain other narrowly specified cases.

Property laws separately provide a legal basis for nuisance claims, as the Law of Property Code provides that an owner of real property must refrain from any actions and must remedy any causes stemming from their property that are detrimental to the use of neighbouring properties, if these are excessive, given the nature and purpose of real estate and local customs, or if these cause substantial damage. 

In principle, exemplary or punitive damages are not in line with the general rules of damage liability in Slovenia which require full (but fair) compensation for damages. Exceptions to these rules are rare and do not allow for grave disproportion from the above.

It is likely that excessive exemplary or punitive damages would be considered contrary to Slovenian public order in the event that a foreign judgment was being enforced in Slovenia.

Since 2018, when the Collective Actions Act was implemented, class actions in Slovenia have been specifically governed and are permitted in a limited list of situations, including enforcing damage liability due to environmental incidents (accidents) as defined in the Environmental Protection Act.

As yet, no relevant class actions have been initiated in relation to environmental incidents, although there have been some cases where the media have reported this being discussed.

There have been very few high-impact cases relating to civil liability for environmental damages in recent Slovenian legal history. 

In relation to certain brownfield or heavily polluted areas, or to some larger polluters or hazardous activities (eg, related to air pollution or asbestos), injured parties have filed individual or joint claims against the polluters, but no case has really set a benchmark for future claimants.

As already mentioned, Slovenian law does not recognise exemplary or punitive damages and will only consider excessive nuisance (or pollution) as legally relevant. In addition, Slovenian courts are generally not claimant-friendly in terms of awarding high damages in life-and-limb cases, and court proceedings are lengthy. 

In this environment, private parties are not encouraged to claim damages against large polluters, but there have been some cases where claims have been successful – however, some of these have involved an extremely long litigation process.

Under Slovenian law, the conclusion of an agreement on the transfer of liability for damages (whether direct, consequential or incidental) or liability – arising out of breaches of the law – from the party to be held liable under the law to another party is not prohibited.

As already described under 5.1 Liability for Historical Environmental Incidents or Damage, the Environmental Protection Act even mandates such transfer of liability in certain instances. That is, if environmental damage occurs and, after the damage has occurred and before the remediation has been carried out, the polluter disposes of assets with which it carries out certain types of environmentally burdensome activities, specifically enumerated in the law, the contract by which it disposes of the assets has to include a provision to the effect that the person acquiring such assets will also assume the obligations and costs of remediation; otherwise the contract is null and void.

In any event, such agreement will only be effective between the parties to such agreement. In particular, the Slovenian courts have established that the person to be held liable under the law cannot evade their responsibility for liabilities arising out of statutory provisions by contractually transferring such responsibility to a third party. Consequently, an agreement on transfer of liability for environmental damages or fines imposed in respect of breaches of environmental protection provisions will only be effective between the parties to such agreement (eg, the seller and the buyer of a land plot), but the regulators and the courts will not consider this when imposing any fines or liability for damages.

Most insurance companies in Slovenia also offer environmental insurance as part of their general liability insurance and D&O insurance offers. Typically, environmental insurance covers:

• civil liability for damages caused to third parties due to environmental events on the part of the insured party; and
• costs related to the monitoring, discovery and removal of environmental damage.

However, according to the data analysed by the insurance companies, the level of environmental insurance held by Slovenian companies is still relatively low, as companies appear to underestimate their potential exposure to environmental liabilities. This might change in the future, since the most recent amendment of the Environmental Protection Act in 2022 introduced mandatory environmental insurance for subjects carrying out certain types of environmentally burdensome activities.

Under the Environmental Protection Act, land is defined as the top layer of the earth’s crust above the bedrock, made up of inorganic and organic matter, water, air and living organisms. It also determines that contamination of the environment is a direct or indirect introduction of a substance or energy into the air, land or water, or generation of waste. Here, the focus will be on contamination of land, which can happen through pollution or by inappropriate waste disposal.

Key Laws

General rules regarding land contamination are included in the Environmental Protection Act and the Nature Conservation Act. Slovenia has also adopted a National Environment Protection Programme with a schedule of measures until 2030; these measures will determine the current state of the land in Slovenia and the biggest challenges faced, together with the goals, guidelines and measures required to achieve land protection objectives. According to the programme, the biggest problems are covering the land with various impermeable materials (such as asphalt) and compacting the land during construction.

Specifically, in regard to land contamination, the biggest issue is proper waste disposal. In order to deal with this issue, Slovenia adopted the decree on waste landfills which determines that disposal of waste is only allowed in certified landfills. The decree also includes the requirements that landfills need to fulfil in order to ensure proper protection of the land.

Other major factors that contribute to land contamination are agriculture and industry, especially by releasing various substances into the ground. This is why Slovenia has also adopted the decree on limit values, alert thresholds and critical levels of dangerous substances in the soil.

The aim of the Resolution on Slovenian Climate Long-Term Strategy until 2050 is to promote management methods and good practices which will ensure the protection of forests, agricultural land and other ecosystems.

Remediation Requirements

Under the Environmental Protection Act, there is a requirement to monitor the state of the environment and environmental pollution. In a case of contamination of land, remedial measures must be performed with an aim to removing, controlling or reducing pollutants in such a way that this land no longer causes risks to human health. Further requirements are set forth in the decree on the types of measures for remediation of environmental damage. In addition to the measures aimed at improving the physical state of the land, Slovenian environmental protection legislation also includes an obligation for the polluter who caused the relevant contamination to pay remuneration in the form of environmental taxes for environmental pollution.

The key policy instruments relating to climate change in Slovenia are the establishment of the so-called "Climate Change Fund" and regulation of the greenhouse gas (GHG) emission allowance trading scheme. The key legislation acts/policies are in addition to the Environmental Protection Act, the Paris Agreement, the Energy Concept of Slovenia and the Integrated National Energy and Climate Plan.

The GHG Emission Allowance Trading Scheme

The GHG emission allowance trading scheme allows for trading with emission coupons. All operators of devices and plants that must obtain a permit to emit GHG in accordance with the Environmental Protection Act, as well as aircraft operators, are included in this trading scheme. The scheme currently includes 55 installation operators – ie, all thermal power plants, steel plants, and producers of steel, glass, ceramic, cement, lime, paper, etc. In 2020, the installation operators were handed out 1,611,271 emission rights and they handed over 6,095,593 emission rights.

The Climate Change Fund

Based on the Environmental Protection Act, there is also a special item on the state budget – the Climate Change Fund. The purpose of this fund is to provide co-financing of measures and actions aimed at mitigating the consequences of climate change, adaptations to these consequences and development of renewables. The fund is managed by the Ministry of the Environment and Spatial Planning and financed by the income achieved through emissions trading. How the funds are spent will be determined by government ordinance.

The Environmental Protection Act

The Environmental Protection Act determines that protection of the environment from pollution is the key condition for sustainable development, thereby determining the fundamental principles of environment protection, measures for environment protection, monitoring of the environment and environmental information, economic and financial instruments for environment protection, environment protection public services and other issues related to protection of the environment. On the basis of the Environmental Protection Act, an extensive amount of secondary legislation has been passed which further regulates environment protection and climate change regulation.

As yet, no specific law regulating climate change has been adopted in Slovenia, although drafts of such legislation have been prepared in the past.

The Paris Agreement

Slovenia signed the Paris Agreement, together with all other EU member states, on 22 April 2016. The Paris Agreement was ratified by Slovenia on 17 November 2016 with the Act Ratifying the Paris Agreement which came into force on 3 December 2016. As part of the EU’s and its member states’ commitment to reduce GHG emissions by at least 40% by 2030 as compared to 1990, Slovenia will reduce its GHG emissions by at least 15% by 2030 as compared to 2005.

The Energy Concept of Slovenia

In addition to the Paris Agreement, the Energy Concept of Slovenia is the basic strategic national energy programme. According to the Energy Act, the Energy Concept of Slovenia will determine – on the basis of projections for the economic, environmental and social development of Slovenia and on the basis of international commitments – the goals for achieving a reliable, sustainable and competitive energy supply for the next 20 years, with an outlook to the next 40 years. The Ministry of Infrastructure is preparing the Energy Concept of Slovenia which will determine Slovenia’s goals in different fields of energy policy until 2030, with an outlook to 2050.

This strategic document is for guidance and consequently will not determine individual projects, but will rather lay down directions to be followed until 2030 (with frameworks until 2050). The Energy Concept of Slovenia will thereby determine the baseline for future decisions in respect of the provision of a reliable energy supply in a sustainable and competitive way.

The Resolution on Slovenian Climate Long-Term Strategy until 2050

Finally, in July 2021 the Slovenian national assembly adopted the Resolution on Slovenian Climate Long-Term Strategy until 2050 (the “Resolution”). According to the Resolution, Slovenia’s plan to transition to a low-carbon circular economy will only be possible by making some radical changes, the focus of which are sustainable consumption and production, concentrating on the following measures:

• the gradual transition to consumption of food of plant origin;
• the supply of energy from mostly renewable energy sources by 2050;
• more efficient use of energy;
• promotion of multi-purpose use of facilities, support of research, and monitoring of the impact of climate change; and
• support for management of endangered natural and cultural heritage.

The Integrated National Energy and Climate Plan

With the aim of reducing GHG emissions, the Slovenian government adopted, on 27 February 2020, the Integrated National Energy and Climate Plan (which was also submitted to the European Commission, according to the EU Regulation 2018/1999 on the Governance of the Energy Union and Climate Action). This plan determines the goals, policies and measures for the period until 2030 (with an outlook to 2040) on all five dimensions of the Energy Union:

• energy security;
• the internal energy market;
• energy efficiency;
• decarbonisation; and
• research, innovation and competitiveness.

The plan foresees that, by 2030, Slovenia’s total GHG emissions will have decreased by a total of 36% as compared to 2005 (and 40% as compared to 1990).

The Resolution on the National Environmental Protection Programme 2020–2030

Under the Resolution on the National Environmental Protection Programme 2020–2030, Slovenia has set to establish an efficient public transport network, the core of which will be a modern railway network that will enable fast and frequent transport between cities. Slovenia will also strive to make cycling and walking more prevalent among the population. Vehicles will be mostly powered by electricity, supplemented by renewable or synthetic gases. By 2050, passenger transport should be electrified.

Asbestos is a natural mineral that was commonly used as a building material in the previous century as it is an excellent electrical insulator and is highly heat resistant. However, it was later found that asbestos can lead to various deadly diseases, such as asbestosis and cancer, which is why its use in mainstream construction has been prohibited in the developed world. Within the EU, this was achieved with the Directive 1999/77/EU which was implemented into Slovenian legislation through the decree prohibiting and restricting the production, trade and use of asbestos and asbestos products from 1 January 2003 onward.

Even though asbestos is no longer used in new constructions, it is still present in older buildings. The Slovenian legislator has also therefore determined measures on how to deal with these materials and how to dispose of them.

Disposal of Materials Containing Asbestos in the Demolition, Reconstruction or Maintenance of Buildings

In accordance with the decree on the conditions for the disposal of materials containing asbestos in the demolition, reconstruction or maintenance of buildings and in the maintenance and decommissioning of plants prior to reconstruction or removal of the facility, the investor must determine whether the workers will be exposed to any materials containing asbestos.

If so, these works can only be performed by a person who has obtained an environmental permit from the Ministry of the Environment and Spatial Planning. When handling materials containing asbestos, the decree provides that such materials must be sprayed with water before their removal or treatment in order to prevent the release of asbestos fibres. The materials containing asbestos must be packaged in a way that prevents the release of asbestos fibres.

Disposal of Waste Containing Asbestos

In addition to the legislation regulating waste management, landfills and incineration of waste, the main act regulating asbestos waste is the decree on management of waste containing asbestos. Asbestos and waste to which asbestos fibres have adhered must be:

• treated with asbestos-fibre hardening or destruction processes; or
• bagged in a way that prevents the release of asbestos fibres.

Containers and bags containing asbestos waste must be clearly and visibly marked with the inscription “asbestos waste”. Moreover, asbestos waste cannot be mixed with other waste or transported unless the appropriate safety measures have been taken. It is important to note that only a person who has obtained an environmental permit can perform asbestos waste recovery and disposal.

Current Situation

As asbestos emissions are still an issue, either during reconstruction, waste disposal or similar, they need to be properly regulated. This is achieved through the decree on the emission of asbestos into the atmosphere and in the discharge of waste water from installations using asbestos. This decree determines the maximum-allowed values of asbestos emissions. Slovenia also adopted the Act Concerning Remedying the Consequences of Work with Asbestos which determines occupational diseases incurred due to asbestos exposure, the assessment and payment of compensation, and more favourable conditions for gaining the right to a disability pension for people diagnosed with asbestos-related occupational diseases.

In the field of waste management, the Environmental Protection Act provides the key principles of waste treatment and management. The decree on waste expands on this by providing a more detailed set of rules on waste treatment and management and other conditions to prevent or reduce the adverse effects of waste generation, to reduce the overall impact of the use of natural resources, and to improve the efficiency of the use of natural resources. This decree is applicable to all types of waste and is complemented by specific regulations that deal with:

• individual types of waste (eg, hazardous and radioactive waste, packaging, batteries, motor vehicles, electronic devices, asbestos);
• the operation of waste management facilities (ie, waste disposal and incineration); and
• the international movement of waste.

Under Slovenian law, the extended responsibility of the producer or consignor of waste is established for – among others – the following mass waste streams:

• packaging materials;
• used motor vehicles;
• used tyres and used (vehicle) batteries;
• pharmaceuticals;
• grave candles; and
• plant protection products containing hazardous substances.

In respect of packaging materials, the extended liability applies to all waste generated in industry, crafts, trade, services and other activities, in households or elsewhere, regardless of the materials used for packaging. The newly adopted decree on packaging and packaging waste no longer provides for an exception for those manufacturers that place less than 15 tonnes of packaging materials on the market per year. However, the decree on packaging and packaging waste introduced the possibility of a flat-rate payment for manufacturers that place less than one tonne of packaging materials on the market per year. Furthermore, with respect to reporting the weight of packaging materials placed on the market, an exception is granted for returnable packaging.

The obligations of the producers of goods to design, take back, recover, recycle or dispose of the goods once they become waste differ depending on the type of waste.

For example, producers of packaging materials must ensure that the packaging material complies with all the essential requirements for the production and composition of packaging material, as well as its suitability for reuse and recovery, including recycling. Furthermore, the producer must ensure the collection and processing of the packaging materials as well as ensure financing for these actions.

Vehicle manufacturers must, in addition to obligations relating to the design of vehicles (ie, restriction of use of hazardous materials and planning for dismantling, re-use and recycling), also set up and finance the collection of end-of-life vehicles and the disposal and recycling of these.

Tyre manufacturers must ensure all used tyres in a calendar year are collected and appropriately processed.

In the case of an environmental incident, the person who caused it must immediately notify the Administration of the Republic of Slovenia for Civil Protection and Disaster Relief and perform the urgent measures to reduce the harmful consequences to the environment or human health. An environmental incident is defined in the Environmental Protection Act as an uncontrolled or unforeseen event related to an intervention in the environment which, due to its impact on the environment, sooner or later results in a direct or indirect threat to human life or health, or the quality of the environment.

If the environmental incident also caused environmental damage that requires remedial measures in order to be eliminated or reduced, the polluter must adopt and implement all the necessary measures to prevent the further occurrence of environmental damage as well as ensure remediation of the damage already sustained. Where the polluter is unknown, such measures are prepared and implemented by the Ministry of the Environment and Spatial Planning.

Additionally, the Environmental Protection Act also establishes the polluter pays principle and, among other things, stipulates that the polluter will cover all costs for remedial measures in the case of environmental damage.

All the data related to the environment and its protection must be publicly accessible. This is one of the provisions of the current Environmental Protection Act which implements the principle of publicity. According to this principle, all environmental data must be public and everyone must have access to said data in accordance with the law. In addition to accessing the data obtained through environmental monitoring (ie, the data on the state and trends of the environment), the general public can also access proposals and any new applicable environmental regulations.

The Ministry of the Environment and Spatial Planning must, together with other ministries, prepare an environmental report at least every four years. The same rule applies also to city municipalities. The environmental report can, but does not need to be, prepared by other municipalities and/or other self-governing local communities. Such environmental report must include information on the state of the environment, pollution, biodiversity, impact on individual sectors, implementation of measures, etc. All the above information must also be accessible via the internet.

In Slovenia there is no general requirement for all corporate entities to disclose environmental information in their annual reports; however, this obligation does apply to certain entities – for example, entities with more than 500 employees.

In practice, many companies – especially listed companies – do share their environmental information with the public, as environmental friendliness is an important factor for many people when deciding which products to buy or who to do business with.

In Slovenian M&A, real estate property transactions and financing practices, there is no clear and unique approach to environmental due diligence, although awareness of the importance of understanding environmental issues related to target assets or sites is increasing.

In M&A, it is common for the legal review to incorporate a review of regulatory (including environmental) permits and report on any formal non-compliance and pending inspection processes or environment-related legal disputes, but it is not standard to perform a full-scope screening and expert evaluation of the environmental impact. However, this does not apply in the industrial and energy sector where environmental due diligence is generally a key element and is performed by expert organisations in the field.

In real estate transactions, the approach of the investor depends on the particular situation. In greenfield projects, test screening might be performed, but it is more common in brownfield deals, depending on the exposure, past use of the land, intended project and also the scope of reliance on the seller’s warranties.

It is recommended that the approach to the environmental aspect of a deal is discussed early on in the project, as it is typically difficult to draft strong environmental warranties late in the negotiation process.

In financing transactions in Slovenia, environmental due diligence is rare and, save for very specific cases with high exposure or if financing is performed by international financial institutions (eg, the European Bank for Reconstruction and Development), this is not a standard requirement.

There are no explicit rules in environmental laws and regulations which force the seller to disclose environmental information to a purchaser.

The standard disclosure rules as agreed between the parties to the transaction will typically apply. However, under the Obligations Code, the seller has a greater liability if it was aware of a defect in the subject of the sale, but did not reveal it. The general principles of civil law – such as the principle of good faith and fair dealing – will also require the seller to adhere to a certain level of disclosure.

Based on the basic polluter pays principle, the Environmental Protection Act provides that environmental taxes can be introduced due to pollution or due to the content of hazardous substances in raw materials, semi-finished products and finished products.

Deriving from the above, the environmental taxes are prescribed depending on:

• the type, quantity or properties of the emissions from the individual source;
• the type, quantity or properties of waste; and/or
• the contents of the hazardous substances in raw materials, semi-finished products and finished products.

The main obligations of the liable persons are to:

• report the relevant activities;
• keep records of the underlying circumstances;
• file returns to the locally competent authorities; and
• pay tax.

Environmental taxes are currently payable in Slovenia within this framework for eight types of pollution/pollutants:

• carbon dioxide (CO₂) emissions;
• use of lubricating oils and fluids;
• waste packaging;
• waste electronic and electrical equipment;
• used tyres;
• volatile organic compounds;
• waste water discharge; and
• waste disposal.

The Environmental Protection Act provides that the government may prescribe exemptions or reductions for the payment of environmental taxes if:

• the liable person (polluter) has entered into an agreement with the state on additional pollution reduction;
• the liable person is included in the fulfilment of the internationally binding pollution reduction obligations of the state; or
• this represents the implementation of measures contributing to the reduction of pollution.

Certain restrictions on state aid apply.

In this respect, the Corporate Income Tax Act and Personal Income Tax Act provide for certain benefits, such as:

• tax relief for environmental donations;
• tax relief for R&D or for investment funding (eg, of hybrid vehicles); and
• de minimis exemptions.