Environmental Law 2023 Comparisons

Constitution of the Republic of Slovenia

The Constitution of the Republic of Slovenia contains several provisions which provide the basic legal framework for environmental protection. It 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”. Furthermore, most relevant constitutional principles in the field of environmental law are implemented through the following:

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

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 the 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 until 2030.

Every four years, the Ministry of the Environment, Climate and Energy (the “Ministry”) prepares a comprehensive environment report. On such basis, the Ministry reviews the adequacy of the Programme and, if necessary, proposes appropriate amendments. 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.

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

Regulation and Enforcement

The main government body in charge of the environment is the Ministry.

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 and the Ministry of Natural Resources and Spatial Planning in charge of various tasks:

• The Slovenian Environment Agency performs environmental monitoring and expert services as well as leading administrative proceedings in the field (eg, environmental impact assessments – EIAs).
• The Environment and Energy Inspectorate oversees the implementation of the environmental laws.
• The Natural Resources and Spatial Planning Inspectorate supervises the implementation of regulations in the field of spatial planning and construction, surveying, and housing, as well as environmental protection and nature conservation, water use and water management. The inspectorate is internally divided into two operational units – the Construction, Surveying and Housing Inspection Service, and the Natural Resources and Mining Inspection Service.
• The Slovenian Water Agency is in charge of water management.
• The Slovenian Nuclear Safety Administration performs 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.

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. These are prosecuted by the state prosecutor’s office in the courts of general jurisdiction (see 5.1 Key Types of Liability).

In general, pursuant to the State Administration Act and the General Administrative Procedure Act, administrative bodies must co-operate with each other in all common issues and are obliged to provide each other with legal assistance in administrative proceedings.

In practice, co-operation between inspectorates of different areas of control and competence takes place:

• in accordance with the agreed activities of regional co-ordination;
• in accordance with the Inspection Council; and
• among the inspectors themselves.

Environmental assets are protected by a framework of sector-specific regulations, the implementation of which is supervised by the Natural Resources and Mining Inspection Service. These regulations control:

• the protection and regulation of water, water land and coastal land, water rights, water use, and water consents and permits;
• the operation of commercial public services in the field of drinking water supply and the equipment of agromelioration facilities for the drainage and cleaning of municipal and precipitation waste water; and
• the protection and conservation of nature.

In addition, Slovenia has designated protected areas and national parks to conserve natural habitats and wildlife, as well as a general framework ensuring air quality standards and measures to address pollution from sources such as industrial emissions and transportation.

The consequences of breaching these regulations vary depending on the severity of the breach, the type of environmental asset affected, and other relevant factors. They may include fines, criminal liability, civil liability, orders for remediation, revocation of permits, injunctions, and administrative measures, such as ordering the closure of a non-compliant facility.

The competent inspectorate has, among other things, the following investigative and access rights:

• the right to enter business premises 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, copy 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 and carry out examinations of the samples;
• 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;
• a device or installation, other than those defined under the first point above, that causes emissions into the air, water or soil above the prescribed emission limits; and
• a plant (this also applies to making changes in a plant) that uses or holds certain harmful materials and substances.

Prior to starting any activity (eg, construction) that is likely to have a significant impact on the environment, an EIA procedure must be carried out, after which the competent authority may grant the environmental consent (okoljevarstveno soglasje) and determine 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. 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 documents, as well as about the proposed decision of the Ministry. The deadline for issuing the decision is three to six months. 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. Where the potential impact on the environment is connected to the proposed construction, the procedure for the EIA and the procedure for issuing the building permit are joined in an integral procedure before the Ministry of Natural Resources and Spatial Planning. If the potential impacts are not linked to the construction, then the environmental consent is issued by the Environment Directorate of the Ministry. In every case where an EIA 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 completed application. As a legal remedy against the decision on environmental consent, a claim can be filed with the competent administrative court.

As a general principle, based on the environmental policies and strategies adopted on a wider scale, the regulatory authorities and, specifically, the inspectorates adopt their plan of work on a mid-term as well as on an annual basis. This enables them to allocate resources through risk-based regulation. In other words, assessment is made of the risks that regulated organisations pose to the regulator’s objectives and resources are allocated based on the budgeting and personnel capacities for each year. The higher the risk, the more systematic and stringent the enforcement of regulations, whereas for lower-priority objectives, the enforcement might be more sporadic and the authorities more willing to negotiate outcomes through advice and persuasion. In recent years, the preventative function of the authorities has also improved and their advice often benefits regulated entities to set up compliant business activities.

An environmental permit cannot be transferred, whereas an environmental consent can be transferred to another person prior to commencing the planned intervention, but only with the consent of the Ministry and provided there is a change of operator of the intervention.

The application for the transfer of environmental consent must contain a certified statement by the holder agreeing to the transfer, and a statement by the new holder that they will implement all the conditions and measures from the respective consent.

If an inspector discovers that a device or installation does not operate within the framework of its environmental permit, the inspector can order that such irregularities be eliminated, impose a temporary ban on the operation of the device or the performance of activities, and ultimately propose the revocation of the environmental permit to the Ministry. A fine can also be imposed in such cases.

A fine is imposed on a legal entity if it starts carrying out, or carries out, an intervention without the required environmental consent, or if it carries out the intervention in a manner that breaches the environmental consent.

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 and/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.

In the case of an environmental incident, the person who caused it, as well as any person who notices it but cannot limit it, must immediately notify the Administration of the Republic of Slovenia for Civil Protection and Disaster Relief. The person who caused the incident is further obliged to perform the urgent measures necessary to reduce harmful consequences to the environment and/or human health.

A person who causes damage to the environment due to a deviation from the rules of conduct prescribed by the Environmental Protection Act, must notify the relevant inspectorate and the police within 24 hours. If another person notices such damage, they must immediately inform the police.

In the event of an imminent threat to the environment or the occurrence of environmental damage, the person responsible for it must take all necessary measures to prevent such damage, and immediately inform the Ministry.

A fine may be imposed in cases of non-disclosure or incomplete disclosure.

Under the “polluter pays” principle, the operator or landowner who is responsible for the incident will be responsible for undertaking all measures 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 operated or owned by another person.

However, should a polluter dispose of assets with which it carries out certain types of environmentally burdensome activities (as enumerated by law) – after environmental damage has occurred and before remediation has been carried out – the contract by which it disposes of these assets must include a provision to the effect that the person acquiring such assets will assume the obligations and costs of remediation; otherwise the contract will be 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 will be jointly and severally liable.

See 5.2 Disclosure.

Different types of liability applicable to environmental incidents under Slovenian law are described in 5.1 Key Types of Liability. In respect of those liabilities the following defences, limits and conditions should be considered:

• expiration of limitation periods;
• where the environmental damage is not caused intentionally or is due to gross negligence, administrative liability may be imposed only in respect of the 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 arose from an unlawful act or omission;
3. there is a causal link between the harm 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; and
• a legal entity’s responsibility for a criminal act will only be possible under the conditions described under 7.1 Liability for Environmental Damage or Breaches of Environmental Law.

In respect of administrative and civil liability, as described under 5.1 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. 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 has 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.

Environmental taxes are currently payable in Slovenia 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.

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.

Slovenian provisions for protection of the environment do not provide for the liability of 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 instructions given by the parent company to the subsidiary which ultimately cause harm to the subsidiary.

ESG requirements are not systematically or extensively regulated. Certain sustainability rules, designed to promote sustainable business practices, transparency and responsible corporate behaviour, apply to credit institutions, management companies, investment firms and issuers. These rules mainly derive from the applicable provisions of EU law. In addition, the provisions of the Consumer Protection Act that prohibit misleading advertisement and misleading commercial practices towards consumers may also apply in terms of ESG requirements.

Reporting is performed through disclosures contained within annual non-financial reports. In addition, companies that are subject to audit are obliged to include certain information in their annual reports.

ESG requirements are monitored by the relevant government agencies and regulators, and can be enforced through inspections and audits. Companies found in violation of ESG requirements may face fines, legal action or reputational damage.

Large public-interest entities (companies with more than 500 employees) must disclose information about their environmental and social impact, including data on their environmental performance, as well as policies, risks and outcomes related to environmental matters.

The Environmental Protection Act foresees monetary fines which can be imposed on a responsible individual within a legal entity.

Such individuals may also be held liable under criminal law as described under 5.1 Key Types of Liability.

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 of civil liability as described in 6.3 Types of Liability and Key Defences will apply.

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

Most insurance companies in Slovenia offer environmental insurance as part of their general liability insurance and D&O insurance. 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.

There are no legal limitations on the types of environmental risk which may be insured.

However, the level of environmental insurance held by Slovenian companies is still relatively low. 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.

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 or cause substantial damage.

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.

Class actions are governed by the Collective Actions Act 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.

Under Slovenian law, the conclusion of an agreement on the transfer of liability for damages or liability – arising out of breaches of the law – is not prohibited. As already described under 6.1 Liability for Historical Environmental Incidents or Damage, the Environmental Protection Act even mandates such transfer of liability in certain instances.

In any event, an agreement on the transfer of liability for damages 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.

See 9.1 Environmental Insurance.

The Environmental Protection Act 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 the covering of the land with various impermeable materials (such as asphalt) and the compacting of the land during construction.

Specifically, in regard to land contamination, the biggest issue is proper waste disposal. In this respect, Slovenia has adopted the decree on waste landfills which determines that disposal of waste is only allowed in certified landfills.

Other major factors that contribute to land contamination are agriculture and industry. Therefore, Slovenia has also adopted the decree on limit values, alert thresholds and critical levels of dangerous substances in the soil.

Remediation Requirements

Under the Environmental Protection Act, there is a requirement to monitor the state of the environment and environmental pollution. In the case of land contamination, remedial measures must be performed with an aim to removing, controlling or reducing pollutants in such a way that this land no longer presents a risk to human health. Further requirements are set forth in the decree on the types of measures for remediation of environmental damage. 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.

Based on the “polluter pays” principle, the polluter is primarily responsible for cleaning up contaminated land. Additionally, on the basis of the principle of subsidiary action, in cases where the polluter does not carry out the prescribed remedial measures within the determined period, the implementation of such measures will be carried out by the Ministry at the polluter’s expense. Moreover, the Ministry also ensures the implementation of remedial measures when the polluter is unknown or cannot be identified. The responsibility for cleaning up contaminated land may also extend to persons that have acquired the contaminated land with knowledge of the contamination (see 6.1 Liability for Historical Environmental Incidents or Damage).

The law does not prohibit or limit the possibility to delegate such responsibility (eg, the contractual transfer of the implementation of remedial measures), however, such arrangement can only have inter partes effect, therefore in terms of environmental regulations, the addressee of the respective obligations remains the same.

If there are several polluters and it is not possible to determine the responsibility of each individual polluter, they are liable jointly and severally.

However, causal link must be established. Otherwise, the Environmental Protection Act provides that if environmental damage is caused by pollution of a diffuse character, where it is not possible to establish a causal link between the environmental damage in question and a specific person’s activities, the above-described provisions governing liability for environmental damage cannot apply.

The Ministry takes remedial measures proceedings against polluters, whereas the Environmental Protection Act provides that such proceedings can also be initiated by:

• a non-governmental organisation in the public interest;
• a qualified civil initiative; or
• a legal or natural person affected by the environmental damage.

The following are considered environmentally burdensome activities:

• waste management, for which it is necessary to obtain an environmental permit or a decision on permission to carry out the notified activity (ie, waste management operations, including the collection, transport, recovery and disposal of waste and hazardous waste, and including the supervision of such operations and after-care of disposal sites); and
• mining waste management, for which it is necessary to obtain an environmental permit.

In connection with their performance, the operator is responsible for the prevention and remediation of environmental damage, regardless of fault, and is also obliged to insure its liability for environmental damage. A fine can be imposed on a legal entity that does not hold such insurance.

In the event of an imminent threat or the occurrence of environmental damage, the polluter must immediately notify the Ministry of all relevant facts. The Ministry then examines the environmental damage and adopts a decision that includes remedial measures.

If the Ministry is otherwise informed or becomes aware of an immediate risk or the occurrence of environmental damage, it may request appropriate information from the polluter. If the Ministry determines that the polluter has not taken appropriate measures, it will order the implementation of remedial measures. There is no appeal against such decision – however, an administrative dispute is admissible.

If the Ministry receives notification from the public, as described under 13.4 Proceedings Against Polluters, it will examine the notification and, provided it deems that the information in the notice likely demonstrates the asserted damage, it will send the notice to the alleged polluter who must respond within 14 days. The Ministry will publish information about the procedure on the central website of the state administration. Members of the public have the right to participate by giving opinions, suggestions and comments within 30 days of the public announcement. If the Ministry determines that environmental damage has occurred, it will issue and publish a corresponding decision.

The GHG Emission Allowance Trading Scheme

Operators of devices and plants that must obtain a permit to emit GHGs in accordance with the Environmental Protection Act, as well as aircraft operators, are included in this trading scheme.

The Climate Change Fund

The Climate Change Fund is a separate item on the state budget. 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 the development of renewables. The fund is managed by the Ministry and financed by the income achieved through emissions trading.

The Environmental Protection Act

On the basis of the Environmental Protection Act, an extensive amount of secondary legislation has been passed which further regulates protection of the environment and climate change.

As yet, no specific law regulating climate change has been adopted in Slovenia. However, the Ministry is currently preparing a draft of the Climate Act, which aims to provide a comprehensive framework for more effective implementation of climate policies and achieving climate neutrality by 2050 at the latest.

The Paris Agreement

Slovenia has signed and ratified the Paris Agreement.

The Resolution on Slovenian Long-Term Climate Strategy Until 2050

In July 2021, the Slovenian national assembly adopted the Resolution on Slovenian Long-Term Climate Strategy Until 2050. 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.

The Integrated National Energy and Climate Plan

With the aim of reducing GHG emissions, the Slovenian government adopted the Integrated National Energy and Climate Plan in 2020. 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, to promote cycling and walking, and to support traffic electrification.

Slovenia implemented the Directive 1999/77/EU 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. Therefore, the Slovenian legislator 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 an environmental permit and according to the procedures determined by the decree.

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 the management of waste containing asbestos. Asbestos and waste with asbestos fibres must be:

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

Containers and bags containing asbestos waste must be clearly and visibly marked. Moreover, asbestos waste cannot be mixed with other waste or transported without appropriate safety measures. In addition, only a person who has an environmental permit can perform asbestos waste recovery and disposal.

Current Situation

As asbestos emissions are still an issue, 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, which 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 people diagnosed with asbestos-related occupational diseases to gain access to a disability pension.

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 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, and asbestos);
• the operation of waste management facilities (ie, waste disposal and incineration); and
• the international movement of waste.

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.

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.

The Environmental Protection Act establishes the requirement to self-report environmental incidents or damage. See 5.2 Disclosure for more information on this.

In line with the principle of publicity, all environmental data must be public and everyone must have access to said data in accordance with the law.

Additionally, the public may obtain relevant material on the basis of the Public Information Access Act which applies to all state bodies, local authorities, public agencies, public funds and other bodies governed by public law, holders of public powers and providers of public services.

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 how environmentally friendly a company is, is an important factor for many people when deciding which products to buy or who to do business with.

In Slovenia, there is a certain degree of green finance development.

On a general scale, the State accelerates and encourages the achievement of environmental protection goals by means of the following economic and financial instruments:

• environmental taxes;
• collateral, bank guarantees and other forms of financial guarantees;
• loans with a favourable interest rate;
• by investing capital in companies, providing guarantees, subsidies or other forms of grants from the Eco Fund, and through other financial instruments that contribute to the protection of the environment;
• sureties and other forms of security;
• trading emission rights; and
• State budget funds.

In addition, by joining the Sustainable Stock Exchange Initiative (SSE), the Ljubljana Stock Exchange has committed itself to promoting the sustainable development of the environment and society. The most notable arrangement on the Slovenian market is the issuance of green bonds. Slovenian financial institutions are also developing and offering other sustainable investment products and funds. These typically consider ESG criteria when selecting investments and aim to align with sustainable and ethical principles.

Determining the body responsible for monitoring and enforcing such arrangements essentially depends on the specific finance arrangement, as this may be the competent regulator (depending on the regulated entity or activity) of the financial sector or the public authority competent to issue/grant the relevant economic or financial instrument.

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, the intended project and also the scope of reliance on the seller’s warranties.

In financing transactions, 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), it is not a standard requirement.

There are no explicit rules which require environmental disclosure.

The standard disclosure rules agreed between the parties to a 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 a sale, but did not reveal it. The general principles of civil law – such as the principle of good faith and fair dealing – also require the seller to adhere to a certain level of disclosure.

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

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

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

See 7.2 Environmental Taxes and 7.3 Incentives, Exemptions and Penalties for more information on this.

Environmental disputes can be resolved through litigation pursuant to general rules of civil procedure. The Slovenian legal order also recognises a relatively wide scope of alternative dispute resolution (ADR) methods, which can be used in order to resolve environmental disputes in a more flexible, rapid and efficient way, and by which the parties can address their specific needs to a greater extent. The most notable ADR methods are arbitration and mediation. The latter is additionally enhanced by the Mediation in Civil and Commercial Matters Act.

ESG topics have already seen their initial regulatory steps at the EU level. However, the ESG landscape remains largely unregulated in Slovenia and it is therefore important, first and foremost, to develop a comprehensive ESG regulatory framework that accurately and holistically addresses the obligations of all legal entities, regardless of their regulatory sector. It is anticipated that the regulatory process will continue and gain momentum at the national level. To achieve this, it would be beneficial:

• to establish a legislative framework specifying ESG requirements applicable to all entities affected by the legislation, clearly distinguishing between voluntary and mandatory rules; and
• to establish a dedicated body in Slovenia that can facilitate collaboration between government, business and civil society – such an entity would be instrumental in developing a regulatory framework, global standards and guidelines to promote sustainable practices and responsible corporate behaviour.