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					Moldova National Chemicals Management Case Study

                                   Consultants Report

                                          (16.04.2006)
This Report has been prepared by Esther Pozo Vera and Mark Blainey, with contributions from Andrei
Isac, Larisa Gheorgiev, Tony Zamparutti, Nathy Rass-Masson and Gretta Goldenman under the contract
for intellectual services 2006/JA00040791. The views expressed herein are those of the consultants
alone and do not represent the official views of the World Bank or the OECD. The report is based on the
interviews held during the different missions, literature research and the stakeholder consultation held
on 2 March 2007.

Milieu Ltd (Belgium), 29 rue des Pierres, B-1000 Brussels, tel: 32 2 514 3601; fax 32 2 514 3603; e-
mail: e.pozo@milieu.be
Table of contents

EXECUTIVE SUMMARY

ACCRONYMS AND ABBREVIATIONS
LISTS OF FIGURES, TABLES AND BOXES

1.     INTRODUCTION ............................................................................................................................. 21
     1.1.   Background to the project: SAICM and its links to poverty alleviation......................... 21
     1.2.   Objectives of the study and methodology ........................................................................ 23
     1.3.   Road map to the report ......................................................................................................... 24

2. OVERVIEW OF ECONOMIC TRENDS AND THE ROLE OF CHEMICALS IN MOLDOVA’S
ECONOMY ............................................................................................................................................ 25
  2.1. Economic trends in Moldova today .................................................................................... 25
        2.1.1.          The situation since the break-up of the Soviet Union: economic, social and health
                        impacts of the crisis .......................................................................................................................25
        2.1.2.           The economic recovery and current situation ........................................................................27
        2.1.3.           Economic priorities of the government and strategic sectors for growth ..........................29
     2.2.        The role of chemicals in the Moldovan economy ............................................................ 32

3.     CHEMICAL EXPOSURE RISKS TO HUMAN HEALTH AND THE ENVIRONMENT IN MOLDOVA ... 37
     3.1.  Overview of the chemicals in use and/or present in Moldova ...................................... 37
        3.1.1.           Overview of the chemicals used in the different sectors of the economy ........................37
        3.1.2.           Overview of chemicals present in the Moldovan environment ...........................................41

     3.2.        Risks associated with chemicals exposure to human health and environment ......... 47
        3.2.1.           Waste ...............................................................................................................................................47
        3.2.2.           Occupational health ....................................................................................................................49
        3.2.3.           Air pollution .....................................................................................................................................52
        3.2.4.           Water pollution ..............................................................................................................................53
        3.2.5.           Soil and sediment pollution .........................................................................................................56

4. THE RELEVANCE OF SOUND CHEMICALS MANAGEMENT FOR POVERTY ALLEVIATION IN
MOLDOVA ............................................................................................................................................ 60
  4.1.  Links between poverty and chemicals in Moldova ........................................................ 61
  4.2.  Opportunities for mainstreaming chemicals in development planning and policy:
        links between the National Development Plan and SCM ............................................... 65

5. THE LEGISLATIVE, POLICY AND INSTITUTIONAL FRAMEWORK FOR CHEMICALS MANAGEMENT
IN MOLDOVA AND CURRENT ACTIVITIES TO PROMOTE SCM ........................................................... 70
  5.1.   The legislative and policy framework for chemicals management ............................. 71
  5.2.   Institutional framework ........................................................................................................... 76

     5.3.        Monitoring and enforcement ............................................................................................... 78
        5.3.1.           Monitoring and technical means ...............................................................................................78
        5.3.2.           Enforcement...................................................................................................................................80

     5.4.        Financial resources .................................................................................................................. 82

6. POLICY GAPS AND CAPACITY DEVELOPMENT NEEDS FOR SOUND CHEMICALS
MANAGEMENT IN MOLDOVA ............................................................................................................. 85
  6.1.  The legislative and policy gaps ............................................................................................ 86
        6.1.1.           Basic life-cycle chemicals management .................................................................................86
           6.1.1.1.      Classification, labelling and packaging, including safety data sheets ..............................87
           6.1.1.2.      Registration, authorisation and restrictions ...............................................................................91
           6.1.1.3.      Manufacture of chemicals products .........................................................................................93
            6.1.1.4.    Worker protection .........................................................................................................................94
            6.1.1.5.    Accidents prevention ...................................................................................................................95
            6.1.1.6.    Imports of chemicals ....................................................................................................................95
            6.1.1.7.    Marketing conditions, handling and use ..................................................................................96
            6.1.1.8.    Transport..........................................................................................................................................97
            6.1.1.9.    Disposal and waste issues ............................................................................................................97

       6.1.2.           Specific chemicals ......................................................................................................................101
          6.1.2.1.      Pesticides and fertilisers ..............................................................................................................101
          6.1.2.2.      POPs ...............................................................................................................................................105
          6.1.2.3.      ODS ................................................................................................................................................105
          6.1.2.4.      Other substances ........................................................................................................................106

       6.1.3.           The regulation of the industrial sector and chemicals .........................................................108
          6.1.3.1.      General aspects of the industrial policy and regulation .....................................................108
          6.1.3.2.      Energy, Transport & Infrastructure.............................................................................................109
          6.1.3.3.      IT & telecommunications ...........................................................................................................112
          6.1.3.4.      Investments and Public Procurement ......................................................................................112
          6.1.3.5.      Integrated Product Policy and Cleaner Production .............................................................113

       6.1.4.           Agriculture& Forestry and Nature protection .........................................................................114
       6.1.5.           Health Policy.................................................................................................................................115
       6.1.6.           Research and Education ...........................................................................................................115

     6.2.       Institutional framework .........................................................................................................115
     6.3.       Monitoring and enforcement .............................................................................................117
       6.3.1.           Monitoring and laboratory needs ............................................................................................117
       6.3.2.           Enforcement needs ....................................................................................................................118

     6.4.       Economic instruments and incentives...............................................................................120
     6.5.       Governance issues ................................................................................................................122
     6.6.       Implementation of related chemicals conventions and exchange of information at
                international level ..................................................................................................................123

7.     PRIORITIES IDENTIFIED FOR SOUND CHEMICALS MANAGEMENT IN MOLDOVA ................... 130

8. SUGGESTIONS FOR RESOURCE MOBILISATION FOR SCM: SYNERGIES WITH CURRENT
INITATIVES AND OPPORTUNITIES FOR THE FUTURE ........................................................................... 137


Bibliography

Annex I:               Minutes of the stakeholder consultation
Annex II:              List of people interviewed
Annex II:              Methodology to the case study
Annex IV:              Pesticides registered in Moldova
Annex V:               Structure for pesticides registration in Moldova
Annex IV:              Institutions dependent on the Academy of Sciences
                                                                                         Executive Summary



EXECUTIVE SUMMARY

Chemicals play a critical role in a number of economic sectors. Because of the critical and strategic
importance of chemicals, the chemical industry is one of the most profitable sectors of the worldwide
economy. The Rio Conference in 1992 adopted a systematic approach to international chemicals
regulation. It also recognised the links between chemicals and sustainable development with the
adoption of Chapter 19 of Agenda 21 on ―environmental sound management of toxic chemicals
including prevention of illegal international traffic in toxic and dangerous products‖. Ten years later,
the World Summit for Sustainable Development (WWSD) set out a specific goal for chemicals in its
Plan for Implementation, i.e., ―by 2020 chemicals [should] be used and produced in ways that lead to
the minimisation of significant adverse effects for human health and the environment using transparent
science-based risk assessment procedures and science-based management procedures, taking into
account the precautionary approach‖.

Following the recommendations on chemicals of the WWSD, an inter-governmental process was
initiated which led in 2006 to the adoption of a Strategic Approach to International Chemicals
Management (SAICM). With SAICM, the international community has increasingly stressed the need
to integrate sound chemicals management (SCM) into development planning, given chemicals mutil-
sectoral nature and their linkages to development and poverty, including their relevance to achieve
some of the Millennium Development goals.

The OECD and the World Bank (WB) joined forces to commission the elaboration of three country
pilot studies that could show the feasibility of incorporating critical elements for SCM in development
planning. The three countries selected were Vietnam, Mali and Moldova.

The case study for Moldova reviewed chemical exposure risks to human health and the environment,
given the pattern of chemicals usage in Moldova, and assessed Moldova‘s current legislative, policy
and institutional framework for chemicals management. The study considered Moldova‘s development
priorities and identified means to integrate chemical safety issues into development assistance and
poverty reduction strategies

At the beginning of 2007, Moldova started a new development planning cycle which is expected to
lead to a new National Development Plan by mid-2007. This document summarises the main findings
of the analysis carried out for Moldova and the conclusions of the stakeholder consultation held on 2
March 2007. It is hoped that this document will provide support to national authorities with chemicals
management competences to submit proposals to the Inter-ministerial Steering Committee in charge of
developing the National Implementation Plan for integration of chemicals issues into the new planning
cycle.

(a) Mainstreaming chemicals in development planning and policy: the relevance of
sound chemicals management for development and poverty alleviation in Moldova

Chemicals are not generally perceived as an important factor either in the Moldovan economy or to
achieve its development goals. This is partially due to the perception among national authorities that
Moldova is mainly an agricultural country. For this reason, views regarding chemicals are focussed on
pesticides and POPs stockpiles inherited from the Soviet era. These problematic chemicals were
included in the Economic Growth and Poverty Reduction Strategy Paper.

As a consequence of this focus, little information is available regarding the economic importance of
chemicals or the impacts of chemicals on health and the environment. This lack of awareness is
striking if one considers the role that chemicals currently play, and will increasingly play as the
country develops, and the risks for health and natural resources associated to the use of chemicals.

Although no economic analyses have been carried out to determine the economic importance of
chemicals, in 2005 chemicals imports represented 10% of the total value of products imported. In

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addition, the most strategic sectors for development and for export promotion in the country use
chemicals intensively. These sectors are wine, agri-food products, textiles, carpets, IT and even
development of a chemical industry, which has been identified as one of the sectors for future
development by the Strategy for industry development for 2015. These sectors use, in some cases,
dangerous substances that are heavily regulated at international or EU level.

The EU has banned or severely restricted many dangerous substances (e.g., hazardous substances in
electronic equipment, biocides used in textiles and carpets). Stricter controls are to be established in
the near future to control the import of articles along with more restrictions to prevent the import of
articles containing banned substances. Control over the substances used in these strategic sectors,
especially pesticides over the maximum residue limits, is not only needed in view of Moldova‘s
aspirations towards the EU but also to open new, and preserve already existent, exports markets (e.g.,
Romania now part of the EU).

In addition, many costs to industry are related to the production of chemicals as by-products (harmful
emissions) and disposal of toxic wastes, which are derived from the use of obsolete technologies,
including low efficacy fuels and dangerous chemicals. The use of obsolete technologies generally
increases energy consumption and the amount of taxes that industry has to pay for releases of
dangerous substances in air and water, and for waste production and disposal. These costs, that are
directly or indirectly associated to chemicals management, are resources that could be used by industry
on investments to modernise and become more competitive.

The experience in the disposal of POPs and pesticides stockpiles as well as the current problems
associated to the use of dangerous substances in the past by industry e.g., ferrocyanide waste from
wine industry, mercury contaminated lamps or contaminated railway sleepers, should serve as an
example of the importance of adopting SCM to avoid future problems that will need significant
resources to solve them.

Chemicals also have a significant impact on human health. Many of the problems related to air, soil
and water pollution could be prevented by the adoption of SCM. Life expectancy in Moldova is
among the lowest in Europe. Many environmental factors have been identified as contributors to this
health degradation. The burden of chronic morbidity and diseases are determined by environmental
quality and predominantly affects socially vulnerable layers of society (small farmers, poor workers
and poor households) through direct or indirect exposure to chemicals.

Regarding occupational health, many dangerous substances are used in industry without taking the
appropriate protective measures to ensure health and safety due to lack of an adequate hazard
information system. Although occupational diseases linked to chemical exposure are hardly reported,
because of ignorance or fear of losing jobs, illness and even causalities linked to the use of chemicals
have been reported to occur. Some of the substances used by industry have been internationally
recognised as severely hazardous and banned, e.g., asbestos.

Agriculture employs 49% of the active population and many rural households, which are the poorest in
the country, carry out agricultural activities. Poor farmers cannot afford protective equipment or to pay
for the services offered by pesticides distributors to apply the most toxic pesticides. Yet, small farmers
use those most toxic pesticides and even have used in the past stolen obsolete pesticides from the local
warehouses. They also tend to keep pesticides at home and re-use empty containers. The impacts
caused by these practices are unknown but they probably have contributed to the health degradation in
rural areas.

Health degradation is also due to water and air pollution. Whereas water pollution normally affects
rural areas, air pollution affects more intensively urban areas. Water pollution in Moldova is due to
poor water treatment, disposal of household waste and manure in small rivers as well as run-off of
hazardous substances and wastes from industry and contamination by POPs (PCBs and pesticides
linkages in soil and groundwater). In Urban areas, air pollution is due to low quality fuels used in

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transport and obsolete technologies used in the energy sector. 70% of morbidity among children is due
to respiratory diseases linked to air pollution in urban areas.

The adoption of SCM, including information campaigns among citizens and controls over the
substances used by the industrial and agricultural sectors, will strongly contribute to reducing risks
associated with chemical exposure thereby improving health conditions in the country, enhancing the
work force capacity and saving State resources used to treat illnesses linked to pollution and chemical
exposure.

The adoption of SCM is also essential to preserve Moldova‘s limited natural resources, such as rivers
and soil, on which Moldova‘s economy and rural households are highly dependent, and would help to
support rural development.

In conclusion, due to the significant role that chemicals (either directly used or as by-products of
industrial processes) play in Moldova, they should be taken into account when elaborating the national
development plan.

The priorities established for the National Development Plan are:

             -   human resources development, employment and social inclusion
             -   increasing competitiveness of the national economy
             -   consolidation of democracy based on the rule of law
             -   resolution of the Transnistria conflict and reintegration
             -   regional development

SCM can contribute to the achievement of some of these goals

Human resources development, employment and social inclusion
 SCM and prevention of chemicals related health impacts: the future NDP could recognise in a
   more prominent way that the adoption of SCM would contribute to improving human health
   conditions, including occupational health, thereby contributing to the development of the national
   human capacity and increasing productiveness.
 SCM and employment and innovation possibilities: the development of a chemical industry is
   foreseen in the Strategy for Industrial Development for 2015 and will create many job
   opportunities. Innovation in the area of chemicals, including the development of new substances
   and waste disposal methods, needs to be accompanied by the establishment of an adequate
   regulatory framework for chemicals. This aspect needs to be highlighted in the future NDP.

Increasing competitiveness of the national economy:
 SCM to enhance the attractiveness and access to Moldovan products for external trade: in the
    establishment of the specific objectives for export, the NDP could specifically refer to objectives
    related to improving chemicals management by controlling the substances used in the strategic
    sectors for development. This policy would help to consolidate and avoid the loss of markets
    where more stringent food security and consumer and environmental protection rules apply.
    Control and substitution of dangerous chemicals would play a role in fostering exports of
    agricultural (wine, food industry) and non-agricultural (textiles, leather, carpets and IT) products.
 SCM to reduce costs for industry thereby enhancing competitiveness and attracting investors: The
    adoption of SCM would reduce costs linked to the use of chemicals. The use of less polluting
    chemicals and more effective technologies would reduce production costs, including costs for
    waste disposal and payment of fees, and may generate energy savings. The new strategy for the
    development of the industrial sector for 2015 already highlights the importance of cleaner
    production and integrated product policy to enhance industrial development and increase
    competitiveness. This approach should be retained by the NDP. The Moldovan commitment to
    adopt cleaner technologies and more energy-efficient production processes may also help to attract


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    foreign investors that tend to prefer countries that show an innovative potential and clear
    regulatory frameworks.
   SCM policies to prevent future costs due to pollution problems linked to chemicals: the economic
    costs incurred in the collection, re-packaging and disposal of pesticides is showing Moldova the
    impacts on State resources of the lack of an adequate chemicals management. Therefore, future
    development policies should echo this experience by ensuring that development policies in
    specific sectors (e.g., infrastructure, energy, transport, specific industries) sufficiently and
    adequately address chemical issues.
   SCM and the EU- Moldovan Action Plan: chemicals are one of the most important areas in EU
    policy. The implementation of the EU-Moldova Action Plan includes the harmonisation with EU
    standards and legislation. Strategic aspects of the relations between Moldova and the EU are
    closely linked to chemicals, such as exports, energy partnerships, infrastructure development, food
    security or simply integration of the EC acquis, which is one of the conditions for accession.

Consolidation of democracy based on the rule of law
 SCM to improve public administration and governance: SCM can contribute in different ways to
   the improvement of governance and of the public administration. Firstly, the introduction of inter-
   ministerial and inter-agency coordination models and channels for information-exchange would
   improve the effectiveness of the administration and would help to maximise limited resources.

    The actions to control import of chemicals, such as customs training and communication, will
    strengthen custom control and would reduce losses to State revenues associated with theillegal
    trade of chemicals and other products. Enhanced customs control would also strengthen
    enforcement thereby consolidating the rule of law and citizens‘ trust in the application of the law
    by authorities.

    Participation of Moldovan officials in the multiple international fora linked to chemicals would
    contribute to build the administrative capacity and serve to attract additional support.

    Dissemination of information regarding chemicals and citizens‘ participation in chemicals
    management would consolidate democracy.

Regional Development: SCM in rural areas, by improving health conditions and by avoiding soil
degradation and water contamination, would contribute to rural development.

The integration of chemicals into developing planning, including sectoral strategies, should lead to an
improvement in the current regulatory structure for chemicals management and to facilitate finding
external resources for achieving SCM goals.

(b) The Regulatory framework for SCM in Moldova: current activities and areas for
improvement

A number of common features can be identified as ―best practices‖ to establish an adequate framework
for sound chemicals management. These ‗best practices‘ include:

                   Assessment of chemicals to identify and classify by hazard
                   Communication of hazards through e.g. labelling and safety data sheets
                   Collection and analysis of data on chemicals, such as products and their uses, as
                    well as impacts on health and environment
                   Restrictions, including authorisation, where chemical-specific controls are needed
                   Adequate controls over import and marketing
                   Waste recycling, minimisation and adequate disposal mechanism




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Moldova has developed a significant regulatory framework covering different specific aspects of
chemicals management, and more specifically in the area of pesticides, POPs and ozone depleting
substances. In addition, there are different initiatives at national level supported by international
donors that are having an impact to achieve SCM. Furthermore, Moldova is a party to the most
important chemicals conventions and initiatives (Stockholm and Rotterdam Convention, Montreal
Protocol, Basel Convention, the Pollutant Release and Transfer Register Protocol, the Convention on
the Long-range Transboundary Atmospheric Pollution, the Cartagena Protocol, the FAO Code of
Conduct, Codex Alimentarius, Agenda 21 or SAICM) and a SAICM Coordination Committee has
been recently created.

However, several gaps and areas for improvement have been identified:

Classification, labelling and packaging, including safety data sheets

   There is no classification system in Moldova for substances or preparations. The absence of a
    classification system has impacts on the obligations laid down in downstream legislation (e.g.,
    accident prevention).
   Confusion on definitions, using as synonymous the terms ―hazardous‖, ―toxic‖ and ―dangerous
    chemicals‖ has been detected.
   Requirements for labelling and packaging are too general to ensure consumers, workers and
    environmental protection. In addition, there are no requirements regarding safety data sheets
    However, labelling and packaging requirements are adequate for transport, pesticides, GMOs and
    Ozone Depleting Substances (ODS).

Registration, monitoring, authorisation and restrictions of chemicals

   A registration mechanism for chemicals in general needs to be put in place. A first step could be to
    implement the obligation to develop a register of potentially hazardous chemicals. This would
    provide an overview of the chemicals used and present in Moldova, and improve the
    understanding of their hazards.
   The legal and technical basis for monitoring of impacts of chemicals on health and the
    environment needs to be clearly spelled out.
   There does not seem to be a system for restrictions of chemicals based on risk assessments
    resulting from monitoring of chemicals or exchange of information at international level. The
    current legislation for chemicals is not based on the precautionary approach.
   There are no incentives for the use or import of less hazardous chemicals.

Industrial permitting, including manufacture of chemicals

   The current system of permits is not integrated and only transposes about 20% or less of the
    Integrated Pollution Prevention and Control (IPPC) Directive.
   Allocation of competences regarding permitting and monitoring among the different institutions
    involved is not always clear.
   BAT (Best Available Techniques) and BEPs (Best Environmental Practice), which are required
    under the POPs Convention, need to be developed and adapted to the situation in Moldova.

Workers Protection

   Although there is a good regulatory framework for workers protection, the legislation is too
    general to tackle problems linked to the use of dangerous chemicals. In particular obligations to
    inform workers about the dangerousness of the substances, training to handle those substances and
    so on are not included in the legislation.
   Implementation of general requirements regarding labels of the substances, in particular that they
    should be in Romanian and Russian needs to be improved. Obligations regarding safety data

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    sheets also in Romanian and Russian could enhance workers‘ protection.
   Some dangerous substances banned at international level, e.g. Asbestos, are still used.

Accidents Prevention

   Companies working with certain quantities of dangerous substances are not required to develop
    accident prevention and emergency plans. They have to make a Safety declaration which is much
    softer than the emergency plan and the safety report referred to in the SEVESO Directive
    (Directive 96/82/EC on the control of major-accident hazards involving dangerous substances).
   The annexes to the legislation on Prevention on Industrial Accident list dangerous objects as well
    as dangerous substances and the quantities that will lead to the application of the legislation. In
    this sense, the list of substances is limited, in some cases with very broad categories, and the
    tonnage to trigger the obligations of the legislation too high for the Moldovan legislation.

Imports of dangerous chemicals

   Mechanisms to control imports of dangerous chemicals could be greatly improved. Only specific
    substances are adequately controlled (e.g., ODS and dual-use goods).
   Communication and coordination with customs could be improved by requiring customs to report
    to the specific services.
   Customs lacks specific training to identify dangerous substances (with the exception of ODS).
   Fiscal incentives to import less dangerous chemicals could be introduced.

Waste

   The legislation is missing essential principles of waste management, such as the producer
    responsibility.
   Legislation regarding specific waste streams (e.g., hazardous waste, PCB contaminated equipment
    or packaging waste) has not been developed.
   Legislation regarding specific waste operations (e.g., incineration) is missing.
   The legislation could be improved by allocating clear obligations on economic operators: waste
    producer and holder of waste.
   Contaminated sites are not currently covered by the legislation.
   Waste is still classified according to Soviet categories for toxicity which are obsolete.
   There is a regulatory framework implementing the Basel Convention but capacity for full
    implementation is limited.

Specific substances:

Pesticides

   In general complete regulatory framework. Most of the FAO Codes of Conduct recommendations
    are included in the legislation; however, there are some gaps and areas for improvement.
   Incentives could be introduced to register less toxic pesticides.
   A policy for the substitution of the most dangerous pesticides could be considered.
   Some of the active substances registered have been banned at EU level (e.g., phosalone).
   There does not seem to be a legal framework for bans based on monitoring of the substances
    registered
   Concerns exist regarding the control over distribution of Class I and II pesticides to individual
    farmers that cannot afford protective equipment.
   A collection system for empty containers has not been created.
   The legislation allocates responsibilities to economic operators but without specifying whether this
    is the importer, distributor, producer or the person placing on the market.


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   Problems with counterfeited and low efficacy pesticides have been reported.

POPs

   Moldova has ratified the POPs Convention but there is no specific legislation on POPs.
   POPs are not banned with the exception of some POPs that have already been banned during the
    Soviet Union times.
   Many of the POPs Convention provisions have not been implemented (identification, labelling and
    disposal of POPs or information to the public) but they will be addressed by a new GEF/WB
    project, including legal requirements for disposal of PCBs and PCBs contaminated equipment and
    waste oil.
   There are no obligations regarding BEP and BAT that could be applied in the industrial sector to
    reduce the incidental production of POPs.
   There is no equipment in the country to monitor dioxins and furans.

Other substances:

   Asbestos is still used and is considered as an environmental and health friendly material contrary
    to international opinion.
   Heavy metals have not been regulated and only some measures have been adopted within the
    framework of the Convention on Long-Transboundary Air Pollution.
   Nitrates presence in water and food is increasing, which would require a more general strategy,
    including the creation of water protection zones.
   Green house gases have received little attention although actions have been taken by the Ministry
    of transport and more actions are expected in the future with the assistance of international donors
    (e.g., the WB).

Chemicals in specific industrial sectors

   Despite the links between energy and chemicals, chemicals have only been addressed when
    dealing with PCBs contaminated equipment. Pollution from the energy sector and awareness-
    raising on risks associated to chemicals used in the energy sector have not been sufficiently
    addressed in the current strategies.
   In general the role and impact of chemicals on transport and infrastructure have not been
    sufficiently assessed and in many cases are absent from most policy papers. Actions in the area of
    transport have been adopted regarding fuel content and vehicles technical conditions. Other
    aspects, such as externalities derived from air pollution from transport, batteries content and
    disposal and tyre content and disposal have not received any attention from regulators. Chemicals
    used in infrastructure have not been controlled to prevent impacts on human health and the
    environment.
   Current policies for IT and telecommunications have not addressed chemicals content in products
    despite the risks for human health derived from use and disposal of such products.
   Some provisions on the investment legislation would have an impact in promoting SCM but more
    could be done in this area as well as in public procurement policy to link chemicals and
    investment in specific areas such as exports, infrastructure and product quality.
   A EU financed project on cleaner production did not have a significant follow up but the current
    strategy for industry development for 2015 specifically mentions cleaner production and
    integrated product policy to increase product quality and competitiveness.
   The current policy on agriculture has integrated many chemical management related aspects (such
    as GAPs). However, the current policy of incentives for pesticides use needs to be improved in
    order to promote the import and use of less toxic pesticides.
   A national programme with specific references linking chemicals and health has been adopted but
    it has not been implemented.


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Institutional framework for chemicals management

   Limited numbers of personnel at Ministry level, due to constant staff cuts, and instability of the
    institutional structure in terms of number of Ministries are obstacles for SCM. More numbers of
    personnel are needed to ensure chemicals management. In particular the creation of specific units
    in the relevant ministries (e.g., MENR, MoH)
   Coordination mechanisms and exchange of information between the different institutions involved
    in chemicals management could be improved. The current SAICM coordination committee needs
    to become operative.

Monitoring

   The legal basis for monitoring of chemicals impacts on health and on the environment is not clear.
   All laboratories and monitoring centres interviewed have reported human, technical and financial
    resources needs.
   The consequences of the limited resources are exacerbated by shortcomings in the communication
    and coordination among the difference services in charge of monitoring. Communication is
    currently ensured only via personal contacts on a sporadic basis.
   There are some overlaps in the competence for monitoring of different institutions.
   There are no clear obligations on the industrial facilities to carry out self-monitoring but most of
    them do not have the technical capacity to do it.
   There does not seem to be any mechanism to link the information gathered through monitoring to
    the adoption of specific regulatory measures.

Enforcement

   With the exception of labour inspection, inspectors interviewed indicated that the current sanctions
    are low and not adapted to the current situation in the country.
   The different inspectorates do not have enough personnel to carry out inspections or the adequate
    equipment to link specific health or environmental problems to the use or discharge of certain
    substances.
   Only the Labour Inspectorate is required to coordinate with other inspectorates.
   Limits in the number of inspections per facility per year have created practical problems to ensure
    implementation and enforcement of the legislation.

Economic instruments and initiatives

   The current system of taxes and fees is not updated and therefore does not create incentives to use
    less polluting technologies, including less dangerous substances.
   More innovative instruments, such as EMS or ISO 14000, are only slowly being introduced in
    Moldova.

Governance issues

   Many improvements have been detected in environmental governance in general. However more
    needs to be done in the area of chemicals. NGOs are part of the SAICM coordination committee
    but dissemination of information, including awareness campaigns regarding chemicals used at
    work place, and by farmers and consumers need to be carried out.




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                                                                                         Executive Summary



(c) Priorities identified for SCM in Moldova and resource mobilisation

Base on the assessment of gaps and needs, main health and environmental problems and risks, and the
conclusions of the stakeholder consultation, the following priorities have been identified:

Short term priorities

         1. Development of a chemicals strategy to set priorities and identified actions.

The participants to the stakeholder consultation considered that the case study could serve as a basis to
develop such strategy.

         2. Adopt and implement classification and packaging and labelling legislation

It is the basic element for an effective SCM. The transposition of Directive 67/548/EEC is foreseen.
However, it would be more useful for Moldova to introduce the Global Harmonisation System (GHS)
adding some of the typical concepts of the EC legislation, such as the definition of ―dangerous‖. Any
harmonisation should take into account the conditions in the country and the dependency on imports
of substances and preparations.

         3. Creating a inter-ministerial/agencies coordinating body

All participants to the stakeholder consultation agreed that an independent coordinating body although
subordinated to the government, should be established. The creation of any independent body should
be complemented by increasing human resources at ministerial level and ensuring that there are
persons specialised on chemicals issues in each ministry involved, including the creation of chemicals
units in different Ministries, in particular in the MENR. In view of Moldova‘s interest in the EU, the
establishment of such an institutional structure for chemicals management is essential. Although the
European Chemicals Agency created under REACH can serve as an example, the future institutional
structure for chemicals management should be adapted to the needs and capacities of Moldova.

         4. Create a national register of dangerous substances and preparations.

All participants to the stakeholder consultation agreed that the register of potentially hazardous
substances should be implemented as this is an essential first step information tool for sound
chemicals management. The national register should also be accompanied by the development of
common forms for reporting that would help to gather data on the chemicals used in order to create the
register, and later on to enhance monitoring and enforcement activities. The creation of this register
should be accompanied by the establishment of the adequate legal framework for registration of
chemicals substances and preparations. EU legislation can provide useful guidance to establish an
adequate regulatory framework for the registration, evaluation and authorisation of chemicals.

         5. Management of chemical waste

Harmonisation with EU legislation is foreseen but it would be useful that it is accompanied by
measures to promote cleaner production, in particular the use of less dangerous substances, to reduce
waste toxicity. Legislation on hazardous waste, incineration, PCBs and packaging waste should be
considered a priority having regard to the problems in the country, together with the development of a
modern waste catalogue. The principle of producer responsibility needs to be included in the
legislation. The creation of hazardous waste disposal capacities is also required as the country
develops. Management of the current wastes stored in facilities will need a negotiated solution with
industry. A negotiated solution for the establishment of an empty containers collection system and
disposal will also be required.



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                                                                                          Executive Summary



         6. Improve monitoring, enforcement and import controls

The participants considered that current inspections should focus on the products already on the
market leaving imports control to customs. This would also require an improvement of the current
mechanisms for import controls. Improvement of monitoring of impacts of chemicals on health should
be a priority. Channels of information between the institutions depending on the MENR and the
Centre for Preventive Medicine are needed to avoid overlaps and maximise current resources. Imports
controls could be strengthened by clarifying the licensing system, cooperation with customs and their
training, and by implementing the PIC Convention.

         7. Training, awareness campaigns and education programmes

The participants to the consultation highlighted the importance of providing continuous training to
civil service and the public at large regarding chemicals. Specific concerns were raised regarding the
use of pesticides by small farmers when safer or non-chemical alternatives were available. These
concerns could be extended to consumers that are using chemicals being unaware of their hazards,
sometimes due to inadequate labelling, and workers handling dangerous chemicals. The participants
to the consultation also considered that University curricula should include specific chemicals
management subjects.

         8. Adopt risk management regulatory actions

There was some agreement among the participants to the stakeholder consultation that a policy of
substitution of dangerous chemicals, in particular pesticides, by safer or non-chemicals alternatives
needed to be adopted. Some suggestions to raise awareness regarding substitution included to carry
out a study to assess the pesticides used by farmers to determine whether their use was indeed needed.
The second aspect to be included in the study is the identification of the substances used in the
industrial sector that could be produced at national level. The policy of substitution requires as well
the establishment of the adequate framework to adopt the necessary risk management measures,
including bans, when a substance poses unacceptable risks to human health and the environment or
cannot be adequately controlled.

In this sense, this assessment has identified at least one substance that should be banned, i.e., the
import and the use of asbestos and asbestos containing products. In addition, to fully implement the
POPs Convention, the chemicals listed therein should also be banned.

         9. Update current standards and equipment

All inspectorates and laboratories have reported the need for new equipment to measure specific
pollutants. Equipment is needed to have accurate information and support enforcement. Regarding
standards, the current policy to harmonise Moldovan standards with EU standards should continue.

Medium and long term priorities

Other areas for improvement have been identified that could be developed in the medium or long
terms:

    Progressively harmonise with the restrictions and bans of dangerous substances (Directive
     76/769/EC), and pesticides (Directive 91/414/EEC and 98/8/EEC). If training does not
     satisfactorily resolved the problems of small farmer using Class I pesticides, seriously consider
     the possibility of prohibit or restrict the import, sale and use of class I pesticides, especially for
     the public or small farmers.
    Establish a system for collection of used pesticide containers negotiated with industry.



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                                                                                         Executive Summary



    Create one ―laboratory system‖ (a central laboratory plus satellite laboratories) that does routine
     analysis and ―enforcement‖ analysis;
    Harmonise with the IPPC Directive referring to BAT and BEP adapted to Moldova‘s technical
     development and the EIA Directive.
    Develop a preliminary PRTR based on the information held by the Bureau of Statistics and other
     institutions.
    Become a party to ILO C-170 or incorporate the obligations laid down therein into their
     legislation to address the specificity of the risks associated to the use of dangerous substances.
     The harmonisation with the EU Directives on health and safety at the work place, in particular
     those that are dealing with specific risks linked to chemicals (carcinogenic, chemicals agents,
     biological agents and asbestos) can serve as a model to improve the current legal system.
    Establish in the current legislative framework clear parameters for the development of safety
     reports and emergency plans, in line with SEVESO Directive. Improve the current system and
     capacity to communicate and react in case of chemicals accidents.
    Adopt an integrated product policy within the context of cleaner production and waste
     minimisation that could serve in the long term to solve the problem of hazardous waste stocked in
     the country, as well as an adequate policy to prevent the flow of low quality products in Moldova.

Different resources are available in Moldova to implement the priorities identified in this case study
for SCM. On the one hand Moldova has its own economic resources, such as the environmental funds,
as well as economic instruments (taxes, fees, charges, fiscal advantages) that could also be used to
provide incentives to the private sector to adopt SCM. The resources of the private sectors, including
investors, could also be a source of financial assistance to implement some of the recommendations
laid down in the study.

On the other hand, Moldova is receiving substantial technical and economic assistance from
international donors. The effective participation of donors will also depend on Moldova‘s presentation
of its needs, thus the importance of including SCM aspects in the future NDP and to suggest synergies
with current and future projects. The presentation of priorities related to chemicals management in the
meetings of the donors coordinating committee will be important to obtain assistance and to avoid
unnecessary overlaps.

However, many of the priorities of this study can be implemented by national resources, since in some
cases they have an organisational nature that could easily be financed by the State budget or the
Environmental Funds. In these cases technical assistance may nevertheless be required for trainings
and to build capacity.




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Acronyms and Abbreviations

ACSA     National Agency for Rural Development
ACTD     Agency for Construction and Territorial Development
AGeoM    State Agency for Geology of the Republic of Moldova
ASYCUDA  Automated System for Customs Data
BATs     Best Available Techniques
BEPs     Best Environmental Practices
CDM      Clean Development Mechanism
CLRTAP   UNECE Convention on Long-Transboundary Air Pollution
CPEE     Cleaner Production and Energy Efficiency Centre
CPM      National Scientific and Practical Service of Preventive Medicine
DANIDA   Danish International Development Assistance
DFID     UK Department for International Development
EC       European Community
EGPRSP   Economic Growth and Poverty Reduction Strategy Paper
EMAS     Eco-management and Audit Scheme
EMEP     Cooperative Programme for Monitoring and Evaluation of the long-range transmission
         of air Pollutants in Europe
EMS      Environmental Management System
ENP      European Neighbourhood Policy
EU       European Union
EUBAM    European Union Border Assistance Mission to Moldova and Ukraine
FAO      Food and Agriculture Organisation
FDI      Foreign Direct Investment
HDI      Human Development Index
GAPs     Good Agricultural Practices
GDP      Gross Domestic Product
GEF      Global Environmental Fund
GHG      Greenhouse gases
GHS      Global Harmonised System for Classification
GMOs     Genetically Modified Organisms
GSP      General System of Preference
IFCS     Intergovernmental Forum on Chemical Safety
ILO      International Labour Organisation
INTERREG EU initiative to strengthen economic and social cohesion through cross-border,
         transnational and interregional cooperation
IOMC     Inter-Organisation Programme for Sound Management of Chemicals
IPCS     International Programme on Chemical Safety
IPM      Integrated Pest Management
IPP      Integrated Product Policy
IPPC     Integrated Pollution Prevention and Control
ISO      International Organisation for Standardisation
MAFI     Ministry of Agriculture and Food Industry
MENR     Ministry of Environmental and Natural Resources
MFAEI    Ministry of Foreign Affairs and European Integration
MoH      Ministry of Health
MIEPO    Moldova Investments and Export Promotion Organisation
MII      Ministry of Industry and Energy
MOD      Ministry of Defence
MOET     Ministry of Economy and Trade
MOF      Ministry of Finance
MOTRM    Ministry of Transport and Road management
MRLs     Maximum Residue Levels
NATO     North Atlantic Treaty Organisation
NDP      National Development Programme
NEF      National Environmental Fund
NEHAP    National Environmental Health Action Plan
NGOs     Non-governmental Organisations
NIP      National Implementation Programme for the Stockholm Convention
ODS      Ozone Depleting Substances
OECD     Organisation for Economic Cooperation and Development
OPs      Obsolete Pesticides
OSCE     Organisation for Security and Cooperation in Europe
PAHs     Polycyclic Aromatic Hydrocarbons
PCBs     Polychlorinated biphenyls
PIC      Prior Informed Consent
POPs     Persistent Organic Pollutants
PPI      Plant Protection Inspectorate
PRTR     Pollutants Release and Transfer Register
QSP      Quick Start Programme
REACH    Regulation on the Registration Evaluation and Authorisation of Chemicals
REC      Regional Environmental Centre
SAICM    Strategic Approach to International Chemicals Management
SCM      Sound Chemicals Management
SDEES    State Department for Emergencies and Exceptional Situations
SDS      Safety Data Sheet
SEI      State Ecological Inspectorate
SHS      State Hydro-meteorological Service (Hydromet)
SIA      Special Incentives Arrangement
SIDA     Swedish International Cooperation Development Agency
SMEs     Small and Medium Size Enterprises
SMS      Standardisation and Metrology Service
TACIS    European Assistance Programme for Eastern Europe and Central Asia
TAIEX    Technical Assistance and Information Exchange
TENs     Trans-European Networks
UNDP     United Nations Development Programme
UNECE    United Nations Economic Commission for Europe
UNEP     United Nations Environmental Programme
UNFCCC   United Nations Framework Convention on Climate Change
UNICEF   United Nations Children‘s Fund
UNIDO    United Nations Industrial Development Organisation
UNITAR   United Nations Institute for Training and Research
USAID    United States Agency for International Development
VAT      Value-added Tax
VOCs     Volatile Organic Compounds
WB       World Bank
WHO      World Health Organisation
WSSD     World Summit for Sustainable Development
WWTP     Wastewater Treatment Plants
Lists of Figures, Tables and Boxes

Figures:

Figure 1:    Composition of Moldova‘s GDP (2005)
Figure 2:    Fixed capital investments (2004)
Figure 3:    Projections in the composition of Moldova‘s GDP (2005, 2010, 2015)
Figure 4:    Imports structure in Moldova
Figure 5:    Chemicals imports in 2005
Figure 6:    Evolution in pesticides use
Figure 7:    Dynamic of pest utilisation (active matter)
Figure 8:    Types of pesticides used
Figure 9:    Industrial production in the Republic of Moldova, 1995-2005
Figure 10:   Use of mineral and organic fertilisers, 1991-2003

Tables:

Table 1:     Imports of chemicals and related products according to harmonised system of customs
             code—selection of chemicals
Table 2:     Potential PCB oil availability in Moldova
Table 3:     Emissions of dangerous substances in atmospheric air by stationary sources, by
             ingredients
Table 4:     Emissions of some specific polluting substances in atmospheric air by stationary
             sources
Table 5:     Emissions of dangerous substances in atmospheric air by transport means
Table 6:     Pollution of water resources
Table 7:     Toxic waste stored on industrial sites in the Chisinau municipality
Table 8:     Pollutants in water (2001-2005)
Table 9:     DDT, DDE and DDD concentrations in Moldovan rivers
Table 10:    Pesticides classed and data used to classify them
Table 11:    Institutional framework for chemicals management
Table 12:    List of National Institutions carrying out toxic substances monitoring
Table 13:    Revenues and expenditures of the National Environmental Fund (1998-2004)
Table 14:    Revenues and expenditures of local funds (1998-2004)
Table 15:    Implementation of International Conventions and Programme E of Chapter 19 of
             Agenda 21
Table 16:    Priorities for SCM and potential resources

Boxes

Box 1:       Regulatory Framework of the chemical life-cycle in Moldova
Box 2:       Financial resources, incentives and innovative measures in Moldova
Box 3:       The Chemicals ―life-cycle‖
Box 4:       GHS Hazard Classification
Box 5:       GHS Symbols
Box 6:       UNIDO definition of Chemical Leasing
                                                                                                  Consultants Report



1. INTRODUCTION

This chemicals management case study for Moldova has been prepared by Milieu Ltd for the OECD
and the World Bank as a pilot project to explore how the strategic approach to international chemicals
management (SAICM) adopted in Dubai in 2006 might be applied at national level. Parallel chemicals
management case studies are being carried out for Vietnam and Mali by other consultancies.

Moldova was selected as one of the three countries for a chemicals management case study to
represent the countries of Central and Eastern Europe undergoing economic transition. The case study
aims to provide an overview of the role that chemicals play in the overall national economy as well as
the links between chemicals management and Moldova‘s strategy for economic growth and poverty
reduction.

The case study reviews chemical exposure risks to human health and the environment, given the
pattern of chemicals usage in Moldova, and assesses Moldova‘s current legislative, policy and
institutional framework for chemicals management. In the course of the analysis, it identifies policy
gaps and capacity development needs, reviews current chemicals management initiatives, and provides
a number of recommendations for the next steps to be taken to strengthen sound chemicals
management in Moldova.

Many of the recommendations agreed under the SAICM framework emphasise the importance of
mainstreaming sound chemicals management practices into all economic sectors and into national
development in general. This chemicals case study for Moldova is a first step towards that goal. By
identifying gaps in Moldova‘s current systems, it also indicates many opportunities for improvement.

At the beginning of 2007, Moldova started a new development planning cycle which is expected to
lead to a new National Development Plan by mid-2007. One of the conclusions of the stakeholder
consultation was the request to have the main conclusions of the study in a brief format that could be
submitted to the Inter-ministerial Steering Committee that will develop the National Development
Plan for discussion. The Executive Summary to this report is the answer to that request. It is hoped
that the overview and recommendations provided by this case study will be taken into account during
this effort.

       1.1.      Background to the project: SAICM and its links to poverty alleviation

Chemicals play a critical role in a number of economic sectors, such as agriculture, cosmetics, textiles,
IT, telecommunications, medicines, household cleaning, infrastructure, construction and food &
beverages products. Because of the critical and strategic importance of chemicals, the chemical
industry is one of the most profitable sectors of the worldwide economy. In 1998 the chemicals
industry represented 7% the global income and 9% of international trade, employing more than 10
million people worldwide1. These shares are probably higher today given the fast development of the
chemical industry in some developing countries such as China, India or South-Africa. As a
consequence, chemicals are part of our daily life. They are in the food we eat, in the clothes we wear,
in the air we breathe or in the water we drink.

The Rio Conference in 1992 adopted a systematic approach to international chemicals regulation, with
the adoption of Agenda 21. Agenda 21 includes a specific chapter on chemicals, i.e., Chapter 19 on
"Environmentally sound management of toxic chemicals including prevention of illegal international
traffic in toxic and dangerous products"2. The inclusion of this chapter recognised the links between
chemicals and sustainable development3 and acknowledged that chemicals are a cross-cutting issue

1
  OECD – ―Environmental outlook for the Chemicals industry‖ 2001- Paris.
2
  http://www.un.org/esa/sustdev/documents/agenda21/english/agenda21chapter19.htm
3
  For a more detailed analysis of the links between Poverty and Chemicals please see section 4.

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whose regulation could improve living conditions. Sound chemicals management was therefore
considered essential for ensuring water and food security, consumer protection, worker‘s health and
safety, and the protection of natural resources and biodiversity. Chapter 19 laid down for the first time
the basis for an integrated approach to chemicals management.

Chapter 19 sets forth an ambitious global plan for building the broadest possible awareness of
chemical risks as a prerequisite for achieving chemical safety. It recognises that ―a great deal remains
to be done to ensure the environmentally sound management of toxic chemicals, within the principles
of sustainable development and improved quality of life for humankind‖. It notes the collaboration on
chemical safety between the United Nations Environment Programme (UNEP), the International
Labour Organisation (ILO) and the World Health Organisation (WHO) in the International
Programme on Chemical Safety (IPCS) as the core for international cooperation on environmentally
sound management of toxic chemicals.

The Intergovernmental Forum on Chemical Safety (IFCS) and the Inter-Organisation Programme for
the Sound Management of Chemicals (IOMC)4 were established to coordinate and advance efforts
towards the sound management of chemicals.

Chapter 19 proposes six programme areas:

    1.   Expanding and accelerating international assessment of chemical risks;
    2.   Harmonisation of classification and labelling of chemicals;
    3.   Information exchange on toxic chemicals and chemical risks;
    4.   Establishment of risk reduction programmes;
    5.   Strengthening of national capabilities and capacities for management of chemicals;
    6.   Prevention of illegal international traffic in toxic and dangerous products.

The World Summit for Sustainable Development further highlighted the relationships between
poverty, health and environment. In Johannesburg, chemicals received particular attention together
with energy, water, climate change and biodiversity. The outcome was the introduction of a goal for
chemicals in the WSSD Plan of Implementation. i.e., ―for 2020 chemicals [should] be used and
produced in ways that lead to the minimisation of significant adverse effects for human health and the
environment using transparent science-based risk assessment procedures and science-based
management procedures, taking into account the precautionary approach‖.

The economic importance of the chemical industry, the fast-emerging chemical industry in developing
countries and the growing use of chemicals (normally associated to economic development) required a
more specific approach to chemicals management. Therefore, among the different elements listed to
achieve the goal set for chemicals, the WSSD Plan of Implementation called for the development of a
strategic approach to international chemicals management.

In accordance with this recommendation, an inter-governmental process was initiated which led to the
adoption of a Strategic Approach to International Chemicals Management (SAICM). SAICM
comprises three elements: (1) a high level ministerial declaration (the Dubai Declaration adopted in
February 2006)5; (2) an Overarching Policy Strategy; and (3) a Global Plan for Action. It is aimed at
promoting the sound management of chemicals and hazardous wastes throughout their life-cycle.
SAICM scope includes:
    (a) Environmental, economic, social, health and labour aspects of chemical safety,
    (b) Agricultural and industrial chemicals, with a view to promoting sustainable development and
        covering chemicals at all stages of their life-cycle, including in products.


4
  A body made up of UNEP, UNITAR, UNIDO, OECD, ILO, WHO, and FAO; as well as UNDP and the World
Bank (as observers) aiming to coordinate efforts in the sound management of chemicals.
5
  http://www.chem.unep.ch/saicm/SAICM%20texts/standalone_txt.pdf

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                                                                                          Consultants Report

UNEP and the World Health Organisation (WHO) have lead roles in the SAICM Secretariat,
according to their respective areas of expertise, with UNEP holding administrative responsibility. The
IOMC is closely involved in the SAICM and expected to have a major role in its implementation.
OECD has long worked towards chemical safety under its Chemicals Programme and is a
Participating Organisation (PO) of the IOMC. The links between chemicals and poverty and
development led the World Bank (WB) and UNDP to join IOMC as observers.

With the SAICM, the international community has increasingly stressed the need to integrate sound
chemicals management into development planning, given chemicals multi-sectoral nature and their
linkages to development and poverty. In addition, chemicals are directly or indirectly linked to the
achievement of some of the Millennium Development Goals such as the eradication of poverty and
extreme hunger, the reduction of child mortality, improvement of maternal health, combating of
HIV/aids and other diseases, ensuring environmental sustainability and building a global partnership
for development6.

According to the WSSD Plan of Implementation, countries are expected to take national action to
implement the measures required to meet, inter alia the goals set for chemicals management. There is
wide agreement among the international community, and, in particular, SAICM participants and the
IOMC, on elements that are critical to ensuring the sound management of the production, use and
disposal of chemicals and their products. IOMC organisations have already started working with
stakeholders on ―integrated national programs for sound chemicals management,‖ as a result of
SAICM. This approach has raised interest in developing and developed countries alike.

It was agreed that there was a need to model how a country might incorporate critical elements for
sound chemicals management in parallel to international efforts to coordinate and prioritise chemical
issues and activities. A first step is to demonstrate to SAICM stakeholders the feasibility of
incorporating these elements a national strategy which would include an assessment of gaps and needs
and recommendations for prioritising action.

To this aim, OECD and the World Bank have joined forces to commission the development of pilot
case studies on how to manage chemicals in an integrated and cross-sectoral manner. Three countries
(Mali, Vietnam and Moldova) were selected on the basis of inter alia geographic distribution and the
work already carried out on chemicals management.

This case study for Moldova is the result of this pilot effort to demonstrate how chemicals can be
mainstreamed in development planning.

       1.2.     Objectives of the study and methodology

The objective of the case study is to consider how to integrate international and regional obligations on
chemicals management and related assistance programs and strategies, into overall national
development policy. The case study considers Moldova‘s development priorities and identifies means
to integrate chemical safety issues into development assistance and poverty reduction strategies.

The case study consisted of a series of phases within a very tight four months schedule. During these
three months, the team of international consultants carried out three missions in the country. A final
stakeholder consultation took place on 2 March whose conclusions are included in this report (section
7). The stakeholder meeting was considered as an official launch of the process of a broader
stakeholder consultation. This event helped to create awareness and served as an interface between the
different ministries, agencies and bodies, the private sector and civil society, and donors. More details
on the methodology can be found in Annex V. The list of people interviewed during the three missions
can be found in Annex II.

6
  See ―Opportunities for Integrating the Sound Management of Chemicals into Development Planning – an
information paper‖ (World Bank- 2006) or ―Toxics and Poverty‖ (World Bank – 2002).

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                                                                                         Consultants Report

It was important that the case study receive broad inter-ministerial support because of the cross-
sectoral nature of the issue. This was highlighted already from the beginning of the project. However,
the MENR was the coordinating authority and communications was carried out through the Ministry
of Environment which might have contributed to an overall perception of MENR‘s ownership over the
study. Competing mandates among institutions can also create challenges when collecting
information. High-level political support, especially from the Ministers as well as the World Bank,
was essential to ensure collaboration of certain subordinated institutions.

Translations of the documents into the national language led to delays that had an impact on the
already tight schedule of the project. The need for translations was not initially foreseen. This need
should be considered in future case studies, although it would greatly depend on the country analysed.

The four-month schedule was too limited to carry out the study. More time should be foreseen for
future case studies.

Regarding the way ahead, it would be important to communicate with the Ministry of Economy in
charge of developing the National Development Plan to mainstream chemicals management. A
specific study on one of the areas of concerned identified in the current study could support this
objective (more information at section 4.2). In addition, work still needs to be done with different
bodies involved in chemicals management to promote the development of effective inter-ministerial
coordination, which may lead to the creation of a chemicals agency or body, and to attract donors
support. Support will also be needed to develop a chemical strategy for the country.

       1.3.     Road map to the report

This report is divided into 8 sections.

Section 1 has summarised the background to the study, its objectives and the methodology used to
develop the case study as well as the main difficulties found for a successful achievement of the Case
study‘s objectives.

Section 2 provides an overview of the economic trends in Moldova, including an overview of the
strategic sectors for Moldovan economy and how chemicals are linked to them.

Section 3 provides information about the current human health and environmental problems linked to
the chemicals used by different sectors in the Moldovan economy as well as new risks and potential
impacts for human health and environment that could be derived as the country develops due to
inadequate chemicals management.

Section 4 tries to explain the links between poverty and chemicals management for Moldova showing
opportunities for mainstreaming chemicals in the national programme for development.

Section 5 looks at the institutional and legal framework currently in place to manage chemicals
through a multi-sectoral approach and initiatives for improving SCM.

Section 6 analyses the main gaps identified in Moldova for SCM and proposes options to fill out some
of these gaps.

Section 7 proposes a list of priorities and action plan for a SCM in Moldova based on the gap and
capacity needs identified as well as the conclusions of the stakeholder consultation and past
experiences in introducing chemicals into the country‘s development agenda.

Section 8 looks at possible resource mobilisation and opportunities for synergies with current and
future projects or initiatives that have direct or indirect impacts on chemicals management and analyse
to what extent this current projects could serve to address some of the gaps and needs identified in

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                                                                                           Consultants Report

section 6 according to the priorities laid down in section 7. The section identifies priorities that could
be financed by national resources or under current and future programmes as well as those priorities
for which international assistance (financial and technical) might be needed.


2. OVERVIEW OF ECONOMIC TRENDS AND THE ROLE OF CHEMICALS IN
   MOLDOVA’S ECONOMY

The Republic of Moldova is a country covering 33800 km2 and located in the south western part of the
East European Plain. It is bordered to the north, east and south by Ukraine and to the west by
Romania. The country is primarily a hilly plain interspersed with deep river valleys. Moldova is part
of the Black Sea watershed and has two large rivers, the Dniester and the Prut. The Dniester empties in
the Black Sea while the Prut is a major tributary of the Danube River. Three quarters of the country
are covered with the fertile cherzonem soil type, which is ideal for agriculture. Rich soil and a
favourable climate support and diverse agricultural production ranging from wheat, corn, barley,
tobacco, sugar beets, soybeans and sunflowers to extensive fruit orchards, vineyards and walnut
groves. The country does not have any major mineral deposits but natural resources include deposits
of lignite, phosphorite and gypsum7.

The country is divided in 32 major regions (raion), with three municipalities, Chisinau (the capital),
Balti and Bender, one autonomous territorial unit (Gagauzia) and one territorial unit (Transinistria).
The country has three major ethnic groups. Moldovans constitute about 65% of the population,
Ukranians about 14% and Russians, 13 %. There is also an ethnic group of Turkish origin, the Gagauz,
and a small group of Bulgarians.

There has been a slight decline in the country‘s human development index (HDI) measured by UNDP
(United Nations Development Programme). In 1998 the country‘s HDI was 0.7 (on a scale of 0 to 10)
and Moldova was 102nd out of 174 (medium human development). Latest figures from 2002 show that
Moldova‘s HDI was 0.681 and that it was the 113th country out of 177. Moldova therefore faces an
enormous human development challenge if it is to reverse the current trend.

       2.1.     Economic trends in Moldova today

              2.1.1. The situation since the break-up of the Soviet Union: economic, social
                     and health impacts of the crisis

When Moldova became an independent State, it had an economy that was highly dependant on the
support of the former Soviet Union. As with other similar small transition countries, like Georgia,
Armenia and Tajikistan, Moldova experienced unprecedented economic collapse with its GDP
shrinking by two thirds. The disruption of economic relations and the resulting economic decline was
traumatic leaving physical and psychological wounds in many areas of social and economic life that
are still visible today.

After independence, Moldova faced a set of political, economic and social problems, which it had to
resolve alone. It lacked experience in how to deal with external ―shocks‖ and with internal economic
and social crises. The unstable internal political situation and territorial disintegration of the country
was compounded by difficulties in implementing the reforms needed to cope with the political and
economic transition.8



7
  UNECE, 2nd Environmental Performance Review, Republic of Moldova, 2005,
http://www.unece.org/env/epr/studies/moldova_2/welcome.htm
8
  Government of Moldova, Economic Growth Poverty Reduction Strategy Paper (2004-2006), Chisinau 2004
(hereinafter the EGPRSP).

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Before independence, the Moldovan economy was highly integrated into that of the USSR. This
dependency was exacerbated by the lack of energy resources and non-agricultural raw materials.
Moldova did not have big reservoirs of natural gas, coal or oil as other former Soviet Union republics.
Its economy relied on Soviet subsidies for agriculture serving as field experiment for new types of
pesticides9. The break-up of the USSR‘s economic zone led to the collapse of the established system
of economic ties and roles, leading to the emergence of obstacles to the movement of goods, and
restrictions on access to the markets of the newly independent states.

As happened in other former Soviet Union republics, the fast restructuring of the economy and the
reforms did not take into account the low level of preparedness of the people and of economic agents
to live and act in an open market economy. In addition, not all the necessary adjustments were made.
Most of the industries disappeared and agrarian reform, including the transfer of land into private
ownership, was carried out without providing state support to agricultural producers. Infrastructure
was abandoned and gradually deteriorated, worsening trade conditions. The problems of high labour
intensity, low productivity, old technologies, small-scale commodity production, and excessive
dependency on the weather conditions intensified10.

The 1991 Transnistria conflict deepened the crisis by breaking economic ties within the country. Most
of the industrial sector is placed in Transinistra including many food processing companies, the
biggest power plant of Moldova, and the only modern and competitive steel mill. The gas pipelines
which supply Moldova cross Transinistria11 creating a threat to the security of gas supply. The internal
conflict also affected the banking, monetary and payment systems and favoured the emergence of
black markets.

Today Transinistra has its own government, its own army, police, border guards and border posts.
Without effective customs controls on the goods crossing Transinistra, smuggling is flourishing with
serious consequences on the government budget and the rule of law12. It is not unusual to see cars
imported through Transinistria that do not comply with Moldovan regulations in the streets of
Chisinau. Farmers have denounced counterfeit and low efficacy pesticides that are suspected to come
through the Transinistria borders13. Similar problems are suspected with imports of consumer products
and other more traditional smuggled goods such as waste, drugs or even chemicals weapons.

Another major problem created by the conflict is the outdated weapons arsenal situated in
Transinistria14, most of which are a legacy of the Soviet Union. Some of these weapons are of a
chemical nature. In addition, stocks of pesticides and POPs are scattered around the country (including
Transinistra). This is damaging the image of Moldova abroad. In an article published by the Belgium
newspaper, Le Soir, Moldovan stocks of obsolete pesticides were portrayed as chemical time-bombs
that could be used as weapons by terrorists to attack occidental interests15.

The lack of domestic natural resources, the heavy dependence on revenues from exports to Russia
(almost 60% of the Moldovan share of exports), as well as the economic and political instability

9
  National Implementation Plan for the Stockholm Convention (Moldova).
http://www.pops.int/documents/implementation/nips/submissions/moldova.pdf
10
   Cfr above note 8, EGPRSP
11
   The EU Moldova Country Strategy Paper for 2004-2006 indicates that there have been activities of cutting off
electric power supply as well as jamming cellular phones (see Country Strategy Paper 2004-2006, National
Indicative Programme 2005-2006 Moldova – European Commission p.11).
12
   EU, Country Strategy Paper 2002-2006, National Indicative Programme 2002-2003 (European Commission,
December 2001)
13
   Interview to the Farmers Association Federation and the Farmers Federation.
14
   The arsenal was originally estimated at 42,000 tons; it also includes armoured vehicles (Country Strategy
Paper 2004-2006, National Indicative Programme 2005-2006 Moldova – European Commission p.10). The
armoured vehicles will need to be disposed of and will pose new waste problems related to end of life-vehicles.
15
   « Une piège chimique aux portes de l’Europe ; La Roumanie et la Bulgarie rejoignent le club européen. Leurs
frontières sont aussi les nôtres. Mais sont-elles fiables ? ». Article published in Le Soir on 28 December 2006.

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created by the Transinistria conflict made Moldova extremely vulnerable to external economic shocks.
The 1998 crisis in Russia had terrible impacts on the Moldovan economy. In 1999, the country‘s GDP
fell by 72% compared to the levels just before the disintegration of the Soviet Union. Thus the
economy‘s revival began from extremely unfavourable ―starting‖ conditions16.

The social crisis of the 1990s was deeper and more dramatic than the economic crisis due to severely
reduced State expenditures on social assistance, such as social benefits and free social services. At the
height of the crisis in 1999 the average wage in real terms was only about 25% of the 1990 level and
the average pension about 17%. According to International Labour Organisation (ILO) methodology,
the unemployment rate reached 11.1%17. At the same time, household revenues dropped and therefore
access to the health care system was reduced. An increase in State expenditures on health care18 and in
the use of health care facilities after economic recovery was driven by the richest households. Poor
households spend substantially less on health care and in many cases have not sought health care
because they cannot afford it19.

Poverty and the worsening of living conditions resulted in an increase in mortality and a reduction of
life expectancy. In the course of the 1990s birth rates and life expectancies were falling and the death
rate rising. As a result, from the mid 1990s on the number of population has fallen. Growth in the
economy and in real incomes in 2000- 2002 has not yet produced a tangible effect on demographic
processes. In fact, according to the World Fact Book, which includes estimates from 2006, life
expectancy at birth is 65.65 years (61.61 years for men and 69.88 for women), making Moldova one
of the ex-Soviet Union countries with the lowest life expectancy rate20.

               2.1.2. The economic recovery and current situation

In 2000 the Moldovan economy finally started to grow again. The factors that contributed to this
economic improvement were the stabilisation of trading partners, primarily Russia, and rising
domestic demand, due inter alia to increasing money inflows from labour migrants (estimates vary
between 300,000 to 800,000 people abroad21 sending remittances that represent about 26% of the
GDP22). Restrictions on the growth of money supply also helped by reducing inflation. Structural
reforms carried out during 1998-2001 and the sustained pace of fiscal consolidation also played
important roles in the economic recovery. From 2000 to 2003, GDP rose by 24.1%, while industrial
output rose by 54.1% and investments in fixed capital by 21.5%23. In 2005-2006, economic growth
seemed to stabilise at 7%.




16
   Cfr. supra note 8 (EGPRSP).
17
   Cfr. Supra note 8 (EGPRSP).
18
   From 1999 to 2002 state expenditures for healthcare rose from 2.9% of GDP to 3.6% of GDP, and for
education from 4.7% of GDP to 5.6%. A considerable part of services are provided for payment – about 40% of
medical services and over 30% of services in education (See EGPRSP)
19
   For a more detailed analysis, refer to World Bank paper ―Recession, Recovery and Poverty in Moldova‖,
November 2004. More analysis regarding the links between health and chemicals will be provided at section 4 of
this report.
20
    Only Tajikistan, Uzbekistan, Azerbaijan and Turskenistant have lower life expectancy rates. See
https://www.cia.gov/cia/publications/factbook/rankorder/2102rank.html
21
   Cfr supra note – EU 2002-2006, p. 13. Remittance from Moldovans working abroad are high rising from 7.7%
of the national GDP in 1999 to an estimated 19% in 2003. However, this flow has also contributed to rising
inflation artificially inflating commodities prices.
22
   Moldova‘s dependence on remittance flows is among the highest in the world. For more details see World
Bank, ―Moldova: Opportunities for Accelerated Growth – A Country Economic Memorandum for the Republic
of Moldova‖, September 2005.
23
   Cfr supra note 10 (EGPRSP)

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The non-state sector became dominant with a share of GDP of 75%24. As the share of the private
sector in the structure of the economy rose, the share of the service sector also rose. In 2000-2002 it
accounted for almost 50% of GDP, but this rose to 58.5% in 200525. The service sector is the most
important sector in Moldova‘s economy. However, though agriculture represented only 14% of GDP
in 2005, it remains important since 49.6% of all employed people work in this sector.

                              Figure 1: Composition of Moldova’s GDP (2005)
                                                 PIB structure (2005)
                                                                            Agriculture

                                                                            Energy
                                      16%           14%

                                                          2%                Trade and Services

                               12%                                          Industry


                                 4%                                         Construction

                                                          37%
                                                                            Transport
                                     15%

                                                                            Net revenues from
                                                                            taxes
                            Source: National Strategy for Industrial Development 2015

Despite the economic recovery, different challenges and constraints remain that could hamper
economic development26. The most important are: (i) the predominantly agrarian structure of the
economy and insufficient share of processing industry; (ii) low ratios of savings, accumulation of
fixed capital and capital investment; (iii) excessive dependency of the growth of the economy and
domestic consumer demand on remittances from labour migration abroad; (iv) economic
backwardness of the regional economies, and big gaps in the level of social and economic
development between the country‘s capital and other regions.

Moldova‘s economy is generally perceived as not sufficiently diversified, not only regarding
production but also patterns of exports, and dependency on remittances. This dependency also
characterises the energy and electricity sectors. The absence of domestic sources of energy is
exacerbated by obsolete technologies and inefficient energy consumption. Increasing energy prices
(especially the hikes in 2005) and the impacts they had on the poor exposed once more Moldova‘s
vulnerability and the incomplete reforms in the energy sector27. Investment, including foreign direct
investment, remains low and concentrated in a few sectors (see figure 2). Processing, energy, gas and
water supply and communication account for about 70% of all capital investment in the economy. At
the same time, limited rates of national saving do not provide enough internal resources to resolve the
investment problem28.




24
   The share of the private sector in the industrial manufacturing is over 80%, over 95% in retail trade, almost
100% in the agrarian sector, and 54% in the sector of paid services (see EGPRSP).
25
   Source: World Bank – Moldova at glance.
26
   See the EGPRSP, and also different WB and EU reports already mentioned in previous footnotes.
27
   At the end of 2005, Gazprom announced that it was going to increase the price of natural gas supplied to
Moldova from $80 to $160 per thousand cubic meters (mcm). Unable to conclude an agreement, Gazprom halted
the supply of natural gas to Moldova on January 1, 2006. For more information about the impacts of energy
prices on the poor, please refer to World Bank, ―The Impacts of Energy Price Changes in Moldova‖ (WPS3960),
2006.
28
   Cfr supra note 8 (EGPRSP).

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                                       Figure2: Fixed Capital Investments (2004)



                                                     8%
                                     27%                                           Agriculture
                                                                                   Industry
                                                              29%                  Energy
                                                                                   Construction
                                                                                   Trade
                                                                                   Other activities
                                      20%
                                               2%      14%



                             Source: National Strategy for Industrial Development 2015

The economic recovery has also deepened inequalities between rich and poor and between people
living in the regions and in the main cities (Chisinau and Balti). Differentiation of the economic
potentials of the capital and regions is partially caused by the degradation of industry and
infrastructure of smaller cities during the 1990 crisis, and by the low efficiency of the agrarian sector
in regional economies.

This is highlighted in the Economic Growth and Poverty Reduction Strategy Paper (hereinafter
EGPRSP) as follows: ―More than 80% of the population of the country live in the regions, which
receive less than 20% of foreign investments, account for less than 40% of exports, and have wage
levels almost half those in the capital. Gross Regional Product per person outside Chisinau is only
one third of that in the capital. Agriculture predominates (43%) in regional output, and its share in the
regions is twice as high as in the economy as a whole. The share of services in the economy of regions
(37%) is also almost half that in the economy of the capital (71%)‖29.

                 2.1.3. Economic priorities of the government and strategic sectors for growth

The 2004-2006 Economic Growth and Poverty Reduction Strategy Paper (EGPRSP) laid down an
ambitious programme for development. The Government identified three long-term priorities:

          Sustainable, socially oriented development;
          The reintegration of the country;
          European integration.

The EGPRSP is based on three pillars:

          Sustainable and inclusive economic growth, therefore underlining the importance of
           maintaining macroeconomic stability;
          Poverty and inequality reduction, and increased participation of the poor in economic
           development, which strengthens the need for social protection and inclusion;
          Human resources development, which underlines the need to improve the quality of and
           access of the poor to education and health.

The EGPRSP states that sustainable economic and social development should be consistent with the
Millennium Development Goals and based on the following principles:

      Improved political and economic governance: increased popular participation in government,
       respect for the rule of law and human rights and the establishment of sound economic
       management and macroeconomic stability.

29
     Cfr supra note 8 (EGPRSP).

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    Private sector development: private ownership of economic assets, a liberalised regime for prices
     and trade, private sector deregulation, and the promotion of competition.

    A modified role for government where the centre will ensure the political framework for the (i)
     efficient delivery of goods and services, (ii) regulation necessary for natural monopolies (energy,
     telecommunications) and public health and safety, (iii) increased independence of providers in
     healthcare and education (the centre will have the monitoring role), and (iv) insurance of the
     equitable distribution of the benefits of growth for the welfare of the whole population.

In light of the economic, political and social disruptions caused by the territorial conflict in Tranistria,
the EGPRSP as well as the EU-Moldova Action Plan consider the reintegration of the country as
one of the main priorities needed to foster economic growth, political stability and security, as well as
respect for the rule of law and elimination of corruption.

The EGPRSP considers European integration as a fundamental development objective. This means
consistent implementation of common European values and standards, living standards and economic
development models. The relations between Moldova and the European Union are based on the
Partnership and Cooperation Agreement signed in 1998. The Agreement requires the gradual
harmonisation of national legislation with European legislation. The prospects for cooperation,
including a possibility to enter into a free trade agreement, will depend on Moldova‘s success in
developing its legal, economic, social and other systems in accordance with EU principles and
standards.

In its Progress Report of September 200630, the World Bank highlights the good results obtained by
Moldova in areas such as political stability, links with the EU, macroeconomic improvement and
growth. However, the Report indicates that ―progress made at level of projects (...) has not always
translated into meeting long-term development goals‖. In addition, the report highlights that positive
results are achieved as long as there is a high commitment from the authorities. These constraints were
also been identified when carrying out the present study. Thus, ensuring that all different authorities
are committed and convinced of the importance of chemicals for the country remains important.

Several opportunities for economic growth and human development are emerging in the country.
Some of these opportunities derive from the fact that Moldova is covered by the EU Neighbourhood
Policy (hereinafter the ENP). The EU-Moldova Action Plan therefore becomes important due to the
resources available under EU assistance in the ENP. The budget for Moldova has increased and an EU
delegation is now established in Chisinau. Moldova will also benefit from other financing
opportunities, not only from TACIS but from other budget lines. The ENP will focus on energy
efficiency and security. Under the new Energy Package, the EU will create energy partnerships with
neighbouring countries and Moldova is specifically mentioned31. Moldova will also be eligible under
new Regional Funds projects with an inter-border component under the new European Territorial Co-
operation objective (old INTERREG-B), which are more focused on small-scale regional or local
initiatives32.

Moldova is already part of the EU General System of Preference (GSP) according to which customs
duties are reduced or waived for products classified as sensitive or non-sensitive. Since 2000 Moldova

30
    World Bank, Report No 37316-MD, Country Assistance Strategy Progress Report for the Republic of
Moldova for the period FY05-08.
31
   http://ec.europa.eu/energy/energy_policy/annexes_en.htm
32
   The European Territorial Co-operation objective will strengthen cross-border co-operation through joint local
and regional initiatives, trans-national co-operation aiming at integrated territorial development, and
interregional co-operation and exchange of experience. EUR 8.7 billion (2.5 % of the total) available for this
objective is split as follows: EUR 6.44 billion for cross-border, EUR 1.83 billion for transnational and EUR 445
million for inter-regional co-operation. http://ec.europa.eu/regional_policy/policy/object/index_en.htm

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also benefits from the special incentive arrangements (SIA) for Moldova‘s good standing with regard
to the protection of labour rights. Under SIA, double tariff reductions are granted. Moldova ranks 33rd
out of the 178 beneficiaries of the EU‘s GSP. GSP is particularly important for exports from Moldova
in the clothing and footwear sectors, which represent more than two thirds of national preferential
exports to the EU33.

As a neighbouring country, Moldova will have access to new markets in particular by increasing
economic relations and ties with EU countries, but only if Moldova can meet EU standards regarding
quality of products. If these standards are not met, Moldova‘s market vulnerability will increase, if it
becomes even more dependent on Russia and Ukraine and loses traditional markets such as Romania
(now a EU member).

Specific sectors considered to present good prospects for growth include agro-industry (organic
agriculture and wine), textiles, carpets and IT. Manufacturing of construction materials as well as the
development of the chemical industry (basically manufacturing of chemicals substances and products)
are also among the priorities of the government for 201534. Figure 3 below shows the expected
composition of Moldovan GDP for the period 2005-2015. The strategy focuses on the development of
the most competitive industrial sectors, thus the expected increase in their contribution to the GDP,
and on consolidation of agro-industry.

              Figure 3: Projections in the composition of Moldovan GDP (2005, 2010, 2015)
                                                   GDP structure (2005)
                                                                                Agriculture

                                                                                Industry
                                       16%             14%

                                                                                Energy

                                 12%                         15%                Construction


                                                              2%                Trade and services

                                                             4%
                                                                                Transport
                                             37%
                                                                                Net revenues from
                                                                                taxes


                                         Agriculture
              GDP Structure (2010)                                                       GDP Structure (2015)       Agriculture

                                         Industry
                                                                                                                    Industry
       11%          16%                                                         9%             13%
                                         Energy                                                                     Energy
                                                                          8%
 10%

                                         Construction                                                               Construction
                           18%                                                                        22%
                                                                                                                    Trade and
                                         Trade and                                                                  Services
                          2%             Services                                                    2%
                                                                          42%                                       Transport and
     39%                  4%             Transport and                                           4%                 communications
                                         communication                                                              Net Revenues
                                         s                                                                          from taxes
                                         Net Revenues
                                         from taxes



33
  Cfr supra note 14- EU National indicative programme 2005-2006.
34
  Strategy for industry development for 2015, Order nr 1149 of 05.10.2006 (Offical Monitor nr 164-167/1243 of
20.10.2006). Point 6.3.

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                         45
                         40
                         35
                         30                                                                        2005
                         25
                                                                                                   2010
                         20
                         15                                                                        2015
                         10
                          5
                          0




                                                                                           es



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                                                   gy
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                                       Source: Strategy for industrial growth 2015

The Moldovan Investment and Export Promotion Organisation (MIEPO)35, which is financed by the
EU, is working to create a new image of quality and credibility for Moldovan products focusing on
abovementioned sectors. USAID is also involved, especially in the promotion of wines, and textiles
and carpets.

The agro-industry, including wine production, is the fastest growing economic sector in Moldova but
its full potential has not been unleashed. Enhancing effectiveness and good governance, investments in
infrastructure and human development, diversification and competitiveness have been identified as
key factors to ensure an accelerated growth of the economy36.

Before the disintegration of the Soviet Union, Moldova has a significant electronics industry which
included a military complex. However, this sector no longer plays a significant role in the economy
and it is largely limited to import of components for assembly into electronic and household
equipment. Nonetheless, it is considered as one of the strategic sectors that is likely to receive more
investments in the coming years.

Textiles and carpets are also among the strategic sectors for promotion given the already consolidated
industry and the preferential system for exports to the EU. The country also has significant natural
resources to develop an extractive industry for the development of construction materials. The
chemicals industry is seen with potential for growth. Some of the chemicals now imported could be
produced in the country, reducing the costs of the final product and creating opportunities for new
jobs. In addition, energy efficiency, including accelerated development of renewable energies,
innovation, and the development of infrastructures are considered essential to foster development in
the country37.

Each of these sectors uses chemicals intensively and produces chemicals as by-products.

       2.2.      The role of chemicals in the Moldovan economy38

There is little information on the economic importance of chemicals in Moldova, in part since
chemicals are not perceived as an important factor in the economy. Most stakeholders‘ views of

35
   www.miepo.md
36
   For more details on suggestions for accelerated growth, please refer to World Bank ―Moldova: Opportunities
for Accelerated Growth – A Country Economic Memorandum for the Republic of Moldova‖ (September 2005).
Cfr supra note 22.
37
   Cfr supra note 34- Strategy for Industrial Development 2015
38
   The information provided in this section is more a qualitative assessment based on the information obtained
from interviews and statistics. The information here identified does not cover Transinistria where some of the
most important facilities using chemicals as well as main polluters are situated.

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chemicals are limited to pesticides, including obsolete stockpiles of pesticides and POPs, and
fertilisers. For example, the authorities interviewed for this study did not consider Moldova as having
a chemical industry, yet there are companies manufacturing cleaning products, plastics and paint.

All the strategic sectors in the country identified in the previous section are chemical intensive, using
in many cases dangerous substances, some of which are heavily regulated at EU level. The authorities,
and in some cases economic operators, interviewed did not perceived the importance of chemicals in
these strategic sectors (such as textiles or carpets). Awareness of the economic importance of
chemicals only exists in food industry where chemicals (meaning pesticides) are seen as providing an
economic gain. However, the costs of using these pesticides or whether they are needed have not been
analysed.

This lack of cost analysis applies to all sectors where chemicals are used or where chemicals have an
impact. Interviews with representatives of two textiles companies revealed that chemicals represented
between 5% (carpets) to 20% (textiles) of the products‘ final cost. Information could not be obtained
regarding other types of chemicals used in other industrial processes. In general, there is no analysis of
the costs of the imports of chemicals used in production processes and whether these chemicals could
be replaced by alternatives produced in the country, by improving the current technology or simply not
used. Costs linked to disposal of hazardous waste derived from the use of chemicals are not integrated
into the production costs. The data available on chemicals in the Moldovan economy do not reflect
either the costs linked to the loss of biodiversity or health costs related to illnesses directly or
indirectly linked to pollution or the use of chemicals in food or at the work place.

This lack of awareness and analysis is striking if one considers the fact that most chemicals used in
Moldova are imported. The chemicals industry as such is limited to only two big companies are
(Aschim and Agurdino) which produce paints, film and household cleaning products. However, as
seen in the section before, chemical industry has potential for growth. The table below provides an
initial grasp of the costs incurred by the use of chemicals imported by Moldova‘s industrial and
agricultural sector.

  Table 1: Imports of chemicals and related products according to harmonised system of customs code –
                        selection of chemicals (source Yea book of Statistics 2005)
                                                                                        Thousand USD
         Category             1999      2000      2001        2002        2003         2004        2005
Chemical products           45786.4   74886.3   80398.7     115831.3    132660.3     161805.6    232280.3
Inorganic chemicals         5930.4    7168.2    7680.6      7228.5      7261.5       9558.8      13138.5
Organic chemicals           2846.2    3575.7    4384.2      5063.7      4270.5       4993.2      5519.5
Pharmaceutical products     20024.6   39445.2   28807.6     48155.0     51022.3      48150.0     72094.5
Fertilisers                 1080.5    2138.2    6492.2      6236.4      5434.3       11088.5     14146.5
Tanning or dyeing           2945.8    4355.0    5870.9      9716.9      12777.5      17209.7     17872.2
extracts; tanning and
their derivatives, dyes,
pigments and other
colouring matters, paints
and varnishes; putty and
other mastics; inks
Essential oils and          2637.2    4254.8    5740.9      9408.7      15576.8      18557.6        28021.0
resinoids; perfumery,
cosmetic and toilet
preparation
Soap; washing               4627.7    4734.6    5781.0      7951.5      10185.6      12971.4        17554.2
preparations, lubricating
preparations, artificial
waxes, dental waxes with
a basis of plaster
Albuminoidal substances;    784.2     1195.7    1620.5      2762.4      4570.4       4519.1         5237.0
modified starches; glues;
enzymes
Explosives and              444.2     366.8     361.9       691.6       1054.1       1090.3         1503.9
pyrotechnic matters ;

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         Category                 1999          2000          2001           2002               2003          2004            2005
matches ; pyrophoric
alloys ; certain
combustible preparations
Photographic or              526.8            746.1        826.0           1105.1          1342.4           1576.3         2140.4
cinematographic goods
Miscellaneous chemical       3938.8           6906.0       12832.9         17511.5         19164.9          32090.7        55052.6
products
Plastics, rubber and         20139.7          23767.0      34181.4         49329.9         69306.6          101108.4       139734.4
articles
Plastics and articles        16002.0          19359.3      26022.2         38701.8         53327.0          79397.8        114183.8
Rubber and articles          4137.7           4407.7       8159.2          10628.1         15979.6          21710.6        25550.6
Mineral products             232051.3         256054.0     242582.3        237073.2        297719.3         384870.6       504674.6
(selected)
Mineral fuels, mineral       227730.4         251511.9     237510.5        231406.4        287165.7         370632.9       484863.5
oils; bituminous
substances; mineral
waxes
Base metals and articles     24953.1          31594.4      37652.8         48963.3         70251.6          111898.9       160600.5
of base metals
Iron and steel               3410.6           7231.1       10463.9         13560.8         20927.7          36779.5        54451.1
Articles of iron and steel   11307.2          14092.3      16205.5         21170.6         28151.4          47588.8        55105.8
Cupper and articles          268.5            266.9        370.9           639.9           1217.2           1677.4         1921.7
thereof
Nickel and articles          17.8             8.0          40.4            14.8            36.4             96.6           85.2
thereof
Aluminium and articles       5131.1           4533.0       4003.1          5858.7          8930.7           11389.9        23262.9
thereof
Lead and articles thereof    998.9            1139.5       1240.5          849.8           262.7            37.8           61.7
Zinc and articles thereof    60.4             59.9         34.5            50.8            13.9             29.3           121.5
Tin and articles thereof     8.3              66.9         173.9           76.6            605.2            264.1          368.6
Others                       3086.5           3690.3       4392.9          5483.3          8320.6           1132.2         14496.8
Total imports                586368.0         776416.0     892228.4        1038000.2       1402347.1        1768533.9      2292291.6

The importance of chemicals in the Moldovan economy is illustrated by the fact that in 2005 imports
of chemical products represented 10.1% of total value of imports and were the third most important
category in term of value of imports in the country. Plastics represented 6.1% of the total value of
imports in 2005 (see figure 4). Together, chemical products and plastics represented 17% of the total
value of imports. In comparison, the largest category of products imported is mineral products (mostly
fuel) 22.0%, and the second machinery, electronic equipment and vehicles (20%).

                                         Figure 4: Imports structure in Moldova


                                                                                     Products of animal &
                                                                                     vegetable origin
                                              7% 0% 6%                               Food
                                                            7%
                                                                                     Minerals

                             20%                                                     Chemicals & Plastics

                                                                                     Leather and w ood products,
                                                                     22%             & pulp and paper
                                                                                     Textiles and footw ear
                             3%
                                                                                     Cement and Ceramic

                              9%                                                     Machinery & equipment
                                                                                     vehicles
                                                                                     Metals
                                         9%               17%
                                                                                     Others



                                              Source: Yearbook of Statistics (2005)


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Figure 5 below indicates the proportion of imported chemicals in each category for 2005. Pesticides
are not included as a category in the Yearbook of Statistics. As a consequence, it is not possible to
determine the amount of pesticides imported in the country and therefore the costs incurred as a
consequence of pesticides imports. Pharmaceuticals represented 30% of the total value of chemicals
imported. The broad category ―miscellaneous products‖ has increased enormously in the last 7 years
(from 3.9 million USD in 1999, representing only 8% of total value of imports, to 55 million USD in
2005 representing 24%). When preparing this report, no information was available concerning why
this category has increased so significantly or the type of products included therein39. Chemicals used
in tanning also represent a significant percentage of the total value of chemicals imported (17,8 million
USD).

                                     Figure 5: Chemicals imports in 2005

                                                                         Inorganic chemicals

                                                                         Organic chemicals
                                               6% 2%
                                                                         Pharmaceutical products
                             24%
                                                                         Fertilisers

                                                                         Tanning or dying, paint and
                                                                         varnishes
                       1%                                    30%         Essential oils, perfumery &
                                                                         cosmetics
                       1%                                                Sopa and washing
                       2%                                                preparations
                                                                         Albuminoidal substances &
                        8%                                               glues
                                                                         Explosives
                              12%                    6%
                                             8%                          Photographic or
                                                                         cinematographic goods
                                                                         miscellaneous


                                   Source: Moldova Yearbook of Statistics (2005)

The sectors using these imported chemicals are:

            Agriculture
            Wine industry – Food industry
            Textile industry
            Leather industry
            Electronic equipment (IT and telecom industries)
            Sanitation in general (water treatment and so on)
            Petro-Chemical industry: detergents, plastics, paint, oil
            Construction and infrastructure
            Wood processing and furniture
            Paper and pulp (although this is a minor industry)
            Energy – generators and accumulators

As mentioned before, all these sectors are sectors with intensive use of chemicals, which means that
the price of chemicals will have an impact in the final cost of the product, which has not been
assessed. Many externalities are linked to the use of chemicals in the absence of good management
practices.

39
  Information was requested to the Bureau of Statistics but could not be obtained in time for completing the
report.

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Infrastructure, energy and transport are probably the sectors where these externalities are taken less
into account and therefore not reflected through an adequate price policy40. Apart from emissions
(intended and unintended), in many cases due to obsolete technologies, there are many costs that will
be derived from the disposal and recuperation of the chemicals used, for example, to preserve wood
(railway ties, old utilities poles) or in electrical equipment. When these chemicals cannot be recovered
or safely disposed of, there will be environmental and health costs that would not have been assumed.

Moldova‘s most important export sectors are also chemical intensive. In 2005, export of food
processed products, alcoholic and non-alcoholic drinks and tobacco represented 36.3% of total value
of export. Wine alone represents 28.8% of exports and 10% of the GDP41. Exports of vegetable
products represented 12.1% of total value of exports and textiles represented 17.8% of total exports. If
some trade partners restrict the entrance of Moldovan products for quality reasons, including presence
of banned chemicals, this would have a significant impact on the economy. The Russian ban on wine
products from Moldova illustrates this vulnerability and the importance of controlling chemicals used,
and therefore of a SCM.

This situation does not only apply to wine or the agro-industry but also to other strategic sectors for
export such as IT or textiles. The EU has restricted the use of certain hazardous substances in electric
and electronic equipment and the future amendment to the Biocides Directive will prevent the import
into the EU of articles treated with substances not authorised at EU level. Some of the most important
users of biocides are paints and textiles, including carpets. If there is no control over the chemicals
used, Moldova could be unable to export its products into the EU with the subsequent impact on the
overall economy.

However, the authorities interviewed did not seem to be aware of the link between chemicals used and
bans based on product quality or composition.

The current policies on incentives for utilising pesticides are an example of this lack of awareness.
Although the use of pesticides was drastically reduced after the economic crisis (see figure below),
Moldova has now a policy of incentives for pesticides use in order to increase productivity.

                                      Figure 6: Evolution in pesticide use




The current policy does not differentiate between different categories of pesticides and does not take
into account the costs that might be derived from the development of pest resistance, the need to
control residues to ensure that the products are suitable for export or whether pesticides are needed in
particular cases (more details at section 6). At the same time, the country considers ecological
40
     Cfr supra note 7- 2nd Environmental Performance Review
41
     Cfr supra note 30- WB Progress Report.

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agriculture as one of the strategic sectors for exports growth. The development of an ecological
agriculture seems to be in contradiction with the policy of incentives to promote the use of pesticides
in agriculture.

In conclusion, it can be said that chemicals play a significant role in the current economic structure of
the country. However, the benefits and costs derived from use, release and disposal of chemicals
especially within the most important sectors of the Moldovan economy have not been adequately
assessed. Such a study could be developed as part of the actions to improve chemicals management in
the country and should involve the private sector.

3. CHEMICAL EXPOSURE RISKS TO HUMAN HEALTH AND THE ENVIRONMENT IN
   MOLDOVA

       3.1.       Overview of the chemicals in use and/or present in Moldova

              3.1.1. Overview of the chemicals used in the different sectors of the economy

It was not possible to obtain a complete overview of the types and quantities of chemicals used and
emitted by different sectors in Moldova. Several requests were made to the institutions holding this
information but these requests did not always have a successful response. For this reason, this section
indicates the types of substances normally used in the main sectors identified for economic growth and
the risks connected to their use. As the country develops and chemicals substances use increase, there
will also be an increase in risks and negative impacts derived from these sectors; thus, the need to
adopt the necessary measures to prevent any non-desired effects that might require costly investments
for solving them. The problems derived from stockpiles of obsolete pesticides and POPs, including the
resources required to solve these problems, have served as an example of the risks associated to the
absence of a SCM policy, not only to the health and environment problems created but also in
economic terms.

As seen in the previous section, the sectors that have been identified as strategic for economic growth
are agro-food industry, including wine, carpets and textiles, construction materials and IT. In addition,
any economic growth is generally accompanied by investment in infrastructure and an increase in
energy consumption, construction and car-fleet. All these sectors heavily use chemicals or produce
chemicals as by-products or pollutants. The table below offers an overview of the substances generally
used in these sectors and associated risks.

       Sector or industry        Potential substances used or                   Associated risks
                                           generated)
  Thermal power generation     To air: Dust (PM10) and SO2, and      Respiratory disease leading to
                               toxic gases: SO, CO, CO2, NOx,        mortality.
                               POPs, Lead and HF;                    Acid rain
                                                                     Climate Change Certain

                                                                     Dioxins and Furans may cause health
                                                                     effects to the heart, immune system,
                                                                     liver, skin, thyroid gland, unborn child
                                                                     and may cause cancer
  Cement plants                To air: Dust and SO2, and toxic       Respiratory disease leading to
                               gases: SO, CO, CO2, NOx, and          mortality.
                               HF. POPs, such as dioxins and         Acid rain
                               furans. PM10
                               Toxic waste
  Chemical sector              Potentially many possible             Toluene is toxic to reproduction and
  Limited to paint and         hazardous chemicals are used but      can cause health effects on the brain
  household good production    as chemical manufacture does not      (neurological) and the unborn child. It
  at moment.                   exist and this sector is limited to   may also contribute to the creation of

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       Sector or industry     Potential substances used or                   Associated risks
                                        generated)
                            formulations produced by one          ground-level Ozone
                            company. The main hazardous
                            substance that is used is the         Occupational risks associated to the
                            solvent toluene. However, as the      use of the substances in the
                            sector develops, more substances      manufacturing process.
                            and preparations will be produced.
                            Release of dioxins and furans in
                            chemical process
                            Toxic waste
  Pulp and Paper mills      To water: chlorinated phenols,        Hormone-disrupting and carcinogenic
                            polycyclic aromatic hydrocarbons      chemicals,
                            (PAHs); Absorbable Organic            Climate change
                            Halides (AOX) or
                            organochlorines, volatile organic     Chlorine gas destroys the tissue of
                            compounds, carbon dioxide,            humans, animals and plants by
                            sulphur dioxide, hydrogen             oxidation. Air containing 0.5-1.0%
                            sulphide, etc. Chloroform, and        chlorine causes rapid death to humans
                            chlorine dioxide.                     mainly caused by generation of
                            To air: NOx, VOCs, Ammonia,           hydrogen chloride in inhalation
                            Arsenic PM10, CO2, CO, Chlorine       system and the lungs.
                            and inorganic compounds,
                            Dioxins and Furans, Methane and
                            SOx
                            Toxic waste
  Construction sector       Cement                                Cement can cause severe burns, all
                            Asbestos products                     forms of asbestos cause cancer.
                            Paints, varnishes, paint strippers.   Solvent based paints, varnishes and
                            Toxic waste                           paint strippers can cause a number of
                                                                  effects (narcosis, cancer, reproductive
                                                                  effects, toxicity, skin or respiratory
                                                                  irritation).
  Manufacturing sector      Paints, varnishes, glues              Solvent based paints, varnishes and
  (machinery, vehicles,     Solvents                              glues can cause a number of effects
  furniture)                Surface coatings                      (narcosis, cancer, reproductive effects,
                            Toxic waste                           toxicity, skin or respiratory irritation).
                            Biocides                              Surface coatings can cause exposure
                                                                  to heavy metals and/or cyanide.
  Transport sector          To air: Dust and SO2, and toxic       Respiratory disease leading to
                            gases: SO, CO, CO2, NOx,              mortality.
                            Benzene, and HF.
                            PAHs content in tyres and oils
                            Dioxins and Furans
  Infrastructure            Mercury containing lights.            Mercury can cause severe
                            Refrigerants (CFC, Ammonia)           reproductive toxicity. Refrigerants
                            Acrylamide and lead (water            ozone depletion or toxicity
                            purification)                         (ammonia).
                            Wood preservatives (such as
                            creosote for railway ties)            Acrylamide can cause cancer.
                            PAHs in road construction and         Lead: can cause health effects on the
                            releases in fuels combustion          brain in children and the unborn and is
                            Arsenic content in wooden utility     toxic to plants and aquatic life
                            poles
                                                                  Creasote: eating food or drinking
                                                                  water contaminated with high levels
                                                                  of creosote may cause a burning in the
                                                                  mouth and throat, and stomach pains
                                                                  Long-term exposure to low levels of
                                                                  creosote, especially direct contact with

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         Sector or industry          Potential substances used or                  Associated risks
                                              generated)
                                                                        the skin during wood treatment or
                                                                        manufacture of coal tar creosote-
                                                                        treated products has resulted in skin
                                                                        cancer and cancer of the scrotum.
                                                                        Children who played on soil
                                                                        contaminated with creosote had more
                                                                        skin rashes than children who played
                                                                        in uncontaminated areas. It is
                                                                        unknown whether children differ from
                                                                        adults in their susceptibility to health
                                                                        effects from creosote.

                                                                        PAHs are known to cause cancer,
                                                                        birth defects and mutations on
                                                                        prolonged exposure to human and
                                                                        animal tissue.

                                                                        A Dutch risk assessment concluded
                                                                        that up to 25% of the arsenic content
                                                                        in wooden poles can be washed out
                                                                        during the first 3-4 years, thereby
                                                                        contaminating soil and ground water.
                                                                        Arsenic contamination presents a risk
                                                                        to aquifers and soil and water living
                                                                        organisms.
     Defence sector               Decontamination substances            Dichloroethane can cause cancer.
                                  (Dichloride ethane (61340 kg) and
                                  Mono ethanol amino (10190))
                                  Chlor picrina (used for checking
                                  seals) 337 kg.
     Waste sector                                                       In 2001-2002 galvanic wastes from an
                                                                        Alfa factory, were incinerated in the
     No incinerators exist.
                                                                        kiln of one asphalt producing factory
                                                                        in Chisinau. No environmental
                                                                        protection measure was taken (filter
                                                                        for emissions etc).
                                                                        Incinerators built in the future could
                                                                        lead to dioxin, furan, PaH, heavy
                                                                        metal and particulates emissions.

     Only non-hazardous waste     Possible dioxins, furans, cyanides    Regarding to waste landfills there is a
     landfill disposal exists.    and methane.                          big problem with that from Balti raion
                                                                        (150 thousands cubic meters of solid
                                                                        waste collected annually). It has been
                                                                        reported that the wastes are
                                                                        permanently on fire which probably
                                                                        lead to the generation of toxic
                                                                        substances.
     Key sectors
     Agricultural sector          Class I-IV toxicity substances        Acute exposure to pesticides can lead
     Pesticides (including        used; most of which are in Annex      to death or serious illness. Chronic
     insecticide; herbicide,      I of Directive 91/414/EEC. Not        pesticide exposure is most often a
     fungicide):                  included: phosalone42                 problem in the occupational setting,

42
  The EU has notified phosalone to the PIC secretariat (classified as very high acute toxicity when tested by oral
route, and harmful after acute dermal and inhalative application).

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       Sector or industry          Potential substances used or                 Associated risks
                                             generated)
  All pesticides are imported.   Toxic waste (including empty        particularly among poor rural
                                 containers)                         populations where men, women, and
                                                                     children all work and live in close
                                                                     proximity to fields and orchards where
                                                                     chemicals are applied and stored.
                                                                     Long-term exposure to pesticides can
                                                                     increase the risk of developmental and
                                                                     reproductive disorders, immune-
                                                                     system disruption, endocrine
                                                                     disruption, impaired nervous-system
                                                                     function, and development of certain
                                                                     cancers. Children are at higher risk
                                                                     from exposure than are adults
                                                                     Pesticides, as well as fertilizers, can
                                                                     infiltrate water sources –
                                                                     contaminating drinking water and
                                                                     animal species, e.g. fish, upon which
                                                                     humans rely for nutrition. Such
                                                                     contamination can lead to a range of
                                                                     secondary public health impacts.

  Fertilizers (nitrogen based,   Total inorganic fertilisers used    Fertilisers can cause nitrate
  phosphorus based, potash).     (2005): 16, 500 tonnes or 21        contamination of surface and ground
                                 kg/hector).                         water leading to eutrophication.
                                 Of which nitrogen fertilisers
                                 14,800 tonnes,
  Wine sector                    Pottassium ferrocyanate used for    Pottasium ferrocyanide can release
                                 fining.                             hydrogen cyanide. Caustic chemicals
                                 Caustic cleaning chemicals          can cause burns.
  IT Sector                      Heavy metals: lead, chromium,       Heavy metals can cause a variety of
                                 cadmium.                            risks from cancer, to toxicity to
                                 Rosin flux                          environmental risk. Rosin can cause
                                 Solvents                            respiratory sensitisation, solvents
                                 Flame-retardants                    (narcosis, cancer, reproductive effects,
                                                                     toxicity, skin or respiratory irritation).
                                                                     Flame retardants can cause severe
                                                                     environmental problems. Some of
                                                                     them have been ban at EU level (e.g.,
                                                                     pentabromodiphenyl ether,
                                                                     octabromodiphenyl ether due to
                                                                     unacceptable risks to the environment
                                                                     and a concern regarding exposure of
                                                                     breast-fed children)
  Carpets and textiles sectors   Dyes                                Dyes could cause skin sensitisation or
                                 Hydrogen peroxide                   even cancer, Hydrogen peroxide is an
                                 Flame retardants (in furniture)     oxidising agent and Flame retardants
                                 Biocides (different types of        can cause severe environmental
                                 preservatives, such as permethrin   problems.
                                 and cyfluthrin)                     Biocides are in general toxic to
                                                                     aquatic organisms and some of them
                                                                     are known carcinogen. Permethrin and
                                                                     cyfluthrin are candidates for health
                                                                     risk assessment in the EU. PCPs have
                                                                     also been used for leather.
  Health Sector                                                      Burning of medical waste has been
                                                                     reported, which will imply emissions
                                                                     of dioxins and furans and other toxic
                                                                     substances.

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                 3.1.2. Overview of chemicals present in the Moldovan environment

Information to analyse chemicals present in Moldova and waste content was scattered. It was difficult
to identify the sources of pollution because data reported in the Yearbook of Statistic and in the State
of the Environment Report are not disaggregated. However, some of the different services carrying out
monitoring indicated that they had information regarding the sources of pollution and emissions.
Monitoring results from different institutions was requested but not always obtained. The information
reported was not always of good quality in some cases because the equipment could not monitor
certain substances or because the data reported were estimates rather than direct measurements. This is
particularly the case regarding information contained in the Yearbook of Statistics, which is based on
data reported by industry.

Information was therefore obtained through other channels, such as interviews and consulting previous
studies that have been carried out within the context of the elaboration of the national implementation
plan for the POPs Convention and notifications to the secretariats of the Kyoto and Montreal
Protocols. However, much uncertainty remains regarding the identification and quantity of chemicals
present in the Moldovan environment as well as main sources of pollution.

This section presents an overview of the main pollutants present in the Moldovan environment and
identifies potential sources of pollution. More detailed information regarding chemical exposure and
risk is provided at 3.2.

Obsolete Pesticides43

Most of the obsolete pesticides (OP) are remnants from the Soviet Union times. During the period
1970-1990, over 800.000 tonnes of pesticides were used in agriculture, the greatest amounts having
been used during 1980-1990. The intensive application of pesticides on agricultural land led to soil
and water pollution that ultimately affected human health.

The amount of pesticides used has been reduced significantly over the last 10-12 years, partially due to
the decrease in income. As a consequence of the worsening of the living and economic conditions,
farmers could no longer afford buying pesticides. Nonetheless, there is a new policy to provide
incentives to use more pesticides to increase productivity.

                                             Figure 7: Dynamic of pest utilisation (active matter)
                                                                 Dynamic of pest utilisation,
                                                               thousand tons of active matter
                           2,4 2,8 3,4 3,1




                    2002
                    2000
                    1998
                    1996                                                                         Thousand tons of active
                                                                                                 matter
                                 4,8




                    1994
                                    11,2




                    1992
                                       14,5




                    1990
                                                        38,3




                    1984

                           0                    10       20           30        40        50

                                                 Source: POPs National Inventory Report (2003)

The application of chlorine-organic pesticides, which tend to be pesticides with POPs characteristics
(HCH, DDT), has decreased in the last years. On the other hand, application of organic phosphorous

43
     For more information, see NIP and accompanying documents. Cfr supra note 9.

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pesticides (some of which are Class I pesticides, e.g., Carbofuran) has increased. The application of
pesticides from the simtrazine group has also increased significantly as well as Class III and IV
pesticides, since most of the pesticides registered belong to these less harmful categories. Nonetheless,
concerns exist about controls over the application and use of Class I and II pesticides by small farmers.

3000 tonnes of obsolete and prohibited pesticides are deposit in warehouses. Out of the 777 tons of
identified (known) OP, POPs pesticides amounted to 1.68 tonnes (0.08 tons of heptachlor and 1.60
tons of toxaphene). Approximately 3.94 thousand tons of pesticides were buried at a pesticide dump in
Cismichioi, in the South of Moldova, including 654.1 tons of DDT. Nonetheless, the amount of
obsolete pesticides has decreased by about 600 tonnes.

                                       Figure 8: Types of pesticides used


                                                                    Simtriazine group

                                                                    DCM

                                                                    Chelthane
                                                                    chlorethanol p.l.
                                                                    Dalapon p.u.

                                                                    Taxofene

                                                                    Other pesticides




                           Source of information: POPs National Inventory Report (2003)

Despite the international support, 2000 remaining tonnes of OP are still deposited in warehouses and
4600 tonnes are buried in the landfill of Cismicioi, including 600 tonnes of DDT. Only part of those
pesticides has been identified. Contaminated sites have not been fully assessed but about 1000
warehouses were destroyed whose sites are now contaminated. In addition, it is known that some OP
might be in the premises of education institutions but no inventory has been carried out regarding
these chemicals.

PCBs44

The Republic of Moldova has no plants for producing PCB-containing materials or equipment, all of
them having being imported from abroad. Their use in some areas was discontinued or prohibited in
the 70s. However, due to lack of knowledge about the consequences, PCBs continue to be currently
used as dielectrics in power installations (transformers and capacitors), as thermal agents in heating
equipment and in other types of equipment. Under the current GEF/POPs project, inventories of PCB
and PCB contaminated equipment were developed. There are 25 000 transformers and 1066.156
tonnes of PCBs in 19 056 capacitors and 1100 tonnes of PCBs.

PCB emissions from generation, transportation and distribution transformers in the power system
amount to 14.417 g ET/an. Losses through oil leakage amount 9.611 tons/year.




44
     For more information, see NIP and accompanying documents

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                               Table 2: Potential PCB oil availability in Moldova

                                   Number of power transformers in the country

                                                                               Transformers, pieces
                          Type of equipment
     Nr.                                                       Right bank           Left bank       Total Moldova
     1.       15-330 kV/MV power transformers
              ˙ in generation facilities                               32                 16                   48
              ˙ in electrical transmission networks                   310                 81                  391
              ˙ belonging to consumers                                 13                  4                   17
              Total                                                   355                101                  456
              6-10kV/LV power transformers
              ˙ in electricity distribution network                16922                3384               20306
      2.
              ˙ belonging to consumers                              2000                 500                2500
              Total                                                18922                3884               22806

             Total amount of potentially PCB-contaminated dielectric oil filled in the power equipment

                                                                                    Oil, tons
     Nr.      Type of equipment                                Right bank           Left bank       Total Moldova
      1.       Power transformers
              ˙ in generation facilities                              411,1               595,6              1006,7
              ˙ in electrical transmission networks                  8444,1              1109,5              9553,6
              ˙ in electricity distribution networks                 6129,6              1258,0              7387,6
                     belonging to distribution companies             5481,6              1096,0              6577,6
                     belonging to consumers                           648,0               162,0               810,0
              Total oil in transformers                             14984,8              2963,1             17947,9
              In storages                                             298,0                56,0               354,0
              Switches, measurement transformers,
      2.                                                             4495,4               888,9              5384,4
              inductors,
      3.      Electrical capacitors
              ˙ belonging to electrical utilities                      207,3                 6,0              213,3
              ˙ belonging to consumers                                  20,0                 0,6               20,6
              Total oil in capacitors                                  227,3                 6,6              233,9
                            TOTAL                                   20 005,5             3 914,6           23 920,1

     Source: PCB Inventory Report 2003, WB/GEF Project “Enabling Activities related to Implementation of the
                            Stockholm Convention on Persistent Organic Pollutants”

However, the information contained in the inventory is not complete since PCBs contained in some
capacitors have not been quantified (including 2,000 transformers owned by private consumers) and
PCB contaminated oils have not been inventoried, although the inventory is expected to be developed
in 2008 under a new project. It also seems that the PCB inventory only covered the energy sector but it
did not include the transport sector. To date, it was not possible to know whether PCB-contaminated
oils have been used in railways. In addition, the extent of sites contaminated by leakages of PCBs has
not been assessed45.

Unintended POPs by-products46




45
   According to UNECE 2nd Environmental Performance Review, the State-owned monopoly « Moldovan Rail »
is in the process of implementing a 2003-2007 action plan including recycling of oils and technical water and
monitoring of the toxicity of emissions. This plan could not be found. In conversations with the Ministries of
Industry and Transport, it was indicated that Arsenic and other substances were used in the past for poles,
railways and so on. None of them mentioned PCBs.
46
   For more information, see NIP and accompanying documents – Cfr supra note 9

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There is little capacity in the country to monitor unintended releases of POPs, in particular dioxins and
furans. The information provided in this section summarises the data reported for the preparation of
the NIP for the Stockholm convention. However, to have a more accurate picture of unintended POPs,
the country will need to have better equipment.

PCDD/PCDF releases to air, water and soil and as residues in products amounted 777.3 g TEQ in
2001. Over the period 1990-2001 PCDD/PCDF releases decreased by 86.6% due to economic decline
and restructuring of the economy. The main source of PCDD/PCDF releases was dumping in water
(96.6% in 1990 and 97.4 in 2001)47.

In 1990 PCBs emissions amounted 16.24 kg/year. The main emission sources were heavy-duty
vehicles, buses (68.9 %) and lime production (31 %). PCBs releases registered in 2001 were 2.10
kg/year, which constituted about 13% of the 1990 respective amount. The main emission sources were
heavy-duty vehicles and buses (99 %).

HCB releases amounted to 0.025 kg/year in 1990. The main emission source was cement production
(99 %). In 2001 HCB releases were estimated at 1.0 kg/year. The main emission source was secondary
aluminium production (99%).

PAHS emissions in 1990 were estimated at 2,708.8 kg/year. The main emission sources were coal -
33%, firewood - 35%, ethylated gasoline – 17%, diesel oil – 12%. PAHs releases registered in 2001
amounted 2,215.4 kg. The main source of PAHs emissions was firewood (92%).

Air pollutants

Stationary sources

No incineration plants are operative in Moldova. However, illegal burning, medical waste and tyres
have been reported. The main sources of emissions to air are power plants producing energy, transport
and cement kilns. The energy and heat generation is by far the biggest stationary source of air
pollution. However, one significant contributor to air pollution is the most important energy
generation plant situated in Transinistria. No information could be obtained about this installation.

In 2005 Moldova had 2.289 registered stationary sources, mainly in the energy and heat generation
sector but also in industry and the services (including 529 petrol stations).48 Emissions from the plants
have decreased due to decrease in the energy demand and the replacement of solid and liquid fuels by
natural gas. However, as the country develops, energy demand is likely to increase together with
emissions from the energy sector. The change in the type of fuel used is already a first SCM measure
to reduce emissions and its hazardousness. However, more measures will be needed to decouple
economic growth and emissions from the energy sector, such as energy efficiency and new
technological processes. Power plants are the most important sources of SO2, NOx, CO and probably
CO2. Energy and heat generation might also be responsible for dioxins and furans. Data on dioxins and
furans should not be considered accurate since the current equipment does not allow measuring these
by-products.

     Table 3: Emissions of dangerous substances in atmospheric air by stationary sources, by ingredients

                                                                                                   thousand tons
                                    1998    1999     2000     2001     2002     2003     2004          2005
Total                                30,5     20,4    15,2      14,5     17,0     16,0     17,5              20,3
     including:


47
   Unintended POP by-products Inventory Report 2003, WB/GEF Project ―Enabling Activities related to
Implementation of the Stockholm Convention on Persistent Organic Pollutants‖.
48
   Cfr supra note 7- 2nd Environmental Performance Review.

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     solid                                4,9        3,5       2,8          3,3     3,9    4,2          4,4                  5,2
     gaseous and liquid                  25,6       16,9      12,4      11,2       13,1   11,8         13,1                 15,2

         of them:
       dioxide sulphur                   12,0        8,0       3,9          2,5     2,3    2,5          2,2                  2,4
       oxide nitrogen                     4,0        2,8       2,6          3,0     3,0    2,5          2,5                  2,9

       oxide carbon                       8,1        4,9       4,5          3,9     5,7    4,5          5,1                  6,1


                                     Source: Moldova Yearbook of Statistics (2005)

Emissions from other stationary sources, such as cement kilns or pulp and paper mills may be
responsible for the presence of ammonia. However, ammonia is normally released by agricultural
activities, such as pig and poultry farms. It could be that the high levels of ammonia derived from this
industry and not from stationary sources of pollution.

The presence of xylene and toluene may be due to petrol stations and the chemical industry but it
could also be a consequence of transport pollution. Information is not accurate and the criteria to
determine what constitute stationary sources or mobile sources of pollution are not clear. The transport
sector (buses and heavy duties vehicles) also contributes to the presence of POPs in the atmosphere.

        Table 4: Emissions of some specific polluting substances in atmospheric air by stationary sources

                                                                                                                            tons
                              1998       1999         2000           2001         2002    2003                2004         2005
Metals and their                     –          –            3,0        5,3         5,2       10,6                   9,1     6,5
compounds
Lead                             0,0        0,1              0,5        0,3         0,3          0,2                 0,4     0,5
Ammonia                         59,7       36,0            24,1        35,7        64,2       83,1              132,6      141,3
Aromatized multiring                 –          –            1,8        9,0        16,0       11,4               16,4        9,2
hydrocarbon
  of which,                          –          –            0,4        0,4         7,8          4,1                 7,5     4,0
benzo(a)pyrene
Xylene                          48,8       44,6            42,1        18,4        16,0       26,4               32,4       31,6
Styrene                          5,3        4,6              4,6        0,2         0,0          0,2                 0,1     0,2
Toluene                         45,7       29,5            22,3        20,1        16,2       29,3               35,5       36,3
Formaldehyde                     1,1        0,9              0,6        1,2         0,3          0,4                 0,8     0,2

Chlorine                         0,7        0,6              0,0        0,1         1,5          1,7                 1,6     2,0
Persistent organic                   –          –             –             –       0,3          4,2                 0,5     2,1
pollutants
     of which:
     dioxines and furanes            –          –             –             –       0,1          0,1                 0,1     0,1

     hexachlorobenzene               –          –             –             –       0,0          0,0                 0,2     0,2



                                     Source: Moldova Yearbook of Statistics (2005)

Mobile sources and diffuse sources of pollution

In 2003 transport accounted by 85.5% of total mobile emissions49. This percentage is likely to rapidly
increase due to economic growth. Measurement of emission from landfills is not carried out and
therefore no data is available about methane released from landfills that might also be a significant
source of pollution in the country.



49
     Cfr supra note 7- 2nd Environmental Performance Review.

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                 Table 5: Emissions of dangerous substances in atmospheric air by transport means

                                                                                                                                    thousand tons
                                                        1998       1999        2000         2001           2002         2003            2004
Liquid and solid detrimental substances – total          174,4     110,0       118,8        122,9          130,9        139,3                152,2
    of them:
     carbon oxide                                        121,7      74,4           80,7        85,8         87,2        100,3                108,2
     hydrocarbon                                          29,6      19,2           20,7        22,2         12,9         14,4                 15,8
     nitrogen dioxide                                     13,4          9,1         9,9        10,7         15,1         16,1                 18,4


                                         Source: Moldova Yearbook of Statistics (2005)

Water pollutants:

The main sources of water pollution are household and animal waste, poor water treatment and
agricultural activities (pesticides and fertilisers use). However, no information has been obtained about
industrial sources of pollution which might be significant in industrial areas. It is known that
wastewater discharged from residential or industrial areas is a major pollution contributor to surface
waters as most of the wastewater treatment plants (WWTP) are not operational anymore. Out of the
580 WWTPs built before the early 1990s, only 90 were still in use in 2006 and only 3 complied with
the national standards50. Because these WWTP are obsolete they also use substances that can pollute
water. The quantity of untreated or insufficiently treated wastewater has dramatically risen since 2000.

                                           Table 6: Pollution of water resources*

                                                                 1998     1999       2000        2001        2002         2003        2004    2005
 Number of high pollution cases, units                             35         20          24          27           47          66       73       80

        of which, with:
      ammonia nitrogen                                             14         8           10          14           22          27       33       22
      nitrite nitrogen                                             21         12          9           6            18          16       24       37
 * / Data are presented in total for the country
                                         Source: Moldova Yearbook of Statistics (2005)



According to the Water Pollution Index (WPI) the main rivers Dniester and Prut are moderately
polluted (category III-IV) while smaller rivers like Reut and Bicu are more polluted (category IV-VI),
on a scale where I is the least and VI the most polluted. Small rivers tend to be more polluted because
farmers and citizens tend to dispose of their household and animal waste in surface waters. In addition,
agricultural activity, and thus fertilisers and pesticides application, takes place close to small rivers.
The main rivers of Moldova are also part of international conventions and therefore more controlled.
Dniester‘s water quality is important, since it is the main surface water (Baltic, Danube) body in the
country, providing water for 82% of the population of Chisinau and being the source of 56% of the
total abstracted water51.

The majority of groundwater does not meet quality standards and requirements for potable water
because of the excessive concentrations of chemical substances52 (fluorine, iron, hydrogen, sulphide,
chlorides, sulphates, nitrates, acrylamide). According to the 2004 State of Environment Report,
pollution in underground aquifers is widespread and the poorly managed underground water is subject
to continuous deterioration. Groundwater abstraction is the main source of water in rural areas.


50
   Cfr supra note 7- 2nd Environmental Performance Review, and interviews with representatives of SEI.
51
   Cfr supra note 7 - 2nd Environmental Performance Review.
52
   Cfr supra note 7 - 2nd Environmental Performance Review.

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In conclusion, some of the pollution problems in air and water identified in the country derived from
an inadequate chemicals management (content of fuel, substances produced as by-products, agriculture
use of pesticides and waste management). Improvements in the chemical management, including in
technological processes (e.g., energy sector), will lead to a reduction of pollution.

       3.2.     Risks associated with chemicals exposure to human health and
           environment

Although a number of potentially problematical substances were identified, it was difficult to obtain
detailed statistics that could be used to make any quantitative assessment of risks. Instead a qualitative
analysis has been completed that indicates several problem areas and highlights the gaps in chemicals
management policy and its consequences to human health and the environment.
       3.2.1.    Waste

Data gathered and presented here were obtained from interviews with the State Environment
Inspectorate for Chisinau and Orhei, as well as, statistical records for 2005 for the Chisinau region. A
number of examples of industrial waste products stored on industrial sites in the Chisinau municipality
are presented in the table below:

                Table 7: Toxic waste stored on industrial sites in the Chisinau municipality

                               Toxic waste               Identified waste (tonnes unless
                                                              indicated otherwise)

                     Ferrocyanide                        1083.87


                     Galvanising sediment                320.66


                     Waste petroleum                     360.64


                     Waste lead                          236.88


                     Waste     mercury      containing   633841 units
                     lamps.


The main problematical substances were confirmed through the two interviews undertaken and
previous records; for example 1997 statistics showed ferrocyanide waste in Moldova at 1,899 tonnes.
These types of waste reflect an inadequate chemicals policy.

Ferrocyanide

       Wine is treated with potassium ferrocyanide to precipitate iron and some other heavy metals (Cu,
       Zn, Mg, Pb, Mn and Cd), known as blue fining; however, it is prohibited in many countries, e.g.
       the US, and is strictly controlled where permitted i.e. subsequent testing for residual levels of
       cyanide which may result in the formation of hydrocyanic acid. In addition, since the precipitate
       contains iron(III)cyanide (Prussian Blue) it can cause evolution of hydrogen cyanide gas if
       exposed to acids and therefore must be disposed of appropriately. Cyanide compounds are highly
       toxic, causing harm by interfering with the body's use of oxygen. It stops the use of oxygen in
       metabolic pathways; furthermore, chronic exposure to low levels of cyanide may induce some
       neurological disorders resembling Parkinson's disease. The toxicity of potassium ferrocyanide



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       itself is low but at least one source indicates it is harmful to aquatic organisms and may cause
       long-term damage to the environment (Fish LC: 19 mg/l/96h, Daphnia EC: 32 mg/l/96h)

Galvanising sediment

       It is not clear what this waste contains but it is likely to be both heavy metals and residual cyanide
       from galvanising processes (Zn, Ni, Cr, Cu plating of metals). Like ferrocyanide, galvanic waste
       has been a long standing problem (1,240 tonnes identified in 1997). In Kyiv galvanic
       manufacturing waste has been found to be the main source of the city water storage pollution with
       highly toxic heavy and nonferrous metals (zinc, nickel, chromium, copper, cadmium etc).

       Chromium toxicity depends on its oxidation state; chromium (VI) is much more toxic than
       chromium (III). Chromium (VI) compounds are toxic for bacteria, plants, animals and people.
       Human toxicity includes lung cancer, as well as kidney, liver and gastric damage. Chromium (VI)
       is one of major toxic elements present in environmental samples from galvanising works. Most
       chromium (VI) compounds are irritating to eyes, skin and mucous membranes. Chronic exposure
       to chromium (VI) compounds can cause permanent eye injury, unless properly treated.
       Chromium(VI) is an established human carcinogen. Hexavalent chromium for example, is found
       mainly in metallurgical, chromium plating, refractory and pigment production waste solutions.

       Cadmium and its compounds are extremely toxic even in low concentrations, and will
       bioaccumulate in organisms and ecosystems. Pathways of human contact include soil
       contamination from industrial releases or landfill and associated leachate processes. Ingestion of
       any significant amount of cadmium causes immediate poisoning and damage to the liver and the
       kidneys. Compounds containing cadmium are also carcinogenic. Serious toxicity problems have
       resulted from long-term exposure to cadmium plating baths

       Nickel and some of its compounds are carcinogenic. In addition, individuals can become sensitised
       to them and will then be unable to work with the substances again.

       Metallic zinc is not considered to be toxic, but free zinc ions in solution (like copper or iron ions)
       are highly toxic. Inhalation of freshly formed zinc oxide formed during the welding of galvanized
       materials can cause ‗zinc shakes or zinc chills (metal fume fever). Excessive intake of zinc can
       promote deficiency in other dietary minerals. It is also toxic to plant growth as is copper.

Waste petroleum

       This could include oil and grease, benzene, toluene, ethylbenzene, and xylene compounds and
       polycyclic aromatic hydrocarbons. Benzene is classified according to Annex I of Directive
       67/548/EEC as may cause cancer and heritable genetic damage, irritating to eyes and skin, danger
       of serious damage to health by prolonged exposure through inhalation, in contact with skin and if
       swallowed, and may cause lung damage if swallowed. Ethylbenzene is classified according to
       Annex I of Directive 67/548/EEC as harmful by inhalation. Xylene is classified according to
       Annex I of Directive 67/548/EEC as harmful by inhalation and in contact with skin.

       Most Polycyclic aromatic hydrocarbons (PAHs) in ambient air are the result of burning coal,
       wood, petroleum, petroleum products or oil, and of coke production, refuse burning and motor
       vehicle exhaust fumes. Benzo[a]pyrene (B[a]P) is the most carcinogenic polycyclic aromatic
       hydrocarbon that has been studied. Water and soil can contain measurable amounts of polycyclic
       aromatic hydrocarbons, primarily from airborne fallout. Water contamination also occurs as a
       result of industrial effluents and accidental spills from oil shipments at sea. Polycyclic aromatic
       hydrocarbons can leach from soil into water. Because of their lipophilic nature, polycyclic
       aromatic hydrocarbons can accumulate in breast milk and adipose tissue. Polycyclic aromatic
       hydrocarbons generally have a low degree of acute toxicity in humans. Epidemiologic studies of
       polycyclic aromatic hydrocarbons have revealed an increased incidence of skin, lung, bladder and
       gastrointestinal cancers.




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Waste lead

       It is not clear the form of the waste or lead compounds present therein. Lead can damage nervous
       connections (especially in young children) and cause blood and brain disorders. Long term
       exposure to lead or its salts (especially soluble salts or the strong oxidant PbO2) can cause
       nephropathy, and colic-like abdominal pains.

Waste mercury

       The waste mercury is a component of fluorescent light bulbs, which individually contain very
       small amounts of mercury sealed within the glass tubing (4-5 ml). Mercury is a bioaccumulative
       toxin that is moderately absorbed through the skin, rather poorly absorbed through the
       gastrointestinal tract, and readily absorbed as vapour through the lungs. It is strongly toxic when
       absorbed as vapour from the respiratory tract, but it is considerably less when exposure occurs via
       other routes. Compounds of mercury tend to be much more toxic than the element itself, and
       organic compounds of mercury are often extremely toxic. Dimethylmercury, for example, is a
       potent neurotoxin that is lethal in amounts of a fraction of a millilitre. Mercury damages the central
       nervous system, endocrine system, kidneys, and other organs, and adversely affects the mouth,
       gums, and teeth. Exposure over long periods of time or heavy exposure to mercury vapour can
       result in brain damage and ultimately death. Mercury and its compounds are particularly toxic to
       foetuses and infants.

       In a previous attempt to solve the problem of used luminescent tubes in Moldova, a
       demercurisation plant with a capacity of 3 000 lamps/day was brought on stream in Bender in
       1995. However, with rising costs this is no longer running as most enterprises could not afford it.

Waste treated wood

       Wood used in outdoor applications, such as telephone poles, railway sleepers, children‘s play areas
       are often treated with a preservative. It might be that utility poles and railway sleepers have been
                                                                                                   53
       treated in the past with Arsenic, creosote or copper chrome arsenate (CCA) in Moldova . There
       are also concerns about old utility poles being used for heat generation purposes in rural
       households.
                               54
       An independent review in the EU of the risks of copper chrome arsenate treated wood has agreed
       that there significantly increased lung cancer risks from uncontrolled use of CCA-treated wood for
       home heating and significant effects on the environment from uncontrolled burning and disposal of
       CCA-treated wood.

In conclusion, it can be seen from the above qualitative analysis that the toxic wastes stored on
company sites are potentially very problematical and would cause human health and environmental
effects if they caused contamination of soil, water or air. Storage on enterprises is only a short term
solution. Disposal of the current stored hazardous wastes in premises may be problematic and will
need to be negotiated with the waste holders. Measures will be needed to reduce the production of
hazardous wastes, including SCM.

       3.2.2.     Occupational health

Moldovan industry suffered a dramatic decline in the 1990s until the end of that decade. However,
between 2000 and 2005, the industrial output grew 8-16% annually (see below).
53
    This information has not been confirmed. Further information and confirmation have been requested.
According to the contacts during the second mission and communication with the PMT for POPs, according to
the information to date, there is no indication if PCBs were used or released by rail transport. During the first
stages of PCBs of inventory only the energy sector was involved. It could be that the oils and other toxic
substances referred to are Creosote, PCPs or Chromated copper arsenate (CCA), which have traditionally been
used to preserve wood railway ties and utility poles.
54
   http://ec.europa.eu/health/ph_risk/committees/sct/docshtml/sct_out18_en.htm

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                       Figure 9: Industrial production in the Republic of Moldova,
                                  1995-2005, thou. MDL (current prices)


               20000
                                                                      Manufacturing industry
                                                                      Total industry
                   0
                       1995   1997   1999   2001   2003    2005



                                 Source: Moldova Yearbook of Statistics (2005)

It has been reported that the ongoing privatisation and restructuring process of the industrial sector as
well as new contracts with external (especially EU) partners have contributed to these improvements
in the industrial sector. A number of joint-ventures have been created with foreign companies,
especially in the light industry, and foreign companies or joint ventures account for one quarter of
industrial production. This increase in manufacturing will no doubt lead to increases in the chemicals
used in production.

Data gathered and presented here were obtained from interviews with 3 chemical using companies,
information from the State Ecological Inspectorate, information from the Construction Standards
Agency and statistical records.

The statistical records from the Ministry of health (2006) show a number of incidents related to
chemicals (5 casualties for pesticides and 2 for toxic chemicals) but do not provide any further
information on the direct cause of the poisonings. Three visits were undertaken to enterprises in
Chisinau to assess the types of substances used and the capacity of the enterprise to manage them, of
which two are presented below:

   Visit to Floare Carpet factory, manufacturers of carpets. A number of chemicals were used in the
    dying processes factory, including a number sourced from a large EU chemical company. These
    chemicals included lyogen (self classified by the company under directive 67/548/EEC as harmful
    to aquatic organisms and long term effects in the environment) and optilan blue (self classified by
    the company under directive 67/548/EEC as a skin sensitiser, and as toxic to aquatic organisms
    and long term effects in the environment). The Safety Data Sheets (SDS) for the substances were
    supplied in German and the labelling was not always consistent with the classification in the SDS.

   Visit to Midgard Terra (originally Agurdino-Chimia S.A.), which produces paints and household
    chemicals. The company imports up to 150 chemicals from Ukraine, Russia, Romania, Bulgaria,
    Germany, Turkey, China, and Korea, including white spirit (Romania, Azerbaijan), various
    pigments (Ukraine, Spain, China), okras (Russia), calcite (Turkey), titanium peroxide (Ukraine),
    and toluene (Bulgaria, Romania). The latter requires a special license for import and use and is
    classified according to Annex I to Directive 67/548/EEC as highly flammable, irritating to skin,
    danger of serious damage to health by prolonged exposure through inhalation, possible risk of
    harm to the unborn child. It may also cause lung damage if swallowed and vapours may cause
    drowsiness and dizziness. In general the company did not ask the providers about the toxicological
    properties but had adequate worker protection mechanisms with their own doctors and labour
    protection specialists. The packaging of their final products contains instructions on use of
    protecting measures in 3 languages: Romanian, Russian and Ukrainian. It is not clear if the labels
    and any accompanying SDS were adequate to ensure safety handling and disposal. The company
    indicated a number of concerns including the low quality control for the imported household
    chemicals from Turkey, Romania and Bulgaria. The compny also complained about little support
    from the Government in terms of encouraging better standards and recycling of, for example,
    packaging.


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In addition, a number of individual substances have been highlighted as potential risks:
Asbestos
       Hazard
       All forms of asbestos (blue, brown and white) cause lung cancer, asbestosis (which are almost
       always fatal), and mesothelioma (which is always fatal); people who smoke and are also exposed
       to asbestos fibres are at a much greater risk of developing lung cancer.

       Exposure
       Asbestos was used extensively in the EU as a building material for a variety of different purposes
       and was ideal for fireproofing and insulation; its use was discontinued from the late 1980s. It is
       almost totally banned in the EU55 and other countries and is a major contributor to occupation
       cancer rates. Asbestos materials in good condition are safe unless the asbestos fibres become
       airborne, which happens when the materials are damaged. A key factor in the risk of developing an
       asbestos-related disease is the total number of fibres breathed in and there is a possibility that
       being exposed to asbestos fibres for a short period of time can cause cancer. In the UK, for
       example, asbestos has been the main cause of occupational ill health from about 1950 onwards and
       is still the greatest single work-related cause of death from ill health. Past exposure is now
       responsible for about 4000 people dying from asbestos related cancers every year. Asbestos is the
       most important single factor causing death and disability at work, with some 100,000 fatalities a
       year56. In Moldova, asbestos is used in making asbestos pipes used intensively in previous times
       for water supply and chimneys.

       The Construction Standards Agency confirmed that asbestos was still used in the Moldovan
       construction industry in asbestos cement sheets. Such sheets generally contain 10-15% asbestos
       fibres which are bound in cement or calcium silicate. All three forms of asbestos have been used to
       make asbestos cement but the majority was made with white asbestos. The cement sheets used in
       Moldova are either manufactured in Transnistria or imported from Ukraine. Work on asbestos
       cement may cause the generation of asbestos dust which can cause the problems mentioned
       previously. The UK Health and Safety Laboratory (HSL) have recently investigated claims that
       chrysotile asbestos in asbestos cement products is altered into a non-asbestos fibrous material
       called Casitile and no release of airborne chrysotile fibres can occur. The HSL investigation
       confirms that chrysotile fibres are present in the cement matrix, often as quite large fibre bundles
       which are clearly visible to the eye and that when asbestos cement is disturbed, chrysotile fibres
       are released from the cement into the air 57.

       There is no information if other forms of asbestos are still used for pipe insulation or fire
       protection, and there are no statistics on mesothelioma cases in Moldova.

       Risk
       There is a high risk from asbestos that is used as a construction material both when installed but
       also during later maintenance and final disposal. This potential combined with the lack of adequate
       legislation and increasing construction/renovation work is of serious concern.

Dichloride ethane: 1,1 or 1,2-dichloroethane

       Hazard
       1,2-dichloroethane is classified (according to Directive 67/548/EEC) as highly flammable, harmful
       if swallowed, irritating to the eyes, skin and respiratory system, and may cause cancer. Other data
       indicate that it is a probable human carcinogen, causes liver damage, is a mutagen, toxic, a skin
       irritant and narcotic. 1,1-dichloroethane is classified according to Directive 67/548/EEC as highly


55
   Directive 76/769/EEC prohibits the placing on the market and use of crocidolite, amosite, anthophyllite,
actinolite, tremolite, and chrysotile asbestos and of products containing them. However, Member States may
except diaphragms for existing electrolysis installations containing Chrysotile until 2008.
56
   Declarations by ILO President Jukka Takala to ―Hazard Magazine‖ (http://www.hazards.org/asbestos/ilo.htm)
See as well http://www.ilo.org/public/english/bureau/inf/features/06/asbestos.htm
57
   Study available from http://www.hse.gov.uk/research/hsl_pdf/2007/hsl0711.pdf

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       flammable, harmful if swallowed, irritating to the eyes and respiratory system, and harmful to the
       environment 52/53.

       Use and exposure
       The substance is used as decontamination substance by the military but no exposure data is
       available. The UK has set an occupational exposure limit of 21 mg/m3 for 1,2 dichloroethane and
       the EU an OEL of 412 mg/m3 for 1,1-dichloroethane.

       Risk
       There is a possible risk from use of this substance unless suitable precautions are taken; if 1,2-
       dichlorethane is used it would be appropriate to substitute this substance for a less hazardous one,
       if a technically suitable one is available.

Chlorine

       Hazard
       Chlorine is classified according to Annex I of Directive 67/548/EEC as toxic by inhalation,
       irritating to eyes, respiratory system and skin, and very toxic to aquatic organisms.

       Use and exposure
       Chlorine is stored or used at one company in Orhei at a quantity of 3 tonnes for an unknown
       process. The level of chlorine used is below that which would trigger the Seveso II Directive (10
       tonnes). The EU has set a short term OEL of 1.5 mg/m3.

       Risk
       Chlorine could be risk to the workers and the environment in the event of an accident but if it
       occurred at this site it would be very serious but probably localised.

In conclusion, a wide range of substances are used by workers in Moldovan companies. Whilst there
is no evidence available that long term problems are being encountered, a lack of adequate hazard
information would not allow proper risk assessments by companies. The continued use of asbestos
cement sheets will cause problems in the future during maintenance and future disposal. These risks
could be solved by the adoption of SCM.

       3.2.3.       Air pollution

Data gathered and presented here were obtained from interviews with the State Meteorological
laboratory and statistical records.

The statistical records from the Ministry of Health (2006) indicate that the principle atmospheric
polluters in Moldova are transport, energy producers and some localised industry. The principle
pollutants are nitrogen dioxide, carbon monoxide, suspended particles, cement dust, iron dust, lead,
soot, formaldehyde and benzo(a)pyrene. Monitoring has shown that the frequency of measurements
above the maximum permitted concentration for urban areas is:

             Sulphur dioxide                                 6.5%

             Carbon monoxide                                 3.4%

             Nitrous oxide                                   12.9%

             Formaldehyde                                    4.7%

                  Source: Report on the Activities of the National Centre of Preventive Medicine, 2006



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In addition, monitoring results from the State Geological Laboratory have indicated that the following
substances are measured above their limits: nitrogen dioxide, suspended solids, benzo(a)pyrene,
phenols and formaldehyde.

The World Health Organisation has estimated that 4.6 million people die each year from causes
directly attributable to air pollution. In Europe, air pollution is responsible for 310,000 premature
deaths in Europe each year and reduces life expectancy by an average of almost nine months. The
European Commission has estimated that each European takes on average half a day off sick a year
due to illnesses linked to air pollution - costing the economy more than 80bn euros (£55bn). A
previous study indicates that in the urban areas of the Republic of Moldova, 70% of morbidity among
children is due to respiratory disease linked to air pollution - in rural areas it is 40%58.

The direct causes of air pollution related deaths include aggravated asthma, bronchitis, emphysema,
lung and heart diseases, and respiratory allergies. People with lung diseases or heart conditions are at
greater risk, especially if they are elderly.

The main substances of concern are nitrogen dioxide, sulphur dioxide and ozone which irritate the
airways of the lungs, increasing the symptoms of those suffering from lung diseases. Fine particles can
be carried deep into the lungs where they can cause inflammation and a worsening of heart and lung
diseases. Carbon monoxide prevents the normal transport of oxygen by the blood. This can lead to a
significant reduction in the supply of oxygen to the heart, particularly in people suffering from heart
disease. Road transport is the main source of nitrogen dioxide and carbon monoxide. Power stations
and other industrial sources also produce nitrogen dioxide. Industry is the main source of sulphur
dioxide. Particles come from many sources, including road transport, power stations and other
industry. The burning of wood or coal for home heating can also be an important source of sulphur
dioxide and particles. Ground level ozone is formed when sunlight acts on nitrogen dioxide and other
atmospheric substances close to the ground.

In conclusion, the previous lack of enforceable limits has resulted in pollution levels above maximum
limits and this could be leading to increased mortality, and costs for the economy to treat illness linked
to pollution.

       3.2.4.   Water pollution

The main water polluters in Moldova were identified through interviews and the assessment of
relevant data. In addition to those substances identified below, nitrates and general organic waste
pollution were also identified as significant. The former is likely to be a function of animal waste
disposal rather than overuse of fertilisers and the later due to raw untreated organic waste being
dumped into rivers.

Whilst the major point-source discharges are monitored, primarily wastewater discharges, the State
Ecological Inspectorate (SEI) showed that other sources, e.g. water runoff from industrial sites, waste
dumps, can be equally or more dangerous for the environment.

The water quality in Nistru, Danube and Prut rivers did not change significantly as compared to
previous years. The integrated water pollution index (WPI) – the average ratio between the
concentrations of 6 selected pollutants (ammonium, nitrite, nitrate, BOD5, oil products and phenols)
and their MACs – indicated an improvement in several sections.

The river Bîc, flowing through the capital city Chisinau, is badly affected due to the inflow of poorly
treated wastewater and runoff water as well as its low dilution capacity. Recorded concentrations of
ammonium, nitrite, BOD5, oil products, phenols, and detergents downstream of Chisinau exceeded
58
   European Environment and Health Committee Republic of Moldova Progress towards Regional Priority Goal
III on air quality

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tens and even hundreds of times the MACs. The concentration of dissolved oxygen on this stretch of
the river went as low as 1 mgO2/dm3. The recorded level of nitrite in river Cogîlnic, downstream of the
town Hînceşti, exceeded up to 70 times the MAC level. Along the year, 4 cases (less than in 2003 or
2004) of extremely high pollution were registered, when the MAC was exceeded 100 times or more,
as well as 77 cases of high pollution, when the MAC was exceeded 10 times or more. The parameters
most often involved were nitrite, ammonium, and biodegradable organic pollution expressed as BOD5
and dissolved oxygen content.

One source of pollution is the oil wells on lake Beleu which are periodically flooded by the Danube
waters producing pollution of the lake with oil products. In the wells‘ neighbourhood the
concentration of petroleum products exceeds the MAC 5-6 times; in the central part of this big (16
km2) lake, however, the content of oil products complies with the environmental quality standards.

The highest level of pollution, according to medium concentration, has been identified for ammonium
ions, Cu compounds, oil products and phenols (in Nistru, Prut, Danube river). The maximum
concentrations are:
        ammonium ions – 2.8 MAC (maximum allowed concentration), Nistru river, Bender city ,
            downstream
        Copper(Cu) compounds – 28.0 MAC, Prut river, Leova city, upstream
        Oil products – 4.6 MAC, Prut river, Valea Mare village, downstream of Jijia river mouth
        Phenols- 21 MAC, Prut river, Olanesti village, hydrometric point of Hydromet Service.

The water quality of small rivers in 2005 is characterised by a high level of pollution with ammonium
ions, Cu compounds, nitrites, oil products, phenols, anion-active detergents, CBO5 and low level of
O2 in water. Maximum concentrations:
         ammonium ions – 138.5 MAC, Bic river, Calfa village
         nitrites – the highest level of pollution in the last 5 years – 340.0 MAC, Lunga river,
            Ceadir-Lunga city, upstream
         phenols – 28.0 MAC, Cogilnic river, Hincesti city, downstream
         anion-active detergents – 19.5 MAC Girla Mare river, Blindesti village
         CBO5 – 44.0 mgO2/dmc, Bic river, mun Chisinau, downstream (Singera village)

In 2005 5 cases of extremely high pollution of surface waters were registered, including: 1 case
concerning ammonium nitrogen, 2 cases concerning O2 reduction, and 1 case concerning nitrite/azotite
nitrogen. In addition a further 77 cases of high pollution, especially in small rivers, were recorded
including 21 cases concerning ammonium nitrogen, 37 cases concerning nitrite/azotite nitrogen, 10
cases concerning CBO5, 6 cases concerning O2 reduction, and 3 cases concerning anion-active
detergents.
                                 Table 8: Pollutants in water (2001-2005)
                   Source: Hydrometeorologycal State Service, Annual Monitoring Report 2006

                                       Year
Pollutant          Characteristics
                                       2001           2002             2003          2004            2005
ammonium           q                   141.0          119.0            115.4         169.2           138.5
nitrogen           n                   11             21               27            32              22
nitrite/azotite    q                   41.5           280.0            62.5          70.0            340.0
nitrogen           n                   6              18               16            24              37
O2                 Q                   0.48           0.4              0.48          0.98            1.20
                   n                   5              4                12            7               8
Biochemical
consumption of     BQ                  18.0           27.5             65.0          61.5            44.0
oxygen in 5 days
( CBO5)            n                   2              3                8             7               10
Oil products       q                   -              -                -             62.2            -

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                                          Year
Pollutant             Characteristics
                                          2001            2002            2003          2004            2005
                      n                   -               -               -             1               -
anion-active          q                   -               -               -             -               19.5
detergents            n                   -               -               -             -               3
q – Maximum annual value expressed in MAC
Q – minimum annual value expressed, mgO2/dmc
BQ – annual maximum concentration, mgO2/dmc
n- total number of cases with high pollution or extremely high pollution registered

                      Table 9: DDT, DDE and DDD concentrations in Moldovan Rivers

River                         DDT                           DDE maximum                  DDD maximum
                              concentration (mcg/l)         concentration (mcg/l)        concentration (mcg/l)
Prut river                    0.03                          0.04                         0.014
Nistru river                  0.08                          0.1                          0.01
Turunciuc river               0.02                          0.02                         0.007
Camenca river                 0.07                          0.04                         0.01
Molochis river                0.02                          0.02
Raut river                    0.05                          0.03                         0.012
Bic river                     -                             0.01
Ciuhur river                  0.05                          0.01                         0.01
Danube river                  0.12                          0.12                         0.238
Girla Mare                    0.02                          0.02                         0.009
Dubasari water body           0.03                          0.03                         0.009
Ghidighici water body         0.02                          -
Cuciurgan haven /liman        0.04                          0.07                         0.01
Comrat water bodies           0.09                          0.07                         0.011
Tarclia water body            0.9                           -

                    Source: Hydrometeorologycal State Service, Annual Monitoring Report 2006

Also have been monitored 5 types of fishes to identify the content of PCO and PCBs.

In the river Prut near Dubasari, monitoring by the State Meteorological Laboratory has shown
increasing levels of DDT (12mg/kg 2005) and of HCH (0.5 mg/kg 2005) in the sediment. The river
Prut is very important in terms of fish stocks and water abstraction.

        Nitrate pollution can cause two effects either eutrophication, i.e., the enrichment of water causing
        an accelerated growth of algae and a decrease in the quality of the water concerned, and
        methaemoglobinaemia i.e., caused by the decreased ability of blood to carry vital oxygen around
        the body, especially problematical in children. It would be interesting to see if there are any cases
        seen and if it is a real problem.

        Raw untreated organic waste causes oxygen loss in rivers and death of higher organisms such as
        fish, for example in the river Bic the oxygen concentration before it enters Chisinau is 15 mg/l and
        when it leaves it is 0.7 mg/l. One of the biggest causes of the decrease in oxygen is untreated
        sewage being discharged into the river. Neither of these examples is strictly ―chemical‖ in origin
        so have not been covered further.

        Acrylamide is used to synthesize polyacrylamides which are in turn used as water-soluble
        thickeners for use in wastewater treatment (when added to water, it coagulates and traps suspended
        solids for easier removal). It is also used in gel electrophoresis, papermaking, ore processing, and
        the manufacture of permanent press fabrics. Some acrylamide is used in the manufacture of dyes
        and the manufacture of other monomers.




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       The main source of for acrylamide in drinking water is normally from its use as a clarifier during
       water treatment when some acrylamide does not coagulate and remains in the water as a
       contaminant. In 1993 the WHO established a guideline value of 0.0005 mg/l limit for acrylamide
       in water based on the maximum authorised dose of polymer of 1mg/l with a residual monomer
       content of 0.05mg/l.

       Exposure to large doses of acrylamide can cause damage to the male reproductive glands. Direct
       exposure to pure acrylamide by inhalation, skin absorption, or eye contact irritates the exposed
       mucous membranes and can also cause sweating, urinary incontinence, nausea, myalgia, speech
       disorders, numbness, paresthesia, and weakened legs and hands. In addition, the acrylamide
       monomer is a potent neurotoxin. Acrylamide produces various types of cancer in experimental
       mice and rats and is classified under Directive 67/548/EEC as may cause cancer and heritable
       genetic damage, harmful by inhalation and in contact with skin, toxic if swallowed, irritating to
       eyes and skin, may cause sensitisation by skin contact, danger of serious damage to health by
       prolonged exposure through inhalation, in contact with skin and if swallowed, and possible risk of
       impaired fertility. Acrylamide does not bind to soil and will move into soil rapidly, but it is
       degraded by microbes within a few days in soil and water. It has little tendency to accumulate in
       fish.

       Aluminium: Aluminium contamination of water can be through both natural and from
       anthropogenic sources. Under neutral or alkaline conditions it has few characterised effects but in
       acidic environments, it can be a major limiting factor to many plants and aquatic organisms. It is
       toxic to a number of invertebrates and fish. In humans aluminium is thought by some to cause
       cognitive problems or is involved n the development of dementia.

       Sulphates: Sulphates in water are often an indication of acid rain. This causes lower pH and higher
       aluminium concentrations in surface water that can cause damage to fish and other aquatic
       animals. At pHs lower than 5 most fish eggs will not hatch and lower pHs can kill adult fish.

In conclusion, the major polluters of water show that there is some evidence of water pollution from
poor practice at water treatment plants, from acid rain and run off. Remains of DDT in water are
probably use to intense use of this pesticide during Soviet times. No sufficient data exist regarding
pollution from industrial sources (such as wine production or textiles production).

       3.2.5.    Soil and sediment pollution

A number of substances have been found contaminating soils in Moldova, including POPs, pesticides
and heavy metals.

POPS

Polychlorinated biphenyls (PCBs)

       Hazards
       PCBs are mixtures of up to 209 individual chlorinated compounds used as coolants and lubricants
       in transformers, capacitors, and other electrical equipment because they do not burn easily and are
       good insulators. There are no known natural sources of PCBs. The International Agency for
       Research on Cancer (IARC) has determined that PCBs are probably carcinogenic to humans.
       PCBs do not readily break down in the environment and can travel long distances in the air and be
       deposited in areas far away from where they were released. In water, a small amount of PCBs may
       remain dissolved, but most stick to organic particles and bottom sediments. PCBs also bind
       strongly to soil. PCBs can be taken up by small organisms and fish in water and can accumulate in
       fish and marine mammals, reaching levels that may be many thousands of times higher than in
       water.

       Exposure
       PCBs enter the air, water, and soil during their manufacture, use, and disposal; from accidental
       spills and leaks during their transport; and from leaks or fires in products containing PCBs. PCBs


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       can still be released to the environment from hazardous waste sites; illegal or improper disposal of
       industrial wastes and consumer products; leaks from old electrical transformers containing PCBs;
       and burning of some wastes in incinerators.

       At present, the major source of PCB exposure for the general population appears to be as a
       consequence of the redistribution of PCBs previously introduced into the environment. This
       redistribution involves volatilisation from soil and water into the atmosphere, with subsequent
       transport in air and removal from the atmosphere through wet or dry deposition (of PCBs bound to
       particulates), and then re-volatilisation. The concentrations of PCBs in precipitation range from
       0.001 to 0.25µg/l. Since the volatilization and degradation rates of PCBs vary among the different
       congeners, this redistribution leads to an alteration in the composition of PCB mixtures in the
       environment.

       At the electrical station in Orhei there are 300-600 capacitors each containing 15kg of PCB and 2
       transformers with 600 tonnes of oil but with an unknown quantity of PCBs. This seems to be
       typical of the facilities in Moldova. The losses through oil leakage amount to 9,790 tons/year. The
       PCB emissions from generation, transportation and distribution transformers in the power system
       of the Republic of Moldova amount to 4.537 kg/year.

       Risk
       There is some risk from PCB leakage and contamination of soil and water. And leakages have not
       been sufficiently assessed.

Hexachlorocyclohexane (HCH)

       Hazards
       HCH is a synthetic chemical that exists in eight chemical forms called isomers; one of these forms,
       commonly called lindane (γ-HCH), has been widely used as an insecticide on fruit, vegetables, and
       forest crops, and animals and animal premises. HCH is very persistent in the environment and thus
       can be found in soil and surface water. In air, the different forms of HCH can be present as a
       vapour or attached to small particles such as soil and dust; the particles may be removed from the
       air by rain or degraded by other compounds found in the atmosphere. HCH can remain in the air
       for long periods and travel great distances depending on the environmental conditions.

       In humans, HCH can result in blood disorders, dizziness, headaches, and possible changes in the
       levels of sex hormones in the blood. All isomers can produce liver and kidney effects. Reduced
       ability to fight infection and injury to the ovaries and testes was reported in animals. The US
       Department of Health and Human Services (DHHS) has determined that HCH (all isomers) may
       reasonably be anticipated to cause cancer in humans. The International Agency for Research on
       Cancer (IARC) has classified HCH (all isomers) as possibly carcinogenic to humans. The EPA has
       determined that there is suggestive evidence that lindane is carcinogenic.

       Use and exposure
       HCB releases in Moldova amounted to 0.025 kg/year in 1990; the main emission source was
       cement production (99 %). In 2001 HCB releases were estimated at 1.0 kg/year; the main emission
       source was secondary aluminium production (99%). It is not clear if this use is continuing.
       Analyses have shown an insignificant content of HCH in soil, the average content in suspension of
       in soil is 0.01 MAC (0.001 mln-1). The maximum content of it was registered in Stoicani village,
       Soroca raion of 0.05 MAC.

       Risk
       Given the low emissions and the low exposure potential via the soil the risk presented by HCH is
       small. However, many uncertainties remain due to the lack of adequate equipment to measure
       HCH, therefore significant risks associated to HCH cannot be excluded

Dichloro-Diphenyl-Trichloroethane (DDT)

       DDT is an organochlorine and a persistent organic pollutant. There are no substantial scientific
       studies which prove that DDT is particularly toxic to humans. The EPA, in 1987, classified DDT
       as class B2, a probable human carcinogen (a group that also includes coffee and gasoline). A

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       recent study conducted by the University of California, Berkeley, suggests children who have been
       exposed to DDT while in the womb have a greater chance to experience development problems. A
       2006 study finds that even low-level concentrations of DDT in serum from the umbilical cord at
       birth were associated with a decrease in cognitive skills at 4 years of age. Some organochlorines
       have been shown to have weak estrogenic activity and this has been observed when DDT is used
       in laboratory studies involving mice and rats as test subjects.

       DDT and its metabolic products magnify through the food chain, with top predators such as bids of
       prey having a higher concentration of the chemicals than other animals sharing the same
       environment. In particular, DDT has been cited as a major reason for the decline of the bald eagle
       and the peregrine falcon in the 1950s and 1960s as it and its breakdown products are toxic to
       embryos and can disrupt calcium absorption thereby impairing egg-shell quality. DDT is also
       highly toxic to aquatic life, including crayfish, daphnids, sea shrimp and many species of fish.
       DDT may be moderately toxic to some amphibian species, especially in the larval stages. In
       addition to acute toxic effects, DDT may bioaccumulate significantly in fish and other aquatic
       species, leading to long-term exposure to high concentrations.

       DDT has a reported half life of between 2-15 years, and is immobile in most soils. Its half life is
       56 days in lake water and approximately 28 days in river water. Routes of loss and degradation
       include runoff, volatilisation, photolysis and biodegradation (aerobic and anaerobic).

       Exposure
       The picture for DDT contamination for sol is sketchy; in 2005 the soil pollution with DDT was
       identified in 3 raions: Soroca (in land for crops growing), Briceni (soil from orchard of 58ha in
       concentration of 3.64 MAC) and Glodeni (soil from wheat land (98 ha) in concentrations of
       1.01MAC. However, its levels are decreasing in soil around Soroca (3.4 CMA 2003; 0.75 CMA
       2005).

       Risk
       There is a potential risk from DDT exposure and due to its persistent nature; the relevant exposure
       site will not decrease naturally.

Heavy metals

       Heavy metals of concern include copper, zinc, lead, nickel and manganese, however, only copper
       and zinc are dealt with in detail here as only exposure data is available on these elements.

Copper

       Hazard
       Maximum Allowable Concentrations (MAC) have been set for total copper forms (55.0 mg/kg)
       and mobile copper forms (3.0 mg/kg). The safe level for copper in soil is 79 mg/kg. Copper levels
       in European soils typically range between 8 and 58 mg/kg.

       Exposure
       Chemical preparations containing copper are largely used for orchard and vineyards protection
       against diseases and are used separately or in combination/in mixture with organic preparations.
       The average content of mobile copper is 0.45 MAC (1.35 mg/kg); concentrations higher than the
       MAC have been found in Cahul (25% of cases above the MAC, max concentration is 1.17 MAC),
       Briceni (80% of cases above the MAC, max concentration is 1.46 MAC), and Hincesti (33,3% of
       cases above the MAC, max concentration is 1.29 MAC) raions.

       Risk
       The risk generally appears to be low but higher in certain areas.




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Zinc

        Hazard
        Maximum Allowable Concentrations (MAC) have been set for total zinc forms (100.0 mg/kg) and
        mobile zinc forms (23.0 mg/kg). The EU are currently discussing a Predicted No Effect
        Concentration (PNEC) for zinc and zinc oxide of 86-117 mg/kg (dw).

        Exposure
        The MAC for mobile Zn was only exceeded in the Causeni raion in the soil samples from wheat
        land (105 ha) at a maximum of 3.2 of the MAC.

        Risk
        The risk generally appears to be low but higher in certain areas.

Pesticides

        Pesticides are inherently toxic to certain organisms and have been described as ―any physical,
                                                                                         59
        chemical or biological agent that will kill an undesirable plant or animal pest‖ . In the past their
        activity has not been just limited to the pest targets but also to other organisms too. In the UK
        during 2005, the cause of death in 103 reported incidents (28% of all incidents reported) were dues
        to pesticide poisoning covering both vertebrates (animals with a backbone or spinal column) and
             60
        bees . This can be clearly seen with some of the POPs that have been previously discussed in the
        report, such as DDT and HCH. For these substances the effects of their use in Moldova are still
        being seen today and will still be seen for many years to come.

        Pesticides are known to cause millions of acute poisoning cases per year, of which at least one
        million require hospitalization. The number of children involved in such incidents is unknown but
        is likely to be large61. Poverty can also play a role in poisoning of children as in poor families,
        children often help out on family farms where pesticides are used and may lack access to
                                                     62
        protective equipment and receive no training .

        Modern pesticides are now being used in Moldova and are subject to a system of registration based
        on acceptance by the European Community of the active ingredient, i.e. it being included on
        Annex I of Directive 91/414/EEC. However, this does not mean there are no hazards or potential
        risks from the pesticides so registered.

        In 1975 the World Health Organisation (WHO) recommended a system of classification of
                  63
        pesticides referring to the risk of single or multiple exposures over a relatively short period of
        time by any person handling the product in accordance with instructions from the manufacturer or
        the government.
                          Table 10: Pesticide classes and data used to classify them64.

                                      LD50 for the rat (mg/kg body weight)
                                                         Oral                                Dermal
       Pesticide class                         Solids            Liquids          Solids               Liquids
             Ia           Extremely          5 or less          20 or less      10 or less            40 or less

59
   Ecobichon DJ 1993 Toxic effects of pesticides Casarett and Doull‘s Toxicology: the basic science of poisons
4th Ed Published by McGraw-Hill Inc.
60
   Pesticide poisoning of animals in 2005 Investigations of suspected incidents in the United Kingdom A report
of the Environmental Panel of the Advisory Committee on Pesticides 2006.
61
    Childhood Pesticide Poisoning Information for Advocacy and Action Published in May 2004 by the
Chemicals Programme of the United Nations Environment Programme (UNEP Chemicals).
62
   FAO press release Children face higher risks from pesticide poisoning Better protection and awareness raising
needed, UN agencies say 5 October 2004.
63
   World Health Organization The WHO recommended classification of pesticides by hazard and guidelines to
classification 2004 ISBN 92 4 154663 8.
64
   Cfr supra note 60.

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                        hazardous
             Ib          Highly              5 - 50          20 - 200          10-100           40 – 400
                        hazardous
             II         Moderately          50 - 500        200 - 2000        100-1000         400 – 4000
                        hazardous
             III         Slightly          Over 500         Over 2000         Over 1000        Over 4000
                        hazardous

       Pesticides in classes I and II are not normally recommended for sale to the general public or to
       smaller farmers who do not have the equipment or skills to apply them. However, in the pesticide
       shop we visited, supplying many small farmers, at least one Class I pesticide was on sale.

       However, evidence that pesticides that are currently used are contaminating the soil, affecting
       ecosystems or the public is not available; as previously mentioned the statistical records from the
       Ministry of health (2006) show 5 casualties for pesticides but without any further details.

       One potential problem that can be highlighted is the allowed use of the pesticide phosalone in
       Moldova; the European Community recently decided not to add this substance to Annex I of
       Directive 91/414/EEC due to uncertainties about its effects 65. During the evaluation of this active
       substance under EU Directive 91/414/EEC, a number of concerns have been identified. This was
       in particular the case concerning the risk for vulnerable groups of consumers, as estimated
       exposures to phosalone have not been demonstrated to be acceptable. Moreover, some of its
       metabolites and impurities need further toxicological characterisation and additional concerns have
       been identified concerning the risk for birds, mammals, aquatic organisms, bees and non-target
       arthropods.

       Containers for pesticides in low-income countries and areas are often used and re-used for other
       purposes, including storing and transporting food and water. This can be a source of poisoning
       from pesticides.

       In addition, there are concerns about the potential increase in the use of pesticides without
       adequate incentives to use less toxic pesticides or non-chemical alternatives.

In conclusion, POPs and pesticides have already been identified as a key element in chemical
management in Moldova. However, little has been done regarding other substances, such as heavy
metals.


4. THE RELEVANCE OF SOUND CHEMICALS MANAGEMENT FOR POVERTY
   ALLEVIATION IN MOLDOVA

Poverty remains an acute problem in Moldova, generated by a number of external and internal factors,
most importantly its transition from being part of the Soviet Union to independence. The persistence
of poverty has led the government to introduce a number of objectives for poverty alleviation66:

             Improve the quality of the environment within the context of sustainable development and
              poverty reduction.
             Improve and maintain public health by securing access to high quality potable water and
              satisfying potable water needs in rural areas
             Secure access to and sustainable use of natural resources, aiming at economic growth.



65
   Commission Decision 2006/1010/EC of 22 December 2006 concerning the non-inclusion of phosalone in
Annex I to Council Directive 91/414/EEC and the withdrawal of authorisations for plant protection products
containing that substance.
66
   Cfr supra note 8 – EGPRSP.

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According to the EGPRSP Moldova‘s poverty profile is similar to that of other countries in the region.
As with many countries in transition, poverty is a multidimensional phenomenon consisting of:

             Reduced income, consumption and employment,
             Insufficient or poor quality nutrition,
             Poor health condition,
             Limited access to education,
             Low levels of participation in decision making, and
             Lack of personal empowerment, reflected in the limited possibility to influence one‘s life
              situation.

As already mentioned at section 2, the economic crisis had severe consequences on the population‘s
health due to limitations on access to health care. Studies show that the ratio of hospitalisation days for
poor and non-poor is 1:11. The average duration of hospitalisation per year is 9-13.5 times shorter for
the poor compared with the non-poor since they cannot afford medical treatment. Financial constraints
are more severe in rural than in urban areas, and the situation worsens as the number of persons in the
household increases and the level of household decreases. The education level of the household head
also affects access to health services: those with lower levels of education have reduced access67.

The close relationship between economic development and environmental protection were underlined
in the Concept Paper on Environment of the Republic of Moldova, approved by the Parliament in
November 2001. The main priorities of the environmental policy are:

             the prevention and mitigation of negative impact of economic activities upon the
              environment, natural resources and public health in the context of sustainable national
              development;
             ensuring a safe environment for the country.


       4.1.      Links between poverty and chemicals in Moldova 68

There are three main links between poverty and chemicals. The first and most important is the link
between chemicals and health. The second aspect is the link between chemicals and degradation of
natural resources, which will have in itself an impact on human health and on the economy of the
country, especially when such an economy depends on the exploitation of natural resources (including
land or tourism). The third aspect is the costs associated to the inefficient use of chemicals or obsolete
and energy inefficient technologies in industrial processes.

Chemicals, health and poverty

Direct or indirect exposure to dangerous chemicals will have impacts on human health. Direct
exposure will come from direct handling and use of those chemicals, for example in the working
place. Those directly exposed to chemicals are often poor workers or small farmers. The dirtiest jobs
go to the poor. Poor workers cannot afford safety equipment or to complain about working conditions.
Occupational diseases linked to chemical exposure (e.g., inhalation and so on) are hardly reported
since workers cannot risk losing their jobs. It should be noticed that in Moldova companies provide
their workers with protective equipment but this equipment is not always adequate since the operator
does not always know the risks associated to the use of certain dangerous substances.



67
  Ctr. Supra note 8- EGPRSP
68
  For more detailed information refer to the World Bank paper: ―Republic of Moldova, Economic Growth and
Poverty Eradication Strategy; Sectoral Strategy – Environmental Protection and Sustainable Use of Natural
Resources – The Relevance of Sound Chemicals Management for Poverty Alleviation in Moldova‖.

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Small farmers in rural communities cannot generally afford to buy protective equipment for the
application of pesticides. Despite the fact that in Moldova pesticides shops offer their services for the
application of Class I and II pesticides many farms cannot afford to pay for those services. In addition,
they can only afford the cheapest products on the market, which are generally the most dangerous
and/or low efficacy pesticides (the same applies for household cleaning products or insecticides). It
has also been reported that, when warehouses with obsolete pesticides were not subject to control,
farmers stole pesticides for their own consumption. Low efficacy pesticides will force the farmer to
apply more quantities of pesticides thereby spending more of his/her limited resources. In other cases,
cheap and pesticides might cause resistance, requiring more applications, or losses in the harvest
(especially if the pesticide is obsolete). Poisoning induced by pesticides application is not always
reported, either by ignorance or for lack of financial resources.

Poor households in rural areas, with no gas heating supply, cannot afford high quality fuels to generate
heat in winter, therefore they use other materials or poor quality fuels leading, when combusted, to
indoor pollution that may cause illness or even death derived from inhalation of toxic fumes It has
been reported that in Moldova old utility poles treated with dangerous chemicals have been used
probably for heat generation purposes.

All these practices might have caused health problems, many of which have not been reported or
studied.

Indirect exposure is more subtle. It could come from the ingestion of food products or fishes that
contain residues of pesticides or other chemical substances or for drinking water contaminated with
heavy metals or by breathing heavy polluted air.

Indirect exposure also tends to affect more the poorest layers of society. An important aspect of
poverty is that poor have limited access to clean water and sewerage. In rural areas of Moldova, where
most of the population draw their drinking water from the substandard groundwater sources and where
only 17 % of families use central supply sources69, bad water quality has a direct impact on the
population‘s health, causing increased morbidity and generating additional health-related expenditures
for the state budget and economy. In addition, increase illness causes additional financial burden on
poor families due to lost working time. According to a World Bank study, in 2002 health care
expenditures contributed to at most a 1.4% point increase in poverty. Pharmaceuticals accounted for
the largest share of household expenditures.

In other cases, the exposure route is the consumption of household or food-products containing
dangerous chemicals or their residues. These chemicals will be transmitted to the organism creating
risks of intoxication or poisoning, reducing health quality or even affecting women‘s fertility and brain
development in children.

A World Bank study70 estimates that in established market economies pollution from agro-industrial
chemicals and chemical pollution from diffuse sources cause between 0.6% and 2.5% of the total
burden of deaths and general ill health. However, another estimate71 suggests that the World Bank may
have underestimated the burden of disease that is environmentally attributable by around 150%.

Poorest households are in many cases situated in environmentally degraded places (e.g., close to
industrial facilities or to electricity generation power plants), therefore being exposed to risks
associated to pollution. Almost within the premises of the electricity power station of Orhei, there is a
household. The people living therein take water from the nearby well and carry out agricultural

69
   Cfr supra note 7- 2nd Environmental Performance Review.
70
   K. Lvovsky et al, ―Health and Environment Strategy Papers‖, No1, 2001, World Bank Working Paper 24096,
2001, World Bank
71
   "How Much Global Ill Health Is Attributable to Environmental Factors?" by Kirk R. Smith, 1 Carlos F.
Corvalán, and Tord Kjellström, 1999

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activities, yet leakages of PCBs contaminated equipment are suspected to occur, contaminating
groundwater and soil.

Other exposures are due to lack of education or ignorance regarding impacts of dangerous chemicals
(e.g., pesticides) or of certain practices on health. These practices include, keeping pesticides at home,
re-use of empty containers, storing batteries in houses, discharging waste in their lands, burning toxic
waste (tyres) or drinking water from their well in many cases contaminated due to discharges of
animal manure. Many of these practices have been reported to occur in Moldova. The impacts caused
by this practice are unknown. In many cases, ignorance regarding impacts of dangerous chemicals
includes ignorance regarding safer alternatives (such as non-chemical alternatives).

Health degradation has reached such levels in Moldova that it can become an obstacle in the country‘s
sustainable development. The issue of health in relation to environment in Moldova has become an
obvious priority for the national economy. The totality of environmental factors, which according to
WHO experts‘ estimations determines up to 20% of the morbidity (respectively mortality) rate, in
Moldova is even higher and can be estimated at 25-28%72. As mentioned before, life expectancy at
birth, the Republic of Moldova occupies one of the last places among European countries. The burden
of chronic morbidity, determined by environmental quality and preponderantly characteristic to
socially vulnerable layers of society, aggravates poverty, affects the quality of life and becomes less
and less tolerable to society73. Through its impact on the labour force it can affect the sustainable
development of the country‘s economy74.

The health risks are in many cases the consequence of an inadequate chemicals management, such as
poor control over the type of substances authorised for its use in food production or industrial
processes75. Adoption of SCM would control the substances used and products composition, reducing
associated risk. It would also reduce the level of emissions of toxic pollutants in air or water thereby
improving the quality of environment and health conditions and will reduce risks associated to
chemicals exposure76.

Chemicals, Natural Resources and Poverty

Most chemicals substances are directly applied to the environment while others are created after use.
The accumulation of chemical substances in the environment produces an alteration of the chemical

72
    The World Health Organisation has estimated that 4.6 million people die each year from causes directly
attributable to air pollution. In Europe, air pollution is thought to be responsible for 310,000 premature deaths
each year and reduces life expectancy by an average of almost nine months.
73
   Cfr supra note 60- World Bank paper.
74
   The European Commission has estimated that each European takes on average half a day off sick a year due to
illnesses linked to air pollution, costing the economy more than 80bn euros (£55bn). A morbidity analysis of
Chişinău, Bălţi, Tiraspol, Tighina and Rîbniţa inhabitants shows that the degree of atmospheric pollution, high
level of noise, etc. tends to influence the morbidity rate of the adult population (15-60 years of age) through a
wide range of related ailments, like tumours, particularly pulmonary cancer, superior respiratory system illness,
allergies, eye ailments, etc
75
   For example, if there is no information about the chemicals used by different sectors, there is no possibility to
determine whether certain chemicals pose unacceptable risks and therefore should be banned. These
unacceptable chemicals may be used in industrial processes thereby contaminating water (and eventually fishes)
and air.
76
   During the presentation on the European Commission‘s new policy on chemicals, REACH (the Registration,
Evaluation and Authorisation of Chemicals) an estimate was made of the benefits to health from the policy. A
reduction of 10% in disease caused by chemicals would lead to benefits in an order of magnitude of €50 billion
over the next 30 years. In addition the long-term benefits to the environment of REACH were estimated to be up
to €50 billion over the next 25 years, depending on the method used. This is not an estimate of the potential cost
savings to the Republic of Moldova but an illustration of their potential scale, given the probable higher standard
of chemical management in the EU. See REACH impact assessment available at
 http://ec.europa.eu/environment/chemicals/background/eia-sec-2003_1171.pdf and
http://ec.europa.eu/environment/chemicals/pdf/exc_summary_en.pdf

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composition in the environment that can lead to the loss of the biological habitat and ultimately affect
human health77.

Almost 70% of the population in Moldova lives in rural areas. Forest resources degradation has a
general impact on the state of the ecosystems and on the possibility of their use as a source of energy
or income for the needs of the population. These areas are normally more dependant on basic natural
resources such as forests, water and land. Conservation of natural capital diversity at environmental
systems level is an important factor in developing society‘s poverty reduction capacities and long term
socio-economic development. Biodiversity ensures an equilibrium, stability and capacity for support
of environmental systems.

Moldova has limited natural resources that will be disproportionately affected by any deterioration due
to chemical exposure. In addition, Moldova‘s economy is highly dependant on the fertility of soil, due
to the importance of agricultural production. 57.7% of its land area is used for agriculture and
agriculture employs around 49% of the active population78. Changes is land property, including
expansion of arable land, intensive exploitation of agricultural land and the use of chemical fertilisers,
pesticides and herbicides have led to a significant reduction in productivity and had a destructive
impact on soil79. Soil conditions are crucial for the development of a productive, export-oriented
agriculture and food-processing industry. At present however the yield potential of agricultural soil is
declining, which hinders the growth of the agro-industrial sector and affects the national economy as a
whole80. Soil degradation will also affect the economy of small households and increase poverty in
rural areas. Therefore, SCM in agriculture would reduce soil degradation and support rural
development and sustainable agriculture.

Obsolete technologies and chemicals used in production processes

Many problems related to the production of harmful emissions and toxic wastes are derived from the
use of obsolete technologies, including low efficacy fuels and dangerous chemicals. Most of the
industrial sector in Moldova uses obsolete technologies which consume more energy therefore
deviating resources that could be more effectively used in investments to modernise production
processes and increase competitiveness. In addition, energy dependency makes Moldova, and also its
industry, very vulnerable to external shocks. Some of the highest energy consumption industries are
part of the strategic sectors for growth. The food and beverage industry is the sector with the highest
energy consumption, amounting to 54.5% of the total industrial energy use in 2003. Textiles, leather
industry and machinery are the second sector in energy consumption with 22.9% of total energy use
by industry81. An improvement on energy efficiency and development of renewal energies would lead
to reduce this vulnerability, and associated economic growth instability, and costs associated to energy
consumption82.

Obsolete technologies may lead to releases of harmful pollutants as by-products increasing air
pollution and therefore the amount of taxes that companies will have to pay. These taxes are costs for
industry that could be reduced by using cleaner technologies or adopting cleaner production processes.
An example of changes is production process is the energy sector where emissions from electricity
generation installations have been reduced by sifting to cleaner fuels, i.e., gas83.

77
   Cfr supra note 68 – WB paper on Sectoral Strategy for Environmental Protection and Sustainable Use of
Natural Resources.
78
   Cfr supra note 68 – WB paper on Sectoral Strategy for Environmental Protection and Sustainable Use of
Natural Resources; and supra note 34 – Strategy for industry development for 2015.
79
   Cfr supra note 68 and in the same sense 2nd Environmental Performance Review.
80
   In the same sense, 2nd Environmental Performance Review.
81
   Cfr supra note 7, 2nd Environmental Performance Review.
82
   See recommendations of WB papers on impacts of energy price (supra note 27) and WB Progress Report as
well as EU country strategy papers (cfr supra note 13 and 15). In the same direction and supporting renewable
energies development, see Strategy for industry development or 2015 (cfr supra note 34).
83
   Cfr supra note 7, 2nd Environmental Performance Review.

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Obsolete technologies may also produce wastes of a higher toxicity since they use more dangerous and
generally cheaper chemicals. However, any economic gains that might have been obtained from the
use of cheap chemicals may be overridden by the costs associated to the disposal of hazardous wastes
and payment of waste fees. Wastes are now stored within industrial facilities but they will need to be
disposed of. Companies should take into account future costs associated to disposal operations and
adopt preventing measures, such as more sustainable production policies, including SCM. The use of
less toxic substances would lead to the production of less toxic or even non hazardous wastes.

In conclusion, the competitiveness of industrial processes could be enhanced by reducing costs that are
directly or indirectly associated to chemicals management. These costs are resources that could be
used by industry on investments instead of on taxes and cleaning-up operations.

       4.2.    Opportunities for mainstreaming chemicals in development planning
           and policy: links between the National Development Plan and SCM

The Economic Growth and Poverty Reduction Strategy Paper (EGPRSP) has been the overarching
policy framework for the sustainable development of the Republic of Moldova for the period 2002-
2006. It has served as the basis for developing and implementing new assistance strategies by
international financial organisations and donor countries, as well as for the preparation of the annual
state budgets for 2005 and 2006.

Chemicals related aspects appeared among the priority areas for action within the growth polices
section of the strategy measures for poverty reduction included in the EGPRSP. Specific priorities
included the reduction of toxic substances with specific attention paid to POPs (including
decontamination of sites and PCB-contaminated equipment) as well as use of pesticides to reduce the
speed of soil degradation.

A new development planning cycle started up at the beginning of 2007. This presents a prime
opportunity to integrate chemicals management into these other sectors. In January 2007 priorities for
the National Development Plan were established and by May 2007 the draft plan will be prepared. The
priorities established for the National Development Plan are:

             -   increasing competitiveness of the national economy
             -   resolution of the Transnistria conflict and reintegration
             -   consolidation of democracy based on the rule of law
             -   human resources development, employment and social inclusion
             -   regional development

However, achievement of the goal mainstreaming chemicals into development planning will partially
depend on showing the links between chemicals and economic development priorities as well as
between chemicals and poverty reduction priorities and the Millennium Development Goals.

As shown in section 2, there is little information of the importance of chemicals in the Moldovan
economy. However, chemicals imports represent around 10% of the total value of imports and some of
the most important strategic sectors in the country, such as food production, wine, or textiles use a
great amount of chemicals, including hazardous chemicals. In addition, the presence of chemicals
contributes to the degradation and degeneration of natural resources and human health affecting the
economy of small households as well as strategic sectors for the country (e.g., agriculture).

This section provides some suggestions and opportunities to mainstream chemicals management into
the planning cycle.




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     (1) SCM and prevention of chemicals related health impacts

Section 4.1 has shown the links between chemicals and health. The future NDP could recognise in a
more prominent way that sound chemicals management would have an impact on improving human
health and therefore contribute to the poverty reduction strategies. SCM policies would improve health
conditions thereby contributing to the development of the national human capacity and to reducing
States expenditures on chemical-related illness.

SCM would also contribute to reducing pollution and would improve occupational safety, which will
reduce morbidity and illness due to chemical exposure. This would contribute to a healthy labour force
and would reduce working days lost due to sickness, thereby increasing productiveness.

SCM, especially in agriculture and handling domestic waste, would also improve the living and health
conditions in rural areas. Improvements in health would allow rural households to increase
productivity facilitating rural development.

     (2) SCM to enhance the attractiveness and access to Moldovan products for external trade

Improving chemicals management would have an impact on the export of strategic products, such as
wines and vegetables, to new markets (e.g., the EU). It would also help to consolidate or to avoid the
loss of some markets where more stringent food security and consumer protection rules apply (e.g.,
Romania as part of the EU now). In this sense, control and substitution of dangerous chemicals would
play a role in fostering exports of non-agriculture products (e.g., carpets, textiles, IT).

SCM could indeed contribute to create a commercial image of Moldova as a chemically safe and
modern country. The current perception of Moldova in some EU countries is that of a chemical
bomb84. The adoption of SCM policies would already help to dismantle this image and promote
Moldovan products contributing to increasing their competitiveness.

In the case of agricultural products, it will be important to ensure that food and wine do not exceed
the maximum residues levels (MRLs) allowed at international and EU level. The Russian ban on wine
based on quality reasons may have reduced the credibility of the quality of Moldovan products. A
clear commitment to chemicals control in agri-food products and wine would help to restore
Moldova‘s name as synonymous of quality. Control over chemicals content, and in particular
pesticides residues, of food products and beverages would not only be essential to promote Moldovan
products but also to ensure that they can be exported into the EU.

The development of organic agriculture would require the adoption of adequate SCM. Organic
products can easily be exported into high quality markets, e.g., EU, and are generally sold at higher
prices, which would increase farmers‘ revenues. The promotion of organic agriculture at national level
would also reduce negative impacts from pesticides on soil, preventing its degradation and enhancing
productivity and rural development.

In the case of textiles, leather and carpets, control over chemicals will be essential to ensure the
possibility to export these articles into EU markets given new and future legislative developments.
Under REACH and the future amendments to the Biocides Directive85 stricter controls will be
established at EU level that will partially prevent the import of articles containing substances banned
at EU level. Textiles, carpets and leather industry tend to use biocides. Therefore, the establishment of
SCM, including registration of substances, will be essential to control substances used in the different
sectors and guarantee that these products can be exported into the EU.


84
  Cfr supra note 15- Article published in Le Soir.
85
  Directive 98/8/EC of the European Parliament and of the Council on the placing on the market of biocidal
products was adopted in 1998. http://ec.europa.eu/environment/biocides/pdf/dir_98_8_biocides.pdf

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The IT industry is another strategic sector for development. In 2002 the EU adopted two Directives
related to electric and electronic equipment. Under one of these Directives (Directive 2002/95/EC86)
the EU restricted the content of hazardous substances in electric and electronic equipment. As in the
case of textile products, it will be essential to control the substances used in the manufacturing of IT
equipment to ensure that these restricted substances are not included, and therefore that IT products
can be exported into the EU.

In general SCM will be critical to control substances in articles and products and ensure that they can
be exported.

In addition, Moldova‘s open spaces and history are an obvious attraction to tourists. In 2005 there
were 82, 300 foreign tourists to Moldova that benefited the economy by 27,407,100 Lei. Degradation
of its natural resources would decrease its capacity for attracting tourism. Even the prospect of serious
pollution could affect tourism. One of the major growth areas in tourism is the wine industry, it will be
important to ensure this stays with an unpolluted reputation to reap the benefits from this area. In
addition to destruction of natural resources, chemical pollutants, especially air pollutants and acid rain,
can destroy historical buildings and also influence the attractiveness of certain areas to tourists.

     (3) SCM to reduce costs for industry thereby enhancing competitiveness and attracting
         investors

The adoption of SCM would reduce costs linked to the use of chemicals. The use of less polluting
chemicals and more effective technologies would reduce production costs, including costs for waste
disposal and payment of fees, and may generate energy savings. The new strategy for the development
of the industrial sector for 201587 already highlights the importance of cleaner production and
integrated product policy to enhance industrial development and increase competitiveness. This
approach should be retained by the NDP.

The Moldovan commitment to adopt cleaner technologies and more energy-efficient production
processes may also help to attract foreign investors that tend to prefer countries that show an
innovative potential and clear regulatory frameworks.

     (4) SCM policies to prevent future costs due to pollution problems linked to chemicals

The economic costs incurred in the collection, re-packaging and disposal of pesticides is showing
Moldova the impacts on State resources of the lack of an adequate chemicals management. Therefore,
future development policies should echo this experience by ensuring that development policies
sufficiently and adequately address chemical issues. As the country grows, infrastructure will be
developed. It is therefore important to ensure that road construction, railway restoration, buildings
construction and so on are not carried out using chemicals that may lead to unintentional releases of
toxic pollutants or the generation of toxic wastes that will need to be disposed of in the future.

This aspect should also be taken into account when deciding the preferred mode of transport or sectors
for promotion. Cost-benefit analysis should be carried out taking into account costs linked to health
diseases produced by pollution, costs linked to adaptation to climate change or costs linked to disposal
and cleaning-up operations.




86
   Directive 2002/95/EC of the European Parliament and of the Council of 27 January 2003 on the restriction of
the use of certain hazardous substances in electrical and electronic equipment.
http://eur-lex.europa.eu/LexUriServ/site/en/consleg/2002/L/02002L0095-20060701-en.pdf
87
   Strategy for the Development of Industry for 2015 (Order nr 1149 of 05.10.2006). About 55% of the energy
imported is natural gas from Russian Federation.

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     (5) SCM to improve public administration and governance

SCM can contribute in different ways to the improvement of governance and of the public
administration. Firstly, the introduction of inter-ministerial and inter-agency coordination models and
channels for information-exchange will improve the effectiveness of the administration and will help
to maximise limited resources. The chemicals management experience can be exported to other areas
where such coordination is required. In addition, an efficient and adequate allocation of tasks among
different institutions would also contribute to attain objectives linked to improvement in
implementation and enforcement.

The actions to control import of chemicals, such as customs training and communication, will
strengthen custom control and would reduce losses on State revenues associated not only to illegal
trade of chemicals and other products. Enhanced customs control would also strengthen enforcement
thereby consolidating the rule of law and citizens‘ trust in the application of the law by authorities.
The same applies to any training for different inspectorates involved in chemicals management.

These activities would therefore serve to enhance human development. In this sense, participation of
Moldovan officials in the multiple international fora linked to chemicals will contribute to build the
administrative capacity and serve to attract additional support.

Dissemination of information regarding chemicals and citizens‘ participation in chemicals
management will consolidate democracy. This participation will be especially important in rural areas
and at national level regarding regulatory decisions on chemicals. Participation of the industry sector,
to negotiate waste operations and discuss chemicals management issues, and of the public would
contribute to build civil society, consolidate democracy and improve compliance with the legislation.

     (6) SCM and employment and innovation possibilities

The development of a chemical industry in the country on household cleaning products, paints and on
other types of chemicals currently imported would create job opportunities and benefit the balance of
payments. Innovation in the area of chemicals, by developing disposal methods or new chemicals
substances or preparations is not unknown in the country and would be consolidated as foreseen in the
Strategy for industrial development88. The development of an innovative industry and investments in
technological research is essential for economic growth and especially lucrative in the area of
chemicals (see examples of China, India, South-Africa or Israel). However, the development of the
chemical sector needs to be accompanied by the establishment of the adequate regulatory framework,
orienting the chemical industry towards the creation of less dangerous substances. It would also need
the creation of the necessary waste installations to dispose of hazardous waste, which would also
create job opportunities in the country.

Prospects for innovation and research regarding renewal energy sources would also need to be
considered as having strategic importance given Moldova‘s dependency and vulnerability. Research
and innovation are also potential areas for job growths.

     (7) SCM and the EU-Moldova Action Plan

Chemicals are one of the most important areas in EU policy. The implementation of the EU-Moldova
Action Plan includes the harmonisation with EU standards and legislation. Strategic aspects of the
relations between Moldova and the EU are closely linked to chemicals, such as exports, energy
partnerships, infrastructure development, food security or simply integration of the EC acquis, which
is one of the conditions for accession.


88
  Cfr supra note 34, Strategy for industrial development, 2015 – point 6.3 which refers to the development of a
chemical industry including production of chemical substances and products.

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In conclusion, given the economic importance of chemicals for economic growth and poverty
reduction in Moldova, chemicals could be mainstreamed in the current planning policy, as recognition
of chemicals critical role to achieve some of the main objectives established in the future NDP.

The past experience to include POPs and environmental issues in the EGPRSP can assist to take the
necessary steps to achieve this objective.

The Ministry of Economy is in charge of coordinating the development of the NDP, including
identifying priorities in each ministry. In the past, the WB support has been crucial to have
environmental and POPs issues included in the EGPRSP. At the time, the WB suggested, in
consultation with the government, the creation of an expert group, formed by key environmental
experts and related specialists (up to 10 persons). At the very beginning, a stakeholder consultation
was organised to recognise the importance of integrating environmental problems in the EGPRSP.
Based on the conclusions of the stakeholder consultations, each expert prepared arguments regarding
links between environment and different areas of development, e.g., environment and economy,
environment and health, and so on. Several meetings were held to discuss and finalise proposals and
arguments. Finally, a single memorandum consolidating the different papers was developed and
presented at a national workshop.

Action within the NGOs Participatory Committee for the EGPRSP development was also essential.
Environmental NGOs leaders, who chaired the Committee, strongly supported the initiative and
several articles were published in the Media.

The proposal was submitted to the EGPRSP drafting group (created by the Government and the WB).
The total process took about 6 months.

Some steps have already been carried out to mainstream chemicals management in the new
development planning (e.g., stakeholder consultation). However, more needs to be done to
communicate the conclusions reached and priorities identified during the consultation to the Inter-
ministerial Steering Committee in charge of developing the NDP. Firstly, it will important that
chemicals are not only perceived as an environmental issue but as a broader cross-sectoral aspect. In
addition, it will important to communicate that, given the international community‘s increased interest
on chemicals management, external resources would be available to achieve the goals finally included
in the NDP.

There are two different possibilities for incorporating chemicals issues in the different key areas of the
future NDP. The first possibility is the individual action from different officials responsible for
chemicals issues as part of the SAICM committee. These officials could identify issues related to
chemicals within the area of competence of their respective ministry to ensure that chemicals issues
are identified and communicated to the Ministry of Economy for future integration in the NDP.

Another possibility, and preferable, is that opportunities for mainstreaming chemicals in the NPD are
identified and recommended by the SAICM Coordination Committee based, inter alia, on the
conclusions of the stakeholder consultation. The participants to the consultation requested the team of
international consultants to prepare a short paper with the main conclusions of the case study for
submission to the Inter-ministerial Steering Committee for discussion. The executive summary to this
report is aimed at fulfilling this request and will serve as the basis for the preparation of a more solid
proposal by the SAICM Coordination Committee. In this sense, to support this proposal, specific
papers could be developed with donor assistance. These papers could look at health and safety at the
work place in Moldova, assessing chemicals used in industry, risks or sickness associated with
inadequate chemicals management and whether the chemicals used could be replaced by less
dangerous ones produced in Moldova. Broader analysis could be carried out on the economic
relevance of chemicals in the final costs of the product. Other papers could explore chemicals import
and export promotion.


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The preparation of such a proposal by the SAICM Coordination Committee would ensure that its
recommendations are endorsed by the ministries represented in the Committee, such as MAFI, MoII,
MENR and MoH. Once approved, the proposal could then be jointly presented at the Inter-ministerial
Steering Committee in charge of developing the NDP. At this stage the support from the WB and other
donors as well as from NGOs and the private sector would be important. Additional support could be
obtained from the EU Delegation and UNDP, which include among their priorities promotion of good
governance practices and support for economic growth through their programmes in Moldova. The
MIEPO (Moldova Investments and Export Promotion Organisation) and other interested organisations
could be involved for the development and promotion of the papers, e.g., current export promotion
priorities of Moldova.


5. THE LEGISLATIVE, POLICY AND INSTITUTIONAL FRAMEWORK FOR CHEMICALS
   MANAGEMENT IN MOLDOVA AND CURRENT ACTIVITIES TO PROMOTE SCM

The Constitution of Moldova, as many other young constitutions, recognises the right to a healthy
environment. Article 37 of the Constitution proclaims citizens‘ right to live in a healthy environment,
by stating that ―every human being has the right to live in an environment that is ecologically safe for
life and health, to obtain healthy food products and harmless household appliances‖89.

Since the mid 90‘s there has been an intensive legislative development in Moldova which was not
necessarily based on a systematic analysis of the needs of the country. As a consequence, a piece-meal
myriad of concepts, strategies, programmes and legislative acts proliferated creating a confusing
policy and legal framework. The different concepts and strategies were not always followed by the
legislative acts that should have completed and put into practice the legal framework90. In most cases
the decision-making process was founded on the need to implement an international convention
ratified by Moldova or on the availability of financial assistance from donors rather than on a general
strategy based on environmental and health problems detected in the country. Thus, many legal acts
have been developed on very specific issues without having a more general legal framework.

With the economic recovery, a second wave of legislative acts has started looking at harmonisation
with EU standards in view to the future accession. The EU-Moldova Action Plan is a first step for a
more structured approach to policy and decision-making. The main concern is the need for better
communication among the different ministries carrying out the harmonisation of certain sector-
legislation and the inadequate allocation of responsibilities among ministries to develop legislative
acts. In addition, it does not seem that Moldova is carrying out an assessment of its own capacities to
absorb the acquis communautaire. Some EC acts to be transposed in the country have been repealed
and replaced by new EC acts and interlinkages between different acts are not clearly understood.

Moldova has put in place a very basic legislative and institutional framework for chemicals
management which does not ensure the minimum requirements for SCM. Several attempts to further
develop the current framework have not been successful probably because chemicals, with some
exceptions, are not perceived as important at national level given the absence of a powerful chemical
industry, and thus the dependency on chemicals imports, and the agriculture-based economy. The
narrow vision regarding chemicals, which are reduced to pesticides and POPs, has probably
contributed to this lack of regulation.

However, some chemicals have been included in the EGPRSP and the legislation for specific types of
chemicals considered problematic, such as pesticides or ODS, is better developed. In addition, there

89
    Constitution of the Republic of Moldova, adopted on July 29, 1994, reviewed in Russian language as
published by MOLDPRES at the ―Universul‖ printing house, and as viewed at:
http://www.gtz.de/lexinfosys/document.asp?=1565
Unofficial English translation at: http://confinder.richmond.edu/moldova3.htm
90
   In the same sense, 2nd Environmental Performance Review.

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are different initiatives at national level supported by international donors that are having an impact to
achieve SCM. Furthermore, Moldova is a party to the most important chemicals conventions and
initiatives (Stockholm and Rotterdam Convention, Montreal Protocol, Basel Convention, the Pollutant
Release and Transfer Register Protocol, the Convention on the Long-range Transboundary
Atmospheric Pollution, the Cartagena Protocol, the FAO Code of Conduct, Codex Alimentarius,
Agenda 21 or SAICM91).

In this and the following sections, the legal and institutional framework as well as the current
initiatives to promote chemicals management will be analysed, identifying its strength and
weaknesses.

       5.1.      The legislative and policy framework for chemicals management

The main legislative act for chemicals management is the Law on Hazardous Substances and
Products (n. 1236 XII of 03.07.1997)92. The act develops the general provisions on chemicals
management inserted in the Law on Environmental Protection (nr 1515-XII of 16.06.1993). The Law
on Hazardous Substances and Products lays down the distribution of competences between the
different ministries and agencies and regulates the management, production, storage, transport,
handling, reporting, disposal and import and exports of dangerous chemicals. Despite its broad scope,
the legislation only establishes very general obligations that have not been developed by any
regulation. For example, the law foresees the establishment by the Ministry of Health of a national
Register of Potentially Harmful Substances that should laid down the basis for a registration system,
but it has not been developed.

Moldova is seeking assistance its participation under the SAICM Quick Start Programme (QSP) which
could help to develop basic regulatory and institutional framework needed for chemicals management.
This and other opportunities to establish such a framework will be discussed at section 8.

Much more developed is the legislation dealing with specific types of chemicals. Two types of
chemicals have been broadly regulated: plant protection products (biocides are only partially covered
by the current legal framework) and ozone depleting substances (hereinafter ODS). In addition GMOs
are broadly regulated and several activities have been carried out regarding POPs. Legislation on
POPs is missing but the 3rd Phase of the WB/GEF project on POPs will focus on the development of a
regulatory framework.

The reasons to develop an extensive legal framework in this area are the problems created by
stockpiles of obsolete pesticides inherited from the Soviet Union and the economic support from
international organisations to implement the Montreal and Cartagena Protocols and the POPs
Convention.

Pesticides are extensively regulated in 7 legal acts93 which cover main aspects of pesticides

91
   For a complete list of Conventions to which Moldova is a party see bibliography. An assessment on the
implementation of the main conventions is carried out at section 6.
92
   The original title in Moldovan is ―noxious‖. In some of the documents analysed in English, the law is referred
in some cases as ―dangerous‖ and in other cases as ―toxic‖. Having regard to the very specific meaning of the
terms ―dangerous‖ and ―toxic‖ in this report the term ―hazardous‖ has been preferred to avoid confusion and for
being closer to the meaning given by the Moldovan legislation to the term ―noxious‖. However, notice that the
Moldovan legislation is not itself consistent in the use of the terminology. In this sense, the Law on
Environmental Protection refers to ―toxic‖ substances and ―toxic waste‖ whereas the main legal act on chemicals
management refer to ―noxious substances‖ and the Legislation on industrial security refers to ―dangerous‖
objects.
93
   These main acts are the law on plant protection (n 612-XIX of 01.10.99), the law on products of phytosanitary
use and fertilisers (n 119-XV of 22.04.2004) and the law on phytosanitary quarantine (n 506-XIII of 22.06.95).
These acts are developed by four main regulations: the regulation on the approval and use in agriculture of
products of phytosanitary use and fertilisers (n 897 of 08.1294), the Regulation on the testing and approval of

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management in accordance with the FAO Code of Conduct. In addition, a range of standards and other
acts indirectly affect pesticides management. The legislation includes a classification of plant
protection products based on WHO categories of toxicity and establishes clear and specific
requirements regarding labelling, packaging, storage, transport, marketing, application and disposal,
empty containers, specific provisions for Class I and II pesticides and requirements to keep records for
users, distributors and importers.

The registration process is quite developed. The body that carries out the certification of pesticides is
an independent Centre which is equipped with a laboratory financed by NATO (―Science for Peace‖
project). When deciding upon the registration of an active substances or products, the laboratory looks
at Directive 91/414/EEC94 (Plant protection products Directive) including the decisions adopted by the
European Commission withdrawing active substances or not allowing the insertion of an active
substance in Annex I to the Directive. The final decision is taken by an Inter-ministerial Committee on
the basis of the recommendation from the Centre95. They also look at the EU legislation on maximum
residue levels (MRLs) of pesticides in food96. In addition, an EC/FAO Programme on Food Security,
which is now starting its second phase, focuses on ―Information on the Food Security in Action‖.

The authorisations of shops and warehouses are carried out by a mixed commission (MoH, MAFI,
MENR and MIA). An USAID project financed pesticides and fertilisers shops, which are now very
well equipped and have specialised personnel. The import of pesticides and fertilisers needs a licence
from the chamber of license apart from the authorisation that will be issued by the MAFI. However, as
will be shown at section 6, there are some problems regarding imports control. A very good provision
in the legislation is the interdiction to import pesticides that have an expiration date of less than 1 year
(point 74(e) of the Regulation on imports).

POPs have received special attention from different international donors as well as from national
authorities. Two projects have allowed the inventory, repackaging and disposal of obsolete pesticides
and POPs. The NATO/OSCE/ENVSEC Project aims to destruct pesticides and dangerous chemicals in
Moldova. Part of the funding comes from the national budget and has allowed for the repackaging and
centralisation of OP stockpiles from more than 350 sites as well as their destruction. It has also helped
to develop national capacity to carry out analysis of pesticides through the creation of the above-
mentioned laboratory. However, the remediation of contaminated sites has not been carried out. The
Czech Development Assistance has some projects to decontaminate local sites.

The WB/GEF project Enabling Activities for the Implementation of the Stockholm Convention on
POPs in Moldova (2002-2004) contributed to the development of the National Implementation Plan
(NIP) for the Stockholm Convention on Persistent Organic Pollutants (POPs) which was approved by
the Government in October 2004. As a result, the follow-up GEF/WB project (2006-2010) is helping
to destroy 1150 tonnes of OP containing or contaminated POPs and 1060 tonnes of capacitors
containing PCBs. As mentioned before, the new phase of the programme will aim at developing a
modern regulatory system for the management and control of POPs and other toxic and harmful
chemicals and wastes and institutional and human capacities for enforcement of the POPs regulatory
framework and for sustainable POPs stockpiles management. The development of the regulatory
framework will be based on the proposals made in the NIP.

Ozone Depleting Substances are also regulated and controlled through the Law approving the
regulation on the trade regime and regulating the use of halogenated hydrocarbons that are depleting

products of phytosanitary use and fertilisers for use in agriculture and forestry (n 1307 of 12.12.2005), the
Regulation on management of products of phytosanitary use and fertilisers in the national economy (n 231 of
28.11.2003), and finally the Regulation on the import, storage, marketing and use of products of phytosanitary
use and fertilisers (n 1045 of 0.5.10.2005).
94
   http://europa.eu.int/eur-lex/en/consleg/pdf/1991/en_1991L0414_do_001.pdf The Directive is currently being
amended and will become a Regulation.
95
   The decision-making process is provided is Annex VI to the report.
96
   http://ec.europa.eu/food/plant/protection/pesticides/legislation_en.htm

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the ozone layer (n 852-XV of 14.02.2002). This act establishes a comprehensive legal framework for
the phase out of ODS and equipment containing ODS. The act bans ODS and the equipment, with the
possibility of authorising the use of methyl bromide according to approved technologies and only for
quarantine purposes or treatments of vegetable products for export. The Regulation establishes labels
and marking system for ODS, emission control measures and coordination with customs, including the
designation of specific entry points for ODS. It also establishes obligations to register, an authorisation
and licensing system and links to the Basel Convention regarding waste management (for recovery
and disposal of ODS and equipment containing ODS that will fall under the category of wastes).

The act was completed by amendments to the specific legislation dealing with the licensing of certain
activities and the environmental pollution act to introduce customs duties and quotas for ODS. To
implement the regulation, a Refrigerant Management Plan was developed and recovery/recycling
programme for refrigerants was implemented. Different training actvities were carried out and a
specific unit in the MENR was created dealing with ODS. As in the case of pesticides, there is a
licensing system and an authorisation system required for activities linked to ODS and equipment
containing ODS. The licensing and quota systems have been subject to monitoring. In addition, there
are many regulations and orders that have been created to complete the legal framework including
more technical aspects, import, export, use and handling, occupational safety and so on97.

The projects that are planned for 2007 on ODS are:

            Implementation of the Plan of Management of Refrigerants;
            Institutional Structure for the implementation of the Montreal Protocol in Moldova;
            Implementation of the Management Plan in the Refrigerator sector;
            Monitoring of the activities in the implementation of the refrigerator sector management
             plan;
            Programme assistance and publicity in Moldova; and
            Development of the Management Plan for the final elimination of ODS

The legislation regarding the import, export and re-export of strategic materials mainly regulates dual-
use goods. The legislation therefore will apply to chemicals that could be used as weapons. The
legislation establishes, as in the case of pesticides and ODS, a system of license (issued by the
chamber of licences) and authorisations issued and controlled by a specific Commission created for
this purpose.

GMOs have also been heavily regulated through the Law on Biosafety and the creation of the inter-
ministerial committee on Biosafety. UNEP/GEF is supporting the implementation of the Cartagena
Protocol by Moldova. The projects planned for 2007 are:

            Support for the implementation of the National Biosafety Framework for Moldova
            Building capacity for the efficient participation in the Information Exchange Mechanism
             on Biosafety

The regulatory framework for specific aspects of the chemicals life-cycle are composed of a range of
general instruments dealing with specific areas, such as waste, health and safety and so on. The
adequateness of these acts from the sound chemicals management perspective will be analysed in the
next section. The table below offers an overview of these main regulatory acts.




97
  See Progress Report of the Republic of Moldova in the implementation of Vienna Convention and Montreal
Protocol.

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                          Box 1: Regulatory framework of the chemicals life-cycle in Moldova

      Occupational Health and Safety
                   Law on the insurance of workers‘ accident (nr 756-XIV of 24.12.99)
                  Norms to ensure worker‘s protection (Order of former Ministry of Health Nr 40 of 16.08.2001).
                  National plan to implement ILO Convention 184 (Order 1538 of 22.12.2003). However, Moldova
                   is not a party to ILO Convention 170 covering chemicals.

      Industrial Security and permitting
                    Law on Civil Protection (1994) and the
                    Law on Industrial Safety of Dangerous Industrial Facilities

                    Law on Licensing Certain Types of Activity (LCTAL)
                    Law 1515-XII of 16.06.1993 on environmental protection,
                    Law 1422-XIII of 17.12.1997 on protection of atmospheric air,
                    Water Code 1532-XII of 22.06.1993

      Transport
                    Regulation on the transport of dangerous materials in the territory of Moldova (n 672 of
                     28.05.2002) implementing the UN Orange book.

      Waste management
                 Law 1347-XIII of 9.10.1997 on Wastes from Industrial Production and Consumption
                 Regulation on the transboundary transport of waste and its disposal (nr 637 of 27.05.2003)
                  implementing the Basel Convention

      Consumer Protection
                 Law on Protection of Consumers‘ Rights and the specific regulations developed under its aegis
                  also regulate some chemicals aspects (e.g., consumer products composition)

      Others:
                    Law 851-XIII of 29.05.1996 on ecological expertise and of evaluation of ecological impacts on
                     the environment. It requires ecological expertise for:
                     o the manufacturing, marketing and use of pesticides and other toxic substances;
                     o to apply pesticides in the protected areas or areas subject to special protection;
                     o the import and export of pesticides and other toxic substances
                     o the sitting and conditions (equipment- design) of warehouses for storing toxic wastes and
                          residues, as well as of the sitting and construction of installations for the treatment,
                          reprocessing and disposal of liquid toxic waste.
                    Law 412 of 09.12.2004 on statistics (it includes air emissions, waste and ODS),
                    Energy:
                     o Law 1525-XIII of 10.02.1998 on energy
                     o Law 137-XIV of 17.09.98 on electric energy Law 1136-XIV of 13.07.2000 on energy saving
                    Polluter Pays Principle: The Law on Payment for Environmental Pollution (1998) establishing
                     taxes for emissions and discharges and provides for incentives to importing an unleaded gas to
                     the country thus seeking to reduce pollution by heavy metals and POPs.




Apart from the regulatory framework, many concepts and strategies at national level have integrated
SCM aspects. In the area of environment, the Concept of the Environmental Policy of the Republic of
Moldova (2001) calls for the introduction of clean technologies and improvement of emissions &
discharges purification, wastes minimisation as well as collection, neutralisation, recycling and
reduction of their toxicity. In addition, the National Program on Ecological Safety (approved in 2003)
tackles the natural and man-made impacts which may result in the degradation of environmental
ecosystems and may affect human health. The programme specifically mentions impacts from
industry, agriculture, power engineering, transboundary pollution and wastes generation. The National
Program for Industrial and Consumption Wastes Utilisation (2000) seeks to promote cleaner
production aiming at reduction and prevention of wastes accumulation. However, there has been
almost no development of this plan. Finally the Concept of National Water Resource Policy for 2003-
2010 aims inter alia to improve water quality. The harmonisation with the Water Framework

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Directive (Directive 2000/60/EC98) is at the centre of this concept and will lead to the establishment of
better controls of chemicals in water (the so-called priority substances).

The National Environmental Health Action Plan (NEHAP, 2002) recognises the links between
chemicals and health laying down specific objectives linked to chemicals management, such as
improved control of pesticides contamination in food or the creation of a national register of
potentially harmful chemicals. Monitoring of impacts on chemicals on health, in particular POPs, is
one of the areas for action.

Energy and transport are other areas where policy papers include objectives where chemicals
management will be important to, e.g., reduce pollution and energy consumption. The Programme for
the reduction of air pollution from transport (1047 of 04.10.2001) aims at renewing the current fleet of
vehicles by ensuring that no vehicle older than 7 years can be imported in the country. Compliance
with Euro2 is required and there are steps to achieve compliance with Euro3 and 499. The Energy
Strategy until 2010 (approved in 2000) set the strategic goals of the energy sector including increased
energy efficiency and supply, production and environmental safety. The Strategy is focusing on
introducing more efficient and less polluting energy technologies. In addition, different projects
financed by the WB and UNEP on climate change issues are looking at greenhouse gases will also
cover transport and energy.

Concepts looking at strategic sectors for development have already integrated chemicals management
aspects. In particular, the Concept on Ecological Agriculture, producing, marketing of ecological and
genetically unmodified food products. The country has opted for promoting ecological agriculture to
find new markets. It has been developed through six different acts, including the specific legislation on
GMOs. By Government Decision no. 697 from 12.06.2003, a Council was created to coordinate the
implementation of the National Concept. Finally the new Strategy for the Development of Industry for
2015100 especially mentions cleaner production and integrated product policy as one of the tools to
achieve the general objectives for industrial development in the country.

Moldova is also undergoing a deep process of harmonisation of their national standards with
internationally recognised ones, especially EU standards101. Most of the standards currently in force
are from the Soviet Union. The integration of Romania into the EU is accelerating the harmonisation
path since texts are now available in Romanian. A new act from January 2007 will require approval of
standards by the Parliament, which does not seem an adequate approach given the extremely technical
nature of these standards and their broad international acceptance.

In addition to all these national initiatives other activities are currently carried out that are related to
chemicals management, including cross-border cooperation with Romania and Ukraine.

In the area of waste and water supply (including wastewater treatment), many projects are being
undertaken at the local level. Examples of these projects are the improvement of domestic waste
management in Leova and Falesti towns, the project to develop a partnership for better environmental
protection through selective waste collecting in Cahul and Cantemi or the improvement of ecologic
situation in Hincesti town via elimination the permanent source of environmental pollution (mainly
through modernisation of the water treatment plant and improving waste water treatment process).


98
   http://eur-lex.europa.eu/LexUriServ/site/en/consleg/2000/L/02000L0060-20011216-en.pdf
99
   Interview with representative of Ministry of Transport.
100
    Cfr supra note 34.
101
     The legislation provides for the following standards in Moldova: SM – national standard, SP MD –
professional standard, SF – standard of firms, i.e. those developed by economic objects. Other standards include:
technical regulations, medico-biological regulations, sanitary norms, sanitary-hygiene norms and rules,
environmental protection norms, which include MPC/MPE for various environmental media and/or purpose of
its consumption or utilization (e.g., water standards, like MPC, are different for drinking, fishing, industrial,
agricultural and bathing purposes.)

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In addition the WB project on Agricultural Pollution Control is playing a significant role in reducing
nitrate discharge from agricultural sources in Moldova by increasing the use of environmentally
friendly practices by farmers and agro-industry, therefore promoting SCM.

The TACIS project on TACIS Cities Award Scheme (TCAS) provides grants to towns and cities to
fund projects in the field of sustainable development and environmental protection. Normally these
projects include improvement of waste management, transport and water supply.

       5.2.     Institutional framework

Most of Moldovan governmental ministries, agencies and departments are in a permanent
transformation: they merged and/or split and new short-live ones are created. Their functions and
responsibilities are not timely and consistently reflected in their respective Statutes. Senior officials
are rotated with increasing speed, thus preventing preservation of institutional continuity and memory,
and a number of technical professional staff has been reduced to the basics. The most dramatic
example is the MENR which has only 25 staff members. More cuts occurred at the beginning of 2007
leading to the question of the government‘s human capacity, in addition to financial needs, to manage,
implement and enforce the numerous programs and plans, acts and ratified international obligations.

With so limited human resources, coordination among the different institutions and bodies involved in
chemicals management chemicals management is crucial. However, inter-ministerial cooperation is
based on personal contacts, although a SAICM coordination committee was created in 2006 which
implies a more structured approach to inter-ministerial cooperation. Nevertheless, no procedures to
exchange information among the different ministries and institutions are in place.

The main competent authority on chemical management is the Ministry of Health, which does not
have a unit specifically dealing with chemicals. Most of its competences are nevertheless carried out
by the Centre for Preventive Medicine, including monitoring of health and environmental impacts of
chemicals. The MoH is responsible for developing the Register of Potentially Harmful Substances.
The MENR does not have a specialised unit on chemicals but has also important competences since all
focal points to the chemicals conventions are officials of the MENR. The focal points of these
conventions are in the same unit dealing in general with natural resources and waste. The different
bodies dependent on the MENR (such as the inspectorates and institutes) also play a very important
role in chemicals management, including monitoring and granting permits.

The MAFI is the competent authority for pesticides and fertilisers although registration decisions at
taken by an inter-ministerial committee. Ministry of Transport is competent in the area of transport of
dangerous substances as well as to introducing policies aiming at reducing environmental impacts
from transport. The Ministry of Industry and Energy develops the different sectoral strategies (for
energy and industry in general but also for specific sectors). The department on energy is very much
involved on aspects related to POPs since many PCB contaminated equipments are in the State-owned
electricity generation plants. Customs are essential for border control, given that most chemicals are
imported.

In addition other institutions play an important role in chemicals management. For example, the
Agency for Construction and Territorial Development (ACTD) develops and promotes the state policy
on construction, water supply and sewerage, including certificate for the substances and products used.
The National Bureau of Statistics collects and publishes statistics on air and water pollution as well as
import, marketing of ozone depletion substances and products regulated by Montreal Protocol,
creation and destination of waste and chemicals imports. These reports are based on the information
collected in the statistical forms received through Ecological Agencies from legal or natural persons
and also from industry for the report on air emissions and waste. The Academy of Sciences is the only
public institution in the field of innovative research. Many subordinated institutes are dedicated to
chemicals issues. Finally the Chamber of Licence issue licence for import and export of chemicals.


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The table below offers an overview of the institution and bodies with competences in chemicals
management.
                         Table 11: Institutional Framework for Chemicals Management

Institution              Role
Main institutions
MoH                            Control the compliance with the legislation on Hazardous Substances and Products
                               Elaborates and updates the National Register of Potential Dangerous Substances
                               Authorisation of the activities related to the production of dangerous chemicals
                               Carries out the toxic-hygienic and environmental expertise (through the Centre for
                                Preventive Medicine)
MENR                           Control compliance with legislation on environment in the process of manufacturing,
                                storage, transport, use and disposal of dangerous substances and their wastes
                               Focal point for POPs, PIC, Montreal, Basel, PRTR and so on.
                               Monitors pollution (through its dependent organisms)
                               Coordination of different policies
MAFI                           Control compliance on pesticides and fertilisers
                               Registration of pesticides (through the inter-ministerial committee)
                               Organise the laboratory for analysis and control of the quality of pesticides and mineral
                                fertilizers
State Department for           Coordinates the surveillance of import, export, transport, use and disposal of dangerous
emergencies and                 substances and preparations (chemicals, biological, explosive and flammable) and carries
exceptional situations          control activities.
(SDEES)                        Authorises the import and export of dangerous substances and chemicals as well as the
                                transport of these through the territory of the republic
                               Approves the list of economic agents that use and produce dangerous substances as well as
                                the list of those authorise to transport or ship dangerous objects
Ministry of Industry           Develops and promote the state industrial and energy policies and strategies:
and Energy (MII)               Promotes the implementation of new technologies, equipments, machinery to ensure
                                competitiveness
                               Develops and implements measures for energy conservation
                               Coordinates the activity of Moldelectrica State Enterprise (main State institution dealing
                                with energy) and other State-owned industries
                               Develops sectoral programmes for different industry sectors
                               Harmonises with EU legislation (Directive on classification, labelling and packaging of
                                dangerous substances Directive 67/548/EEC)
Ministry of Transport          Participates in enforcement of the regulation on functioning of all kind of transportation
and Road Management             means
(MOTRM)                        Establishes norms and rules to ensure the safety of the shipments and provides training of the
                                drivers dealing with dangerous substances
Customs Service (CS)           Administers export and imports by ensuring compliance with restrictions established by
(independent agency of          other government entities, like MERN, MAFI, MOH, etc.
the GRM)                       Enforces these restrictions through its border crossing offices, which review validity and
                                conformity of relevant licenses and permits (sometimes with the assistance of MAFI and
                                MENR representatives on specific technical issues)
Standardisation and            Possesses all the standards related to storage of toxic wastes, transportation of toxic wastes
Metrology Service              Supervise all activities which fall into the category ―dangerous‖ relevant to civil protection
(SMS)                           issue
Ministry of Defence            Includes National Army subunits for chemical protection, coordinated by 17 Training
(MOD)                           Division
                               Trains militaries involved in management of chemicals (178)
                               Is in charge (with SDEES) of repackaging and transportation of obsolete pesticides
                               Participated in a Project by taking samplings of unknown pesticides from the Republic of
                                Moldova warehouses
Local authorities (LA)         Ensure compliance with applicable legislation and standards
                               Approve, with MENR concurrence, the limits for use of local natural resources and
                                accumulation of wastes, and for emissions and discharges, except for those, which cross
                                local boundaries
                               Monitor construction and operation of purification facilities and devices at public and private
                                enterprises as well as implementation of measures aimed at prevention air, water and soil
                                pollution
                               Develop local environmental protection programs and manage local environmental funds
                               Ensure timely and transparent public participation and information disclosure.


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Institution            Role
                           Secure selection of the storage sites
                           Assist the MOD and DES in centralisation and repackaging work
Other relevant
institutions
Ministry of Foreign       Coordinates the implementation of EU-Moldova Action Plan
Affairs and European
Integration (MFAEI)
Ministry of Finance       Approves the contribution of the State for some activities related to chemicals (repackaging,
(MOF)                      storage and destruction of POPs), and audit use of National Ecological Funds and other
                           extra-budgetary funds from the financial point of view
Ministry of Economy       Is in charge of the coordination of the National Development Plan
and Trade (MOET)          The Labour Inspection, subordinated to MOET, responsible for enforcement of labour legal
                           and regulatory framework in the units which have some links with chemical issues
                           (including agricultural workers).

In the field of chemicals governance, NGOs are part of the SAICM committee and can also participate
in specific Parliamentary commissions. This aspect will be discussed in detail at section 6. Several
initiatives exist financed by donors on governance, for example, there is a project funded by the
Netherlands to strengthen public participation in the environmental decision-making process that is
implemented by REC.

       5.3.       Monitoring and enforcement

                5.3.1. Monitoring and technical means

The current situation regarding environmental pollution with chemicals and their impact on human
health in the Republic of Moldova is insufficiently studied. This is due to a lack of an integrated
system of chemical monitoring at regional and local level, the lack of a chemicals registration
mechanism and insufficient information about the chemicals used in the country. More detailed
information can be found about pesticides used in agriculture. Many laboratories, centres, institutions
and departments carry out chemicals research and monitoring, but they do not exchange information,
opinions or suggestions in this field.

However according to the Decision N 477 of 19 May 2000, the Government of the Republic of
Moldova approved the requirements and the Regulations ―Regarding the national network of
laboratory observation and control over the environmental pollution with radioactive, toxic and
bacteriological substances‖, laboratories, institutions, centres and so on are to be involved in the
national observation network with additional financing from the state and local budget. This Decision
aimed at coordinating efforts in the area of environmental monitoring but so far much of the Decisions
have not successfully been implemented.

The establishment of the national observation network and laboratory control (ROCL) was organised
for detection of radioactive, chemical and bacteriological pollution of soil, air, water, prime substance,
as well as for timely ensuring security of population and analyse effects on animals, plants and water.
The ROCL includes the Centres of Preventive Medicine of the MoH, Laboratories of the State
Hydrometeorological Service, Centres and veterinary labs and those with agrochemical profile (such
as the labs of the MAFI), territorial labs of ecological agencies, laboratories of the MENR, laboratories
of ―Moldova Railways‖ State Organisation and the Consumer‘s Cooperation ―Moldcoop‖.

Additionally, for national emergency response the scientific research institutions with epidemiological,
toxicological and ecological profile for investigations and monitoring are involved. There are a variety
of laboratories, centres and institutions in Moldova today with competence to monitor toxic
substances. The most important institutions included in ROCL are listed in the table below:




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                Table 12: List of National Institutions carrying out toxic substances monitoring

  №     Laboratory, center and institution name                                   Monitoring tasks
1.    State Hydrometeorological Service,              Monitor in soil, surface water quality, aquatic sediments the residue of
      Monitoring Centre of Environment Quality        POPs, (DDT, DDE, DDD, heptachlorine, HCH, etc.), heavy metals
2.    National Scientific-Practical Center of         Control and establishment of the quantity content norm of pesticides and
      Preventive Medicine of the Ministry of Health   other very toxic substances in the foodstuffs, drinking water, etc.
      of the Republic of Moldova
3.    Scientific Control of Production for the      they have necessary equipment for their defining at the request of the
      Agrochemical Service                          economical agents.
4.    Republic Veterinary Diagnostic Center         Make the veterinary-sanitary expertise of foodstuffs and water. Control
                                                    their pollution with poison-gas and very toxic substances and issue the
                                                    notifications on their quality
5.    Control Center of prime substance quality and Monitor the prime substance quality as well the quality of dairy and meat
      the goods quality of dairy and meat industry  products.
      of Chisinau city
6.    Republic State Inspectorate for Plants        Monitor the plants pollution and phytotechnical production at the
      Protection                                    pesticide content.
7.    Standardized and Experimented Center of       Laboratory observations and control of canned goods and poison-gas
      conservative quality of Chisinau city         pollution
8.    Laboratory of the Centre for testing and      Test the phytosanitary products and fertilizers
      approval of fitosanitary products and
      fertilizers
9.    Control Center of prime substances and wine The observations and laboratory control of the wine goods pollution with
      goods quality of Chisinau city.               poison-gas and very toxic substances.
10.   Standardization and Establishment Center of Monitoring is not carried out. Observations and laboratory control of
      nutrients quality and quality of the cereals  grains state stocks and obtained goods from their processing with the
      goods of Chisinau city                        poison-gases and very toxic substances.
11.   Laboratory of Ecological Territorial Agency   Heavy metals, pesticides
      of Chisinau
12.   Chemical laboratory of the join-stock         Monitor the drinking water quality. Water control
      company ―Apa Canal‖ of Chisinau

         Source: WB/GEF POP Stockpiles Management and Destruction Project, Monitoring Report

 The institutions dependent of the MENR and the institutions depending from the MoH have important
 monitoring tasks.

 The State Ecological Inspectorate (SEI) is responsible for enforcement of environmental legal and
 normative framework and for environmental point-source pollution monitoring outside the premises of
 industrial and agricultural enterprises and facilities through a network of four ecological agencies
 (Chişinău, Bălţi, Cahul, UTA Găgăuzia). It has in 32 Ecological Inspections at local level and a
 Fishery Service and Specialised Ecological Service. Samples are analysed in four regional analytical
 laboratories located in Chisinau, Balti, Tighina and Ungheni. The existing monitoring programs focus
 on: air, water and soil quality, use and disposal of dangerous chemical substances and wastes.

 The State Hydrometeorological Service (SHS) is responsible for background monitoring in various
 environmental media: air, surface water and soil. For this purpose, Hidrometeo operates four centres
 for: pollution monitoring, agro-meteorological services, data processing and ecological monitoring.
 The first two centres are responsible for routine sampling and analysis, while the last two are
 responsible for information and data analysis and storing. Hidrometeo monitoring network consists of:
 13 meteorological stations and 3 posts, one aerologic station, 3 hydrological stations and 19 posts, 42
 water quality posts, and 19 agro-meteorological posts. It monitors a range of some 35 pollutants,
 including DDT and other pesticides.

 The State Agency for Geology of the Republic of Moldova (AGeoM) is the main authority responsible
 for regulating and coordinating the analysis, protection and rational use of subsoil and for developing
 mineral raw materials basements. It keeps the ―Republican Fund of Geological Information‖ and the
 balance of the reserves of useful mineral substances.


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AGeoM also monitors the groundwater regime, ensures the operative control of protection against
pollution and overexploitation. It coordinates the drilling documentation of the wells, water
exploitation and exploration documentation and documentation for building the water ―plugs‖ for
undergound waters for all the enterprises and organisations. AgeoM also authorises the use of the
subsoil to bury or store the dangerous substances and the wastes.

The Sanitary-Epidemiological Service (SES) or National Scientific and Practical Centre of Preventive
Medicine, with its territorial subordinate units (municipal and county centres of preventive medicine),
is responsible for environmental monitoring in relation to human health, mainly on the premises of
industrial enterprises and agricultural facilities. It has a number of fixed air, water and soil quality
monitoring stations which conduct daily routine sampling and analysis in accordance with methods
approved for use in CIS/NIS countries. Its main responsibilities include: monitoring, analysis,
assessment and forecast of the health of population as it related to the quality and/or pollution of the
environment; determining causes of mass infections and poisoning of populations; developing
mandatory measures to protect and ensure sanitary-epidemiological well-being of the populations;
state control for compliance with existing legislation and standards, and prosecution of enumerated
violations. At local level they act as poisonous centres.

Several projects are financing improvement in the current technical capacities on monitoring and
accident prevention and reaction. Apart from the NATO laboratory, the League of America is
financing a project named ―Save our streams‖ promoting education and public awareness on the
importance of protecting small rivers by determination of the water quality through biological
monitoring. However, this project is more oriented to small communities and education and pollution
prevention rather than updating current equipment. A TACIS project is assisting MOLDOVAGAZ to
establish an accident emergency warning system and monitoring laboratory and information
management for the Ukraine and Moldova part of the Danube basin. The project will provide technical
assistance to MOLDOVAGAZ, as well as training for development of emergency warning (AEWS)
and water monitoring systems (MLIM), including equipment and software. Switzerland and Norway
have also provided funds for laboratory equipment and stations.

               5.3.2. Enforcement102

According to the information obtained from the SEI and the 2nd Environmental Performance Review,
Moldovan legislation foresees administrative, civil, and criminal liability for non-compliance and
violation of environmental, health & safety and social legislation, regulations, standards and norms,
permits and licenses. In addition, market-based instruments are enforced through penalties imposed by
authorised governmental ministries and agencies as well as through judicial procedures. Natural and
legal persons can be held liable for environmental damage and are required to compensate and pay the
costs of rehabilitation, restoration, and so on.

All different ministries and inspectorates involved in chemicals management have powers to enforce
the legislation. Local authorities play also an important role in enforcement. In addition the MENR
and MoH have border control posts cooperating with Customs103.

All inspectorates have a similar structure, with a central office in Chisinau and regional representatives
in the different Raion. The inspectorates with competences in the area of chemicals management are
the State Environment Inspectorate (SEI), the Plant Protection Inspectorate (PPI), the Labour
Inspectorate (LI), the State Department for Emergency and Exceptional Situations and the Inspectorate
of the Department of Metrology and Standardisation of dangerous objects.


102
   UNECE 2nd Environmental Performance Review (2005) – Cfr supra note 7.
103
   The 2nd Environmental Performance Review indicates that there are six border environmental control posts
(down from 60 in 1998) that collect (in cooperation with the customs authorities) charges on imported fuel and
environmentally harmful products and control vehicle emissions.

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They have the same tools for enforcement and face the same problems (analysed in section 6), mainly
shortcuts in personnel and insufficient and outdated technical equipment. For example, the 2nd
Environmental Performance Review indicates that the SEI had in 2004 a total of 411 staff compared to
521 in 1998. The main reason for this cutback was the administrative reform. There are currently 264
inspectors (including both permitting and enforcement officials). District units usually have three to
five inspectors with responsibilities for air and water pollution; mineral resource use; soil pollution
and waste; and flora and fauna protection104.

Representatives from different inspectorates indicated that inspections can be planned or unscheduled
and occur before issuing a licence or afterwards to check compliance. Unscheduled inspections can be
conducted based on reports of accidents or complaints. The 2nd Environmental Performance Review
indicates (which was confirmed by interviews with representatives of different inspectorates) that the
priority for inspections is given to larger installations or large commercial farms while small
enterprises rarely get inspected at all105.

The inspector firstly checks whether the installation has a valid environmental permit and whether it
complies with the permit conditions. The inspector also checks the necessary documentation as well as
the technological process and output data. If necessary, the inspector can also conduct sampling and
analysis of air emissions or wastewater, although adequate equipment is often lacking.

The SEI possesses extensive enforcement powers and has at its disposal a variety of enforcement
tools, including:

                 directions for corrective actions;
                 non-compliance fines;
                 initiation of damage compensation suits; and
                 suspension of the operation of the installation106.

Other inspectorates have the same powers. In general, the people interviewed from different
inspectorates indicated that, if a violation is discovered during an inspection, the inspector will explain
to the operator the corrective actions needed as well as the possible consequences if action is not
taken. In cases of more significant violations, a process verbal is issued, indicating the nature of the
violation and respective penalties that may be imposed. In the case of the SEI inspectors sanctions will
be imposed buy a Court107. However, other inspectorates, e.g., Labour Inspectorate or the Inspectorate
of the Metrology and Standardisation Service, can impose fines. In very serious cases (e.g., significant
environmental damage, high risk for human nature) inspectors have a right to suspend the operation of
the installation until the violation is corrected. However, this measure is rarely used due to its
economic impacts. There is no practice of criminal prosecution for environmental violations.

According to the 2nd Environmental Performance Review, the most frequently used enforcement tools
are notices of violation with associated fines.




104
    The 2nd Environmental Performance Review indicates that there is currently approximately one inspector per
70 regulated installations.
105
    In 2004, about 2,851 installations were inspected for air emissions and 3,283 for water use and pollution. The
SEI was unable to carry out pollution analyses.
106
     Cfr supra 7, 2nd Environmental Performance Review and interviews with representative of the SEI, the
Labour Inspectorate and Metrology inspectorate.
107
    Fines for violations of water regulations are imposed directly by the SEI, according to the 2001 amendments
to the Code of Administrative Violations. However, fines for all other types of environmental violations must be
imposed by a court, based on the Inspectorate‘s notice of violation – 2nd Environmental Performance Review.

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       5.4.       Financial resources108

Moldova has a range of different sources to finance environmental, and chemicals management,
programmes and projects. The government disposes of four main types of economic instruments. In
addition, there are other incentives and measures that could be used for the same purposes.

               Box 2: Economic instruments, incentives and innovative measures in Moldova

      Economic Instruments and Resources                        Incentives and Innovative Measures
          Taxes                                                     VAT refund system for buying
                 o Natural resources tax                                pesticides
                 o Land use tax                                      EMS
                 o Excise tax on imported diesel and                 Eco-labels
                     petrol                                          Organic labels
                 o Motor vehicle excise taxes                        Agricultural subsidies
                 o Road use tax
                 o Levy on imported diesel and petrol
                 o Fees for registration of pesticides based
                     on toxicity
                 o Levy on environmentally harmful
                     products
          Pollution charges and fines
                 o Air
                 o Waste: Fees for waste based on toxicity
                 o Water
          Grants and technical assistance
          Environmental Funds

             Grants and Technical Assistance

Most of the current economic instruments in place in Moldova are taxes, such as Natural Resources
and Land Use Taxes, the Road Use Tax on International Transport and Payments for environmental
pollution. In 1998, the Law on Payments for Environmental Pollution was issued, introducing levies
for imported cars and fuel. In 2002, an additional import levy on selected environmentally damaging
products was enacted.

No government body has specific competence for the development of economic instruments for
environmental policy. However, the MENR contributed decisively to the adoption for instance of the
levy on environmentally harmful products109. Different services are in charge of collecting the
revenues derived from these instruments. The natural resource, road use and excise taxes are collected
by the State tax service and customs administration. Emission charges and fines are collected by
territorial ecological inspectorates. In some cases, such as ad valorem levies on imported fuel and
other environmentally damaging products, the revenues are collected by the customs administration
with the aid of the SEI110.

Incentives and innovative instruments have not been much developed or used in Moldova. Instruments
foreseeing incentives, such as the waste legislation, have not properly implemented and therefore have
not been effective. This lack of adoption of incentives or innovative instruments is partially due to the
culture inherited from the Soviet era. However, more and more planning instruments mention the use
of labels, certification schemes or fiscal measures as tools to achieve the objectives laid down in the
specific text111.

108
    Fore more details on financial resources refer to 2nd Environmental Performance Review.
109
    Cfr supra note 7, 2nd Environmental Performance Review.
110
    Cfr supra note 7, 2nd Environmental Performance Review.
111
    A more detailed discussion regarding incentives is provided at section 6.

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Taxes, fees and fines did not provide many revenues to the State, partially because they are outdated
and partially because they are not paid. However, in the last years with the economic recovery, the
payment rate has increased and also the revenues collected. Some of these resources could be used to
finance projects on chemicals management.

State Resources

         Environmentally-related taxes and pricing policy

Environmentally related taxes revenue accounted for around 3% of Moldovan GDP since to 2000 (up
to 3.5% during the 1998-99 recession)112. Taxes are by far the most important source of revenue
beyond the categories of economic instruments listed in box 2 above. Taxes are mainly used for
pollution related to natural resources and energy. In 2003, levies on environmentally harmful products
were created. Energy and transport taxes (including the excise tax on imported diesel and petrol)
account for the bulk of environmental revenues.

         Pollution charges

Pollution charges were introduced in 1991 and modified by 1998 Law on Payments for Environmental
Pollution. The charges for air and water emissions from stationary pollution sources are calculated at
regional/city level113. The pollution charges for imported goods having a negative impact were
established by the same regulation. Moldova has other fees specifically linked to chemicals, such as
the fee for pesticides registration.

         Incentives and innovative measures

Moldova is slowly introducing economic incentives for industry. Amongst these instruments are the
VAT refund system for buying pesticides, EMS, organic labels or agricultural subsidies, and is
introducing ISO 9000 and 14000 certification. The new Strategy for Industrial Development for
2015114 includes these aspects among the conditions, instruments and mechanism to successfully
implement the strategy

         Environmental Funds

The system of environmental funds evolved in 1998, with an amendment to the Law on Environmental
protection that created a structure consisting of:
              the National Environmental Fund (NEF) and,
              four Local Environmental Funds (LEFs),
and two Government resolutions providing for a new regulatory framework for the Funds.

The NEF is under the control of the MENR, while its four territorial agencies control the LEFs. The
levy on environmentally harmful products accounted for almost 25% of NEF revenues in 2003-04.
Transfers from the local funds average 7% of NEF revenues. A revenue growth of the local funds in
recent years reflects the rising number of firms that pay pollution charges. As to the expenses of the
funds, NEF is required by its statute to spend at least 70% of its budget on projects related to national
environmental priorities, which is respected.


112
    Cfr supra note 7, 2nd Environmental Performance Review.
113
    The 2nd Environmental Performance Review indicates that the methodological instruction includes tables with
rates per pollutant based on toxicity and coefficients for cities or regions that are applicable for emissions up to
Maximum Allowable Concentrations (MAC). The atmospheric emissions exceeding MAC are charged at five
times that rate.
114
    Cfr supra note 34.

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NEF spent most of its resources on water serices. In 2000 these projects accounted about 21% of the
NEF revenue in 2000 falling to 12% in 2001 but then rising steadily to 42 per cent in 2004 (Table 12).
The NEF financed 245 projects in 2004. LEF project spending averaged about 15% of their current
revenue in the early 2000s. Like the NEF, local funds have no capacity to rank projects on the basis of
efficiency.

Table 13: Revenues and expenditures of the National Environmental Fund, 1998-2004
                                                                                                                      million lei
                                                           1998     1999     2000     2001     2002     2003         2004
Total revenues                                              0,4      3,9      7,7      7,9     11,0     20,6         34,8
 Carryover at the beginning of the year                     0,0      0,1      0,1      0,6      2,0      4,3         10,3
 Transfers from local funds                                 0,1      0,0      0,0      0,0      0,9      1,5          1,1
 Levy on imported fuel                                      0,3      3,8      7,3      7,2      8,0     10,7         18,2
 Levy on pollution-intensive production                      ..       ..       ..       ..               4,0          5,1
 Other income                                                ..       ..      0,2       ..      0,0      0,0          0,0
Total expenditures                                          0,3      3,8      7,1      5,6      6,6     10,3         23,3
 Environmental priority projects                                     2,5      3,6      3,5      3,0      7,4         19,5
 Research                                                            0,2      0,6      0,6      1,1      1,0          1,0
 Environmental information systems                          0,2      0,3      0,4      0,2      0,4      0,3          0,6
 Salary bonuses for government experts                      0,1      0,3      0,4      0,6      0,5      0,4          0,4
 International co-operation                                  ..      0,1      0,5      0,2      0,5      0,5          0,7
 Emergency clean-up                                          ..      0,2      1,4      0,3      0,9      0,5          0,9
 Grants to non-government organisations                      ..      0,2      0,2      0,2      0,2      0,2          0,2
Balance                                                     0,1      0,1      0,6      2,3      4,4     10,3         11,5
Memorandum items:
Projects in the water services sector, million lei           ..      ..        1,6      0,9       1,6      4,4         10,3
As a share of current revenue, per cent                      ..      ..       21,1     12,4      17,9     27,1         42,1
NEF current revenues in US$ thousand                         70,4   359,6    612,2    561,2     656,5   1169,1       1956,3
NEF expenditures in US$ thousand                             55,6   361,9    572,6    434,1     485,3    741,0       1864,0
Average exchange rate (lei/US$)                               5,4    10,5     12,4     12,9      13,6     13,9         12,5

Table 14: Revenues and expenditures of local funds, 1998-2004
                                                                                                                       million lei
                                                           1998     1999     2000     2001      2002      2003         2004
Total revenues                                              0.3      0.4      1.9      2.2       4.1       5.5          6.2
Carryover from the previous year                            0.0      0.1      0.2      0.3       0.7       0.7          1.7
Charges and fines                                           0.3      0.3      1.7      1.9       3.4       4.8          4.5
 Air pollution charges                                      0.2      0.2      0.4      0.8       1.4       1.3          1.4
 Water pollution charges                                    0.1      0.1      0.4      0.7       1.6       2.7          2.2
 Transport related charges                                  0.0      0.0      0.0      0.0       0.0       0.1          0.2
 Waste charges                                              0.0      0.0      0.1      0.0       0.1       0.5          0.3
 Non-compliance fines and damage compensation               0.0      0.0      0.0      0.2       0.3       0.2          0.4
 Other fines                                                0.0      0.0      0.8      0.2       0.0       0.0          0.0

Total expenditures                                          0.1      0.2      1.6      1.6       3.3       4.2          5.4
Transfers to the National Environmental Fund                0.1      0.0      0.0      0.0       0.9       1.5          1.1
Local environmental projects                                ..       ..       0.1      0.2       0.6       1.0          0.7
Nature conservation                                         ..       ..       0.1      0.2       0.4       0.7          0.5
Waste disposal                                              ..       ..       ..       ..        ..        ..           0.3
Sanitary measures                                           ..       ..       0.3      0.1       0.1       0.1          0.6
Environmental education                                     ..       ..                0.1       0.2       0.2          0.2
Emergency clean-up                                          ..       ..       0.8      0.1       ..        0.1          0.1
Equipment of environmental authorities                      ..       ..       0.3      0.8       0.2       0.6          1.2
Salary bonuses of environmental inspectors                  ..       ..       ..       0.1       0.2       0.1          0.3
Other                                                       ..       0.2      ..       ..        0.7       ..           0.4

Balance                                                     0.2      0.2      0.3      0.6       0.7       1.3          0.9
Memorandum items:
Number of registered project applications                   ..       ..       ..        ..         81       120          146
Number of projects financed by local funds                  ..       ..       ..        ..         69        82          100
Number of firms subject to environmental charges            ..       ..       ..        ..       1453      1482         1700
Number of firms paying the charges                          ..       ..       ..        ..       1093      1263         1651
Source: Ministry of Ecology and Natural Resources, 2005.


                                         Source: 2nd Environmental Performance Review

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The NEF budget for 2007 is about 2.8 million USD, including 0.13 million USD from local ecological
funds, 1.5 million USD from payments for pollutant emissions from mobile sources using benzene,
fuels for aircrafts or diesel oils and 1.2 USD from levies on pollution-intensive production. In 2007,
about 0.07 million USD are dedicated for repackaging, shipment and destruction of obsolete pesticides
and PCB capacitors. 2.2 million USD are reserved to the implementation of the national plans,
strategies, and programmes in the field of environment.

Grants and Technical Assistance

Non-tax revenue from grants for environmental purposes increased considerably and rapidly over the
last years, until becoming more important than charges. According to the 2nd Environmental
Performance Review, grants are expected to be an increasing source of subsidies, in the form of a
support of the international community, with grants and preferential finance. Foreign Direct
Investment (FDI) will also play an important role to modernise many sectors and develop SMEs.
Some donors are focusing on SMEs development (USAID, Norway, Japan, some TACIS projects). It
will be important to ensure that SCM are introduced in sectors receiving FDI and in projects
supporting SMEs development.

If the financial situation of the business sector keeps improving, firms could finance a sizeable share
of environmental investment from retained earnings or new bank loans115.


6. POLICY GAPS AND CAPACITY DEVELOPMENT NEEDS FOR SOUND
   CHEMICALS MANAGEMENT IN MOLDOVA

Despite the significant Regulation and activities carried out in the area of chemicals, many gaps and
needs have been identified. This section explores these gaps and needs. The analysis in this section
combines the life-cycle approach with basic the chemicals management elements in Programme E of
Chapter 19 of Agenda 21. These elements are:

                (a)   adequate legislation,
                (b)   information gathering and dissemination,
                (c)   capacity for risk assessment and interpretation,
                (d)   establishment of risk management policy,
                (e)   capacity for implementation and enforcement,
                (f)   capacity for rehabilitation of contaminated sites and poisoned persons,
                (g)   effective education programmes and capacity to respond to emergencies.

The starting point for the analysis has been the many previous reports identifying gaps and needs in
specific areas relevant to chemicals management. Some of these reports addressed general
environmental management, such as the 2nd UN-ECE Environmental Performance Review, or specific
chemicals issues (such as the National Implementation Plan for the Stockholm Convention). In
addition, it must be mentioned the proliferation of reports analysing the situation in specific sectors
(such as energy, transport or export promotion) or addressing horizontal problems, such as public
administration reform116.

This section takes into account the recommendations in those texts and builds upon those findings by
taking a multi-sectoral approach and consolidating the information on chemicals management
provided therein. However, since previous reports were in some cases too general and did not identify
the main gaps regarding basic elements for SCM, the analysis on this section has also looked directly
at the current legal texts and policy documents.
115
      In this sense see 2nd Environmental Performance Review (cfr supra note 7).
116
      See all the reports already mentioned and the list included in the bibliographic resources.

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       6.1.     The legislative and policy gaps

A comprehensive regulatory framework for general chemicals management helps to provide important
foundational capacity and to raise the level of protection for human health and the environment. The
term ―regulatory framework‖ includes the national legislation and regulations that establish the basic
rules, as well as the institutional structures (competent authorities) and administrative systems needed
for implementing the legal requirements. A number of common features viewed today as ―best
practices‖ can be found in many regulatory frameworks for chemicals management. These ―best
practices‖ include:

                   Assessment of chemicals to identify and classify by hazard
                   Communication of hazards through e.g. labelling and safety data sheets
                   Collection and analysis of data on chemicals, such as products and their uses, as
                    well as impacts on health and environment
                   Restrictions, including authorisation, where chemical-specific controls are needed
                   Adequate controls over import and marketing
                   Waste recycling, minimisation and adequate disposal mechanism

Although Moldova has developed a substantial regulatory framework covering different aspects of
chemicals management, several gaps and areas for improvement have been identified. With the
exception of certain controls over specific types of substances, the basic elements for sound
management of chemicals are missing. There is no legislation regarding the classification, labelling
and packaging of dangerous chemicals in general, or safety data sheets requirements. There is no basic
regulatory framework to carry out the monitoring of substances on the market and to adopt decisions
based on risk assessment, including registrations, restrictions, or bans. Implementation and
enforcement capacities are limited, in particular regarding the import of chemicals. In addition, the
legislation on hazardous waste is very limited which has led to the practice of storage of hazardous
waste on the premises of facilities creating an unsustainable situation.

The institutional framework for chemicals management has only been partially created due to the
constant cut-backs in the ministerial staff. These staff and financial limitations are exacerbated by
shortcomings in the communication between the different institutions in charge of chemicals
management.

One of the policy gaps identified during the stakeholder consultation for this report was the lack of a
comprehensive and multi-sectoral strategy for chemicals management. This report could serve as a
basis for developing such a strategy aimed at SCM in Moldova. More detailed information on
priorities and resource mobilisation are included in sections 7-8.

This section analyses the main problems detected in the national regulatory structures covering the
chemicals life-cycle in Moldova. It also highlights areas where good practices have been identified.
This section also proposes solutions to these problems.


                    6.1.1.      Basic life-cycle chemicals management

The approach adopted to analyse the different gaps and needs identified in Moldova is to look at each
of the elements of the chemical life cycle and how they are regulated and implemented in Moldova.
The different elements of the chemicals life cycle could be summarised as follows:




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                                      Box 3: the Chemicals “Life cycle”

                           Development & manufacture of the substance or preparation
                           Classification
                           Packaging & labelling
                           Trade & distribution
                             Crossborder trade
                             In-country marketing & distribution
                           Retail sales & handling
                           Use (application) & storage
                           Disposal



Other steps can be included, e.g., in the case of pesticides, the development of the active substance and
the formulation of the product.

                            6.1.1.1. Classification, labelling and packaging, including safety data
                                    sheets

All effective international frameworks for sound chemicals management are based on a classification
system of chemicals. Moldova has no system for classifying substances or preparations on the basis of
their hazardous properties, and therefore no requirements for ensuring adequate labelling and
packaging. The only nomenclatures developed are associated to customs in line with the international
customs codes, which allocates specific numbers to toxic waste, various specific substances as well as
dual-use goods. Requirements for classification, packaging and labelling for pesticides (including
obligation to indicate LD50 and LC50) and ODS exist. General label requirements for consumer
products (food and household cleaning products) have also been developed. From the legislative point
of view this is the most important gap. Classification and labelling are basic elements for the
establishment of a risk management policy as per the Programme E of Chapter 19 of Agenda 21.

      (a) Classification

Chemicals classification systems are based on the intrinsic properties or hazards of the substance. The
identification of these hazards together with exposure routes help to determine the risks posed by the
substances. On the basis of this, risk assessment decisions can be taken on any measures needed to
reduce, minimise or eliminate such risk.

The current legislation in Moldova (in particular the Law on Hazardous Substances and Products) does
not adopt such an approach. It defines ―noxious substances‖ as a ―substance that in contact with living
organisms can produce prejudice‖. ―Noxious product‖ is defined as ―the material aimed at being used
in national economy, when present in the environment can disrupt the normal functions of the human
organism as well as vegetable and animals and the ecosystem”.

These definitions refer to the harm that can be caused by certain substances but without making clear
reference to the intrinsic properties of the substance, which could lead to such harm117.

The legislation also refers indistinctly to ―dangerous‖, ―toxic‖ and ―hazardous‖ (noxious) substances
as synonymous. The EU framework legislation on chemicals uses the concept of ―dangerousness‖ to
refer to substances considered to have certain hazardous properties. The categories listed in Directive
67/548/EEC on classification, packaging and labelling of dangerous substances are based on the
physico-chemical and biological properties of the substances as well as on the environment and human
health effects. The categories include toxic (with three different degrees of toxicity), explosive,
flammable, oxidising, irritant, flammable (with 3 different degrees of flammability), sensitising,

117
   Only the definition of the terms ―noxious load – or shipment‖ include references to physical characteristics,
and biological or chemical properties. This definition is oriented to transport and storage.

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corrosive, carcinogenic, mutagenic, toxic to reproduction and dangerous for the environment. The
legislation includes a list of different criteria that will lead to the classification of the substance under
one or more of these categories. A substance falling under one of these categories will be considered
―dangerous‖. Downstream legislation creates obligations for different economic operators dealing with
substances considered as ―dangerous‖.

Some Moldovan legislation refers to other specific categories of danger. For example, ―the Norms
establishing the measures to prevent workers accidents‖ refer to flammable, toxic and explosive
substances. However, there are no criteria or cut-off points that could be used to determine whether a
substance has flammable, toxic or explosive properties.

This lack of definition creates legal uncertainty leading to difficulties in implementation and
enforcement. For example all acts related to chemicals management set forth obligations on economic
agents dealing with substances that are ―toxic‖ or ―dangerous‖. Since no classification system exist to
determine whether a substance is toxic or dangerous, economic operators may not know whether they
are required to comply with these requirements.

Two clear examples can be provided here. The Law on Hazardous Substances and Products requires a
licence for the manufacturing and import of toxic substances118. In the absence of a classification
system to determine which substances are considered toxic, economic operators do not know whether
they need a licence.

The legislation also requires economic operators dealing with hazardous substances to keep a register
and to communicate the substances to the State Department of Emergency Situations or to obtain a
safety certificate. Without a classification system, economic operators do not necessarily know
whether they have to comply with these obligations.

The technical inspectorates tend to use the Soviet Union system of classification which established
four categories of toxicity. However, this classification does not correspond to modern parameters for
classification.

There is no obligation for manufacturers and importers to classify substances and preparations
manufactured (e.g., paints or detergents) or imported. The request for a license for import must be
accompanied by a declaration specifying the main characteristics of the product, which is not the same
as requiring classification. As a consequence, the burden is for the inspectorates and customs to
determine whether the substances should be subject to the requirements of the legislation. Since they
do not have the adequate equipment to carry out analysis, this obligation is difficult to enforce.

In conclusion, the lack of a system for classification by hazards undermines obligations in the current
legal framework referring to dangerous chemicals, including accident prevention, registration,
licensing and so on. It also hinders authorities from having good knowledge of the type of substances
on the market and to establish adequate monitoring mechanisms to determine whether control
measures are needed for certain substances.

The EU-Moldova Action Plan commits Moldova to harmonisation of its legal framework with the EC
legislation. The Ministry of Industry is in charge of this harmonisation. The list of Directives includes
Directive 67/548/EEC on classification, packaging and labelling of dangerous substances. The list also
includes Directives that have been replaced by new legislation, in particular the Directive on the
classification, packaging and labelling of dangerous preparations. The Ministry of Industry should
look at Directive 1999/45/EC119.

118
    The Law refers to hazardous (noxious) substances but the legislation on licensing activities refers to toxic
substances.
119
    The lists of acts that are taken as point of reference by MENR and MII for harmonisation are sometimes not
updated. Harmonisation with old Directives (with the exception of those Directives that could provide a step-

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However, the EU is undergoing the adaptation of its current system of classification to implement the
Globally Harmonised System for Classification (hereinafter GHS). Therefore it would be more useful
for Moldova to look closely at the changes the EU is carrying out in its system before any
harmonisation takes place. In particular, Moldova could introduce the GHS adding some of the typical
concepts of the EC legislation, such as the definition of ―dangerous‖. In addition, there are concerns
about the (human and technical) capacity of Moldova to fully implement these directives. Any
harmonisation should take into account the conditions in the country and the dependency from imports
of substances and preparations. The table below offers the hazards categories developed under GHS:

                                          Box 4: GHS Hazard Classifications
             PHYSICAL HAZARDS                                HEALTH HAZARDS
             Explosives                                      Acute toxicity
             Flammable gases                                 Skin corrosion/irritation
             Flammable aerosols                              Serious eye damage/eye irritation
             Oxidizing gases                                 Respiratory or skin sensitization
             Gases under pressure                            Germ cell mutagenicity
             Flammable liquids                               Carcinogenicity
             Flammable solids                                Reproductive toxicity
             Self-reactive substances and mixtures           Specific target organ systemic toxicity – Single
             Pyrophoric liquids                                   exposure
             Pyrophoric solids                               Specific target organ systemic toxicity –
             Self-heating substances and mixtures                 Repeated exposure
             Substances and mixtures which, in contact       Aspiration hazard
                  with water, emit flammable gases
             Oxidizing liquids
             Oxidizing solids                                ENVIRONMENTAL HAZARDS
             Organic peroxides                               Hazardous to the aquatic environment
             Corrosive to metals



The establishment of a basic classification system for chemicals and basic obligations regarding
chemicals classification should be considered as the first priority for the establishment of SCM in
Moldova.

    (b) Labelling and packaging, including safety data sheets

Since there is no classification system there are no adequate requirements for labelling and packaging
of dangerous substances and preparations. Label and packaging requirements are basic risk reduction
measures. The application of these measures requires a basic knowledge of the risks, which are
provided by a classification system based on the assessment of the intrinsic hazards of the substance or
preparation. The label, the package and safety data sheet communicate and inform about the hazards
and risks of the substance or preparation and provide information about the precautions that should be
adopted when using or handling these substances, including disposal. The label (especially symbols) is
particularly important for communicating with consumers as this will normally be all the information
they will get to allow them to use the product safely. Safety Data Sheets (SDS) are essential to
communicate risks to professional users of dangerous substances or preparations.

The legislation only foresees basic obligations on the manufacturers and importers of household
cleaning products regarding labelling and packaging of chemicals. However, no basic obligations exist

wise approach to regulate some areas) implies an unnecessary investment since they will need to be modified in
view of any negotiation for accession. For example, in the case of dangerous preparations, the Directive used by
the MII is from l988. This Directive has been replaced by Directive 1999/45/EC which follows a different
approach.

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regarding more generally dangerous substances and preparations. There is no system for risk (R) and
safety (S) phrases; there are no obligations or legislation regarding symbols; and there is no legislation
on SDS.

The only labelling and packaging requirements that are adequately developed in the country are
labelling and packaging for pesticides, ODS and GMOs as well as transport of dangerous goods. There
are also some labelling requirements for cosmetics, toys, detergents, food products and other consumer
products120. These acts establish very basic requirements.

No further requirements exist regarding labelling and packaging of dangerous substances, including
basic aspects such as ensuring that the label is in Romanian and Russian. This is particularly important
for occupational safety and for consumer protection regarding chemical products that are placed on the
market containing dangerous chemicals (e.g., paints, insecticides).

As shown at section 3, in visits to different facilities it has been observed that dangerous chemicals
were packaged according to the legislation on the transport of dangerous goods and with labels in the
language of the exporting country (e.g., German and Ukrainian). SDS, sometimes provided upon
request, were also in the language of the exporting company (although the operator could request the
SDS translated into Romanian or Russia).

Consumer products (e.g., detergents and household cleaning products) sold in markets, including
supermarkets, are often not labelled according to the minimum standards to ensure consumers‘
protection, and not in Romanian or Russian. The product below was bought in a big supermarket in
Chisinau. The information is in Hebrew and there is only a message in English reading “Refer to
Hebrew text for all safety precautions and instructions before use. Vacuum shake and spray. Brush the
foam in. Vacuum again when completely dry”. This demonstrates the need for improved
implementation of labelling requirements in the country.




Harmonisation with EU legislation (with the considerations mentioned above) would be essential to
ensure that minimum requirements for labelling, packaging and safety data sheets for dangerous
chemicals are ensured. The figure below provides the key hazard symbols agreed to date under GHS.

                                            Box 5: GHS symbols
                           Flame              Flame over circle        Exploding bomb




                         Corrosion              Gas Cylinder         Skull & crossbones


120
    During the stakeholder consultation, the representative of the Inspection of Metrology mentioned the
existence of a legal act including labelling requirements. The legislation referred to seems to address general
labelling requirements that would not be enough for specific dangerous substances and preparations.

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                         Exclamation mark            Environment             Health hazard




                                6.1.1.2. Registration, authorisation and restrictions

Before analysing further concrete aspects of the regulatory framework for registration, authorisation
and restrictions, there are some general issues that should be noted. The Law on Environmental
Protection lays down the general principles for policy and decision-making in the area of environment.
However, neither this framework act nor any chemicals related instrument mentions the precautionary
principle, which is a principle adopted by the EU and most Multilateral Environmental Agreements in
relation to chemicals management.

Agenda 21, Chapter 19 states that the assessment of chemicals risks should take account of the
precautionary approach. Thus, any regulatory measure adopted in Moldova in the area of chemicals
(such as chemicals use restrictions, bans and phase out) should follow the precautionary approach.
Regulations could be developed to explain how to adopt decisions based on the precautionary
approach or, if adopted, the precautionary principle. The substitution principle could also be
introduced: this would lead to the phasing out of those substances posing an unacceptable risk or that
cannot be adequately managed/controlled having regard to the conditions in the country. The existence
of safer alternatives could be considered as an element for deciding whether to register a new pesticide
but also when registering chemicals in general.

                (a) Registration of chemicals

No general registration mechanism for chemicals121 is in place in Moldova. Under the Law of
Hazardous Substances and Products, the MoH should develop and keep a Register of Potentially
Hazardous Substances in accordance with the WHO. This register has not yet been developed. It is
needed: an essential element for adopting SCM policies is to know the substances used in the country
and to have basic information regarding their hazards.

Moldova does, however, have some information for developing such register, at least in principle
including the current substances in use in the country. The experience gathered in the development of
the register of pesticides could be brought here to develop a more general register of dangerous
substances. Economic operators have an obligation to report dangerous substances used to the State
Emergency Department. No access was given to these lists of substances and therefore no evaluation
could have been done. The SEI indicated that uncertainty exists about substances stored in facilities,
due to the changes in ownership during the privatisation process. Nonetheless, this list could provide
the basis for developing the Register of Potentially Dangerous Substances. The State Department for
Emergency, the MENR and the MoH should therefore cooperate to establish the Register.

A well-constructed registration system would provide incentives for manufacturing, using or
importing alternative and less dangerous substances.



121
      The registration system for pesticides has already been explained at section 5.

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             (b) Monitoring and reporting from economic operators

According to Article 72 of the Law on Environmental Protection, economic agents (it does not specify
who) shall keep a record of the date and nature, origin and quantity as well as storage of pesticides and
other toxic substances, and their physical and chemical characteristics. Economic agents are required
to submit this list to the MENR and MoH. Article 13 of the Law on Hazardous substances and
products specifies that this obligation covers hazardous substances. The Register of Potentially
Hazardous Substances is to follow a format prepared by the MoH; however, such a format has not yet
been developed, and because of the absence of a classification system, economic operators would have
problems to comply with this obligation.

Although the manufacturing and use of a dangerous substance requires an authorisation, there is no
clear obligation for companies to notify the manufacture of new substances or preparations (containing
new substances or non registered preparations). An obligation to notify would provide the State
information on the substances on the market and allow it to carry out adequate monitoring122. Thus, it
would be desirable that the legislation includes clear obligations on the manufacturer, importer or
distributor (whoever places the substances on the market) to notify new substances.

Once a substance has been registered, the MoH and MENR or its dependant institutes should have an
adequate legal basis to monitor the substance and its impacts on human health and the environment.
This monitoring should be complemented by the obligation on the manufacturers, importers and users
of those substances and preparations to carry out self monitoring and report to the competent
authorities any new information that could affect the registration of the substances, including new
developments in scientific knowledge or technological processes. The substance registered should be
subject to re-evaluation after a given period of time or when new information makes it necessary.

Incentives for the registration of less dangerous substances or alternatives are also required, including
fiscal measures.

             (c) Regulatory framework for authorisation, restrictions and bans

Since there are no adequate registration and monitoring mechanisms for chemicals, there is no legal
basis for restrictions of dangerous substances and preparations on the basis of a risk assessment,
monitoring results, or exchange of information at international level. A framework for regulatory
actions, including restrictions, withdrawals, authorisations and bans of dangerous substances, is
needed to implement the PIC convention, which requires notifications of regulatory actions adopted at
national level. The Convention establishes procedures for formally obtaining decisions (prior informed
consent) from importing countries on future shipments of the 22 pesticides and 5 industrial chemicals
specified in the Convention and for ensuring compliance with these decisions by exporting countries.

The Convention includes provisions for exchanging information between Parties, for labelling
potentially hazardous chemicals and for informing Parties of any national decision to ban or severely
restrict a chemical (regulatory actions). A special Chemicals Review Committee will evaluate the
addition of more chemicals, including hazardous pesticides nominated by developing countries or
transition economies, and chemicals or pesticides which have been banned or severely restricted by
Parties in at least two geographical regions. For Moldova to benefit from the advantages of the PIC
procedure, it will need to have an adequate regulatory framework for the export and import of
substances, including a framework to adopt regulatory actions.

Only two substances covered by international conventions ratified by Moldova (e.g., Stockholm and
Aarhus Protocol) have been banned in the country. The rest have neither been banned nor severely


122
   In the case of imported substances, the situation is more complicated since the mechanism for importing
―toxic‖ substances are not adequately developed and only covers pesticides and dual-use gods.

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restricted. ODS substances are banned, although methyl bromide can be exceptionally authorised for
quarantine shipment and pre-treatment (QSP).

Regarding other specific substances, asbestos is still used in the country (being considered as an
―environmental and health friendly material‖123). No legislation is in place on heavy metals (including
heavy metals in batteries or electronic equipments), wood preservatives, lead in petrol124, or tyre
composition. In general there are no bans or restrictions for any substance, with the exceptions already
mentioned coming from the Soviet Union times.

No actions are foreseen under the current EU-Moldova plan to carry out an initial approximation to
REACH (Regulation (EC) 1907/2006 concerning the Registration, Evaluation, Authorisation and
Restriction of Chemicals) but harmonisation is foreseen with Directive 76/769/EEC which establishes
the restrictions on the use and placing on the market of certain substances and articles. REACH can
provide useful guidance to establish an adequate regulatory framework for the registration, evaluation
and authorisation of chemicals, although it would need to be simplified and adapted to Moldova‘s
needs and capacities.

                                 6.1.1.3. Manufacture of chemicals products

As it has been shown in section 2 or 3, manufacturing of chemicals (either substances or preparations)
in Moldova is limited to cleaning products, detergents and paints. However, chemicals manufacturing
is considered a strategic sector for development which will need an adequate regulatory framework.

The main acts regulating the manufacturing of chemical products are the Legislation on Hazardous
Substances and Products, the Environmental Protection Act as well as Legislation on Licensing
Certain Types of Activities. Other legislation to take into account is the Environmental Expertise Act.
(Accident prevention and environmental permitting will be dealt with separately.)

According to Article 6 of the Law on Hazardous Substances and Products, the management of
dangerous substances in the area of medicines, veterinary, industry, agriculture, forestry, research,
science as well as their marketing, import and export needs authorisation. In addition, the company has
to be registered for these purposes. This authorisation will be issued by the competent authority within
the Ministry of Health, Ministry of Agriculture, Ministry of Environment or the State Emergency and
Exceptional Situations Department. There is a specific provision forbidding the import, storage and
use of pesticides of mineral origin unless a license has been issued by the competent authority.

In addition, Article 9 requires the manufacturing of dangerous substances to be carried out according
to a certified technological processes approved by the Ministry of Health and the Ministry of
Environment.

                (a) Permit and licence

The legislation does not identify the Ministry responsible for the authorisation of the manufacturing of
a type of substance. Only the authorisation for the manufacturing of pesticides and fertilisers has been
specifically allotted to the MAFI. No clear information is provided by the legislation regarding other
authorisations. It would seem that MENR, SDEES and MoH have competences to issue the
authorisation for the production of different types of substances and products. The MoH will authorise
the production of medical products. However, it is not clear which institution is competent to issue the
remaining authorisations. The manufacturing company will also need a licence issued by the Chamber
of License.



123
      Communication with the Agency for Construction.
124
      There is some legislation on content of fuels but it is obsolete

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             (b) Industrial process, classification and storage

The legislation fails to refer to best available technologies (BAT) or best environmental practice (BEP)
which are normally important in technical processes where chemicals substances are used to avoid the
release of dioxins and furans and production of toxic wastes.

Provisions and norms regarding BAT and BEP are required to implement the POPs Convention.
Harmonisation with the Integrated Pollution Prevention and Control Directive (hereinafter the IPPC
Directive) will be essential in this point. However, any BAT will have to be clearly adapted to the
current level of technological development in Moldova regarding industrial processes.

The obligations laid down for the storage of dangerous substances and products are very general. The
only requirement on economic operator is to store such chemicals in specially prepared warehouses,
according to the norms established by the Ministry of Health.

In conclusion, there is a need to harmonise with the IPPC Directive (see industrial permitting below
for more details; there should be reference to BAT and BEP adapted to Moldova‘s level of technical
development, with the Environmental Impact Assessment Directive and with basic obligations for
chemicals, such as classification and notification requirements. Obligations regarding less dangerous
substances have already been mentioned in the section on registration.

                           6.1.1.4. Worker protection

The Regulatory framework on worker protection includes a long list of instruments. The EU has
granted specific preferential tariffs to Moldova for the respect of workers‘ rights. However, Moldova
is not a party to ILO Convention 170 concerning safety in the use of chemicals at work, although it is
party to Convention 184 on safety and health in agriculture.

The legislation includes broad requirements regarding workers‘ protection. Chapter III of the Law on
Insurance for Accidents at the Work Place and Workers‘ Accidents establishes very general
obligations on the employers to prevent accidents. Article 21 requires the employer to create security
and hygienic (health and safety) conditions at the work place according to the requirements laid down
in the legislation. Employers are required to apply the necessary health and safety measures to prevent
accidents and to eliminate risk factors, including ensure that workers are informed. Employers have
also to ensure that employees participate in the elaboration, adoption and application of the measures
required to prevent accidents. They also have to provide to the insurance company, upon request,
information on the factors of risk at the work place.

The ―Norms for the elaboration and realisation of workers protection‖ (nr 40 of 16.08.2001) are a long
list of annexes including all the conditions to be fulfilled by an installation to be considered
―adequate‖ in terms of workers‘ health and safety. A framework list includes the obligation to provide
workers with protective equipment and specific measures for the manipulation of toxic materials, and
flammable and dangerous substances (toxic, caustic, and corrosive). Organisational measures, such as
an evaluation of the risks, need also to be adopted but there is no obligation to develop a plan to
reduce those risks.

The legislation does not include specific requirements tailored to chemical-intensive activities, such as
obligations to inform workers about the dangerousness of the substances or training to handle
dangerous substances. Requirements regarding labelling of the substances and SDS, including that
they should be in Romanian and Russian, are not foreseen by the legislation.

The Norms include a list of basic substances that fall under the scope of the legislation, but it is too
limited and does not reflect the dangerousness of new substances currently used.



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In conclusion, the current legal framework could be enhanced by addressing the specific risks that are
intrinsic to the handling and manufacturing of chemicals. As a minimum, Moldova could look at ILO
C-170 and consider becoming a party or at least incorporate the obligations laid down therein into its
legislation to address the specificity of the risks associated to the use of dangerous substances.
Harmonisation with the EU Directives on health and safety at the work place, in particular those that
are dealing with specific risks linked to chemicals (carcinogenic, chemicals agents, biological agents
and asbestos) can also improve the current legal system.

                            6.1.1.5. Accidents prevention

According to Moldova‘s legislation, installations dealing with dangerous ―objects‖125 have to obtain a
license, dangerous objects have to be certified and the operators have to adopt all necessary measures
to prevent accidents. The legislation includes a long list of obligations, all of which are formulated in
very general terms (e.g., comply with the legislation regarding environmental protection, respect the
criteria of industrial security and so on).

Companies working with certain quantities of dangerous substances are not required to develop
accident prevention and emergency plans, but they need to make a Safety Declaration. This Safety
Declaration is much less detailed than the emergency plan and the safety report referred to in SEVESO
Directive (Directive 96/82/EC on the control of major-accident hazards involving dangerous
substances). The annexes list dangerous objects126 as well as dangerous substances and the quantities
that will trigger the application of the legislation. The list of substances is very limited, with very
broad categories, and with too high tonnage thresholds to trigger the application of the legislation.

According to the information obtained from the interview with the representative of the State
Department for Emergencies in Orhei, in case of a change in the production process, a facility has to
notify the competent authority to obtain a new safety certificate. It seems that the good functioning of
the communication mechanism in case of accident varies. The SDE representative confirmed that one
of the shortcomings in the current system is the lack of warning mechanisms in many facilities in case
of accidents. Although coordination at the local level seems to be satisfactory, the SDE representative
indicated the need for better organisation of safety. In many cases, information to the population in
small villages is made through the churches.

In conclusion, the current legislative framework could be strengthen and needs to establish clear
parameters for the development of safety reports and emergency plans, including an adequate
communication system in case of accidents and reference to land planning and EIA. There has not
been any major accident but there are concerns about the capacity to react in the event of an
emergency due to limited personnel and equipment. However, coordination at local level seems
adequate.

                            6.1.1.6. Imports of chemicals

Article 15 of the Legislation on Hazardous Substances and Products requires a license for the import
and export of hazardous substances. However, since there is no classification system and no register of
substances this obligation is difficult to implement. It was confirmed in the visit to different facilities
importing chemicals, that economic operators do not necessarily know that a substance they want to
import is ―noxious‖ within the meaning of the legislation, and therefore that they need a license.

Operators often ask customs whether a license is required to import a substance. Customs officials
have not received any specific training on dangerous substances and therefore are not qualified to

125
   ―Object‖ is a very broad term that includes facilities and equipment.
126
   500 industrial objects dangerous for the environment are regulated and checked 1-2 times per year, although
they are currently operating at very low capacity (see UNECE 2 nd Environment Performance Review, 2005, p.
123).

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carry out an adequate control. No specific marking requirements, that could help customs to check the
imports, have been established. Unless the substance falls within the custom nomenclature that
determines the need for an import licence, implementation of the licensing system is difficult.
According to the information obtained from the Chamber of Licence, the licence for import of ―toxic‖
substances needs an authorisation issued by the Commission established by Governmental Order nr
606 of 15.02.2002. This Commission is the inter-ministerial committee created on the basis of the Law
on the control of the export, re-export, import and transit of strategic materials, thus dual-use goods.
This implies that, in practice, only the import of substances falling under the scope of this act will
require a licence, which is in contradiction with both the Environmental Protection Act and the Law
on Hazardous Substances and Products.

There appears to be a need for better communication between the MoH and the MENR with Customs
(except regarding dual-use goods, pesticides and ODS). Customs does not have to report data on the
imports of substances to these ministries. Customs tends to verify only the authenticity of the papers,
and whether these contain all the necessary information, and to collect excise and duties. Risk
mechanisms and ASYCUDA system for custom controls are now in place following the EU and
international standards, but Customs is not properly informed on chemicals substances or wastes. The
application of risk assessment mechanisms and simplification of customs codes may lead, in the area
of chemicals, to an increase in the number of illegal substances imported. Therefore, it is essential that
communication with customs and training is ensured. The experience gained in the implementation of
the Montreal Protocol could serve as an example on how to strengthen border controls. The
opportunities offered by EUBAM127 (the EU Border Assistance Mission to Moldova and Ukraine
launched on 30 November 2005), which specifically includes trainings, could also be explored.

Mechanisms to implement the PIC Convention have not been adopted. Implementation of the PIC
Convention should be one priority for the country given the dependence on imports of chemicals. The
implementation of the Convention is essential to control the import of pesticides and industrial
chemicals that are banned or restricted at international level. The implementation of the PIC
Convention will also help Moldova to control the quality of the chemicals imported. Moldova would
also benefit from the exchange of information at international level regarding the dangerousness of
certain substances on the risk assessment carried out by more developed countries. Technical
assistance is available to implement the PIC Convention.

In conclusion, the legislation needs to be strengthened regarding imports of dangerous chemicals by
clarifying the licensing system; furthermore, cooperation with Customs, training of Customs officials,
and the implementation of the PIC Convention are all needed.

                           6.1.1.7. Marketing conditions, handling and use

Requirements regarding marketing, handling and use of chemicals are found in the Law of Hazardous
Substances and Products as well as in the specific legislation on pesticides, ODS and GMOs. Other
marketing conditions are linked to consumer protection legislation.

For chemicals in general the only obligation is that the handling and use of dangerous chemicals and
products have to be carried out in accordance with the technical norms, sanitary and labour protection
regulations, and environmental protection acts (Article 12).

Any product has to obtain a certificate of quality which will indicate that the product or substance has
been developed according to an authorised technological or biological process. According to the
Regulation on the Licence to Export Substances, a commission under the Chamber of Licence and the
Ministry of Industry will issue a certificate valid for 5 years for the export of products, if these comply
with all the requirements laid down in the legislation. However, the quality-standards for products are
not yet fully developed and economic operators have complained that the mechanisms to grant these

127
      www.eubam.org

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certificates are not adequate. The certification does not guarantee that the product will comply with the
main safety requirements, as has been shown in previous sections.

                             6.1.1.8. Transport

The transport of dangerous substances and preparations is regulated by the Order for Drivers and Unit
of Transport. This order is further developed by the Norms on Transport of Dangerous Goods.
Transport has to be carried out by a driver specialised (certified) in driving dangerous substances and
prepared to react if problems appear during transport. Transport of dangerous goods requires a special
vehicle that has been certified for such transportation. The legislation forbids the parking of vehicles
containing explosive substances or those from which hazardous gases could be emitted close to areas
where it could affect human health and the environment. The legislation also forbids the transport of
dangerous substances in deteriorated packages.

The regulation incorporates in Moldova the UN Recommendation on the Transport of Dangerous
Goods. The Ministry of Transport, which is in charge of certifying vehicles, services and drivers, has
indicated that although the legislation is effectively implemented for the transboundary movement of
dangerous goods, its implementation requires strengthening for in-country movements. The persons
responsible for the controls of vehicles in route (the road police and State Ecological Inspectorate) are
not trained regarding the requirements for packaging, labelling and transport of dangerous goods.

The Regulatory framework seems adequate. The current problems seem to be associated with the
implementation of the legislation. Training for the inspectorates and police and fighting against
possible causes of corruption are therefore needed.

                             6.1.1.9. Disposal and waste issues

Article 14 of the Law on Hazardous Substances and Products requires that dangerous substances and
products are treated according to the legislation on the re-use and disposal and incineration of
dangerous substances and toxic waste. This legislation is the Law on Industrial and Household Waste
(nr. 1347 of 09.10.97). A national plan for the recovery of industrial and household waste was
approved by Order 606 of 28.06.2000.

The law is formulated in very general terms and most of the obligations laid down therein should have
been developed through regulations and standards. This has not been the case. The programme is a
description of waste problems in the country and a work plan for developing legislation and specific
waste plans. It does not include targets for recycling or recovery and does not link to more general
policies such as cleaner production. The programme has become obsolete and, with some exceptions,
has not been implemented. The reasons for this lack of implementation are once again the lack of
sufficient staff to develop the specific legislation and programmes, and the opposition to develop
incineration capacities by sectors of the population.

No plans or strategies at local or regional level have been developed and a high level of non-
compliance with the legislation on waste in all sectors has been registered128. The reasons for this lack
of compliance are partially a lack of awareness among citizens and also the lack of clear obligations
that could be implemented. There is a strong need in the country for the development of a waste
treatment industry that has not be addressed by the decision-makers leading to black markets of waste
(for recovery and recycling) and to illegal burning of toxic wastes including tyres129. Problems
regarding specific landfills, such as the landfill in Balti which receives 150 000 m3 of solid waste
every year130, also exist.

128
    Industry but also farmers and households who tend to dispose of their waste in the local rivers as well as to
store waste in their gardens.
129
    Information obtained from interviews with REC and representatives of MENR.
130
    See information on waste catching fire at section 3.

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The distribution of competences between the different departments is not always appropriate. Waste is
normally one of the main competences of the Ministry of Environment but in Moldova, the MoH has
been allocated very important tasks, including development of the waste classification, updating the
waste legislation and surveillance.

The current legislation transposes only 27% of Directive 2006/12/EC (the new waste framework
Directive that has repealed Directive 75/442/EEC). The analysis of the waste legislation in this section
is carried out from the perspective of chemicals management and from Moldova‘s priorities to
harmonise with the EU Legislation.

    (a) Principles

The legislation on waste includes the principle of minimisation of waste and requires legal and
physical persons to use non-polluting technologies. However this principle is not followed by an
effective policy of incentives regarding waste production – in the case of chemicals, for the use of less
hazardous substances in industrial processes – and more in general of a policy on cleaner production.
Article 22 of the legislation establishes a system of taxes for waste storage and dumping based on
waste toxicity but the system is obsolete and does not correspond anymore to the economic situation in
the country.

The National Programme for the recovery of industrial and household waste includes broader
objectives for the non-use of toxic substances and reducing the level of toxicity of the waste produced.
However, no concrete measures are established in the programme. The Programme also calls for the
establishment of a system for the separate collection of different types of waste, and this has not been
implemented. The only provision in the legislation that aims at reducing waste production is the
obligation on the economic operator to import or manufacture food products in recyclable packages.

The legislation does not establish a hierarchy system for waste treatment and does not include the
principles of proximity and producer responsibility. Producer responsibility is particularly important
regarding packaging waste, such as empty containers of pesticides and other dangerous substances‘
packages. This principle is also essential to deal with some of the current problems regarding disposal
of hazardous waste stored in facilities (e.g., hazardous wastes from the wine industry).

    (b) Classification of wastes and lists of industries potentially producers of waste

The legislation indicates that a classification of waste should be established by the MoH. So far, the
classification is based on the Soviet Union classification of toxicity (I, II, III, IV) which is obsolete.
The list of hazardous waste recently developed and approved by Order BNS nr 104 of 14.10.2005 is
still based on the Soviet Union categories of toxicity. Under this act, the producer is required to
analyse the content of waste to determine its degree of toxicity. The list is mainly based on the content
of heavy metals in waste, and does not take into account modern categorisation of toxicity.

However, a classification of waste has been developed for statistical purposes (Classification of wastes
for statistical purposes – CS 001-96, 1997). This list is a detailed waste catalogue (including a
nomenclature for each category of waste) but fails to indicate which waste will be considered
hazardous and it does not correspond to the EU waste catalogue.

The information obtained from the Chisinau Inspectorate shows that some types of wastes listed in the
report have not been allocated a nomenclature. In addition, POPs, PCBs and obsolete pesticides are
not mentioned in these different classifications of wastes. Neither ODS nor ODS equipment have been
phased out, although the ODS legislation links to the Basel Regulation and therefore to the categories
of waste listed therein.

There is no list of industries or processes that may lead to the production of hazardous waste.

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      (c) Obligations for economic operators

Waste legislation does not specify whether the obligations laid down therein are incumbent on the
waste producer, the waste holder or both. This creates legal uncertainty especially to determine who is
responsible to ensure adequate disposal of waste or to repair the damage caused. The allocation of
responsibility to the producer or holder will be particularly relevant in cases where the property of an
installation with stored toxic waste or contaminated sites is transferred. Moldova has many
installations with stored toxic waste, including obsolete pesticides and PCBs contaminated equipment
that it is percolating soil. The property of many of these installations and warehouses will be
transferred in the future as the country develops and foreign investors arrive. The status of such wastes
and the responsibility for disposal and clean-up operations should be clarified.

             1. Permitting and Registration

According to Order 287 of 17 June 2005, the MENR is responsible for issuing permits for waste
related activities, in particular, the collection of waste, waste treatment, waste incineration, waste
pyrolisis, waste use and waste trade. All these permits could be simplified in one permit which covers
all waste management activities. The harmonisation with the EU legislation on waste and the IPPC
Directive could help to simplify permits. No specific provisions regarding waste disposal by the waste
producer in its own premises have been included in the legislation. However it is the practice in
Moldova that hazardous waste is stored within the premises of a facility. In principle, a license will be
required to carry out an activity that may generate hazardous waste. The license will indicate the type
of disposal, storage and so on. The lack of a modern catalogue of hazardous waste or a list of
industrial activities that may generate hazardous waste undermines the effective implementation of
this provision.

             2. Basic obligations regarding waste management

The legislation includes a range of general waste management obligations such as informing the public
and ensuring that toxic waste is stored and transported with a label indicating the degree of toxicity,
the name of the toxic waste, its properties, technological process that lead to the production of such
waste and so on.

However, the essential obligation that the holder and producer of waste should either treat the waste or
ensure its adequate disposal by an authorised waste operator is not included131.

             3. Basic interdictions

The legislation also includes basic interdictions but does not forbid the mixing of hazardous waste
with other types of waste or the dumping of waste. There are provisions regarding the interdiction of
dumping of waste and incineration in protected areas but a more general interdiction on dumping
would seem more appropriate.

             4. Record keeping and reporting and waste statistics

Economic operators are required to keep evidence (record) of the waste produced, stored or received.
This information is provided to the Bureau of Statistics and the MENR. The system could be improved
by requiring information on whether the waste was recovered or disposed. There are nonetheless
doubts about the quality of the information provided.


131
   The legislation simply requires economic agents to ensure that transport, storage, treatment, disposal and use
of toxic and dangerous waste is based on a contract with an authorised waste operator and is carried out
respecting the standardised process.

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      (d) Transboundary movement of waste

A Regulation to implement the Basel Convention was enacted in 2003 (Regulation on the
Transboundary Transport of Dangerous Waste, approved by Order 637 of 21.05.2003). This regulation
includes Lists A and B of the Basel Convention as well as the exception to the principle of proximity
inserted in the Basel Convention. This exception allows Moldova to export specific types of waste
when there is no capacity in the country to dispose of it. However it seems that export of waste is
expensive and that there are some problems regarding the permits132. There are no plans to align with
the EU Basel Regulation.

Officials interviewed from MENR indicated that a mechanism or process for cooperation between the
MENR and Customs does not exist. Customs do not have specialist to carry out the identification of
wastes. For this reason, small units of the MENR have been created at entry points. As in the case of
imports of dangerous substances, communication with customs and custom training need to be
improved.

      (e) Waste treatment operations

The different types of waste treatment operations are listed in the legislation implementing the Basel
Convention but not in the main Waste Act. Although the Waste Act refers to storage and incineration
and includes some basic requirements for these, no specific legislation on landfills or incineration has
been developed. For the moment there are no incineration plants but this does not mean that
incineration does not occur. Plans to use cement kilns to burn waste were not approved, in part due to
the opposition of the population living nearby. As a consequence, there are no facilities to deal with
hazardous waste in the country (neither incineration plants nor landfills for hazardous waste). Exports
of hazardous waste are not common for Moldova (with the exception of radioactive waste), which
means that currently almost all hazardous wastes are stored on the premises of the waste producer.
This is not a sustainable situation given the increasing quantities of hazardous waste produced, and it
could create further problems linked to contaminated sites, similar to those created by obsolete
pesticides133.

      (f) Specific waste streams and inventories& plans

Legislation covering specific types of waste has not been developed. In particular there is no specific
legislation regarding hazardous waste, and some types of hazardous waste are problematic in the
country such as PCBs or waste oils. No legislation covers contaminated soil, which is one of the main
issues in the country due to stockpiles of pesticides and PCB-contaminated equipment. Legislation
regarding batteries (composition and collection) or animal waste has not been developed. Vehicles are
fast becoming waste because of the legislation to incorporate a new and less polluting fleet. End-of-
life vehicle legislation is therefore needed. The composition of tyres is not regulated but it has been
reported that some tyres are burned with no controls. Medical waste has also been burned.

Although the legislation does not include obligations regarding an inventory of specific waste-related
problems, some inventories exist in the country. Under the auspices of several international projects,
equipment contaminated with POPs (including PCBs) as well as equipment containing ODS and ODS
quantities have been inventoried. As shown at section 3, the PCBs inventory is incomplete.134 Other
types of inventories have included old lamps containing mercury and hazardous waste derived from

132
    The POPs PMU at the MENR indicated that there have had some problems with the customs authorities to
authorise the export of repackaged obsolete pesticides for disposal in France.
133
    Accidents or incidents caused by stored waste are generally not reported by the local authorities (which are in
not transparent about this issue). Some incidents have been reported in relation to obsolete pesticides in Ratus
village (Telenesti raion), Gradinita village (Causeni raion) and Cimislia raion. Information supplied by the POPs
PMU.
134
    For more information see the National Implementation Plan (NIP) for the Stockholm convention
(http://www.pops.int/documents/implementation/nips/submissions/moldova.pdf ).

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wine production. However, no specific plans have been developed to solve problems related to
specific types of waste (other than obsolete pesticides, POPs and ODS).

Hazardous wastes from the wine industry are derived from the use of ferrocyanates. Apparently, these
substances are no longer used but hazardous wastes originated by past activities remain. A project
from the State University, National Institute of Ecology and the MENR was carried out to find a new
method for disposal of these wastes. The National Programme called for the adoption of a specific
plan to deal with this disposal, but it was not implemented. The government cannot be the only
responsible body for disposal of this extremely hazardous wastes. This situation is one of the
consequences of a waste policy not based on the principle of producer responsibility. Given the
strategic importance of the wine industry in the country, it is not appropriate to place excessive
economic pressure on wine producers but nonetheless they have to assume the responsibility for
impacts caused by their economic activity. Therefore, a plan or a programme should be elaborated
together with the wine industry to negotiate a solution for these stocks of hazardous waste.

Conclusion: The legislation on waste needs to be improved. Harmonisation with EU legislation could
be accompanied by measures to promote cleaner production, in particular the use of less dangerous
substances. A better integrated policy of cleaner production, combining producer responsibility and
fiscal policies would prevent future problems linked to hazardous waste. Legislation on hazardous
waste, incineration, PCBs and packaging waste should be a priority, having regard to the problems in
the country, together with the development of a modern waste catalogue. Solutions for some specific
problems need to be negotiated with industry. The development of waste management activities could
in addition create market opportunities, including jobs.

                        6.1.2.        Specific chemicals

                                 6.1.2.1. Pesticides and fertilisers

Pesticides and fertilisers are heavily regulated in the country due to the problems with stockpiles of
obsolete pesticides and the support from different donors. The current legal framework mostly aims at
preventing new accumulation of stockpiles. It is the only area of chemicals for which a modern
classification system, based on WHO Classes, exists and which includes clear and specific
requirements regarding labelling, packaging, storage, transport, marketing and disposal. While
pesticides are covered, biocides are only partially covered by the current legislation. Due to the
economic importance of textiles (which often use biocides), the import of many insecticides (as well
as the fact that many are not adequately labelled), and the plans for the modernisation of wastewater
treatment plants, biocides should receive more attention.

As mentioned in the previous section, there are seven basic instruments for plant protection products
that could be merged to create a more comprehensive legal framework (e.g., a framework law and
implementing regulations). The country is trying to adapt to EU legislation and this will help to
streamline the current legal framework. However, since Moldova does not produce pesticides in the
country, much emphasis has to be put on imports, to ensure that the minimum requirements are
fulfilled and avoid counterfeit or low quality pesticides.

The legal framework is nonetheless complete and provides for an institutional structure that combines
technical expertise and policy options. It is also important to ensure that the legislation does not refer
to general categories, such as economic agents but specifies the person responsible (the importer,
distributor, producer, the person placing on the market, the holder and so on).

There are 16 distributors of pesticides registered in Moldova and 81 companies represented. 481 active
substances are registered in the country135. A list of these substances can be found in Annex III.


135
      Data dated 27 February 2007.

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      (a) Registration and restrictions

The current registration system lacks incentives to register less toxic pesticides. Although the fees to
be paid are based on the toxicity of the pesticides, there is no requirement in the legislation to prevent
the registration of a pesticide if less toxic alternative pesticides are already registered. If less toxic and
affordable alternatives exist, the most toxic pesticides should not be registered. In addition, the
legislation does not include reference to POPs when assessing new pesticides for registration.

Some of the active substances registered in Moldova have been banned at EU level (e.g., phosalone).
This is despite the fact that, according to the information obtained from the Centre for Homologation,
Commission Decisions136 banning or restricting active substances are used in the registration process.

The current policy in the country is to promote the use of pesticides and fertilisers by granting VAT
reimbursements but without taking into account the toxicity of the pesticide used. The authorities
consider that Moldova is not using sufficient pesticides and fertilisers (as compared to the EU
average). The objective of this policy is to increase productivity by increasing the quantity of
pesticides used. However, the State Inspectorate for the Environment has expressed concerns over the
accuracy of the statistics regarding pesticide application due to the method used to carry out the
assessment137. In addition, no analysis has been carried out to determine whether some of the
pesticides used are actually needed or whether less toxic alternatives exist. This policy has not taken
into account risks regarding impacts on fertility of soil, increases in the costs of the final product,
residues, development of resistance or even risk to create future stockpiles. Comparison in absolute
terms of the consumption of pesticides in Moldova and the EU are not adequate given the different
economic circumstances. The incentives should be oriented to create high quality products that could
be sold in the EU markets (e.g., organic products) and to promote the use of less dangerous pesticides.

Only general categories of pesticides are subject to restrictions. In particular Class I and II pesticides
cannot be distributed to the general public. However, the legislation does not include provisions
allowing for the registration of a specific substance subject to specific conditions (type of harvest,
mode of application and so on). There is no legal framework for bans based on exchange of
information at international level or monitoring of the substances registered. With the exception of
methyl bromide and other substances banned by the Soviet Union no active substance has been banned
in Moldova.

One of the problems discovered during the second mission was a gap in the control over the
distribution of Class I and II pesticides to individual farmers. Although according to the legislation,
pesticides can only be sold or distributed to specialised persons, little control exists over shops selling
pesticides (at least in small villages). During the interview with the Centre in charge of pesticide
registration, the possibility to ban Class I pesticides was considered as a solution for this problem. This
is in line with the FAO Code of Conduct.

The current legal framework could be strengthened by incorporating these principles, encouraging the
registration and use of less toxic pesticides and adapting the taxation policy accordingly. In addition,
in the efforts to harmonise with the EU legislation, legislation could ban and withdraw the
authorisations for active substances that have not been included in Annex I to Directive 91/414/EEC.




136
    These Commissions Decisions regulate the non-inclusion of active substances in Annex I to Directive
91/414/EEC on the placing on the market of plant protection products, as well as the withdrawal of the
authorisation of pesticides containing active substances that are not included.
137
    During the stakeholder consultation, the SEI indicated that the low figures reported in Moldova for use of
pesticides per unit of territory were due to the fact that the calculations have been done taking into account the
whole territory, whereas many other countries only use total agricultural land.

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      (b) Packaging and labelling

The current legal framework for packaging and labelling could be improved by adding references to
symbols. Pesticides imported from the EU include symbols of danger but pesticides imported from
other countries do not always include these symbols. Symbols in the labels as well as R and S phrases
will be required when harmonisation with the EU legislation is carried out.

Regarding packaging, although some references exist in the legislation138, a clear obligation to use
recyclable or re-usable containers could be included. This obligation, together with provisions for
importer/producer responsibility, would facilitate the establishment of an effective collection system
for empty containers.

      (c) Imports

During interviews with farmers‘ associations, concerns were raised about imports of counterfeit and
low efficacy pesticides (some of them from Ukraine, Turkey and possibly from China). These
pesticides have led to the development of resistance and collateral effects such as loss of harvest
(flowers), or death of bees. The presence of these products on the market implies weak border
controls.

Moldova‘s legislation establishes controls on imported pesticides through the establishment of an
obligation to notify MAFI of each imported shipment and the quantities to be imported. This
notification allows the MAFI to monitor the quantities of pesticides imported in the country and to
exercise some control. In principle, the MAFI can indicate to an importer that there are enough
products already on the market of a specific type of pesticide. Despite these notifications, no adequate
communication channels exist between Customs and the MAFI. Although the MAFI will inform
Customs about the authorisation to import pesticides and their quantities, Customs are not required to
report to the MAFI the imports of pesticides that actually take place. Communication between
Customs and MAFI should be improved to enhance controls over pesticides. The establishment of PIC
procedures would strengthen controls over imports of pesticides in the country and allow Moldova to
stop the entrance of non-desired pesticides.

The legislation only establishes that counterfeit products will be confiscated; the importer or
distributor is not required to ship them back or dispose of them at their own cost139. The introduction
of importer/distributor responsibility together with provisions on liability for defective products would
also reduce risks of counterfeit or low efficacy products.

      (d) Registers

Importers and distributors are required to keep the registers of pesticides imported and stocked and
report to the Inspectorate on Plant Protection. A similar obligation exists for professional farmers. This
information will be sent to the MAFI.

      (e) Marketing and storage

The provisions on publicity could also be improved since no clear requirements exist on dealers to
provide assistance to buyers. Although dealers must have a specialist on plant protection, it has been
reported140 that small farmers tend to store pesticides in the same place they store food. There are no
guidelines at national level on the storage of pesticides by individual farmers in households. Some
work could be done on awareness raising and training in this area.

138
    Article 14(4)-(5) of the law on products of phytosanitary use and fertilisers.
139
    It seems as it would be the responsibility of the government (point 23 and 24 of the Regulation on import,
storage, marketing, use and disposal).
140
    Conversation with the extension services in Orhei and interviews with farmers associations.

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      (f) Application, handling and use

The legislation establishes the obligation to apply pesticides under the supervision of a specialist on
plant protection. This provision applies in practice to commercial farms. Specific requirements for the
application of Class I and II pesticides are foreseen in the legislation. Spraying is only authorised for
Class III and IV pesticides.

The main shortcoming of the current system is a lack of control over handling and use by individual
farmers and storage of pesticides in houses as already mentioned.

      (g) Disposal

The legislation forbids the use of empty containers for uses other than pesticides but it has been
reported anecdotally that uses occur. This is partially due to the lack of a collection system for empty
containers, and the lack of adequate incentives to ensure the collection of empty containers141.

The distributors interviewed do not seem to be willing to assume their responsibility in the collection
system. The arguments laid down were that the main suppliers (the manufacturing companies)
indicated that the establishment of a collection system would imply an increase in the costs of the final
product. This should not be the case. Incentives, such as symbolic refunds for the return of empty
containers to the distributor, could be explored but these will need to be accompanied by the
obligation for the manufacturing companies to accept the containers. Packaging waste legislation will
be important for the implementation of such a system. Contacts with the manufacturers may be
required to promote the acceptance of a collection system by distributors, in line with the FAO Code
of Conduct recommendations.

      (h) Monitoring and Enforcement

The registration of pesticides is renewed every 5 years. However, it does not seem that monitoring of
the pesticides is carried out. The laboratory in charge of registrations is well equipped and its
personnel are trained, but its main function is to carry out quality control and analyse pesticide
residues. Decisions on renewal are not based on information, if any, on impacts on human health and
the environment of the substances registered collected through monitoring or through exchange of
information in international fora (e.g., PIC, POPs Conventions, Montreal Protocol) or via information
supplied by the company requesting the renewal.

The extension services do not have much capacity to control application of pesticides. They tend to
focus on large and commercial farms but not on small farmers where more concerns exist. Controls are
not coordinated, for example, between the labour inspectorate and the plant protection inspectorate.

In conclusion: The current legal framework could be simplified by harmonisation with Directive
91/414/EEC and by incorporating the substitution principle and adapting fee policy accordingly. In
addition, in the efforts to harmonise with the EU legislation, mechanisms for restrictions of pesticides
or approval with conditions can be improved. The legislation consider to ban (and not only not
register) and withdraw authorisations for active substances not included in Annex I to Directive
91/414/EEC. The labelling and packaging requirements can be improved by introducing obligations
regarding symbols of danger. Control of pesticides imported could be strengthened by establishing an
adequate framework for PIC procedures and communication channels with Customs. A negotiated
solution for the establishment of an empty containers collection system and disposal is required. The

141
   According to point 22 of the Regulation of Import, Storage, Transport and Use of Pesticides, containers that
are reusable should be returned to the distributor according to the contractual terms between the supplier and the
user of the product. In case of non-reusable containers, these have to be disposed of according to methods
established by the MoH and MENR.

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possibility to develop guidelines and carry out awareness campaign regarding the storage of pesticides
in households could be considered. The possibility of banning Class I pesticides could be discussed as
recommended in the FAO Code of Conduct.

                             6.1.2.2. POPs

Moldova is party to the POPs Convention but it has not developed specific legislation on POPs.
However, the National Plan for the Implementation of the POPs Convention (NIP) has been
developed142 and this provides a very good gap analysis of the current framework, identifying needs
and developing an action plan. The third phase of GEF/World Bank project on POPs will be focused
on the legislative component, implementing some of the actions proposed in the NIP. This is another
area where the action plan is being implemented with the support of international donors and due to
awareness of the risks linked to POPs.

POPs are not banned with the exception of some POPs that were already banned during Soviet Union
times. The reason presented is that when a pesticide is not included in the register, it is not authorised
and therefore a legal framework for banning is not required. This is not an adequate approach and will
have to be changed especially with a view to implementing the PIC convention, since regulatory
actions will be needed to support notifications to the Secretariat to implement the prior informed
consent procedure.

In addition, this argument would only be valid for POPs that are pesticides but not for industrial POPs,
which are not currently covered by any legislation (apart from the very general obligations of the Law
on Hazardous Substances and Products).

Obligations regarding labelling and disposal of POPs or information to the public do not exist, and no
existing inventories of industrial plants or factories known to release HCBs, PCBs, dioxins or furans
have been developed. Obligations regarding BEP and BAT that could be applied in the industrial
sector to reduce the incidental production of POPs do not exist, neither have any types of BEP and
BAT been identified143. As mentioned before, BAT and BEP should be adapted to the capacities in the
country. No emission limit values for unintentional releases have been established and the country
does not have equipment to monitor dioxins and furans.

There is no legislation regarding disposal of PCBs or waste oils.

Any implementation of the regulatory aspect of the NIP action plan should try to avoid a piece-meal
approach. There are already too many specific acts that deal with individual problems, while the
framework legislation is missing or very incomplete. The legislative project on POPs could be used to
establish the basis for the development of this framework legislation. For example, it is not sufficient
to create specific legislation on PCBs or waste oils if the waste framework legislation does not include
the basic obligations.

                             6.1.2.3. ODS

The legislation is robust and it is a good example of how the combination of an adequate legal
framework, a good organisational structure – including communication and exchange of information –
and training can lead to successful implementation. The experience gained in this area could also be

142
    National Implementation Programme for the Stockholm Convention available at:
http://www.pops.int/documents/implementation/nips/submissions/moldova.pdf
143
    Identification of BEP and BAT is foreseen for 2010 (see the NIP). Technical assistance will be required. The
most important mechanism to reduce emissions of by-products POPs is to modernise and upgrade current
production processes, including the power stations, cement kilns, wastewater treatment plants and so on. The
technology used by these facilities is very obsolete. Therefore it is difficult to identify any BAT or BEP in the
country. Significant investments will be required in these installations.

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exported to other areas of chemicals management where import controls are required. For details of
the accomplishments of the programme, see section 5.

                           6.1.2.4. Other substances
      (a) Asbestos

There is no legislation regarding asbestos, and asbestos has not been banned. Around 2000, the MoH
sent a letter to the MENR (which at the time was in charge of construction and land-use planning) on
the negative health impacts of asbestos. No further action was taken by MoH. The MENR issued an
order requesting ―the appropriate modifications‖ of all the legislative or regulatory acts with references
to asbestos. However, this message did not imply the restriction or banning of asbestos. The MENR
was restructured and its competences on construction were allotted to the Agency for Construction and
Territorial Development. The Agency considers asbestos as one of the ―environmental and health
friendly materials‖. As a consequence, asbestos is still used (which is not in line with ILO C-162144)
and there is no data on impacts on health. Accession of Moldova to ILO C-162 and implementing the
Convention should be considered a priority.

      (b) Heavy Metals

Moldova is party to the 1998 Aarhus Protocol to the Convention on Long-Transboudary Air Pollution
(CLRTAP) regarding heavy metals (cadmium, lead and mercury). In 2002, it developed a yearly
implementation plan that included as priority actions: measurements of air pollution at the border with
Romania, an inventory of pollution sources, and measures on the re-establishment of Moldova‘s
EMEP analytical station. The EMEP analytical station restarted work in 2004 but its capacities are
limited145.

Most actions have been focused on monitoring, neglecting the policy and regulatory implementation
of the Protocol146. Apart from some concentration limits in water and air, there is no legislation
regarding heavy metals. Therefore, legislation regarding the content of heavy metals in products (e.g.,
batteries, lamps, electronic equipment and so on) has not been developed, and emissions limit values
have not been updated147. No action has been taken to reduce industrial sector emissions. Good
chemicals management, including cleaner production, will be needed to reduce the inputs of these
pollutants in the different media. The foreseen harmonisation with EC Directives (on air, water, and
IPPC Directives) will help in the implementation of the Convention and the Protocol.

      (c) Nitrates

The presence of nitrates in food and water is increasing; in groundwater, nitrates are being found at
deeper levels148. As shown in section 3, this problem seems to be linked to household and animal
waste disposal (in particular animal waste) rather than the use of fertilisers.

The figure below shows how the use of fertilisers has fallen sharply since 1991. Use has reportedly
risen since 2003. Although the current legal framework has focused on the distribution and marketing
of fertilisers, little attention has been paid to their application or to health and environmental impacts




144
    Based on a resolution adopted on 14 June 2006, ILO will promote a global ban on asbestos.
145
    Cfr supra note 7, 2nd Environmental Performance Review
146
    Idem.
147
    ELV exist according to USSR standards which in many cases cannot be monitored or complied with.
148
    See UNECE 2nd Environmental Performance Review, p. 105. Cfr supra note 7.

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                         Figure 10: Use of mineral and organic fertilisers, 1991-2003




The only horizontal instrument dealing with Nitrates is a Norm issued by the MoH regarding fixing
nitrate limits in products of vegetal origin149. The policy of providing incentives to use fertilisers
should be carefully assessed to avoid any risks for the future derived from excesses of nitrates. More
attention should be paid to animal waste, which is the main cause of high concentrations of nitrates in
water (rivers and wells). Successful projects funded by GEF (such as the Agricultural Pollution
Control Project) and implemented with the help of NGOs have raised awareness in small villages
regarding animal waste and reduced nutrient pollution from agriculture. Many of these projects are
part of the general strategy to reduce the discharge of nutrients to the Danube River and the Black Sea.
Probably one of the reasons for not developing a general policy or strategy regarding nitrates is the
lack of awareness concerning risks and problems derived from nitrate pollution. Only the MoH and
some inspectorates dependent on the MENR are active in this area, including awareness-raising.

Despite these initiatives, a more general strategy regarding nitrates does not exist and no water
protection zones have been established. The MAFI could become more involved, together with MENR
and MoH, to develop such a general strategy covering agricultural activities and continuing education
in small villages on waste management issues. The WB‘s rural investment support, together with
UNDP as well as donors active in rural areas and agriculture, such as USAID, SIDA or DFID could
contribute in this area.

      (d) Greenhouse Gases (GHG)

GEF (World Bank and UNDP) and EuropeAid have been very active in financing projects regarding
greenhouse gases, including technical assistance for the accession of Moldova to the Kyoto Protocol
and for the implementation of clean development mechanism (CDM) projects. These projects have
focused on institutional capacity building and awareness-raising. In addition to international support, a
national initiative promoted by the Minister of Transport and a WB project has been developed to
control emissions. Two CDM are currently registered under the UNFCCC and supported by the
Netherlands and the WB150: Moldova Energy Conservation and Greenhouse Gases Emissions
Reduction; Moldova Biomass Heating in Rural Communities.

A national designated authority was created in 2003 with the mandate to develop a policy framework
on climate change and propose changes to the national legislation. However, neither the development
of such national policy nor changes in the legislation have taken place. For example, there is no
legislation regarding GHG in general. The person responsible at the Ministry of Transport indicated

149
    Sanitary-epidemiological norm providing for limits to the content of nitrates on products of vegetal origin of
29.06.2005 (National Monitor nr 168-171/584 of 16.12.2005).
150
    For more detailed information please see http://cdm.unfccc.int/Projects/projsearch.html

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that given the lack of initiative at higher level, the Ministry decided to adopt unilateral measures such
as measures regarding the renewal of the car fleet.

Moldova needs an adequate legal and policy framework on GHG and more generally on climate
change if it wants to fully benefit from the economic and capacity-building opportunities provided by
the Kyoto Protocol.

                     6.1.3.        The regulation of the industrial sector and chemicals

As mentioned in previous sections, chemicals are a cross-cutting issue that should be integrated in
different policy areas. The industrial sector is particularly relevant for chemicals management, not
only because the chemical industry is one of the most profitable sectors worldwide, but also because
industry uses chemicals in their production processes and emits pollutants as a consequence of these
processes. Industry policy and the regulation of the industrial sector should therefore integrate
requirements that ensure sound chemicals management. This section looks at the current legal and
policy framework for industry and suggests recommendations that could enhance current chemicals
management at industry level.

                              6.1.3.1. General aspects of the industrial policy and regulation

The current system of permits is not integrated across environmental media151 and it only transposes
about 20% or less of the IPPC Directive. Each economic agent has to obtain a license from the
Chamber of Licenses and also separate permits for emissions to air, water and waste. The SEI carries
out an inspection of the facility and provides its assent; it seems that also the Centre for Preventive
Medicine, the labour inspectorate State Department for Emergency Situations and the Inspectorate of
the Department of Standardisation and Metrology will carry out inspections without coordination.

The need for better communication between the different services and even within the MENR was
evident when no clear answer was obtained regarding who had the competence to issue permits for
emissions to water and air. In conversations with the SEI, it was mentioned that the MENR section on
industrial pollution was in charge of issuing such permits. However, the unit indicated that they were
competent to issue waste management permits, whereas the SEI was in charge of issuing permits for
water discharges and air emissions. This information was finally confirmed by the SEI officials in
charge of issuing permits for air and water.

In principle, all the authorisations are collected by the Chamber of Licence, which will finally issue
the licence for the activity. The separate permits indicate discharges into water and air authorised as
well as the authorisation to dispose of hazardous waste in the activity‘s own premises or otherwise
(when not hazardous) to transfer it to an authorised operator (landfill).




151
    Integrated permitting is a concept developed by the UK and taken on by the EU, according to which a single
permit covers all elements of a facility's environmental "footprint." Emissions to air, water, and land are
comprehensively managed, along with a host of other factors, such as
      waste generation,
      raw materials use,
      energy efficiency,
      noise,
      accident prevention,
      other pollution prevention factors, and
      risk management.
In the EU under the IPPC Directive, the permit requirements includes emission limit values (ELVs) and must be
based on Best Available Techniques (BAT), as defined in the IPPC Directive. For more information visit:
http://ec.europa.eu/environment/ippc/index.htm

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As mentioned before, there are no references to BAT or BEP and there are no specific acts dealing
with volatile organic compounds (VOCs) or technical regulations for large combustion plants or
incineration; these would be very important for control of dioxin and furan emissions.

No clear requirements for self monitoring exist, but most of the facilities do not have any means to
carry out such monitoring. Although there is no register of emissions, data on air emissions and waste
flows are gathered by the Bureau of Statistics, the Hydrometeorology Service and the Centre for
Preventive Medicine152.

From the policy perspective, air and water emissions legislation are to be harmonised with the EC
framework Directives and this will complement the harmonisation with the IPPC Directive. However,
any policy regarding industry would better focus on energy efficiency and cleaner production, as this
would substantially reduce emissions and discharges and would serve to make industrial production
more efficient and profitable in the long run. As mentioned before, environmental management
certification, including ISO 14 000, cleaner production, eco-labels and environmental audit schemes
are concepts that are slowly being integrated into the broader industrial policy.

                             6.1.3.2. Energy, Transport & Infrastructure

      (a) Energy

Several links can be identified between chemicals and energy. The chemical industry is one of the
highest consumers of energy. On the other hand, the energy sector, in particular electricity generation,
is one of the main emitters of greenhouse gases. Many electric plants have in the past used PCBs in
generators and capacitors, creating environmental and health problems. The specific chemical content
of fuels will determine their efficiency as well as their polluting capacity. Energy inefficient
installations tend to be those that use obsolete and more polluting technologies (including dangerous
chemicals) and therefore produce dangerous chemicals as by-products, such as dioxins and furans153.

Moldova is 98% dependent on energy imports154, making it very vulnerable to external factors. The
poor are those that most have suffered the consequences of this vulnerability. The energy and heat
generation sector is the biggest contributor to air pollution (about 80% of the total atmospheric
pollution155), including unintended production of POPs. Electricity generation is the biggest consumer
of energy (42.4% of total consumption156) and is also responsible for current stocks of PCB-
contaminated generators and capacitors, and probably PCBs contaminated oils.

Policies for the energy sector have already integrated the problems related to the use of PCBs in the
past, and the Section of Energy of the Ministry of Industry and Energy is very much involved in
projects that aim at recovering and disposing of these PCBs. Other collateral problems, such as those
related to the presence and releases of POPs in the energy sector, have not been fully assessed in terms
of the effects on human health and the contamination of soil and water due to leakages from
contaminated equipment. Different projects have been planned to carry out these analyses: one by the
Ministry of Health and another by the POPs PMT together with the MENR. The Regional
Environmental Centre (REC) is seeking funding to analyse the effects of POPs, and therefore also
PCBs, in children. In order to maximise resources, efforts should be coordinated between these
152
    However, as shown in section 3, the data reported by companies is not accurate, since it is not based on actual
measurements but rather calculations and therefore there are not many variations from one year to another. For a
more detailed analysis please see section 6.3
153
    Buildings are also major energy users; in the EU, their consumption has grown steadily with rising living
standards and they are an important sector for improving energy efficiency. See:
http://ec.europa.eu/energy/action_plan_energy_efficiency/doc/buildings_en.pdf ).
154
    See Strategy for the Development of Industry for 2015 (Order nr 1149 of 05.10.2006). About 55% of the
energy imported is natural gas from Russian Federation.
155
    UNECE 2nd Environmental Performance Review.
156
    Strategy for the Development of Industry for 2015 (Order nr 1149 of 05.10.2006)

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different initiatives. Awareness-raising or education campaigns on the risks of electricity stations
should also be carried out, since the population does not seem to be aware of PCBs impacts on human
health157.

Pollution from the energy sector has not been adequately addressed in current industrial, energy and
transport strategies. The current Energy Strategy, which was developed in 2000158, includes among its
objectives the promotion of energy efficiency and environmental protection. The strategy focuses on
diversification of the sources of energy and new technology to increase energy efficiency. Among the
possibilities for diversification, the strategy mentions the potential provided by renewable resources
and recycling operations, in particular using agriculture waste as source of energy 159. Finally the
strategy also refers to the alignment with EU standards and reduction of emissions, indicating that the
implementation of the energy saving programme would lead to a reduction in emissions. The energy
saving programme foresees investments in the current technologies and industrial processes as well as
a new pricing policy for energy.

The strategy therefore already includes important elements that will require sound chemicals
management, but the link could be improved. The strategy is general and only in few cases proposes
concrete actions. For example, the action foreseen for the achievement of the different objectives listed
on environmental protection is simply to align with the EU standards. The strategy does not reflect the
complexity of the regulation of the energy sector and pollution in the EU. It does not foresee concrete
actions that will be essential for energy efficiency and environment, and thus chemicals management,
such as the regulation of the technical conditions of the installations producing energy (e.g.,
combustion plants, cement kiln if used for incineration), the establishment of specific targets regarding
consumption and composition of the energy mix, or the establishment of emission limit values for
these installations. Although the strategy mentions the content of fuels, it lacks concrete action aimed
at regulating such content (such as lead or benzene in petrol).

Most of the actions foreseen in the strategy are the development of more specific strategies. Many of
these actions, including the laws to be developed160, have not been implemented, partially due to the
ambiguity of the government‘s priorities. For example, the privatisation of the energy sector, which is
one of the most important actions foreseen to attract foreign investors (and thus transfer of
technology), has not been fully achieved161.

      (b) Transport and infrastructure

Transport is another sector with close links to chemicals162. Road transport is a significant contributor
to air pollution in the main cities in Moldova. Pollution is normally linked to petrol composition as
well as automobile efficiency and pollution controls. The current strategy aims at harmonisation with
EU standards (Euro 2, and soon 3 and 4) and renovation of the car fleet. The legislation restricts the
import in the country of automobiles older than 7 years. Other measures have focused on the content
of petrol, promoting the use of unleaded petrol and de-sulphurised diesel, but there is no strict


157
    See for example the case of the household situated within the premises of Orghei electricity generation plant
already mentioned.
158
    Energy Strategy, Order nr 360 of 11.04.2000 (Official Monitor of Moldova, nr 42-44 of 20.04.2000) and also
Energy Strategy for 2005, Order nr 542 of 11.06.97 (Official Monitor of Moldova nr. 49-50/515 of 31.07.1997)
159
    There has been a CDM on the use of Biomass heating in rural areas (see above under GHG).
160
    For a list of all the legislation on the energy sector please see the Energy Strategy as well as the bibliography.
161
    For more details on energy in Moldova please see the WB paper on impact of energy prices in Moldova (cfr
supra note 27). In 2000 privatisation of the electricity sector started by selling three regional power distributors
to Unión Fenosa, a Spanish firm. Further privatisations in the sector have not taken place. In addition to the
government‘s position, Moldova remains an unattractive place for investors. See more details in UNECE 2 nd
Environmental Performance Review.
162
    This section looks at general transport policy and not at transport of dangerous chemicals, which has already
been analysed.

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requirement on fuel content. Economic measures have also been adopted, such as taxes.163 While the
measures adopted to restrict car imports have led to the introduction in the country of less polluting
vehicles (Euro 2, 3 standards), the levy policy on petrol has benefited diesel fuel over unleaded petrol.
Nonetheless it has served to replace other types of fuels164. The current policies are nevertheless
undermined by illegal car imports through Transinistria.

The current strategy for transport focuses more on road infrastructure than railway promotion 165. The
externalities caused by pollution of the road transport have not been integrated. ―Internalising further
the transport-related external costs could influence positively the level and modal structure of
transport activities166‖, thereby reducing pressures.

As the 2nd Environmental Performance Review of Moldova notes, ―a successful decoupling of
transport-related environmental pressures from economic growth may well pose a significant
challenge to policy makers, as the ongoing catch-up of per capita income is likely to induce strong
demand for cars and better public road infrastructure.‖

Other problems already mentioned related to road transport have not been addressed in the current
legislation or strategies, in particular chemicals content of tyres and batteries, and disposal operations
for batteries, tyres and old-vehicles. As the economy develops, the car fleet will increase and more old
cars will need to be disposed of. Illegal burning of tyres and disposal of batteries under normal
municipal waste disposal operations can create human and environmental problems.

Policies for the promotion of railway transport could be combined with requirements for fuel content
and standards as well as specific measures regarding tyres and end-life vehicles. Approximation with
EC legislation would help to fill out these gaps.

In addition, little attention has been paid to the role of chemicals in infrastructure development, despite
the problems that can appear in the future. The railway sector provides an example of how inadequate
chemical management can create undesirable problems, such as soil contamination and health impacts,
which will require further investments to resolve them. According to the 2nd Environmental
Performance Review, the State-owned monopoly Moldovan Rail is in the process of implementing a
2003-2007 action plan to reduce such impacts by recycling oils and technical water as well as
monitoring the toxicity of emissions167.

The railway sector may not be an isolated case. The Ministry of Industry reported the use of arsenic
and other dangerous substances to treat utility poles. No information exists about the fate of these
utility poles at the end of their life: whether they have been burned or re-used by households, both of
which would pose risks for health and environmental damage. A SCM could have prevented these
problems therefore saving resources for other areas.

The adequate maintenance of the current infrastructure for the transport of gas or water will also be
important since its deterioration may create leakages that put human health and the environment at
risk. Wastewater treatment plants (WWTPs) are in a very poor condition (see Section 2). There have
been problems attracting investors to the water sector, partially due to the current price policy168.
However it seems that in the last years some investments have taken place to modernise the existent
WWTPs as well as to create new ones. Apart from getting prices right, the legislation could also
regulate the use of chemicals in the sector, mostly biocides, to avoid negative impacts.

163
    See 2nd Environmental Performance Review (cfr supra note 7).
164
    Cfr supra note 7- 2nd Environmental Performance Review and interview with representative of Ministry of
Transport
165
    See EGPRSP (cfr supra note 8) and Strategy for Industry Development 2015 (cfr supra note 34).
166
    Cfr supra note 7.
167
    See what it has already been said about the oils used for railway sleepers at section 3.
168
    See 2nd Environmental Performance Review

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The chemical composition of the water pipes could also be addressed. No legislation has been found
regarding pipes for water distribution in households. In Europe, traditionally pipes were made of lead,
which is extremely poisonous. Most countries have replaced old lead pipes by copper pipes. It was not
possible to determine whether this was also the case for Moldova, although it seems that water pipes
are made of asbestos.

In conclusion, the role and impacts of chemicals in transport and infrastructure development are not
sufficiently assessed and in many cases is absent from most policy papers. The need for adequate
controls over chemicals used in infrastructure and transport could therefore be addressed, to tackle
emissions and prevent impacts derived from chemicals on human health and the environment.

Moldova benefits from the World Bank project on Trade and Transport Facilitation as well as from the
support of different projects under the Trans-European Networks. Moldova participates in the three
pillars: Transport (Pan-European corridors and special projects in Black Sea) 169, Energy (gas pipes—
now a priority for the EU – and electricity distribution170) and Communications (e-programmes171).
Aspects related to SCM could be included in these programmes.

                            6.1.3.3. IT & telecommunications

Another strategic sector is the development of IT and telecommunications equipment as well as
infrastructure for such communication (e.g., internet). Current strategies aimed at developing the IT
industry and enhancing telecommunications172 do not pay attention to chemicals management.
However, chemicals play an important role in the composition of electric and electronic equipment
(including computers, mobiles and so on). In recent years, concerns have been raised in Europe about
composition of electric and electronic equipment and disposal.

Electronic devices are a complex mixture of several hundred materials. A mobile phone, for example,
contains 500 to 1000 components. Many of these contain toxic heavy metals such as lead, mercury,
cadmium and beryllium and hazardous chemicals, such as brominated flame retardants. Polluting PVC
plastic is also frequently used. These dangerous substances cause serious pollution and put workers at
risk of exposure when the products are produced or disposed of. Exposure of children and pregnant
women to lead and mercury is of particular concern. These metals are highly toxic and can harm
children and developing foetuses even at low levels of exposure.173

The current policy for the development of IT and telecommunications does not control the use
hazardous substances in electric and electronic equipment; however, improper use of these substances
could prevent export of Moldovan products to, e.g., the EU market. The measures to control chemicals
in this equipment also prevent exposure and costs linked to disposal of this equipment. Thus, measures
addressing risks posed by chemicals in electrical and electronic equipment are needed and could be
integrated into the strategies for IT and telecommunications.

                            6.1.3.4. Investments and Public Procurement

The Law on Foreign Investments stipulates that foreign investments should not violate legislation on
health and environmental protection. The legislation focuses on natural resources investment projects


169
    http://ec.europa.eu/ten/index_en.html. The specific report on Neighbouring countries:
http://ec.europa.eu/ten/transport/external_dimension/doc/2005_12_07_ten_t_final_report_en.pdf
170
    http://ec.europa.eu/ten/energy/studies/index_en.htm
171
    http://ec.europa.eu/information_society/regwor/world/index_en.htm
172
    See Strategy for Industry Development 2015.
173
    See http://www.greenpeace.org/international/campaigns/toxics/electronics/what-s-in-electronic-devices or
http://ec.europa.eu/environment/waste/weee_index.htm

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and does not adopt a horizontal approach to foreign investment or to public procurement that could
have an impact on chemical management in projects financed by investors.

The Investment Strategy of the Republic of Moldova for 2002-2005 proclaimed that one of the major
national investment goals was to attract and increase investment into environmental protection, raising
efficiency of use of natural resources and reducing negative environmental impacts due to economic
activity. The current strategy for investment (2006-2015)174 has not retained this objective. The
strategy lays down a list of actions aimed at attracting investors and promoting export. Much emphasis
is placed on creating an image of quality for Moldovan products and industries, including certification
ISO 9000. However, the strategy does not address the use of chemicals and their importance for the
image of quality or the ability to export products to certain markets. The current strategy does not
mention ISO 14000 certificates, nor promotes investment on energy-efficient technologies.

This strategy does not reflect the direction taken by the Strategy for the Development of the Industrial
Sector for 2015 which addresses in a more systematic way some of these issues as assets for the
development of a competitive and attractive industry.

                            6.1.3.5. Integrated Product Policy and Cleaner Production

Little has been done in Moldova regarding integrated product policy (IPP) and Cleaner Production.
IPP seeks to minimise environmental degradation from the manufacturing, use and disposal of a
product by looking at all phases of its life-cycle and taking action where most effective. The life-cycle
of a product is often long and complicated and includes the extraction of natural resources as well as
product design, manufacture, assembly, marketing, distribution, sale and use and its eventual disposal
as waste. It also involves many different actors, such as designers, industry, marketing people, retailers
and consumers. IPP attempts to stimulate of these individual phases to improve their environmental
performance175.

There is a whole variety of tools - both voluntary and mandatory - that can be used to achieve this
objective. These include measures such as economic instruments, substance bans, voluntary
agreements, environmental labelling and product design guidelines.

The EU (TACIS) financed a project on cleaner production, including IPP. However, it did not have
any significant follow up, despite the successful experience in cost saving and energy efficiency
reported by the companies that took part176 and the creation of the Cleaner Production and Energy
Efficiency Centre (CPEE) within the framework of the Moldovan-Norwegian long-term Collaboration
Programme. The new Strategy for Industrial Development includes the promotion of IPP among the
priorities to increase product quality.

IPP, clean production and chemicals could be linked in any policy. UNIDO is the lead agency in what
is called ―chemicals leasing‖177. The Global Action Plan of the SAICM process and the Quick Start
Programme are to support the international dissemination of Cleaner Production and Chemical
Leasing projects. Moldova could try to benefit from this opportunity, since the industrial sectors
identified for economic development include the chemical industry and chemical intensive industries.




174
    Strategy to attract investors and promotion of exports for 2006-2015, Order nr 1288 of 09.11.2006 (Official
Monitor nr 181-183/1391 of 24.11.2006).
175
    http://ec.europa.eu/environment/ipp/
176
     See TACIS pilot project ―Cleaner Production in selected countries of NIS – Moldova, Georgia and
Kazakhastan‖. CP Conference ―Promotion of Cleaner Production Strategy in Moldova‖ June 2004 –
http://cpnis.carec.kz/eng/Doc/Cover_CP_Moldova.pdf .
177
    See http://www.unido.org/doc/48376 and http://www.bipro.de/_clhome/index.htm

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                               Box 6: UNIDO Definition of Chemical Leasing

      Chemical Leasing is a service-oriented business model that shifts the focus from increasing sales
      volume of chemicals towards a value-added approach. The producer mainly sells the functions
      performed by the chemical and functional units are the main basis for payment. Within Chemical
      Leasing business models, the responsibility of the producer and service provider is extended and may
      include the management of the entire life cycle.

      Chemical Leasing is a win-win situation. It aims at increasing the efficient use of chemicals while
      reducing their risks and protecting human health. It improves the economic and environmental
      performance of participating companies and enhances their access to new markets.

      Key elements of successful Chemical Leasing business models are proper benefit sharing, high
      quality standards and mutual trust between participating companies.


                      6.1.4.       Agriculture& Forestry and Nature protection

The current policy on agriculture has already integrated many chemical management related aspects
that have been discussed in previous sections, such as the promotion of the use of pesticides and
fertilisers; externalities and risks linked to this approach178 have been analysed in detail. This policy
does not seem consistent with the more general policy of promoting organic agriculture.

Good agricultural practices (GAPs) have been promoted under several projects, and Guidelines for
GAPS were adopted as a result of the cooperation between MAFI and MENR; however, the limited
resources of the extension services limit the dissemination and effectiveness of these guidelines and
the development of more sustainable agriculture. This policy would be enhanced by making subsidies
conditional to the application of GAPs. As mentioned before, nitrates pollution is also one of the main
aspects to be addressed by the legislation.

Regarding forestry, although forests are considered to repositories of biodiversity, the use of pesticides
in forests has been anecdotally reported. Dialogue between Moldosilva (the Agency for Forestry) and
MENR seem to be difficult179. The Recommendations from the 2nd Environmental Performance
Review regarding the establishment of water protection zones have not been implemented. No
information was obtained regarding the reasons for this lack of implementation.

The links between chemicals and the protection of biodiversity are not fully addressed in the current
policy and legal texts, but the impacts of the historical overuse of pesticides on biodiversity have been
significant. An estimated 30-40% of ―virgin‖ areas were affected and damaged due to pesticides
overuse and diseases180. Concerns exist regarding GMOs (with a very well developed Law on
Biosafety) and POPs, but not regarding other related issues as well as the role of pollution in the loss
of biodiversity. The EGPRSP partially addressed this issue but there have not been many concrete
actions involving chemicals and biodiversity. Linkages with National Ecological Network, and the
impacts of SCM could be developed, including organic agriculture and sustainable management of
agricultural landscapes (also the part of a Program ‗Satul Moldovenesc‘).




178
    For a more detailed analysis of agricultural policy and environment refer to 2 nd Environmental Performance
Review.
179
    Idem.
180
    Report by the Institute for Environment and Geology during stakeholder consultation

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                     6.1.5.      Health Policy

In general, and due to the competence of the MoH in the area, chemicals management issues are
addressed in the main instruments for health protection, including the National Environmental Health
Action Plan (NEHAP, 2002). The NEHAP has a few references to chemicals, including the
elaboration of a plan for modernising wastewater treatment plants; the development of air emissions
monitoring systems and a program for their ―neutralisation‖; improvement of existing legislation and
elaboration of new maximum concentration for various chemicals; improved control of pesticides
contamination in food; the creation of a national register of potentially toxic chemicals; the elaboration
of a control system for electrical transformers which contain PCB; and the development of new
regulations regarding importing, storage and use of pesticides.

As has been seen along this report, many of these actions have not been implemented, partially due to
the lack of resources, exacerbated by little cooperation with other ministries, and of political will at the
higher level.

                     6.1.6.      Research and Education

Moldova has a strong potential for research due to the myriad institutions under the Academy of
Science and the country‘s well prepared researchers. Many of the institutions are dedicated to aspects
directly linked to chemicals (see Annex IV). In addition, some of these research institutions have
stocks of unidentified chemicals that could be POPs.

These institutions have been generally involved in the development of environmental legislation and
technical methods, such as those for waste disposal. However, one of the conclusions of the
stakeholder consultation was the need for inclusion of chemicals management in university and post-
university curricula as well as the need to ensure continuous training for civil servants and education
of the population on chemicals issues.

Finally, much has been done regarding awareness-raising for animal and household wastes as well
pesticides management. However, industry sector, small farmers and the general public need more
training and education campaigns on chemicals management and chemicals impacts.

       6.2.     Institutional framework

According to some officials, one of the main shortcomings of the current regulatory system is the
absence of a unit in the MENR in charge of chemicals. The same applies for the other ministries
involved. The case of ODS management shows that the existence of specialised unit in the Ministry is
essential for the development of effective policy, for decision-making and for implementation. The
second shortcoming is the lack of coordination mechanisms and the resulting poor exchange of
information between the different institutions involved in chemicals management.

Half of the text of the current Law on Hazardous Substances and Products regulates the allocation of
competences between four different institutions, i.e., the government, the Ministry of Health, the
Ministry of Environment (at the time Department of Protection of the Environment) and the State
Department for Emergencies and Exceptional Situations. The Department of Metrology and
Standardisation develops the standards for the quality of chemicals. Competences are also allocated to
the municipalities.

The current allocation of competences creates a complex institutional framework where one institution
establishes, another revises, another updates and so on but with no inter-departmental mechanism to
coordinate these activities. The legislation also refers to the competences of the Ministry of
Agriculture regarding pesticides and fertilisers.



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Many inconsistencies and an inadequate allocation of competences have been identified. The MoH is,
in principle, the main competent authority for chemicals substances and preparations including
compliance with legislation on the ―substances regime‖. However, the MENR is in charge of
controlling the respect of the legislation on environmental protection, manufacturing, storage,
transport, use and disposal of chemical substances and products, which is basically the ―substance
regime‖ whose control has been allocated to the MoH. According to this act, the MENR is not
competent for waste management deriving from dangerous substances, which would be the logical
approach given that the MENR is competent for all aspects related to waste permitting. The MoH is
also responsible for establishing the maximum concentration of dangerous substances in air, water and
soil, but no such competence is attributed in the air pollution legislation.

In addition, the Department of State Emergency has been allocated extraordinary competences, some
of which overlap with those of the MoH. For example, the MoH is responsible for authorising
activities relating to chemicals substances, but according to the legislation almost all authorisations,
including import and export permits are granted by the State Department for Emergencies together
with the MENR. This is in contradiction with the legislation regulating licences for import and export.

The Law includes other allocations of competences that contradict other legislation. For example, the
Law indicates that the MENR coordinates the lists of pesticides registered, which is the competence of
the MAFI and the Centre for Registration of Pesticides. It also indicates that the MENR is responsible
for coordination of rules on the transport and use of pesticides, which is carried out by the Ministry of
Transport and the MAFI.

Finally, no coordination mechanisms or channels to exchange information among the different
institutions with competences in the same area have been established by the legislation.

The distribution of competences must therefore be clarified and streamlined, looking at the distribution
of competences in other pieces of legislation as well as at international standards, including chemicals
conventions. The MII in charge of the harmonisation with the EC legislation is considering the
possibility of creating a chemicals agency following the EU‘s example. At the same time, a SAICM
Coordination Committee has been created composed of 15 members representing the MENR, POPs
PMU, MAFI, Ministry of Transport, MAI, MII, MoH, Inspectorate of Metrology, Centre for
Preventive Medicine, Customs, Bureau of Statistics, Institute of Ecology, SEI, Hidromet and a NGO
(Eco-Tyras). This committee has not yet convened a meeting. Although this committee might be
useful to carry out the adaptation of the current legal, policy and institutional framework for chemicals
management, it should not be considered as the final institutional structure for chemicals management
in its current form. Although the composition of the SAICM Coordination Committee is adequate,
since it involves all different services with competences on chemicals management, the board taken
final decisions would need to be more reduced. The operability of the current committee may be
undermined by the number of members. It is usually difficult to take decisions in a committee
composed of 15 members.

In any case, any inter-departmental committee would need an adequate legal basis, which should be
provided by the Law on Hazardous Substances and Products. The organisation of this committee
should then be developed by a specific regulation that will indicate its competences, minimum
meetings per year, sub-committees and so on181.
181
    At least two committees could be created, one dealing with the evaluation of chemicals (risk assessment)
issuing opinions when there are request for the registration of new chemicals. This sub-committee could be
composed of the three units that currently are dealing with the assessment of pesticides and fertilisers. The
central laboratory could recap all the information and pass it onto the management board for decision making.
Another committee could discuss monitoring and enforcement issues. In this case, the different inspectorates
could be present as well as the representative of the monitoring centres. The focal points to the Chemicals
conventions could also report to the board management regarding information on risk assessment and decisions
taken at international level for national implementation or consideration.


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In view of Moldova‘s interest in the EU, the establishment of such institutional structure for chemicals
management is essential. The Stakeholder consultation concluded that Moldova needed the
establishment of an independent government agency to coordinate the work of the different
institutions involved in chemicals management, including information gathering.

The new REACH regime foresees the creation of a European Chemicals Agency and each Member
State is required designate a competent authority to ―co-ordinate‖ the application of the law in the
country. Although the European Chemicals Agency created under REACH can serve as an example,
the future institutional structure for chemicals management could be based on either an agency model
or competent authority model but in either case should be adapted to the needs and capacities of
Moldova. The structure and composition of such an entity could be one of the main aspects to discuss
and develop in a second phase to this case study.

       6.3.      Monitoring and enforcement

               6.3.1. Monitoring and laboratory needs

The systems for the monitoring of dangerous substances could be improved. The reporting obligations
of economic operators should be clearly spelled out in the legislation. Currently, industries using or
producing dangerous substances, and the energy sector, are not required to undertake self-monitoring
for specific pollutants, e.g. PCBs or PCDD/PCDF, since those are usually not listed in environmental
permit requirements and no national environmental quality standards have been established for some
of them. Operators should be required to monitor the substances used, report new information on the
impacts of dangerous substances, including safer alternatives and changes in the production process of
the company. These legislative measures should be accompanied by specific programmes to
modernise production and to help industries to develop the necessary capacity (including equipment
and expertise) to carry out self-monitoring.

As mentioned in section 5, several bodies have competence to monitor chemicals.

             The State Ecological Inspectorate (SEI)
             The State Hydrometeorological Service (SHS)
             The Centre for Preventive Medicine of the MoH

The SEI is responsible for compliance monitoring and pollution control and focuses on the analysis of
pollutants in discharges from, and in the environment in the vicinity of, pollution sources. The
Inspectorate has six certified laboratories (one central and five regional) with skilled staff.

The SHS monitors background air, water and soil quality. It has certified laboratories for water and
soil analyses, which regularly participate in international quality assurance and quality control
schemes. It has a comprehensive network of sampling stations covering all major water courses and
water bodies.

The Centres for Preventive Medicine (CPMs) carry out a significant number of analyses of pesticides
residues in foodstuffs, agriculture soils, air, drinking water and surface waters. They are also
responsible for occupational health issues related to pesticides use. The National Centre for Preventive
Medicine in Chisinau has a fully equipped laboratory with trained staff, capable of carrying out
sophisticated analyses, and has national certification. Several other CPM laboratories in the country
are also quite well equipped and staffed.

In addition, other institutions have the technical capacity for analyses (e.g. the Centre for
Agrochemical Service of the MAFI, the Institute of Geophysics and Geography of the Academy of
Sciences), but these are not used regularly for chemicals management and depend upon demand from


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interested clients. Therefore, the country has the capacity to interpret the information gathered through
monitoring and adopt the necessary measures to tackle problems detected.

However, all laboratories and monitoring centres interviewed have reported human, technical and
financial resources needs. As seen in the statistics on air pollution, many deficiencies on monitoring
results have been identified. State inspections and laboratories have limited capacity to test and
analyse many chemicals, including POPs, and there are areas of overlap in analysis such as the
measurement of pesticides in water for different purposes. In addition, poor information and data
management as well as inadequate sharing of information between the MAFI, MECTD, MOH and
Customs have been reported. Coordination and exchange of information among the monitoring
agencies is sporadic and is usually the result of the individual initiative of technical experts within
those institutions.

MAFI officials have also reported that due to the creation of the Chamber of Licence, their control
over the certification and registration of pesticides has been reduced, but the Chamber of Licence lacks
technical and laboratory capacities. Despite several signed agreements (e.g. the Agreement on
cooperation between the MECTD and the MoH signed in 2000), there are no operational channels for
exchange of information between these parties.

This situation generates a duplication of efforts and information gaps and does not allow relevant
information to be used in decision-making. In fact, no adequate mechanisms exist to link the
information gathered through monitoring to the adoption of specific regulatory actions182. In particular,
authorities are not required to re-evaluate a substance registered after a given period of time. As
mentioned before, a feedback mechanism seems needed for renewal of pesticide licences and in the
future by the competent authority in charge of chemicals registration.

It would be useful to gather representatives of these different institutions, to present the needs of each
and see to what extent some of them could be covered by other institutes, laboratories and so on. One
of the solutions that could be explored is the establishment of a central laboratory covering both
routine monitoring and specific enforcement needs. Other solutions could be to merge the different
institutions under the MENR to create an environmental agency, as proposed in the 2nd Environmental
Performance Review. In any case, channels of information between the institutions depending on the
MENR and the Centre for Preventive Medicine are needed to avoid overlaps and maximise current
resources. The development of a register of dangerous substances to identify specific substances that
need to be monitored would also maximise current resources.

The stakeholder consultation concluded that coordination was needed to identify the substances
currently monitored and data collected. The development of reporting sheets common to all
institutions and bodies in charge of monitoring was suggested to enable comparable data collection
and exchange of information. In addition, the creation of a centre or agency focused on chemicals
would serve to centralise the information gathered by the different institutions and to disseminate and
distribute the information to all interested actors (including monitoring centres).

              6.3.2. Enforcement needs

With the exception of labour inspection, the inspectors interviewed indicated that current sanctions are
low and not adapted to the situation in the country. They have also complained about the lack of
follow-up of cases by the prosecutor when they report the existence of a crime. At the same time, there
is no recording mechanism to trace recidivism and impose more serious sanctions on frequent
wrongdoers.



182
   Some programmes have been developed on the basis of specific problems monitored, such as obsolete
pesticides and the waste programme for lamps containing mercury (the latter not successfully implemented).

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As shown in section 5, the SEI cannot impose economic administrative sanctions to ensure
enforcement, whereas other inspectorates interviewed have indicated that they can impose economic
sanctions (e.g., the Inspectorate for Metrology). The need for court action to impose administrative
penalties hampers effective enforcement. The court procedure takes a long time and usually results in
a minimum penalty for the violator. The 2nd Environmental Performance Review indicates that the
tolerance of the courts toward environmental offenders is partly due to the lack of legal experts at the
SEI and, therefore, poor preparation of the cases brought by the Inspectorate. In addition, judges are
not experienced in environmental issues and often pose unacceptable burdens of proof on
environmental inspectors. The 2nd Environmental Performance Review also highlights that a further
hindrance is the lack of specific procedures in courts to deal with environmental offences. As a result,
the percentage of penalties actually paid is very low183.

The different inspectorates do not have enough personnel to carry out inspections, nor adequate
equipment to link specific health or environmental problems due to the use or discharge of specific
substances. The labour inspectorate has reported that although they suspect that some problems and
accidents reported are linked to the use of dangerous chemicals, they lack the equipment required to
demonstrate this link. The information provided by the laboratories does not always serve for
enforcement purposes, since its quality is contested. The Plant Protection Inspectorate and extension
services can only concentrate on large commercial farms since they do not have more human resources
to control small farmers.

Only the Labour Inspectorate is required to coordinate with other inspectorates. In some cases there
are joint inspections, but these are based on personal contacts at local level rather than planning based
on memorandum of understanding or cooperation agreements.

The different inspectorates have also complained about the legal limitations on inspections. Under the
policy of deregulation and alleviation of the burdens placed on industry, a facility can only be subject
to one inspection every year (Government decree of April 2003). The 2nd Environmental Performance
Review indicates that there is also a list of installations that should not be inspected based on some
form of commercial confidentiality and security considerations. This limitation diminishes
enforcement of the legislation.

The World Bank‘s ―Environmental Compliance and Enforcement Capacity Building Project‖
recommended the establishment of an effective and user-friendly information system on compliance
assurance activities. It seems that nothing has been done in this regard184. However, awareness seems
to be increasing among institutions in charge of enforcement.

The stakeholder consultation highlighted the need for better coordination and distribution of tasks
among inspectorates. Some inspectorates should concentrate in chemicals distribution and customs on
chemicals imports. Ongoing training and updating technical equipment were considered essential to
improve current enforcement. Training of all stakeholders would also improve compliance with and
enforcement of the legislation. The lack of human resources also calls for the adoption of voluntary
initiatives with industry.

These different suggestions could be reflected in the elaboration of a strategy for enforcement. This
strategy could be developed for chemicals management and then expanded to more general areas such
as environment. Such a strategy for enforcement should include measures to promote compliance,
measures to monitor compliance and adequate non-compliance responses. The measures to promote
compliance will facilitate or encourage voluntary compliance. The administration needs to inform

183
    The 2nd Environmental Performance Review indicates that 49% for fines and 24% for damage compensation
in 2004 (in 1998, just 3% of damages) were collected. When damage compensation payments are imposed by the
court, it is often a challenge to make the enterprise pay, and delinquent enterprises are referred by the SEI to the
prosecutor‘s office in order to enforce the payment (63 such cases in 2004).
184
    See 2nd Environmental Performance Review.

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economic agents about the legal obligations with which they have to comply and to provide support
(recognition of compliance, financial incentives etc) to facilitate compliance. Monitoring will focus on
the collection and analysis of information to assess compliance with specific requirements. The
development of a system to record recidivism is needed to strengthen the sanctioning regime. The
current system of non-compliance responses could also be revised to update the level of sanctions and
give powers to the SEI to impose administrative sanctions.

       6.4.     Economic instruments and incentives185

Economic instruments play an increasingly important role in price adjustments by internalising some
environmental externalities. In Moldova, prices to households and companies in some environmentally
sensitive sectors such as energy, transport and municipal water services have increased since 1998
through a combination of price liberalisation, price regulation and tax measures186. Some of these
prices do not fully reflect environmental externalities or are partially subsidised, and in many cases are
not effective to reduce the environmental impact from industries. This section looks at some of the
current instruments and how they could be improved to promote SCM.

The current system of taxes and charges has general shortcomings. Firstly, it no longer reflects the
economic situation in the country and therefore does not serve as incentive to adopt less polluting
technologies. In 2005, despite a high increase in minimum wage187 the environmental tariffs were still
calculated by applying the rate fixed four years earlier.

Secondly, implementation of fiscal measures suggested in different programmes has not been carried
out. For example, the 1998 Law on Payments for Environmental Pollution offered offsets for pollution
taxes if enterprises could prove investment in pollution abatement technologies. This measure has
never been applied. Similarly, the 2000 National Programme on the Management of Industrial and
Domestic Wastes for 2001-2005 foresaw the introduction of measures to stimulate waste recycling and
usage of secondary materials, as well as profit tax exemptions for secondary materials collection and
supply. Tax exemptions and soft loans for persons using waste as raw materials were also proposed.
However, these measures were not implemented or have not been updated.

Some specific taxes and charges also present problems. Transport generates important externalities,
which are not fully reflected in prices, resulting in an increase of road freight, and consequently in air
pollution problems188. An inadequate system of taxes and levies on imported fuel has led to lower
prices of diesel fuel compared to unleaded petrol, which is less environmental harmful. In the area of
energy, the pricing is problematic regarding the heat-supply sector, since it does not create incentives
for less energy consumption or use of cleaner energy.

The Moldovan system of emission charges applies on 1000 air pollutants, 27 water effluents, and 5
different types of waste189, but it does not seem to have increased the financial pressure on operators.
The system is not effective to tackle pollution since it focuses on too many substances (1000 for air),
and emissions limit values that in many cases are impossible to be complied with or monitored. As
mentioned in the 2nd Environment Performance Review, the country should reform its existing system
of emission charges and reduce them to a few priority pollutants with an increase of rates to have an
incentive power. This will push the most polluting sectors (e.g. energy) to modernise technology and
adopt SCM thereby reducing emission and production of toxic waste.



185
     For more information regarding different economic instruments please see UNECE 2 nd Environmental
Review.
186
    Cfr supra note 7, 2nd Environmental Performance Review.
187
    According to the 2nd Environmental Performance Review, more than 4 times since 1998.
188
    Cfr supra note 7, 2nd Environmental Performance Review.
189
    Idem.

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Charges for waste disposal are based on the classification of waste according to Soviet standards
which are obsolete. Different rates are established for the four classes of toxic and non-toxic waste,
with a distinction for waste disposed on industrial premises and those disposed in waste disposal
facilities or sites. The 2nd Environmental Performance Review indicates that tariffs have been stable
since their introduction in 1998 and inflation has reduced their economic impact on polluters to use
less dangerous chemicals, thereby their capacity to reduce waste toxicity.

According to the system for pesticide registration, a company requesting the registration of an active
substance or product has to pay a fee according to the toxicity of the pesticide. However, the system of
fees does not significantly differentiate between different toxicities as to promote the registration of
less toxic pesticides.

Regarding incentives, the VAT refund system for buying pesticides, which is intended to increase
productivity by increasing pesticides use, applies regardless of the pesticide toxicity (see section
6.1.2.1). The system should be adapted to promote SCM and therefore the use of Class III and IV
pesticides over Class I and II.

The possibilities offered by other mechanisms, such as the European eco-management and audit
schemes (EMAS), or the international ISO 14000, have not been fully exploited. As to 2005, no
companies followed these systems. However, a Programme on Environmental Management System
(EMS) was created with the help of the Norwegian Government. Following this system, competent
people from the industry were trained and encouraged to develop EMS programmes. This resulted in
three companies elaborating plans to obtain certification, and in concrete contacts of these companies
with the certifying bodies. The use of ISO 14000 and EMAS could be enhanced and used to promote
SCM.

The labels for organic agriculture developed according to National Concept on Organic and
Genetically Unmodified Products of 2000, are only used on products for domestic consumption190.
These labels as well as the standards developed by the Association for Organic Farming EcoProdus
and the Institute for Field Crops could serve to promote high quality products in EU markets. The
government is reviewing its current policy of agricultural subsidies, which could be an opportunity to
encourage the use of less toxic pesticides, including IPM, GAPs and non-chemical alternatives.

In conclusion, no real incentives for the adoption of SCM exist in Moldova. Economic measures for
the promotion of cleaner production and the implementation of energy saving measures and waste
recycling were not concretely introduced though stipulated in programmes.

Changes in the general system for taxes and charges will have an impact on chemicals management.
For example, adjustments on wastes charges could lead to cleaner production process, including the
use of less dangerous chemicals to reduce waste toxicity. Duties and excise on imported petrol should
also be reformed to take account of fuel content to promote less polluting and more efficient fuels. In
addition specific measures can be adopted to promote SCM in agriculture such as conditional
subsidies and promotion of GAPs, as well as IPM and VAT refunds dependent on the toxicity of the
pesticides. Organic agriculture label should also be promoted as a way of opening new markets for
Moldovan products.

Finally, the development of any well-constructed registration system for chemicals should promote the
registration of less dangerous chemicals by clearly placing more economic burden in those that request
the registration of a dangerous chemical.




190
      Cfr supra note 7, 2nd Environmental Performance Review.

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       6.5.      Governance issues

Article 37 of the Constitution places special emphasis on access to information, requiring the State to
guarantee the citizen‘s right of free access to truthful information regarding the state of the natural
environment, living and working conditions, and the quality of food products and household
appliances. Furthermore, non-disclosure or falsification of information regarding facts detrimental to
human health constitutes an offence punishable by law191. The Constitution also establishes ―the duty
of every citizen to protect the natural environment, and to preserve and to protect the country‘s
historical and cultural sites and monuments.192‖

The Law on Access to Information (2000) regulates relationships between providers and users of
information, establishes principles, conditions and procedures for ensuring access to information,
determines citizens‘ rights to request for information and obligation to provide and disseminate
information. It also establishes procedures for limiting and refusing access to information and lays
down prices for information.

With this new legislation, access to information has been improved and campaigns to disseminate
information have been carried out. However, many improvements regarding access to and
dissemination of information are still needed. The experience in collecting data for the present case
study indicates that information on emissions and pollutants are not generally available. In addition,
poor communication between the decision-makers and industry, in particular regarding changes in the
legislation, has been reported.

The Institute of Ecology and Geology indicated during the stakeholder consultation that access to
information should be one of the most important priorities in the country, especially for those using
chemicals on a daily basis. Better access to information would help to establish better chemicals
management. Setting up an information system in collaboration with NGOs to raise awareness among
the public could be one instrument to enhance information about chemicals, thereby improving
chemicals management. Much work could also be done with the agricultural extension services, to
disseminate information among farmers regarding pesticides use and non-registered pesticides.

It is important that Moldova takes steps to implement the Pollutant Release and Transfer Register
(PRTR) Protocol. PRTRs are considered useful instruments for the improvement of chemicals
management and reducing pollution. They create pressure on companies to avoid being identified as
major polluters and provide incentive for facilities to invest to reduce emissions. Public access to
information is thus a central PRTR characteristic. Chapter 19 of Agenda 21 recommends that
governments collect sufficient data about various environmental media while providing public access
to the information. Governments, with the cooperation of industry and the public, are to implement
and improve databases about chemicals, including inventories of emissions. Chapter 19 further states
that the broadest possible awareness of chemical risks is a prerequisite for chemical safety.

Moldova has some bases to develop a PRTR. The Bureau of Statistics is competent to collect
information reported from industries on emissions. However, at present the release of the names of the
reporting companies is not possible. The Bureau also receives data on water and waste flows. The
bureau is trying to negotiate an approach for releasing information on facilities with the MENR, but so
far no progress has been made. All this information could be the basis for a PRTR to disseminate
information. There are many projects for capacity building and the establishment of PRTRs in Europe,
and Moldova could benefit from these or request participation193.



191
    4)[P]rivate individuals and legal entities shall be held responsible before law for any damages they may cause
to personal health and property due to ecological offence.
192
    §59.
193
    http://www.unece.org/env/pp/prtr.cb.htm

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Full implementation of the Aarhus Convention is needed to enhance the other pillars of the
Convention, i.e., public participation and access to justice. A committee has been created at
parliamentary level, and NGOs are invited to participate and present recommendations but it appears
that their opinions have not been taken into account. The final proposals do not indicate the reasons for
not adopting the opinions or proposals presented by NGOs. The recently created SAICM coordination
committee includes NGOs representatives. Any future institution created for chemicals management
should ensure NGO participation, access to information and dissemination of information.

Access to justice is very limited in the country due to a lack of financial resources. If a future agency
with regulatory competences is established, the regulation should foresee a mechanism for
administrative or judicial review, according to Article 9 of the Aarhus Convention194.

       6.6.     Implementation of related chemicals conventions and exchange of
           information at international level

The Laws on acceding to international conventions and protocols are an integral part of national
legislation. The conclusion of all international treaties by the Republic of Moldova is determined by
two main legal acts:
          1999 Law on International Agreements; and
          2001 Regulation regarding the Mechanism of Conclusions of International Agreements.

As mentioned in section 5, Moldova is a party to the most important chemicals convention, although it
is not party to ILO Convention 170. The focal points for these conventions are part of the same unit in
the MENR (due in part to limited staff), which eases communication and provides a coherent approach
to these conventions. However, coordination with other ministries – including to collect information to
be reported to the secretariat – is not carried out. The limitations in the size of staff have prevented an
adequate regulatory framework and the substantial implementation of these conventions. Only the
POPs Convention and the Montreal Protocol are being successfully implemented due to the support
from donors.

As has been shown in the previous sections, when analysing the regulatory framework for the
chemicals life-cycle, adequate legislation has only been developed for the Montreal Protocol. Its
implementation is one of the success stories in the country.

Legislation to implement the Stockholm Convention (and the UNECE Aarhus Protocol) will be
developed under the third phase of the GEF/WB project on POPs, although many activities have been
carried out to identify and dispose of POPs. Successful information and education campaigns have
been carried, as is demonstrated by the level of information that all ministries and also citizens have
regarding POPs, including citizens refusal to have centralised warehouse. More work needs to be done
in small villages regarding general pesticides management and risks related to PCBs.

Legislation to implement the Basel Convention has been developed, but it could be improved by better
allocation of responsibilities and by harmonisation with EU legislation. Implementation of the
convention still very limited due to inadequate customs control. More training is required. Probably
the reason for this weak implementation can be found in the reduced number of waste shipments
exported for disposal, as most hazardous wastes are stored in facilities in country. The experience in
the export for disposal of obsolete pesticides (under the provisions of the POPs Convention) has
revealed practical shortcomings in the implementation of the Basel Convention. As the country
develops and the current stocks of hazardous wastes are disposed of, more use will be made of the
Basel mechanisms. Therefore the country needs to adopt necessary measures for its correct
implementation. Implementation of the Convention is complex and technical assistance will be
needed.
194
   For more information regarding the implementation of the Aarhus Convention see 2nd Environmental
Performance Review.

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The PIC Convention is also a complicated instrument. In order to ensure its proper implementation,
the designated national authority needs to have powers for, or to have access to those areas of
government responsible for, the following tasks:
     regulatory decisions for the use of pesticides and industry chemicals and to notify the
        Secretariat of these decisions;
     controls on the import and export of chemicals;
     a mechanism to communicate the import responses contained in the PIC Circular to potential
        exporters;
     access to information on human and environmental poisoning incidents involving pesticides;
     making decisions on the future import of chemicals listed in Annex III of the Convention and
        to report these decisions to the Secretariat on be half of the government;
     a contact point for matters related to the Rotterdam Convention with the Secretariat, other
        DNAs and national stakeholders. 195

No legislation has been developed to implement the PIC Convention and there are no plans for doing
so. However, any SCM programme would need to establish procedures to implement the Convention.
Customs training and the establishment of an adequate regulatory framework for adopting regulatory
decisions to be notified to the Secretariat is required. Technical assistance for the implementation of
the Convention will also be needed, including for customs training.

Legislation implementing the CLTARP is also very limited and there is no coherent approach for
establishing emission limit values or otherwise regulating heavy metals. Difficulties in monitoring and
the adoption of risk-management measures have already been mentioned.

The PRTR Protocol, although ratified, has not been implemented at national level. No action has been
taken. Regarding the Kyoto Protocol, only one national communication has been prepared196 but no
regulatory actions have been taken. Moldova is host to three CDM projects.

The Country ratified the Cartagena Protocol on Biosafety in 2002. To fulfil its commitments the
country developed the National Strategy and Action Plan on Biological Diversity and the 2001 Law on
Biosafety. UNEP and GEF are providing technical assistance to enable the country establish a national
biosafety system, which proves once again the importance of donors for implementation of
international conventions in Moldova. The Government established a National Biosafety Committee
with a mandate and functions to make decisions and authorise activities connected to genetically
modified organisms (GMO) use. The regulations on authorisation of activities connected with
production, testing use and distribution of GMOs were approved. The National Biosafety Testing
Centre was established by an MENR and Ministry of Health and Social Protection (MoHSP) joint
decision, to ensure detection of GMOs and assess their potential risks for the environment and human
health. The national biosafety framework provides a guidance and identifies priority aims in the
development of a national system for GMO regulation, control and monitoring in order to comply with
the requirements of the Cartagena Protocol.

The State Environment Inspection is the focal point for the Convention on Transboundary Effects of
Industrial Accidents that was ratified in 1993. With support from Germany the country has (a)
identified facilities that could be potential sources of environmental pollution, (b) elaborated criteria
for evaluating the risks of five types of industrial activity, (c) created a database for major pollution
sources and (d) elaborated a computerised framework and an information and notification procedure
for environmental accidents197. However, the regulatory framework is weak and the measures adopted
within the project do not seem to have received follow up. The State Department for Emergency and
Exceptional Situations is the main body in charge of accident prevention and control and does not

195
    FAQs on PIC Convention: http://www.pic.int/home.php?type=s&id=19&sid=19
196
    A second communication is going to be prepared in 2007.
197
    Cfr supra note 7, 2nd Environmental Perfomance Review.

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seem to be associated to the SEI to implement the convention. As mentioned before, there is still much
to be done to improve the regulation and organisation of safety.

Table 15 on the next page summarises the assessment carried out of the implementation of the main
chemicals convention in this section and in the previous sections that have analysed the chemicals life-
cycle on the basis of the elements of Programme E of Chapter 19 of Agenda 21.

Regarding information exchange, the 2nd Environmental Performance Review reports an increase in
the participation in international fora, including those for the chemicals conventions. It is important to
ensure that information obtained at international level, e.g. risk assessment results carried for
substances subject to the PIC procedure by higher-income countries, are communicated to the future
competent authority on chemicals management to decide whether a regulatory action should be taken
in Moldova. It would also be important to communicate to the relevant secretariats if specific
chemicals are problematic in Moldova.




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 Programme E activities     Montreal Protocol   Stockholm Convention       Basel Convention        Rotterdam Convention                PRTR                CLRTAP and Heavy
                                                 and Aarhus Protocol                                                                  Protocol               Metals Protocol
(a) Adequate legislation          Yes                    No                      Partial                     No                         No                       Partial

                                                 Legislation to be      Deficient legislation:    No legislation has        No legislation has         Legislation on air
                                                  developed under         harmonisation with         been developed or          been developed or           pollution with
                                                  GEF/WB project 3rd      EU would help)             foreseen.                  foreseen)                   obsolete limit values.
                                                  phase                                             No regulatory                                         No legislation
                                                                                                     framework for                                          regarding heavy
                                                                                                     decision making, no                                    metals have been
                                                                                                     regulatory decisions                                   developed.
                                                                                                     adopted
                                                                                                    No PIC procedures,
                                                                                                    No coordination
                                                                                                     among different
                                                                                                     institutions
(b) Information gathering         Yes                  Partial                    No                        Partial                    Partial                     Partial
    and dissemination
                                                 Inventories            No information is         Requirements to           The Bureau of              Emissions monitored
                                                  developed on OP and     gathered regarding         gather information         Statistics collects and     but there are
                                                  PCB contaminated        export (imports are        on pesticides              disseminate                 concerns about
                                                  equipment but           forbidden).                foreseen under the         information on              quality of the
                                                  information on PCBs    Information on waste       pesticides legislation     emissions and waste         information
                                                  incomplete.             stored and waste           but no obligations        The MENR gathers           No information
                                                 Dissemination           flows at national          exist regarding            and disseminate             collected regarding
                                                  campaigns carried       level carried out by       industrial chemicals.      information in the          heavy metals with
                                                  out.                    the Bureau of             Monitoring of              national report on the      some exceptions.
                                                                          Statistics                 pesticides impacts is      status of the              Only some studies
                                                                         No monitoring of           nevertheless limited       environment                 carried out regarding
                                                                          waste impacts on          Only register for         Information not             the impacts of
                                                                          health and                 pesticides developed.      complete and not            pollutants in health
                                                                          environment               No procedures to           presented in PRTR          No dissemination of
                                                                                                     disseminate                format                      information besides
                                                                                                     information               Much information is         Bureau of Statistics
                                                                                                     regarding PIC              kept confidential or        and Annual Report
                                                                                                     circulars or               difficult to access         on environment
                                                                                                     registers/database for    Names of industries        Anecdotic/academic
                                                                                                     other types of             causing pollution           reports linking
                                                                                                     chemicals and              kept confidential           pollution and health
                                                                                                     chemicals safety                                       as well as sporadic
                                                                                                                                                            campaigns
(c) Capacity for risk             Yes                  Partial                   Partial                   Partial                 Not applicable                 Partial

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 Programme E activities     Montreal Protocol   Stockholm Convention          Basel Convention        Rotterdam Convention               PRTR                CLRTAP and Heavy
                                                 and Aarhus Protocol                                                                    Protocol               Metals Protocol
    assessment and
    interpretation                               Laboratories do not       Limited capacity to       Limited laboratory                                   Limited laboratory
                                                  have capacity to           analyse waste              capacity to assess                                    capacity to assess
                                                  analyse certain POPs       composition                industrial chemicals.                                 effects of air
                                                  and no equipment to       Staff qualified to         Laboratories                                          pollutants in health
                                                  monitor dioxins and        carry out                  specialised on                                       Staff qualified to
                                                  furans                     interpretation of data     pesticides                                            carry out
                                                 Staff qualified to         gathered                  Staff qualified to                                    interpretation of data
                                                  carry out                                             carry out                                             gathered
                                                  interpretation of data                                interpretation of data
                                                  gathered                                              gathered
(d) Establishment of risk         Yes                   Partial                 Not applicable                  No                    Not applicable                 Partial
    management policy
                                                 The NIP includes                                     No regulatory                                        No requirements on
                                                  reference to risk                                     framework for bans,                                   emission on
                                                  management policies                                   phase outs and so on.                                 industries based on
                                                  but not yet developed                                 No labelling and                                      the local
                                                                                                        packaging                                             characteristics
                                                                                                        requirements                                         No emissions
                                                                                                                                                              ceilings
                                                                                                                                                             No mechanisms to
                                                                                                                                                              adopt exceptional
                                                                                                                                                              measures in case of
                                                                                                                                                              situations where air
                                                                                                                                                              pollution may create
                                                                                                                                                              a risk
(e) Capacity for                  Yes                    Partial                    Partial                     No                       Partial                     Partial
    implementation and
    enforcement                                  Implementation            Implementation            Implementation            Implementation            Limited
                                                  supported by donors,       mostly supported by        needs support by           needs to be                implementation and
                                                  State budget and           donors. Customs are        donors. Customs are        supported by donors.       enforcement capacity
                                                  National                   not sufficiently           not sufficiently           Electronic database        due to inadequate
                                                  Environmental Fund         prepared to                prepared to                could be developed         coordination among
                                                 Limited enforcement        implement the              implement the              but access to internet     monitoring
                                                  capacity due to            convention and to          convention and to          is limited at national     institutions and
                                                  inadequate                 ensure adequate            ensure adequate            level. Radio and           inadequate sanctions
                                                  coordination among         enforcement.               enforcement.               mass media                 policy
                                                  inspectorates and         Illegal traffic of        Limited enforcement        dissemination will be
                                                  inadequate sanctions       waste is not a crime       capacity due to            required.
                                                  policy                    Limited enforcement        inadequate

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  Programme E activities        Montreal Protocol     Stockholm Convention           Basel Convention       Rotterdam Convention               PRTR                   CLRTAP and Heavy
                                                       and Aarhus Protocol                                                                    Protocol                  Metals Protocol
                                                                                     capacity due to            coordination among
                                                                                     inadequate                 inspectorates and
                                                                                     coordination among         inadequate sanctions
                                                                                     inspectorates and          policy
                                                                                     inadequate sanctions
                                                                                     policy
(f)   Capacity for                Not applicable                No                          No                       Partial                Not applicable              Not applicable
      rehabilitation of
      contaminated sites and                           Rehabilitation            Limited capacity to       The regional centres
      poisoned persons                                  supported by donors        clean-up waste stored      for Preventive
                                                                                   in facilities.             medicine can serve
                                                                                                              as poisonous centres.
                                                                                                              They record
                                                                                                              information and pass
                                                                                                              it to the main centre
                                                                                                              in Chisinau.
                                                                                                              However, reports of
                                                                                                              poisoning hardly
                                                                                                              takes place either for
                                                                                                              ignorance or
                                                                                                              economic
                                                                                                              constraints.
(g) Effective education                Yes                    Partial                       No                         No                       Partial                     Partial
    programmes
                                Campaigns have          Campaigns to raise         No campaigns have         No campaigns have         Current information        Current information
                                 been developed           awareness on POPs           been developed             been carried out           included in                 included in
                                 successfully             and agricultural            regarding wastes           regarding                  registers does not          Yearbook of
                                 including industry       pollution                   covered by the             chemicals safety in        include information         statistic does not
                                                          successfully carried        Basel convention           general or the             regarding impacts           address problems
                                                          out but more needs          although campaigns         chemicals covered          of chemicals (with          linked to air
                                                          to be done on PCBs          on waste                   by PIC (with the           the exception               pollutants. Some
                                                          and small farmers           management in              exception of POPs)         already mentioned           information
                                                                                      small                     Awareness should           regarding POPs,             provided in the
                                                                                      municipalities have        be raised among            some water                  Annual report.
                                                                                      been carried out.          chemicals                  pollutants and
                                                                                      More needs to be           management                 specific wastes).
                                                                                      done.                      among all                  This information is
                                                                                     Specific campaigns         stakeholders and in        included normally
                                                                                      to inform industry         particular importers       in the Annual
                                                                                      regarding                  and distributors as        report and specific


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 Programme E activities          Montreal Protocol      Stockholm Convention            Basel Convention            Rotterdam Convention                 PRTR                CLRTAP and Heavy
                                                         and Aarhus Protocol                                                                            Protocol               Metals Protocol
                                                                                          hazardous wastes                 well as users of           campaigns already
                                                                                          stored in facilities             dangerous                  mentioned
                                                                                          and cleaner                      chemicals in
                                                                                          production are                   industrial
                                                                                          needed.                          processes.
(h) Capacity to respond to                                                                                       Partial
    emergencies
                                   Legislation very weak to prevent accidents
                                   Coordination needs to be improved
                                   Equipment needs to be updated
                                   Facilities should have warning mechanisms in case of accidents
                                   No mechanism to react in case of high levels of pollution, e.g., Ozone picks or other pollutants.




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7. PRIORITIES IDENTIFIED FOR SOUND CHEMICALS MANAGEMENT IN MOLDOVA

The previous sections have analysed the current regulatory framework for chemicals management in
Moldova identifying its strengths, gaps and needs to achieve SCM. Gaps and needs were discussed at
the stakeholder consultation held on 2 March 2007. This section summarises the conclusions of the
assessment as well as the recommendations and conclusions draw during the meeting. However, some
general remarks are needed before discussing priorities for SCM.

Almost all reports on Moldova highlight the lack of implementation of many recommendations,
especially those related to environmental policies. The reasons for poor implementation and
enforcement of the recommendations, and of the legislation, are complex and diverse but could be
summarised as follows:

      1. Lack of political will and competition among the different institutions not willing to lose part
         of their current power over certain aspects relating to chemicals management. As the World
         Bank Progress Report mentions where there is commitment from the government, policies
         are easily implemented.

      2. Lack of adequate numbers of staff, including specialised personnel, to develop the specific
         legislation. In the area of chemicals (as in many other areas of environmental protection) the
         need for specialised staff is essential since the legislation tends to be extremely complex and
         technical.

      3. Unclear and confusing distribution of competences among different institutions. In addition,
         the lack of communication and coordination among these different institutions exacerbates
         the problem of limited human resources.

      4. Poor quality of the current legislation in that it does not lay down responsibilities for
         operators who in many cases lack information about the legal requirements with which they
         have to comply.

      5. Proliferation of legal acts regulating the same areas and creating a confusing regulatory
         framework.

      6. No systematic policy for enforcement, in that the current objective is imposing sanctions to
         collect fees.

On the other hand, Moldova has implemented some of the recommendations in different economic
reports that called for deregulation of the industrial sector and simplification. However, deregulation
and simplification have not always been done after an assessment of the impacts on other sectors. The
clearest examples are the centralisation of permits within the Chamber of Licences and the limitations
of the number of inspections to be carried out in a single facility. The centralisation of licences and
permits has partially left on the hands of a non-technical institution very technical decisions.
Limitations in the number of inspections have contributed to reducing the already low level of
compliance with environmental legislation.

Simplification should aim at streamlining and clarifying legal obligations, e.g., consolidation of
different acts into a single act, thereby easing implementation. Deregulation should lead to the
elimination of unnecessary administrative burdens on industry, especially SMEs that normally are the
engine of national economies. However, deregulation needs a solid legal framework that guarantees
the protection of human health, including consumer protection, and the environment. In addition, it
needs strong enforcement and control mechanisms for obligations ensuring health and environmental
protection.


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Despite some of these shortcomings things are nevertheless changing. The level of participation and
commitment in the stakeholder consultation shows that a positive evolution is taken place in the public
administration and in civil society. Society is becoming more cooperative and openly recognising and
discussing their problems instead of denying their existence. Nevertheless donors are still important
catalysts for dialogue and for changes to happen.

Although the gaps and needs listed in this section are specific for the chemicals sector, more general
structural problems will need to be addressed either through chemical projects, which will benefit
other sectors, or by other sectoral policies, which will have a positive impact on chemicals.

Taken as point of reference Programme E of Chapter 19 of Agenda 21, the gaps and needs identified
in Moldova could be summarised as follows:

(a) Adequate legislation:

The analysis carried out at section 6 indicates that the current legislation on chemicals needs
improvement:

            The general framework for chemicals management could be improved since many legal
             gaps regarding basic elements of the chemicals life-cycle legislation have been found.
             Pesticides and ODS are nonetheless regulated in a satisfactory way. The most important
             gaps discovered are:

                1. the lack of classification and adequate packaging and labelling requirements for
                   dangerous substances in general and Safety Data Sheets
                2. lack of regulatory framework to take decisions (e.g., registration, bans,
                   restrictions)
                3. gaps on basic aspects of waste management (legislation on specific waste streams
                   and specific waste operations is needed).
                4. Specific legislation on workers health and safety in the chemical sector could be
                   introduced to strengthen workers‘ safety
                5. The regulatory framework for POPs has not been developed

            Distribution of competences among different institutions is confusing and in some cases
             inadequate with some overlaps.
            Allocation of responsibilities on operators (importer, producer, holder) is not always
             clear.
            Inter-ministerial coordination mechanisms have not been established in a systematic way
             to allow cooperation and exchange of information between the different institutions and
             bodies in charge of chemicals management, implementation and enforcement. However,
             inter-ministerial coordination experiences exist in pesticides and POPs and a SAICM
             Coordination Committee has been created.

(b) Information gathering and dissemination:

Information gathering is limited and exacerbated for lack of institutionalised mechanisms to exchange
information. Information dissemination is not carried out in a systematic way although there are some
bases for the establishment of a simple PRTR:

            The Register Inventory on Potentially Harmful Substances has not been developed.
            The basis for monitoring of chemicals impacts on health and on the environment needs to
             be clearly spelled out in the legislation.



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            Communication and coordination among the difference services in charge of monitoring
             needs to be improved. Communication is currently ensured only via personal contacts on
             a sporadic basis. There are some overlaps in the competence for monitoring of different
             institutions.
            There are no clear obligations on the industrial facilities to carry out self-monitoring and
             most of them do not have the technical capacity to do it.
            Dissemination of information takes place through Bureau of Statistics and State of the
             Environment Report but information is not generally available or easily accessible.
            Information campaigns regarding waste, POPs, ODS and pesticides have been carried
             out. These campaigns could be completed by dissemination of information on chemicals
             in general.
            Implementation of the PIC Convention has not been carried out and participation in this
             forum should be enhanced.

(c) Capacity for risk assessment and interpretation:

Capacity to carry out risk assessment is limited due to limitations in the current equipment to carry out
analysis, although some laboratories (e.g., Pesticides Laboratory) are very well equipped. Staff is well
prepared and could interpret information:

            All laboratories and monitoring centres interviewed have reported human, technical and
             financial resources needs. Most laboratories and stations cannot analyse POPs or monitor
             dioxins and furans. Nevertheless staff is prepared and able to interpret information
             although at ministerial and industrial level there is no good understanding of some
             chemicals‘ hazards.
            There does not seem to be any mechanism to link the information gathered through
             monitoring to the adoption of specific regulatory measures.

(d) Establishment of risk management policy

Legal or policy mechanisms for managing risks associated to chemicals in Moldova need to be
strengthened:

            A classification system for chemicals and a modern waste catalogue is needed. Adequate
             packaging and labelling requirements as well as Safety Data Sheet for dangerous
             chemicals and preparations need to be adopted.
            A registration mechanism for chemicals in general is required. A first step would be to
             implement the obligation to develop a register of potentially hazardous chemicals. As a
             consequence, there would be a better overview of chemicals used or present in Moldova
             and the understanding of their hazards would improve.
            A system for restriction of chemicals based on risk assessments resulting from
             monitoring of chemicals or exchange of information at international level needs to be
             established. The current legislation would be enhanced if it was based on the
             precautionary approach and the substitution principle was taken into account. These gaps
             also apply to pesticides.
            Almost no substances have been banned: asbestos is used and some pesticides registered
             are Class I and II but the mechanism for control could be strengthened. Some pesticides
             registered are banned at EU level (e.g., phosalone). Legislation banning or limiting the
             content of substances (e.g., heavy metals) in products has not been developed.
            A policy to provide incentives for the registration, import or use of less dangerous
             chemicals or non-chemical alternatives could be established. A policy on BAT and BEPs
             is missing.




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(e) Capacity for implementation and enforcement

Capacity for implementation and enforcement is limited due to shortcuts in staff and outdated
technical equipment:
         A sufficient number of personnel in the different ministries and chemicals units are
             needed.
         The different inspectorates do not have enough personnel to carry out inspections or the
             adequate equipment to link specific health or environmental problems to the use or
             discharge of certain substances. In addition, trainings could be carried out regularly.
         Only the Labour Inspectorate is required to coordinate with other inspectorates.
         With the exception of labour inspection, inspectors interviewed indicated that the current
             sanctions are low and not adapted to the current situation in the country
         Tolerance among judges and prosecutors regarding infringements has been reported to be
             high.
         The mechanisms to control imports of dangerous chemicals could be strengthened. Only
             specific substances seems to be adequately controlled (e.g., ODS and dual-use goods)
         Communication and coordination with customs could be improved by including an
             obligation for customs to report to the relevant ministries (or in the future the Agency or
             committee).
         Specific training to identify dangerous substances for Customs, similar to trainings
             received on ODS are needed.

(f) Capacity for rehabilitation of contaminated sites and poisoned persons

Capacity to rehabilitate contaminated sites is very limited. No waste treatment installations for
hazardous wastes exist in the country. Only inventory and repackaging of some OPs have been
partially financed by State budget. Current activities are financed by donors. Capacity to treat
poisoned persons is considered adequate, through the regional and district representations of the
Centres for Preventive Medicine. The main problem is that affected people do not report poisoning
events due to ignorance of lack of resources.

(g) Effective education programmes and capacity to respond to emergency

            Lack of information among consumers and workers using dangerous chemicals is a
             concern. Information campaigns of chemicals safety are needed, especially regarding
             management of dangerous chemicals at the work place.
            ILO C-170 on Chemical Safety at Work Place could be ratified to strengthen workers‘
             education and health and safety.
            Companies are required to make a Safety declaration, which is much softer than the
             emergency plan and the safety report referred to in SEVESO Directive (Directive
             96/82/EC on the control of major-accident hazards involving dangerous substances).
             Security could be improved by requiring companies working with certain quantities of
             dangerous substances to develop accident prevention and emergency plans.
            The annexes to the legislation on Prevention on Industrial Accidents list dangerous
             objects as well as dangerous substances and the quantities that will lead to the application
             of the legislation. In this sense, the list of substances is limited, in some cases with very
             broad categories, and the tonnage to trigger the obligations of the legislation too high for
             the Moldovan legislation.
            Communication mechanisms and technical equipment to detect and react to accidents
             involving hazardous substances need to be improved.

Base on this assessment of gaps and needs, main health and environmental problems and risks, and the
conclusions of the stakeholder consultation, the following priorities have been identified:


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Short term priorities

         10. Development of a chemicals strategy to set priorities and identified actions.

The participants to the stakeholder consultation considered that this report could serve as a basis to
develop such strategy.

         11. Adopt and implement classification and packaging and labelling legislation

It is the basic element for an effective SCM. The transposition of Directive 67/548/EEC is foreseen.
However, it would be more useful for Moldova to introduce the Global Harmonisation System (GHS)
adding some of the typical concepts of the EC legislation, such as the definition of ―dangerous‖. Any
harmonisation should take into account the conditions in the country and the dependency on imports
of substances and preparations.

         12. Creating a inter-ministerial/agencies coordinating body

All participants to the stakeholder consultation agreed that an independent coordinating body although
subordinated to the government, should be established. This body will coordinate all different
institutions but also agencies, will collect data and redistribute it. Most of participants preferred an
agency for chemicals pooling all the government bodies together and giving a single contact point for
stakeholders. The creation of any independent body needs to be complemented by increasing human
resources at ministerial level and ensuring that there are persons specialised on chemicals issues in
each ministry involved, including the creation of chemicals units in different Ministries, in particular
in the MENR.

In view of Moldova‘s interest in the EU, the establishment of such an institutional structure for
chemicals management is essential. The new REACH regime will create a European Chemicals
Agency and each Member State will have to have one or more competent authorities to ―co-ordinate‖
the application of the law in their country. Although the European Chemicals Agency created under
REACH can serve as an example, the future institutional structure for chemicals management should
be adapted to the needs and capacities of Moldova.

         13. Create a national register of dangerous substances and preparations.

The participants considered that the register of potentially hazardous substances should be
implemented as this is an essential first step information tool for sound chemicals management. Much
information is held by different institutions and could serve as the basis for a first inventory. The
national register should also be accompanied by the development of common forms for reporting that
will help to gather data on the chemicals used in order to create the register, and later on to enhance
monitoring and enforcement activities.

The creation of this register should be accompanied by the establishment of the adequate legal
framework for registration of chemicals substances and preparations. The experience gathered in the
registration of pesticides will be very useful to adopt a more general framework for chemicals. In
particular, the experience gathered regarding coordination of different ministries, assessment of the
information submitted by the person requesting the registration of the substance, reporting, website
development and so on. There are no plans to carry out an initial approximation to REACH
(Regulation (EC) 1907/2006 concerning the Registration, Evaluation, Authorisation and Restriction of
Chemicals). REACH can provide useful guidance to establish an adequate regulatory framework for
the registration, evaluation and authorisation of chemicals.




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         14. Management of chemical waste

Harmonisation with EU legislation is foreseen but it would be useful that this harmonisation is
accompanied by measures to promote cleaner production, in particular the use of less dangerous
substances, to reduce waste toxicity. Legislation on hazardous waste, incineration, PCBs and
packaging waste should be considered a priority having regard to the problems in the country, together
with the development of a modern waste catalogue. The principle of producer responsibility needs to
be included in the legislation to enhance the effectiveness of the regulatory framework.

The development of legislation needs to be accompanied by the creation of hazardous waste disposal
capacities. The development of waste management activities could in addition create market
opportunities, including jobs.

Management of the current wastes stored in facilities will need a negotiated solution with industry. A
negotiated solution for the establishment of an empty containers collection system and disposal will
also be required.

         15. Improve monitoring, enforcement and import controls

Participants considered that current inspections should focus on the products already on the market
leaving imports control to customs. This would also require an improvement of the current
mechanisms for import controls.

Improvement of monitoring of impacts of chemicals on health should be a priority. Monitoring and
enforcement would also be improved through the establishment of the coordinating agency as well as
through the creation of mechanisms or channels for exchange of information (e.g., obligations to
report, inter-institutional agreements or memoranda). In any case channels of information between the
institutions depending on the MENR and the Centre for Preventive Medicine are needed to avoid
overlaps and maximise current resources.

Imports controls could be strengthened by clarifying the licensing system, cooperation with customs
and their training, and by implementing the PIC Convention.

         16. Training, awareness campaigns and education programmes

The participants to the consultation highlighted the importance of providing continuous training to
civil service and the public at large regarding chemicals. Specific concerns were raised regarding the
use of pesticides by small farmers when safer or non-chemicals alternatives were available. These
concerns could be extended to consumers that are using chemicals being unaware of their hazards,
sometimes due to inadequate labelling, and workers handling dangerous chemicals.

The participants to the consultation also considered that University curricula should include specific
chemicals management subjects. The Ministry of Education is concerned about chemicals issues
which could help to introduce chemicals management in university curricula. The 2nd Environmental
Performance Review also suggested the establishment by the Ministry of Education in cooperation
with the MENR and other stakeholders concerned, including NGOs and mass media, of council for
sustainable development. The body, besides promoting and facilitating implementation of the UNECE
Strategy for Education for Sustainable Development could promote SCM including education and
training of civil society, civil servants, judges and prosecutors.

         17. Adopt risk management regulatory actions

There was some agreement among the participants to the stakeholder consultation that a policy of
substitution of dangerous chemicals, in particular pesticides, by safer or non-chemicals alternatives
needed to be adopted. Some suggestions to raise awareness regarding substitution included to carry

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out a study to assess the pesticides used by farmers to determine whether their use was indeed needed.
The second aspect to be included in the study is the identification of the substances used in the
industrial sector that could be produced at national level.

The policy of substitution requires as well the establishment of the adequate framework to adopt the
necessary risk management measures, including bans, when a substance poses unacceptable risks to
human health and the environment or cannot be adequately controlled.

In this sense, this assessment has identified at least one substance that should be banned, i.e., the
import and the use of asbestos and asbestos containing products. In addition, to fully implement the
POPs Convention, the chemicals listed therein should also be banned.

         18. Update current standards and equipment

As shown in previous sections, all inspectorates and laboratories have reported the need for new
equipment to measure specific pollutants. Equipment is needed to have accurate information and
support enforcement. Regarding standards, the current policy to harmonise Moldovan standards with
EU standards should continue.

Medium and long term priorities

Other areas for improvement have been identified that could be developed in the medium or long
terms:

    Progressively harmonise with the restrictions and bans over dangerous substances (Directive
     76/769/EC), pesticides (Directive 91/414/EEC and 98/8/EEC). If training does not satisfactorily
     resolved the problems of small farmer using Class I pesticides, seriously consider the possibility
     of prohibit or restrict the import, sale and use of class I pesticides, especially for the public or
     small farmers.

    Establish a system for collection of used pesticide containers.

    Create one ―laboratory system‖ (a central laboratory plus satellite laboratories) that does routine
     analysis and ―enforcement‖ analysis;

    Harmonise with the IPPC Directive referring to BAT and BEP adapted to Moldova‘s technical
     development and the EIA Directive.

    Develop a preliminary PRTR based on the information held by the Bureau of Statistics and other
     institutions.

    Become a party to ILO C-170 or incorporate the obligations laid down therein into their
     legislation to address the specificity of the risks associated to the use of dangerous substances.
     The harmonisation with the EU Directives on health and safety at the work place, in particular
     those that are dealing with specific risks linked to chemicals (carcinogenic, chemicals agents,
     biological agents and asbestos) can serve as a model to improve the current legal system.

    Establish in the current legislative framework clear parameters for the development of safety
     reports and emergency plans, in line with SEVESO Directive. Improve the current system and
     capacity to communicate and react in case of chemicals accidents.

    Adopt an integrated product policy within the context of cleaner production and waste
     minimisation that could serve in the long term to solve the problem of hazardous waste stocked in
     the country, as well as an adequate policy to prevent the flow of low quality products in Moldova.


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     This is a significant problem and could have resource implications. However, it can be
     approached by adopting different instruments and taken small steps:

             o   Create an adequate legal framework that would lead to the use of less dangerous
                 substances, in particular the promotion of alternatives, including a hazard
                 communication mechanism. The adoption of such a system would allow to have better
                 knowledge of the type of substances used and their costs (in production but also in
                 disposal).

             o   The system would be completed by notification and registration obligations and an
                 appropriate fiscal policy to deter the registration of less dangerous substances (at the
                 moment no real incentives are given to industry to import less dangerous substances).

             o   The current system for certification of products needs to be improved and importer
                 responsibility, including liability for defective products applied in practice.

             o   Economic operators need to incorporate into their production costs the costs
                 associated to waste disposal and pollution (including energy consumption). An
                 updated system of taxes and fees for waste and pollution would push economic agents
                 to use less dangerous substances and more efficient technologies that can reduce the
                 toxicity of the final waste, and thus the costs of disposal.

             o   These burdensome fiscal measures could be combined by subsidies and fiscal
                 advantages for companies with cleaner production processes (e.g, less dangerous
                 substances, less pollution, more energy efficient technologies and so on). Industries
                 adopting EMAS, ISO 14000 or investors introducing cleaner technologies or
                 processes could benefit from fiscal reductions or exemptions. Competition and State
                 aid policy should be carefully examined to explore mechanisms to promote cleaner
                 production. If a cleaner production strategy is adopted, the government should be
                 coherent with this option and adapt public procurement processes.

             o   Finally, create an adequate market for waste where waste producers and waste
                 operators obtain profits. For the time being there is no such waste market since there
                 are only municipal landfills of waste. The country needs to develop disposal
                 capacities for hazardous waste including the technical requirements for incineration
                 plants or other treatment plants to deal with part of the hazardous wastes currently in
                 the country.


8. SUGGESTIONS FOR RESOURCE MOBILISATION FOR SCM: SYNERGIES WITH
   CURRENT INITATIVES AND OPPORTUNITIES FOR THE FUTURE

Different resources are available in Moldova to implement the priorities identified in this case study
for SCM. On the one hand Moldova has its own economic resources (see Section 5), such as the
environmental funds, as well as economic instruments (taxes, fees, charges, fiscal advantages) that
could also be used to provide incentives to the private sector to adopt SCM. The resources of the
private sectors, including investors, could also be a source of financial assistance to implement some
of the recommendations laid down in the study.

On the other hand, Moldova is receiving substantial technical and economic assistance from
international donors. During the second mission the most active donors in the country were identified
as well as their priorities in Moldova. The effective participation of donors will also depend on
Moldova‘s presentation of its needs, thus the importance of including SCM aspects in the future NDP
and to suggest synergies with current and future projects. Donors are now coordinated in Moldova and


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the Ministry of Economy has a website198 on assistance projects undertaken in the country. The
presentation of priorities related to chemicals management in the meetings of the donors coordinating
committee will be important to obtain assistance and to avoid unnecessary overlaps.

However, many of the priorities of this study can be implemented by national resources, since in some
cases they have an organisational nature that could easily be financed by the State budget or the
Environmental Funds. In these cases technical assistance may be required for trainings and to build
capacity. Some ideas for resources mobilisation have already been highlighted when carrying out the
assessment of the current regulatory framework. A summary of these ideas is presented here.

       Mobilising resources to finance legislative developments and the development of a strategy for
        chemicals management

Moldova needs to create an adequate legislative framework for chemicals management and waste.
Different sources for financing these activities can be identified. The current immediate new projects
on chemicals can serve to set forth the basic regulatory framework for SCM, especially classification,
packaging and labelling.

The 3rd phase of the POPs project will focus on legal aspects. This project is aimed at creating
adequate legal framework for POPs management, including disposal, and is intended to adopt a cross-
sectoral approach. This project provides a tremendous opportunity to fill out some of the most
important regulatory gaps in basic areas of chemicals management. The project should avoid the
adoption of the piece-meal approach that as characterised legislative development in Moldova, i.e.,
developing legislation for very specific areas without developing the broader legislative framework.
Understanding the EU legal framework and how different pieces of legislation are integrated and
connected is essential to avoid contradictions or inefficient implementation of the legislation. In this
case, the project foresees the harmonisation inter alia, with the PCB and waste oil legislation.
However, the harmonisation should look first at the general waste framework legislation on the basis
of which the specific waste streams and waste operations legislation has been developed.

This project could also serve to start harmonisation with GHS and Directive 67/548/EEC. Since
Moldova does not have a powerful chemical industry, basic classification, packaging and labelling
system for dangerous substances could already be established with a work plan for progressively
harmonise with the EU chemicals legislation.

Beside the POPs project, other EU financed project (e.g., TACIS) to harmonise Moldovan legislation
with the EU, will necessarily fill out some of the shortcomings identified.

The project under the Quick Start Programme as well as TAIEX financing could help to develop the
chemical strategy.

       Mobilising resources for institutional reorganisation an to set up a national agency

A national agency as well as personnel specialised on chemicals issues can be partially financed by the
national budget. Technical assistance from QSP and TAIEX could be sought to train staff in different
ministries on chemicals issues. The POPs project has also a component on training. This project could
serve to train officials at regional and central level and other resources could be used to train more
specifically the chemicals body to be created. The development of any other coordinating mechanism,
e.g., among inspectorates or monitoring centres, could be financed by national budget as part of the
public administration reform project.




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     Mobilising resources to develop a register/inventory of chemicals.

This can also be financed by national budget. The different institutions holding information on
chemicals used in agriculture and the industrial sector could share the information and develop the
inventory. The MoH could lead until the agency or body is developed. Mechanisms for updating the
register will need some technical and financial assistance from donors, in particular the development
of the database and websites, and the registration process. Staff involved in pesticides could help to
develop the register. The QSP could provide financial resources to address some of these issues.

     Mobilising resources to improve monitoring and enforcement and import controls.

Organisational aspects could be financed by state resources. Each institution could develop lists of
competences and needs and discuss them to identify areas of potential overlap and the equipment
required to carry out monitoring. Part of the equipment needs could be financed by State budget. In
other cases, donors support (maybe SIDA or Norway that have already financed some equipment)
could be obtained.

Opportunities to strengthen enforcement, including trainings for inspectors, judges and prosecutors,
could be found under the OECD projects on environmental enforcement as well as specific
programmes within the Council of Europe.

Import controls can be strengthened by increased coordination and training. Several possibilities exist.
Moldova needs to allocate national budget for improving customs control and could request technical
assistance under the PIC Convention. It can also explore possibilities for training and technical
assistance offered under the EUBAM or the ENP. Experience on the implementation of the Montreal
Protocol can help to mobilise and use national expertise.

     Mobilising resources to disseminate information, including awareness campaigns and
      education

National resources can be used to create awareness and education campaigns. Collaboration with
NGOs will be important in this area since they have expertise and sometimes their own magazines
that could serve to disseminate information. In addition, the Ministry of Education seems to be
concerned about chemicals issues, especially POPs, and could contribute to carry out education
campaigns. Funds may be available at UNECE level. The ODS project and the Dutch projects on
Governance can also promote broader information campaigns. Information campaigns on food are
also available under EU Food Security Programme or TACIS.

The private sector could also be mobilised for aspects relating to health and safety at work place as
well as to inform consumers regarding risks associated with low quality and efficacy chemical
products. Local campaigns can be financed under current projects on agricultural pollution or waste
management (which are supported by the WB, TACIS or the Netherlands). Other projects aimed at
preventing pollution in the Black sea and the Danube could be used to raise awareness regarding
general chemicals management issues.

Moldova could also request assistance to develop a PRTR to the Aarhus Secretariat or DANIDA
which has a long tradition of financing projects to implement the Aarhus Convention. Dutch assistance
may also be available to undertake small projects on local governance.

     Mobilising resources for waste disposal

As mentioned above, the development of the regulatory framework for waste can be carried out by
the resources available under TACIS and technical assistance from the Basel Convention. Regarding
hazardous waste disposal, different actions will be needed:

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                 1. inventory and identification of hazardous waste stored in the different facilities: in
                    this case, national resources could be used, including cooperation from industry.
                    Identification of waste composition can be partially done by national laboratories.
                    In other cases, assistance to improve laboratory equipment might be required
                 2. identification of methods for recovery and disposal: this activity can be carried
                    out partially using national knowledge (Academy of Science) but in some cases it
                    might need technical assistance
                 3. develop a strategy for disposal: negotiating a solution with industry will be
                    needed, especially regarding financing the costs of disposal (including export for
                    disposal abroad). Assistance from donors (e.g., WB, NATO, Czech Development
                    Assistance, which is carrying out waste management activities) might be needed
                    to dispose of some wastes.
                 4. develop the necessary capacities in the country to dispose of hazardous waste
                    (e.g., using cement kiln to incinerate waste). Assistance from donors (TACIS,
                    WB) will be required.

In addition there are many local projects on waste management funded by TACIS, the Netherlands and
other donors.

     Mobilising resources to adopt measures at cross-sectoral level

As part of mainstreaming chemicals, activities carried out in other sector will have an impact on
chemicals management. It is important that the current and future projects in different areas recognise
these synergies.

             o   Chemicals management in agriculture and food security

Better management of chemicals in food and control over pesticides residues can be financed by the
EU Food Security Programme. In addition, the country has developed internal capacity to test
pesticides residues and therefore analysis can be carried out.

The USAID is investing on the development of the wine industry and could therefore serve as a way to
promote SCM in this sector. The National Agency for Rural Development (ACSA) is currently
undertaking a major project, which includes 20 smaller projects, to provide expertise to farmers
through a network of 70 consultants in 35 regions. The expertise can include training for farmers in
modern pesticide techniques. The WB projects on agriculture pollution control and agriculture
infrastructure will continue financing SCM in agriculture.

             o   Chemicals management within SMEs

The adoption of cleaner production policies and control over chemicals used by SMEs seems to
require a mix of national resources, including market-base instruments (taxes, fiscal advantages),
industry resources, investors (transferring cleaner technologies) and donors support. Many donors are
working at SMEs level to update current production process. Some of these donors are focused on
specific sectors, (e.g., USAID focus on carpets, wine and textiles) and others on SMEs in general, e.g.,
Japan or Norway which financed EMS.

             o   Chemicals management, energy and transport and infrastructure

Many projects are being carried out at local level by different donors to improve water sanitation
(including the development of wastewater treatment plans) and waste management. These different
projects could also provide assistance on chemical issues, especially training, and could help to
identify the main causes of water pollution and waste production. This information may be valuable to
adopt more concrete measures regarding main pollutants (trainings, cleaner production etc).


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The current projects in the energy sector related to chemicals are focused on inventory and
decontamination of PCB contaminated generators and capacitors. Unión Fenosa is actively
collaborating with the authorities on PCB management within its power generation plants. This type of
collaboration, including resources mobilisation, with the private sector as well as with State-owned
companies (Moldoelectrica, Moldovagaz, Apacanal, Moldova rail) could be promoted to resolve
current problems and promote SCM.

Improvement of current technological processes will require foreign investments (as in the case of
Unión Fenosa), that could be used to promote SCM in these strategic sectors. In addition, different
financial resources will be available in this area under the ENP (energy package and TENs), WB
(greenhouse gases project) as well as CDM under the Kyoto Protocol. SCM can be promoted in all
these programmes.

             o   Chemicals and health

One of the priorities is to better study the links between chemicals and human health. The MoH is
planning to undertake a study and the POPs project is also considering the possibility of carrying out a
study on POPs and health. REC is also looking for finance to carry out a study on POPs and impacts
on children. These different initiatives could be combined to maximise resources.

Regarding donors‘ support, World Health Organisation is currently concentrating on health care
system reforms in Moldova and has no projects directly related to chemicals. However, they have
some interest in water and food safety, such as integration of WHO standards into Moldovan
legislation, and could provide capacity building to assist (i.e. training etc). The WHO also expressed
interest in any studies on health impacts from chemicals in the Country. UNICEF’s priorities in
Moldova are related to healthcare and basic parenting. However, there seemed to be some potential
synergies related to accidents related to the under five years caused by chemicals (including
pesticides).

             o   Chemicals and transboundary relations, including accident prevention

Although accident prevention has not been identified as a short-term priority (probably because
Moldova has not a powerful chemical industry), current capacities are weak and should be
strengthened. Some projects are already helping to develop capacities to detect and react to accidents
(see TACIS project assisting MOLDOVAGAZ). Similar projects could be carried out in the whole
country.

Another possibility for financing general issues is the EU Regional Funds. Moldova is now a
neighbouring country and will benefit from the inter-regional projects with a transboudanry
component. Partnership with Romania to explore opportunities for the development of such
programmes needs to be seriously considered. These projects normally focus on resolving common
local problems and creating economic links. In this sense, some common local problems may be
linked to inadequate chemicals management, such as agricultural pollution, dumping of waste or even
POPs contaminated sites. These projects will provide a good opportunity to finance some cleaning-up
activities and promote SCM to prevent further problems. In addition, these projects also focus on the
development of common surveillance mechanisms (including accident prevention) and capacity
building, which can help to improve chemicals management. Finally, some of these projects focus on
export promotion and tourism. SCM promotion can also help within these areas.




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    Objectives                      Action/priorities                  Responsible                 Expected output              Potential resources      Risks and costs of
 (Programme E)                                                                                                                                              non-action
1. Establish an adequate legal and institutional framework
                1.1 Develop a strategy for chemicals management    SAICM coordination     Identify priorities for the           Environmental
                                                                   committee              establishment of SCM                  Funds (EF)
                                                                                                                                SAICM QSP,
                                                                                                                                WB/GEF POPs
                                                                                                                                TAIEX
               1.2   Establish a inter-ministerial coordination    SAICM coordination     Ensure that there is a cross-         EF
                     mechanism for progressively establishing an   committee              sectoral approach to chemicals        SAICM QSP
                     independent agency or body in charge of                              management, including decision        WB/GEF POPs
                     chemicals management                                                 making
               1.3   Create an adequate legal framework on         Mo Industry in         Create an integrated legal            EF
                     chemicals management                          coordination with      framework avoiding a piece-meal       WB/GEF POPs
                                                                   MoH and MENR           approach and inconsistencies          SAICM QSP
                                                                                          between different acts. Ensure        EU assistance
                                                                                          that the essential elements on        (TACIS and
                                                                                          chemicals life-cycle management       TAIEX) under the
                                                                                          are adequately regulated.             EU-Moldova action
                                                                                          Improve compliance with the           plan
                                                                                          legislation
                                                                                          Improvement of health and
                                                                                          environmental conditions and
                                                                                          competetiveness
2. Information gathering and dissemination
               2.1 Develop the Register of Potentially Harmful     MoH in cooperation     Increase knowledge of current         EF
                    Substances                                     with the MERN          chemicals used in Moldova to be       QSP
                                                                   institutions holding   able to assess their risks.
                                                                   information on         Establish the basis for risk
                                                                   chemicals (e.g, CPM,   communication and management
                                                                   SEI, Hydromet,         policy
                                                                   SDEES, DMS).
                                                                   PMU of projects
                                                                   dealing with
                                                                   chemicals
               2.2   Establish coordination mechanisms among       All institutions in    Maximise current human                EF
                     different monitoring centres to exchange      charge of monitoring   resources and better control over
                     information                                   (CPM, SEI,             the substances in Moldovan


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   Objectives                        Action/priorities                      Responsible                 Expected output             Potential resources     Risks and costs of
 (Programme E)                                                                                                                                                 non-action
                                                                        Hydromet, PPI ...)      environment or used in industry
                                                                                                and agriculture and manage their
                                                                                                risks.
                2.3   Improve current dissemination of information,     Bureau of Statistics,   To increase public information      EF
                      including industry and possible establishment     MENR, MoH, CPM,         and participation on chemicals      UNECE
                      of a PRTR                                         SEI, Hydromet           management                          OECD
                                                                                                Improvement of health and           DANIDA
                                                                                                environment conditions by           TACIS
                                                                                                increasing education and raising    ODS Project
                                                                                                awareness on chemicals
                                                                                                management.
                                                                                                Improvement of the levels of
                                                                                                compliance with the legislation
                2.4   Active participation at PIC forum                 SAICM Coordination      Obtain information on risks posed   EF
                                                                        committee president     by agriculture and industrial
                                                                        and representative of   chemicals to adopt risk
                                                                        MoH                     management decisions
                2.4   Develop industrial sector capacity to carry out   MoI in coordination     Increase industrial knowledge       USAID, Japan,
                      self-monitoring and report                        with MENR and           regarding costs of industrial       Czech Development
                                                                        industry                processes, including efficiency,    assistance
                                                                                                Improve competitiveness of          Norway EMS
                                                                                                industry (better knowledge and      programme
                                                                                                shifting production processes)      Foreign investors
                                                                                                Reduction of pollution thereby      Private companies
                                                                                                improving health and
                                                                                                environmental conditions
3. Capacity for risk assessment and interpretation
                3.1 Update the current laboratory facilities and        All institutions in     Improve knowledge of the risks      Norway, SIDA,
                      equipment for monitoring                          charge of monitoring    associated to certain chemicals     NATO/OSCE
                                                                        (CPM, SEI,                                                  EU Food Security
                                                                        Hydromet ...)                                               Programme
                                                                                                                                    ODS Project
4. Establishment risk management policy
               4.1 Harmonise with GHS and EU chemicals                  Mo Industry in          Improve knowledge of chemicals      SAICM QSP
                     legislation, including SDS                         coordination with       on the market and adoption of       WB/GEF POPs
                                                                        MoH, MENR and           basic risks reduction and           TACIS


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   Objectives                     Action/priorities                     Responsible                Expected output              Potential resources      Risks and costs of
 (Programme E)                                                                                                                                              non-action
                                                                    MAFI                   communication measures
                                                                                           (consumers and workers)
             4.2   Establish a registration mechanism and           MENR, MoH, MAFI        Allow for the adoption of risk       SAICM QSP
                   adoption of a regulatory framework to take                              reduction or elimination measures    WB/GEF POPs
                   regulatory actions based on risk assessment of                          Implementation of the PIC and        TACIS
                   data obtained from monitoring and at                                    POPs Conventions
                   international level
                                                                                           Improvement of health and
                                                                                           environmental conditions
             4.3   Provide incentives for the import and use of     MENR, MoH,             Replacement of most dangerous        EF
                   less dangerous chemicals and reform the          Ministry of Finance,   chemicals by safer alternatives,     Norway EMS
                   current tax, fees and charges mechanisms         MAFI, MoI, Ministry    including non-chemical               USAID programmes
                                                                    of Economy             alternatives                         MEPO
                                                                                           Prevention of accumulation of
                                                                                           hazardous wastes and so on by
                                                                                           passing onto the private sector
                                                                                           costs related to pollution and
                                                                                           waste disposal.
                                                                                           Improvement of health and safety
                                                                                           at work place, human health and
                                                                                           environmental conditions
                                                                                           Positive economic impacts on
                                                                                           industry (export promotion and
                                                                                           elimination of costs associated to
                                                                                           chemicals use or generation of
                                                                                           hazardous waste)
                                                                                           Enhance attractiveness of
                                                                                           Moldovan products for export
                                                                                           Promote innovation for less
                                                                                           dangerous substances or more
                                                                                           efficient technologies
             4.4   Adopt specific risk management measures:         Future body in         Eliminate chemicals that pose        EF
                   restrictions on electric and electronic          charge of chemicals    unacceptable risks on human
                   equipment, ban POPs, Asbestos, some              management, Inter-     health and the environment
                   pesticides, restrictions over Class I-II,        Ministerial
                   progressively adopt EU restrictions              committee for          Improve Food security
                                                                    pesticides

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   Objectives                         Action/priorities                     Responsible                Expected output             Potential resources      Risks and costs of
 (Programme E)                                                                                                                                                 non-action
                                                                        Agency for             Ensure exportability of Moldovan
                                                                        Construction           products to EU markets


5. Capacity for implementation and enforcement
               5.1 Increase personnel at ministerial level and at       Government,            Ensure technical expertise to       EF
                    Inspectorate level                                  different Ministries   develop and implement chemical      OECD
                                                                        (MENR)                 related legislation
                5.2   Establish coordination mechanisms among           Different              Ensure that limited resources are   EF
                      institutions in charge of inspections, training   inspectorates (SEI,    maximised and overcome current      OECD
                      and equipment                                     PPI, SDEES, Labour     limitations regarding number of
                                                                        Inspectorate, DMS)     inspections
                                                                                               Improve enforcement
                5.3   Improve import controls by communication          Customs, MENR,         Fight illegal trade of chemicals    GEF/WB
                      with customs, training and implementation of      MoH                    products (including pesticides).    PIC technical
                      the PIC Convention                                                                                           assistance
                                                                                               Pass onto exporter countries part   EUBAM
                                                                                               of the responsibilities over the
                                                                                               control of pesticides flow from
                                                                                               exporter country to importer
                                                                                               country.
                5.4   Carry out awareness campaigns among judges        MENR, MoI,             Improve implementation by           EF and NGOs
                      and prosecutors as well as among industry         Ministry of Justice,   informing everybody of their        GEF/WB
                      (including importers and distributors)            NGOs, Private sector   obligations and rights              UNECE
                                                                                               Informing of dangers related to     Netherlands
                                                                                               chemicals use.                      DANIDA, SIDA
                                                                                               Implement POPs Convention
6. Capacity for rehabilitation of contaminated sites and poisoned persons
                6.1 Development of waste treatment capacities and MoDefence, MENR,             To eliminate health and             NATO/OSCE
                     improve laboratory capacities                   MoH, MoI, Academy         environmental impacts caused by     Czech Development
                                                                     of Science                waste                               assistance
                                                                                                                                   TACIS and EU
                                                                                                                                   regional funds
                6.2   Carry out awareness campaigns regarding           Extension services,    Avoid unnecessary deaths caused
                      poisoning with pesticides and chemicals used      CPM at national and    by poisoning, increase
                      in households                                     local level            information about impacts of


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   Objectives                      Action/priorities                    Responsible                Expected output             Potential resources      Risks and costs of
 (Programme E)                                                                                                                                             non-action
                                                                                           chemicals in health to adopt
                                                                                           necessary measures
7. Effective education programmes and capacity to respond to emergency situations
                7.1 Carry out education campaigns on chemicals      MoEducation,           Reduce the use of unnecessary       EF
                     used in agriculture, at work place and in      MENR, MoH, MoI,        chemicals (including pesticides)    UNECE
                     households (cleaning products and insecticide) Labour inspectorate,   thereby improving chemicals         USAID, Japan,
                                                                    Extension services     management, health and              Norway EMS
                                                                    and delegations of     environmental conditions            TACIS/TAIEX
                                                                    CPM at local level     Economic advantage through the      EU Food Security
                                                                    NGOs                   reduction in chemicals use          Programme
                                                                                                                               ODS Project
               7.2   Implement ILO C-170 on chemical safety          MoI, MoH and          Reduce and eliminate risks          ILO
                                                                     MoEconomy (Labour     associated to chemicals use at      TACIS
                                                                     Inspectorate)         work place.
               7.3   Improve regulatory framework on industrial      SDEES, DMS            Avoid casualties, injuries and      TACIS
                     accidents, communication in case of accidents                         environmental impacts derived
                     and current equipment                                                 from industrial accidents and/or
                                                                                           reduce impacts




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