Industrial and Livestock Rearing Emissions Directive (IED 2.0)

The overall aim of the IED 2.0, due to enter into force on 4 August 2024, is to minimise the impact of pollution on people’s health and the environment by reducing harmful industrial and intensive livestock emissions across the EU.

The IED's key objectives are to:- 

• Promote innovation and transformation through the most effective viable emissions reduction techniques.
• Tighten rules on reducing emissions with stricter emissions limit values and more stringent conditions on granting derogations.
• Streamline permitting via the new Industrial Emissions Portal Regulation which will enhance access to environmental data.
• Provide new and stronger tools for the circular economy and resource efficiency, as well as reduce the use of hazardous chemicals.
• Cover more activities to reduce unregulated emissions (mining of metal, manufacturing of batteries, waste landfills, and more intensive pig & poultry farms).
• Enhance the rights of the public by strengthening and broadening public information, participation and access to justice, as well as allowing people to seek compensation for damages to their health caused by illegal pollution.

Under the IED 2.0, environmental permits are granted to the concerned installations and farms by national permitting authorities.

Best available techniques (BAT) play a key role. These techniques are the most environmentally effective and economically and technically viable for the prevention and control of emissions. 

BATs are generally identified sector-by-sector through the collaborative, transparent and fact-based Sevilla Process, managed by the European Commission’s Joint Research Centre (JRC). This identification process results in BAT Reference Documents (BREFs), which help form BAT Conclusions (BATCs). BATCs are implementing decisions adopted by the Commission that are the basis for drafting permit conditions by Member States' permitting authorities.

Permits must also contain binding quantitative resource efficiency requirements for materials, water and energy, as appropriate, to better address water scarcity challenges and waste generation.

To ensure compliance, harmonised environmental inspections take place on site at least every one to three years by competent authorities, depending on the risks of the concerned activities.

A new Innovation Centre for Industrial Transformation and Emissions (INCITE) will gather information on innovative pollution control solutions and transformative technologies, helping to speed up their development.

Flexibilities in permits will allow frontrunners to test and deploy emerging techniques and will facilitate deep industrial transformation. Industries will further need to develop transformation plans, describing how their installations will progress towards decarbonisation, zero pollution, and the circular economy.   

Under the IED 2.0, accountability has increased significantly.

The public now has better access to environmental data through the new Industrial Emissions Portal Regulation (IEPR), in line with the Aarhus Convention and the right to participate in decision-making on IED permits.

For the first time, EU environmental law establishes the right for people to seek compensation for damages to their health caused by illegal pollution.

The penalties regime is enhanced with strengthened financial fines for the worst infringements (at least 3% of the legal person's annual EU turnover). More powers are also granted to competent authorities to suspend non-compliant installations.

Large Combustion Plants (LCPs) are responsible for a large amount of emissions of air pollutants. This is why the IED contains special provisions for LCPs. The IED and its special provisions related to LCPs have achieved significant reductions in LCP pollutant emissions in recent years.

The Directive sets the minimum requirements for certain pollutant emissions from LCPs, including:-

• Aggregation rules
• Emission limit values
• Monitoring and compliance assessment

More information on emissions and energy use in LCPs in Europe can be found on the European Environment Agency’s webpage on indicators of emissions to air from LCPs.

Information on annual emissions from LCPs and other industrial sources is also available through the Industrial Emissions Portal.

The revised legislation covers the largest and most polluting intensive pig and poultry farms in the EU, which amounts to 30% of pig and poultry farms. This is key in helping to reduce nitrogen pollution in the air, water and soil.

However, the new obligations do not apply to small and medium-sized pig and poultry farms, which represent 70% of pig and poultry farms in the EU. Organic pig farming is excluded from the scope of the directive.

A new simplified system covering both permitting and reporting is introduced. It allows for a simple registration of farms, instead of having them subject to individual permits. Also, the concerned farms are not required to draw up an environmental management system, as is the case for large industrial installations. Member States can report emissions on behalf of farmers, reducing the burden on the individual farm.

New Operating Rules, aiming to reduce emissions and improve resource efficiency, will be adopted by the Commission within two years of entry into force of the IED 2.0. These rules will be defined through a transparent and inclusive process, involving the sectors concerned, experts from the Member States and NGOs.

The concerned farmers will have a long transitional period to adapt, as the new Operating Rules will become applicable at the earliest between 2030-2032, depending on the size of the farm.

Cattle farming

By the end of 2026, the Commission will publish a report with solutions to more comprehensively address the emissions from the rearing of livestock, in particular cattle. The sector represents about 50% of total EU methane emissions and about 25% of total EU ammonia emissions.

The report will also assess the feasibility of action to ensure that imported livestock products do not pollute more than those produced in the EU.

The first implementation phase of the revised IED – from today to 2030 – consists of developing and implementing a new regulatory environment aimed at supporting the industrial transformation. This includes identifying BAT requirements for newly covered activities, such as the mining of metals, waste landfills and battery gigafactories.

Establishing the Innovation Centre for Industrial Transformation and Emissions (INCITE) will be key in the initial implementation stage. It will help to identify how close industrial sectors are to having the necessary transformation technologies by publishing a scoreboard rating.

A launch event for INCITE was held in Sevilla on June 21. Details can be found here. 

Several bodies also support the implementation of the Industrial Emissions Directive by EU Member States.

For questions about EU environmental policy, please contact Europe Direct.