Environment
The Environmental Liability Directive (ELD) came into force in April 2004 and had to be translated into national law by the Member States by April 2007. As the first European legislation whose main objectives include the application of the "polluter pays" principle, this Directive establishes a common framework for liability with a view to preventing and remedying damage to animals, plants, natural habitats and water resources, and damage affecting the land. The liability scheme applies to certain specified occupational activities and to other activities in cases where the operator is at fault or negligent. Member States must encourage the development of financial security instruments to enable operators to take out insurance coverage for their responsibilities. The insurance sector can offer products for part of the scheme but some risks, such as biodiversity damage, are difficult to evaluate. More work needs to be done to make those risks insurable.