Environmental surety bonds

"My business operations may be harmful to the environment. My business partner requires me to provide additional security."

The environmental surety bonds are an answer to the needs of companies whose activities may cause harmful effects on the environment. In order to meet statutory legal requirements, they must provide adequate financial security.

For whom?

The environmental surety bonds are intended for entrepreneurs conducting business operations potentially harmful to the environment, e.g.:

  • companies extracting secondary raw materials (recycling)
  • companies involved in cross-border waste shipments
  • municipal waste disposal plants managing landfill sites
  • poultry farms and slaughterhouses
  • power plant
  • chemical plants

The environmental surety bonds can be applied to:

  • a legal entity
  • an organisational unit without legal personality engaged in business activity
  • a natural person engaged in business activity

What are the conditions?

Environmental surety bonds are granted at the request of your company, which is required to provide security for the claims of the environmental protection authority for the occurrence of negative environmental effects and environmental damage resulting from the failure of your company to meet the obligations set out in the business permit.

The duration of the bond is 3 years with the possibility of renewal for further periods (however, this requires a reassessment of your company's risk). The parameters of a bond are set individually.

What types of environmental surety bonds do we provide?

  • Bonds constituting the security required under Article 48a of the Waste Act of 14 December 2012.
  • Bonds constituting the security required under Article 125 of the Waste Act of 14 December 2012.
  • Bonds constituting the security required under Article 187 of the Environmental Protection Law Act of 27 April 2001.
  • Bonds constituting the security required under Article 20 of the Act of 29 June 2007 on International Shipments of Waste and Article 6 of Regulation No 1013/2006 of 14 June 2006. of the European Parliament and of the Council on shipments of waste.

How to obtain environmental surety bonds?

Step 1: Submission of the application for a general agreement or an application for a bond
Under the general agreement you apply for an environmental surety bond. You attach the required documents and statements indicated in the application.

Step 2: Positive risk assessment
KUKE verifies the risk. In the event of a negative risk assessment, KUKE may refuse to issue the bond.

Step 3: Signing the agreement to issue a bond, establishing the security required by KUKE and paying the premium
The primary security for all KUKE claims against your company is a blank bill of exchange. In certain situations KUKE may request additional security. You pay a non-refundable premium before receiving the bond. This is a condition for issuing the bond. The fee due to KUKE is payable once for the entire bond period.

Step 4: Negotiating the terms of the bond and issuing the bond
The wording of the bond is negotiable. The final terms of the bond are accepted by your counterparty. KUKE delivers the bond to you and your counterparty (personal collection or via courier service).