The Environmental Guarantee is designed for companies whose operations may give rise to adverse environmental effects. In order to comply with the statutory requirements and obligations, they must present appropriate financial security to competent public administration bodies.
Who is eligible
The Environmental Guarantee is tailored for entrepreneurs conducting business operations that may be 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 Guarantee can be applied to:
- a legal entity
- an organizational unit without legal personality engaged in business activity
- a natural person engaged in business activity
Protect yourself in the event of non-payment by your customers.
- Grow your business without worrying about getting paid.
- Export safely even to the most remote markets across the world.
Types of Environmental Guarantees
- Guarantee constituting the security required under Article 48a of the Waste Act of 14 December 2012.
- Guarantee constituting the security required under Article 125 of the Waste Act of 14 December 2012.
- Guarantee constituting the security required under Article 187 of the Environmental Protection Law Act of 27 April 2001.
- Guarantee 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.
- The Environmental Guarantee is granted at the request of your company, when you are required to provide security for the claims of the environmental protection authority. The guarantee secures any future claims against your company in case your business activities cause harm to the natural environment.
- The duration of the guarantee is three years with the possibility of renewal for further periods (however, this requires a reassessment of your business).
- The guarantee is unconditional, irrevocable and payable on first demand.
- The parameters of the guarantee are set individually.
How to obtain an Environmental Guarantee
- Application process. You apply for a general guarantee agreement. Each Environmental Guarantee is provided within the framework of a general agreement. KUKE evaluates your application and all the other necessary documents you have provided.
- Positive risk assessment. Following a positive risk assessment of your business, KUKE comes forward with a proposal of terms for the general guarantee agreement which, among others, defines a renewable guarantee limit under which you will be able to apply for subsequent Environmental Guarantees.
- Signing of the general agreement and establishing security required by KUKE. The primary security for all KUKE’s claims against your company is a blank bill of exchange. In certain situations KUKE may request additional security.
- Negotiating terms of the guarantee and issuing of the guarantee. The wording of the guarantee is subject to negotiations. The final terms of the guarantee are accepted by the beneficiary of the guarantee (your business partner). You pay a non-refundable premium before receiving the guarantee. KUKE’s fee is payable only once for the entire guarantee period. Finally, KUKE delivers the guarantee to you and to the beneficiary (personal collection or via courier service).