Aims to establish a framework whereby environmental damage will be prevented and restoration carried out. Environmental damage is widely defined and includes water pollution, land contamination that poses a threat to human health and biodiversity damage in areas protected by European and national legislation. The person causing the damage is liable for the restoration. Insurance is not compulsory, although the proposal requires member states to encourage operators to use insurance or other forms of financial security. The proposed directive covers activities such as releasing heavy metals into water or the air, installations producing dangerous chemicals, landfill sites and incineration plants.