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OECD–UNEP Conference on Resource efficiency 23–25 April 2008, Paris Conference on Resource Efficiency MODULE 2 From waste to resources

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OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

Conference on Resource Efficiency

MODULE 2From waste to

resources

OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

Experience With Charges As Economic InstrumentAs Economic Instrument In Waste Management

… CZECH REPUBLIC`S STORY

Rut BízkováDeputy Minister

Ministry of the Environment of the Czech Republic

OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

Production of Waste vs GDP, 1995 - 2006

60 000

70 000

80 000

(kt)

2 000

2 500

3 000

Rut Bízková, Ministry of the Environment of the Czech Republic

0

10 000

20 000

30 000

40 000

50 000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Prod

uctio

n of

was

te (

0

500

1 000

1 500

GD

P (C

ZK b

ln)

Production of wasteGDP, constant prices 2000

Source: Statistical Environmental Yearbook of the Czech Republic, Czech Statistical Office

OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

landfilling21,2%

energy use2,8%

combustion0,3%

Waste Management in the Czech Republic, 2006

Rut Bízková, Ministry of the Environment of the Czech Republic

material reuse75,7%

Source: Czech Statistical Office

OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

Rate of Recycling and Recovery of Packaging Waste in the Czech Republic, 2006

70

80

90

100

Legal rate of recycling

Recycling and recovery

Rut Bízková, Ministry of the Environment of the Czech Republic

Source: Czech Statistical Office

0

10

20

30

40

50

60

70

paper glass plastics metals others total

%

OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

1992 – Act on Waste Had Introduced Waste Management Charges in the Czech Republic

Tariff rate 1: Revenue from charges is income for municipality in whose cadaster the landfill is located (compensation)

Rut Bízková, Ministry of the Environment of the Czech Republic

Charge - CZK 10 – 40 per tonne (by category)- CZK 250 per tonne of hazardous waste

total revenue: about CZK 500 mio annually – for municipalities in whose cadaster the landfill is located

Tariff rate 2:

Depositing waste in a landfill insecurity (by requirements of Act, possibility ofdeferred payment and in consequence the remission of 60 % charge)

Amount charge - CZK 10 – 640 per tonne (by category)- CZK 3 000 – 5 000 per tonne of hazardous waste

Total revenue: about CZK 600 mio in 1993 and 1994

OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

Modification of Charges Since 1998Charges for depositing of waste (in a landfill):Basic charge

compensation of damage linked to landfill operationtariff rate (gradual growth from 1998 to 2008)

Rut Bízková, Ministry of the Environment of the Czech Republic

(g g )- municipal waste and other waste: 20 – 400 CZK per tonne- hazardous waste: 200 – 1 400 CZK per tonnerevenue is income for municipality in whose cadaster the landfill is located – about CZK 1 600 mio annually

Risk chargethe risk component of the charge is paid only for hazardous wastetariff rate CZK 300 – 3 300 per tonne (gradual growth from1998 to 2008)revenue about CZK 140 mio annuallyrevenue is income of the State Environmental Fund

OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

Modification of Charges Since 1998

The charge consists of two components, each part – maximum CZK 250 per tonne

Charge is income of municipality; this charge is being used in about 80 % of

Charge for system of collection, transportation, separation, recovery and disposal of municipal waste:

Rut Bízková, Ministry of the Environment of the Czech Republic

Charge is income of municipality; this charge is being used in about 80 % of municipalities

Charge for municipal waste treatment:maximum amount is based on eligible costs paid by municipality for operating one system of municipal waste management tariff rate CZK 300 – 3 300 per tonne (gradual growth from 1998 to 2008)charge is income of municipality

OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

Revenue of Charges for Deposion of Waste,

1999 – 2006 (1 000 CZK)Basic charge (receiver: municipality) Risk charge

(SEF)

Municipal Other Hazardous Total Hazardous

Rut Bízková, Ministry of the Environment of the Czech Republic

1999 1 022 895 990 821 28 364 2 042 080 40 403

2000 327 497 986 577 18 961 1 333 035 42 819

2001 108 367 312 281 81 241 501 889 175 270

2002 387 567 1 275 425 56 456 1 719 448 100 527

2003 263 136 287 378 37 783 588 297 70 924

2004 383 898 219 749 28 337 631 984 49 554

2005 647 391 352 482 49 655 1 049 530 95 552

2006 713 409 343 596 42 214 1 099 218 80 937

Source: Statistical Environmental Yearbook of the Czech Republic, Czech Statistical Office

OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

Production of Waste and Revenue from Charges, 1999 - 2006

30 000

35 000

40 000

2 000 000

2 500 000

Rut Bízková, Ministry of the Environment of the Czech Republic

Source: CeHO, Statistical Environmental Yearbook of the Czech Republic

0

5 000

10 000

15 000

20 000

25 000

1999 2000 2001 2002 2003 2004 2005 2006

prod

uctio

n of w

aste (kt)

0

500 000

1 000 000

1 500 000

revenu

e from

cha

rges (10

00 CZK

)

municipal wasteother wastehazardous wasterevenue charge

OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

Proposal of Charges Rates in the Draft of Updated Act on Waste

Landfill to the Environment Landfill of

Technological M t i l

Other Waste Disposal Incineration

of Municipal W t

Rut Bízková, Ministry of the Environment of the Czech Republic

Source: MoE CR

Material WasteMW+OW HW MW+OW HW

2008 400 4 700 0 0 0 0

2009-2010 700 7 000 700 300 3 000 200

2011-2012 1 000 10 000 1 000 400 4 000 250

from 2013 1500 15 000 1500 600 6000 300

OECD–UNEP Conference on Resource efficiency

23–25 April 2008, Paris

Conclusions

Based on the experience of more than 15 years, it can be concluded that waste disposal charges have proven certain stimulative function and generated non-negligible revenue which has been used to support environmental projects

Rut Bízková, Ministry of the Environment of the Czech Republic

has been used to support environmental projects

In the years to come, the Czech Republic is willing to strengthen the stimulative role of these charges to support waste management hierarchy

Thank you for your attention

Contact:Division of Environmental Economics and PolicyMinistry of Environment of the Czech Republic

Vršovická 65, 100 10 Prague 10www.env.cz

Thank you for your attention

Conference on Resource Efficiency

Contact:Division of Environmental Economics and PolicyMinistry of Environment of the Czech Republic

Vršovická 65, 100 10 Prague 10www.env.cz

MODULE 2From waste to

resources