eap green: implementation of extended producer responsibility schemes in ukraine

Implementation of Extended Producer Responsibility Schemes in Ukraine

Alexander SemenetsMinistry of Ecology

and Natural Resources of Ukraine

Resolutions of the Cabinet of Ministers of Ukraine have been passed:No. 1136 of 27 July 2011 regarding some matters of collection, stockpiling, and recovery of used tyresNo. 843 of 3 September 2012 regarding some matters of stockpiling and recovery of end-of-life motor vehiclesNo.1221 of 17 December 2012 regarding some matters of collection, disposal, disinfection and recovery of waste oils

Implementation of Extended Producer Responsibility Schemes

Draft Government resolutions governing the following matters have been prepared and are being agreed:

Collection, stockpiling and disinfection/recovery of waste containing mercury or its compoundsMedical wasteWaste electrical and electronic equipment


The following laws of Ukraine were passed on 4 July 2013:

On Recovery of Motor Vehicles;

On Amendments to the Tax Code of Ukraine regarding environmental tax for recovery of end-of-life motor vehicles and improvement of some tax provisions.


Resolution of the Cabinet of Ministers of Ukraine No. 915 of 26 July 2001 on the implementation of the system of collection, stockpiling, and recovery of waste as recoverable resources

Minimum packaging recovery rates were set as percentage of total quantities: 25% in 2009; 30% in 2010; 35% in 2011 and beyond.

Economic entities can collect packaging individually or enter into a service agreement with state enterprise Ukrecoresursy.


Packaging material Tariffs, EUR/kgCardboard, paper 0.031Plastic 0.739Glass 0.013Metal: tin 0.035 aluminum, foil 0.095 other 0.017Combined 0.108

Natural (wood, textiles) 0.017

Other 0.024

Tariff at half the rate is set for foodstuffs for children and medicines.


Consumers pay for the same service three times:As imported products undergo customs clearance – to Ukrecoresursy or other entitiesFor actual recovery of waste packaging at production facilities or retailer – to specialized entitiesFor disposal of municipal solid waste – to local housing and utilities offices and services.

In other words, consumers pay for the costs of customs clearance and recovery as part of the price of packaged products, and for MSW transportation services as part of housing and utility tariffs.

Procedure in Force in Ukraine

Charges Paid by the Population in Ukraine

From residential buildings in cities/towns

From business entities engaged in: • public catering; • commerce, markets; • exhibitions, sports;• domestic services; • other.

From spending institutions:

• administrative• educational • health • otherThrough payments as

part of tariffs set by local governments As part of prices for products and

servicesAs part of taxes/charges

payable to the budget

Municipal solid waste transportation services

Population in Ukraine

Waste packaging recovery services

As part of product price As part of product price

Ukrecoresursy or other entities that do not provide services

Specialized firms that really provide waste collection and recovery

services

Government Resolution No. 915 vested state enterprise Ukrecoresursy with the functions of setting up and ensuring the operation of collection and stockpiling of waste as recoverable resources.

The enterprise was founded to engage in the economic activities in this sphere.

It enters into contracts on separate collection, recycling and recovery of waste as recoverable resources with specialised enterprises.

Extended Producer Responsibility: Implementation Challenges

As per the enterprise’s Charter, its activities also include participation in the implementation of state policy in the area of collection and stockpiling of waste as recoverable resources.

Thus, it is obvious that one state enterprise combines the responsibilities of state governance and control, on the one hand, and economic responsibilities, on the other.


Failure to ensure fulfilment of waste packaging collection and recovery tasks:Ukrecoresursy holds a monopoly in organising the collection and recovery of waste packagingAbuse by economic entities: fictitious contracts, shadow turnover of funds, lack of actual packaging collection services

Setting up an efficient system for separate collection and treatment of waste packaging at the expense of economic entities and raising additional funds in this area should be governed by law.


Only producers can be owners. Paying direct or indirect dividends is prohibited, all the profits

should be reinvested. Organisation is accredited/licensed by the state. Producers have a right to delegate their waste packaging-related

responsibilities to the organisation. Local governments are obliged to cooperate with the organisation

and develop jointly the most efficient packaging collection scheme for a specific local government.

Producer organisation owns the collected packaging.

Key Conditions for Effective Functioning of an Operator in the Scheme

Allows individual enterprises to control own costs related to the adverse environmental impact of waste packaging.

Separate collection of waste packaging is funded by obligated entities.

Provides for the incorporation of justified costs of separate collection, treatment, and transportation of waste packaging for subsequent recovery into the price of packaging and of packaged products.

Creates conditions for continuous increase in the used amount of waste packaging as recoverable resources.

Key Provisions of the Draft Law on Packaging and Packaging Waste

14

Waste Packaging Treatment Scheme

Obligations to recover and meet waste packaging recovery rates

System operator

organisation authorised to comply with packaging

recovery rates

System operator

organisation authorised to comply with packaging

recovery rates

Distributors Distributors

Wholesalers and retailersWholesalers and retailers

Obligations to organise separate collection and treatment

Agreement:

On compensation

of costs related to separate collectionof waste

packaging

Specialized firms

engaged in collection of

waste as recoverableresources

Specialized firms

engaged in collection of

waste as recoverableresources

Local governments

Local governments

Producers of packaging, packaged products

Producers of packaging, packaged products

Agreement:

delegation of recovery rate obligations to

schemeoperator

ImportersImporters

Ministry of Ecology &NaturalResources - registration of obligated entities - operator accreditation - approval of five-year operator activity program

Ministry of Ecology &NaturalResources - registration of obligated entities - operator accreditation - approval of five-year operator activity program

Waste recovery Recovery raterate report enforcement

Waste Law No.187/98 Draft Law on Packaging and Packaging Waste

O

blig

ated

ent

itie

s

Ministry of Regional

Development

approval of five-year operator activity program

Ministry of Regional

Development

approval of five-year operator activity program

Waste tyres:Resolution of 2011 has been practically non-operational due to absence of approved tariffs for tyre collection services and tyre collection procedure

Waste oils:Importers and producers pay EUR 0.064/litre of oilReporting on obligations has not been approvedIt is impossible to establish real volumes

Challenges of Implementation of Laws on Other Waste Streams

Motor vehicles:Resolution No. 843 of 3 September 2012 is being abrogated because the Law of Ukraine on Recovery of Motor Vehicles has been passed. Law of Ukraine on Recovery of Motor Vehicles:

287 collection points and 88 stations for the dismantling of motor vehicles have been set up

Monthly revenue from the environmental tax amount to about EUR 6.4 mln

Allocation of revenues from the tax has not been determined

Challenges of Implementation of Laws on Other Waste Streams

Thank you!

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eap green: implementation of extended producer responsibility schemes in ukraine

Environment