Business supports waste management reform

20/ 07/ 2020

As a community of responsible businesses, the European Business Association supports waste management reform that includes the adoption of a respective framework draft law and the development of special legislation on waste (sectoral draft laws for certain products and their waste). This will create the conditions for the transition to a circular economy and sustainable development, as well as strengthening the protection of human health and the environment. The draft law No.2207-1d was developed to implement the National Waste Management Strategy of Ukraine and Ukraine’s international obligations under the European Union Association Agreement and EU Directive № 2008/98 / EC. According to the Explanatory Note, the draft law No.2207-1-d aims to introduce a hierarchy of waste management, a clear division of powers between public authorities, the introduction of a waste management information system, the introduction of extended producer responsibility (packaging waste, electrical and electronic equipment, batteries and accumulators, transport decommissioned products, lubricants (oils), tires, textiles), which the business community certainly supports. In practice, waste management reform includes: • Maximizing the reuse of materials and conservation of natural resources; • Reusing valuable secondary raw materials (processed products) in production processes; • Minimizing waste accumulation; • Introducing separate waste collection; • Forming environmentally responsible behavior among the population and enterprises. In preparation for the next reading, the draft law No.2207-1d has undergone significant changes, which threaten the principles of a market economy and the principle of extended producer responsibility according to the EBA experts. The Association welcomes the introduction of best European practices that have proven to be effective, such as Extended Liability Systems (ELS), where the manufacturer is responsible not only for the quality and safety of the product but also for the packaging waste in which the product is marketed. Therefore, maintaining this approach is extremely important in the further development of the draft law No.2207-1d. Experts of the Association are also very concerned about Article 10 of draft law No.2207-1d, which provides for a tax approach as an alternative to ELS and a way for producers to fulfill their waste obligations. This approach is contrary to the European practice, namely Directive 2008/98 / EC, according to which a polluter is obliged to compensate for its environmental damage. It also forms a socially responsible behavior for the companies to take responsibility for their waste until it is recycled or disposed of. With the application of the tax approach, the polluters liability for the waste ceases upon the payment of the relevant tax. Therefore, the Association insists on the exclusion of this rule in the further preparation of draft law 2207-1d. In addition, we see a risk in the obligation of economic entities to enter into agreements with the operator of the municipal waste management system, which is determined by the local government as the service provider for municipal waste management without any alternative or competition in the location area of the polluter (Articles 32 and 33 of Draft Law No.2207-1e). Therefore, we believe that these provisions of draft law No.2207-1-d require the additional analysis regarding their compliance with the legislation of Ukraine on the protection of economic competition. We also consider it necessary to establish some separate norms for scrap metal, taking into account the regulation provided by the special Law №619-XIV “On scrap metal” and the draft law No.2426 adopted on July 14 on de-shadowing the market of metallurgical raw materials, according to which scrap metal is not a waste, but valuable raw materials. We also propose to provide effective economic and financial incentives to encourage business and give priority to the use of recycled waste instead of primary raw materials, in particular by updating state industry standards and norms, developing green public procurement, stimulating investment and providing benefits to companies implementing the latest technologies in reusing secondary raw materials, etc. The European Business Association supports the Verkhovna Rada Committee on Environmental Policy and Nature Management and the Ministry of Environmental Protection and Natural Resources of Ukraine in reforming the waste management system and requests to involve the EBA experts in revising the draft law No.2207-1d to align it with the best European practices.

As a community of responsible businesses, the European Business Association supports waste management reform that includes the adoption of a respective framework draft law and the development of special legislation on waste (sectoral draft laws for certain products and their waste). This will create the conditions for the transition to a circular economy and sustainable development, as well as strengthening the protection of human health and the environment.

The draft law No.2207-1d was developed to implement the National Waste Management Strategy of Ukraine and Ukraine’s international obligations under the European Union Association Agreement and EU Directive № 2008/98 / EC. According to the Explanatory Note, the draft law No.2207-1-d aims to introduce a hierarchy of waste management, a clear division of powers between public authorities, the introduction of a waste management information system, the introduction of extended producer responsibility (packaging waste, electrical and electronic equipment, batteries and accumulators, transport decommissioned products, lubricants (oils), tires, textiles), which the business community certainly supports.

In practice, waste management reform includes:

• Maximizing the reuse of materials and conservation of natural resources;

• Reusing valuable secondary raw materials (processed products) in production processes;

• Minimizing waste accumulation;

• Introducing separate waste collection;

• Forming environmentally responsible behavior among the population and enterprises.

In preparation for the next reading, the draft law No.2207-1d has undergone significant changes, which threaten the principles of a market economy and the principle of extended producer responsibility according to the EBA experts. The Association welcomes the introduction of best European practices that have proven to be effective, such as Extended Liability Systems (ELS), where the manufacturer is responsible not only for the quality and safety of the product but also for the packaging waste in which the product is marketed. Therefore, maintaining this approach is extremely important in the further development of the draft law No.2207-1d.

Experts of the Association are also very concerned about Article 10 of draft law No.2207-1d, which provides for a tax approach as an alternative to ELS and a way for producers to fulfill their waste obligations. This approach is contrary to the European practice, namely Directive 2008/98 / EC, according to which a polluter is obliged to compensate for its environmental damage. It also forms a socially responsible behavior for the companies to take responsibility for their waste until it is recycled or disposed of. With the application of the tax approach, the polluter’s liability for the waste ceases upon the payment of the relevant tax. Therefore, the Association insists on the exclusion of this rule in the further preparation of draft law 2207-1d.

In addition, we see a risk in the obligation of economic entities to enter into agreements with the operator of the municipal waste management system, which is determined by the local government as the service provider for municipal waste management without any alternative or competition in the location area of the polluter (Articles 32 and 33 of Draft Law No.2207-1e). Therefore, we believe that these provisions of draft law No.2207-1-d require the additional analysis regarding their compliance with the legislation of Ukraine on the protection of economic competition.

We also consider it necessary to establish some separate norms for scrap metal, taking into account the regulation provided by the special Law №619-XIV “On scrap metal” and the draft law No.2426 adopted on July 14 on de-shadowing the market of metallurgical raw materials, according to which scrap metal is not a waste, but valuable raw materials.

We also propose to provide effective economic and financial incentives to encourage business and give priority to the use of recycled waste instead of primary raw materials, in particular by updating state industry standards and norms, developing “green” public procurement, stimulating investment and providing benefits to companies implementing the latest technologies in reusing secondary raw materials, etc.

The European Business Association supports the Verkhovna Rada Committee on Environmental Policy and Nature Management and the Ministry of Environmental Protection and Natural Resources of Ukraine in reforming the waste management system and requests to involve the EBA experts in revising the draft law No.2207-1d to align it with the best European practices.