Ukraine faces collapse in hazardous waste management in 2024

11/ 12/ 2023

On December 5, the Cabinet of Ministers approved Resolution No. 1278 on the Licensing Conditions for Hazardous Waste Management. This is one of the mandatory documents that must be adopted to fulfill the requirements of the framework Law No. 2320-IX on Waste Management. The European Business Association, and in particular the Committee on Industrial Ecology and Sustainable Development, began signaling the Ministry of Environmental Protection and Natural Resources about the need to develop and update license conditions in advance and joined the discussion of the draft resolution in the spring. Unfortunately, the comments of the business community were not taken into account, and the adopted document contains a number of ambiguities that complicate the implementation of the long-awaited waste management reform. In particular, this concerns the uncertainty of the status of permits for hazardous waste management companies and the potential revocation of such licenses. Firstly, according to the main regulatory act in the field of licensing of economic activities - Law No. 222-VIII - a license for hazardous waste management is issued for an unlimited period. At the same time, according to the transitional provisions of Law No. 2320-IX, enterprises in the field of hazardous waste management are required to obtain a license, but no provision explicitly states that licenses issued before the entry into force of the Law cease to be valid. Secondly, returning to the provisions of Law No. 222-VIII, the relevant license conditions remain in force in the event of a change in the name of the economic activity subject to licensing, if this does not lead to a change in the subject matter of such activity. In the field of waste, the activity of hazardous waste handling was renamed to hazardous waste management. Thirdly, Resolution No. 1278 requires a conclusion on environmental impact assessment (EIA) to obtain a license. At the same time, companies that started their activities before the adoption of the EIA Law in 2017 cannot obtain such a document, as their activities have long been launched, but instead have the Conclusions of the State Environmental Expertise. However, it is impossible to use these conclusions, which have the same legal force, to obtain a license for hazardous waste management, since the current Law No. 2320-IX has changed the operations of hazardous waste management and the nomenclature of hazardous waste subject to licensing. Fourthly, in order to obtain a hazardous waste license, it is necessary to submit a Waste Treatment Operations Permit. The Ministry of Environmental Protection issues such a permit within 30 calendar days from the date of receipt of the package of documents. Fifth, even if we assume that companies will have to re-issue their licenses, it will take time. After all, Resolution No. 1278 with the updated license conditions was adopted only 5 months after the entry into force of Law No. 2320-IX, while companies in the field of hazardous waste management are required to obtain a license within six months from the date of entry into force of the Law. In fact, companies have one month left to obtain a new license, which is impossible for a number of reasons. For example, the Ministry of Environmental Protection has 20 business days for the mandatory inspection of the license applicants material and technical base to ensure that it meets the requirements of the law. In addition, due to the recently adopted National Waste List, some types of waste that were not previously classified as hazardous will receive this status, which will require additional business entities to obtain a license to manage such waste. And the new Waste Classification Procedure requires laboratory testing of waste hazard, which can take more than 6 months. Olga Boiko. Industrial Ecology and Sustainable Development Committee Coordinator. According to the EcoSystem portal, more than 370 companies in Ukraine currently have licenses for hazardous waste management. Their activities are directly related to both the companies that generate this waste and the household waste generated by the population on a daily basis - batteries, waste lamps, mercury thermometers, medical waste, etc. Given the lack of legal certainty in the regulations, as well as the unrealistic timeframe for existing licensees to obtain new licenses, the likelihood of the entire industry shutting down is quite high. This is likely to damage Ukraine′s image and its further European integration prospects. The only solution in this situation can be to confirm the conditions for maintaining the validity of licenses and the absence of the need to obtain new licenses for existing enterprises. The European Business Association calls on the Government to promptly provide appropriate official clarifications on the current situation and reaffirms its readiness to join the search for ways to resolve it.

The European Business Association, and in particular the Committee on Industrial Ecology and Sustainable Development, began signaling the Ministry of Environmental Protection and Natural Resources about the need to develop and update license conditions in advance and joined the discussion of the draft resolution in the spring.

Unfortunately, the comments of the business community were not taken into account, and the adopted document contains a number of ambiguities that complicate the implementation of the long-awaited waste management reform. In particular, this concerns the uncertainty of the status of permits for hazardous waste management companies and the potential revocation of such licenses.

Firstly, according to the main regulatory act in the field of licensing of economic activities – Law No. 222-VIII – a license for hazardous waste management is issued for an unlimited period. At the same time, according to the transitional provisions of Law No. 2320-IX, enterprises in the field of hazardous waste management are required to obtain a license, but no provision explicitly states that licenses issued before the entry into force of the Law cease to be valid.

Secondly, returning to the provisions of Law No. 222-VIII, the relevant license conditions remain in force in the event of a change in the name of the economic activity subject to licensing, if this does not lead to a change in the subject matter of such activity. In the field of waste, the activity of “hazardous waste handling” was renamed to “hazardous waste management”.

Thirdly, Resolution No. 1278 requires a conclusion on environmental impact assessment (EIA) to obtain a license. At the same time, companies that started their activities before the adoption of the EIA Law in 2017 cannot obtain such a document, as their activities have long been launched, but instead have the Conclusions of the State Environmental Expertise. However, it is impossible to use these conclusions, which have the same legal force, to obtain a license for hazardous waste management, since the current Law No. 2320-IX has changed the operations of hazardous waste management and the nomenclature of hazardous waste subject to licensing.

Fourthly, in order to obtain a hazardous waste license, it is necessary to submit a Waste Treatment Operations Permit. The Ministry of Environmental Protection issues such a permit within 30 calendar days from the date of receipt of the package of documents.

Fifth, even if we assume that companies will have to re-issue their licenses, it will take time. After all, Resolution No. 1278 with the updated license conditions was adopted only 5 months after the entry into force of Law No. 2320-IX, while companies in the field of hazardous waste management are required to obtain a license within six months from the date of entry into force of the Law. In fact, companies have one month left to obtain a new license, which is impossible for a number of reasons. For example, the Ministry of Environmental Protection has 20 business days for the mandatory inspection of the license applicant’s material and technical base to ensure that it meets the requirements of the law. In addition, due to the recently adopted National Waste List, some types of waste that were not previously classified as hazardous will receive this status, which will require additional business entities to obtain a license to manage such waste. And the new Waste Classification Procedure requires laboratory testing of waste hazard, which can take more than 6 months.

Olga Boiko Industrial Ecology and Sustainable Development Committee Coordinator

According to the EcoSystem portal, more than 370 companies in Ukraine currently have licenses for hazardous waste management. Their activities are directly related to both the companies that generate this waste and the household waste generated by the population on a daily basis - batteries, waste lamps, mercury thermometers, medical waste, etc. Given the lack of legal certainty in the regulations, as well as the unrealistic timeframe for existing licensees to obtain new licenses, the likelihood of the entire industry shutting down is quite high. This is likely to damage Ukraine′s image and its further European integration prospects. The only solution in this situation can be to confirm the conditions for maintaining the validity of licenses and the absence of the need to obtain new licenses for existing enterprises.

The European Business Association calls on the Government to promptly provide appropriate official clarifications on the current situation and reaffirms its readiness to join the search for ways to resolve it.