ECONOMIC INSTRUMENTS FOR RECYCLING

JeanPierre Hannequart ( IBGE / ACR+)

Association of Cities and Regions for Recycling

96 members 22 countries 1100 local and regional authorities

STATEMENT 1
TO DEVELOP THE EUROPEAN RECYCLING SOCIETY WE NEED EU HARMONIZATION OF SOME ECONOMIC INSTRUMENTS
(eco-taxes on raw materials and non-recyclables products; taxes on waste incineration and landfill )

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STATEMENT 2
EU MUST STOP THE GREEN CERTIFICATES
based on CO2 emissions reduction FOR WASTE INCINERATION and

CONSIDER GREEN CERTIFICATES FOR RECYCLED PRODUCTS

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PLAN
1. WHICH KIND OF ECONOMIC INSTRUMENTS ARE AVAILABLE FOR RECYCLING? 2. WHICH ECONOMIC INCENTIVES FOR RECYCLING ARE USED BY MEMBER STATES? 3. WHAT TO DO NOW AT EU LEVEL?

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1. WHICH KIND OF ECONOMIC INSTRUMENTS ARE AVAILABLE FOR RECYCLING?

Eco-taxes EPR fees Products

Green certificates Deposit refunds

Raw material taxes

Raw materials

Waste

Life cycle
Recycled products Tax rebates Secondary raw materials
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Waste collection taxes (PAYT) Selective collection

Incineration taxes Disposal taxes

Tax rebates

2. WHICH ECONOMIC INCENTIVES FOR RECYCLING ARE USED BY MEMBER STATES?

RAW MATERIAL TAXES cfr the UK Aggregate Levy ECOTAXES cfr the Danish and Dutch taxes on packaging based on environmental impacts TAX REBATES cfr the French VAT reduction on recycling activities
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2. WHICH ECONOMIC INCENTIVES FOR RECYCLING ARE USED BY MEMBER STATES?

MANDATORY DEPOSITS cfr - Scandinavian systems - the German deposit (2005-2006) on all one way containers for beer, water and soft drinks ( except ecologically advantageous packaging)

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2. WHICH ECONOMIC INCENTIVES FOR RECYCLING ARE USED BY MEMBER STATES?

EPR FEES EU Directives Cfr

Packaging Batteries & accumulators End-of-Life vehicles End-of-Life Electric & electronic equipment

Some Member States Packaging Batteries & accumulators End-of-life vehicles End-of-life Electric & electronic equipment Paper Pharmaceuticals Textiles Tyres Waste oils Paints Building materials Pesticides Carpets

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2. WHICH ECONOMIC INCENTIVES FOR RECYCLING ARE USED BY MEMBER STATES?

PAYT
Billing Parameters Volume Frequency Weight Container dependent systems Bags : Stickers or pay-bags Individual bins : size or weight Splitting of tariffs Stable income Prevention adverse effects
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2. WHICH ECONOMIC INCENTIVES FOR RECYCLING ARE USED BY MEMBER STATES?

PAYT

Cfr BJUV -SWEDEN :WEIGHT-BASE FEE (kg/household/year) 1999 Waste Collected Residual Waste Recycled Waste 302kg 246 56

cfr. Dresden- Germany :BEFORE AND AFTER PAYT 2007 2008 Total 318kg Residual 228 Recyclables 90 281 148 133

2000 245 136 109

Source : EUNOMIA /REICHENBACH

Cfr . FLANDERS +/-0.60 EUR per grey waste bags (1993-1996) Separate waste Residual waste +82 to +155 kg/inh/y -22 to -140 kg/inh/y

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2. WHICH ECONOMIC INCENTIVES FOR RECYCLINGARE USED BY MEMBER STATES ?

Landfill Taxes (or Bans) +Incineration

Country
Austria Finland Germany Ireland Italy 30 26 In consideration

Landfill Tax (/t)

(87)/26 30

Incineration Tax (/t)

7

Landfill Ban
2004 2005 2001 2009 2003/ 2007 1998/ 2000

Banned Materials / Wastes

Biodegradability and other criteria Biodegradable and compostable waste Biodegradability and other criteria Waste that is not pre-treated Biodegradability and other criteria Unsorted wastes, sorted and non-sorted wastes for recovery, combustible residual fraction from sorting, combustible wastes Various

BelgiumFlanders

60

BelgiumWallonia
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2004

Source:EUNOMIA

2. WHICH ECONOMIC INCENTIVES FOR RECYCLINGARE USED BY MEMBER TATES ?

Landfill Taxes (or Bans) +Incineration

Country
Denmark France The Netherlands

Landfill Tax
50 9.15 85

Incineration Tax
44

Landfill Ban
1997 2002 1996 Combustible waste Ultimate Waste Flows Various, incl household waste Biodegradable waste Combustible waste Organic waste Unsorted waste

Norway Sweden Czech Republic Estonia Slovakia Slovenia Spain Catalonia United Kingdom
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40 43 16 8 7.9 10 56

Pollutant based Varies with energy generation

From mid-2009 2002 2006 1997: Paper, 2004: BMW 2008 2001

None Under consideration by devolved administrations

Source:EUNOMIA

3. WHAT TO DO NOW AT EU LEVEL?

1. TO CLARIFY THE RELATIONSHIP BETWEEN ECONOMIC INSTRUMENTS AND RECYCLING PERFORMANCES 2. TO HARMONIZE THE USE OF ECONOMIC INSTRUMENTS 3. TO STOP THE ECONOMIC INSTRUMENTS ACTING AGAINST THE WASTE HIERARCHY 4. TO PROMOTE THE USE OF SOME ECONOMIC INSTRUMENTS (ESPECIALLY IN LESS PERFORMING COUNTRIES)
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3. WHAT TO DO NOW AT EU LEVEL?

> 1. TO CLARIFY THE RELATIONSHIP BETWEEN ECONOMIC INSTRUMENTS AND RECYCLING PERFORMANCES
Cfr Flanders-2008: HIGH RECYCLING RATE OF HOUSEHOLDS WASTE AND A COMBINATION OF ECONOMICS INSTRUMENTS - EUR 30 paid through EPR - EUR 195 paid to Public Authorities ( 1/3 related to the amount 1/3 fixed tax 1/3 related to household income)

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3. WHAT TO DO NOW AT EU LEVEL?

> 1. TO CLARIFY THE RELATIONSHIP BETWEEN ECONOMIC INSTRUMENTS AND RECYCLING PERFORMANCES Cfr EPR IN France
PRODUCTS RECYCLING PERFORMANCES Pneus 28% Papiers 54% Textiles 11% Embal. phyto 10% Films agricoles 21% Embal. Fertilisants 35% EEE professionnels 7% EEE mnagers 20% Automobiles 48% Lubrifiants 43% Emballages mnagers 63% Fluides frigorignes 11%

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3. WHAT TO DO NOW AT EU LEVEL?

> 1. TO CLARIFY THE RELATIONSHIP BETWEEN ECONOMIC INSTRUMENTS AND RECYCLING PERFORMANCES
500 450 400 350 300 250 200 150 100 50 0 No variable charching Volume Volume and frequency Weight Expensive bag glass paper organic waste residual waste

Cfr Evaluation of PAYT schemes in NEDERLAND (by SENTERNOVEM)

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3. WHAT TO DO NOW AT EU LEVEL?

> 2. TO HARMONIZE THE USE OF ECONOMIC INSTRUMENTS

- The development of economic instruments at member states level creates distortions of competition - The EU level is appropriate for some economic instruments for recycling (raw materials taxes, eco-taxes, ) - There is a need of more harmonization on deposits, EPR schemes and disposal taxes - There is a need of EU support for the exchange of information and experience (especially between local authorities) on PAYT
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3. WHAT TO DO NOW AT EU LEVEL?

> 3. TO STOP THE ECONOMIC INSTRUMENTS ACTING AGAINST THE WASTE HIERARCHY Cfr GREEN CERTIFICATES For waste incineration
IN BELGIUM WITH GREEN CERTIFICATES : more interesting to recover energy from wood waste than to recycle wood (gate fees for recycling > 30 to 70/ton)

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3. WHAT TO DO NOW AT EU LEVEL?

> 3. TO STOP THE ECONOMIC INSTRUMENTS ACTING AGAINST THE WASTE HIERARCHY

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3. WHAT TO DO NOW AT EU LEVEL?

> 4. TO PROMOTE THE USE OF SOME ECONOMIC INSTRUMENTS

(ESPECIALLY IN LESS PERFORMING COUNTRIES)
ATTITUDES OF EUROPEAN CITIZENS : - How do you prefer to pay for waste management? - to pay taxes : 14% Cfr - to pay proportionally (PAYT) : 75% - dont know : 11% EURO BAROMETER - Do you prefer the integration of the waste costs into the price of the products? March 2011: - to pay taxes : 25% - to integrate into the price : 59% - dont know : 16%

We need a follow-up to the Thematic Strategy on Recycling including a global approach of economic instruments for recycling !
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Gulledelle 100 1200 Brussels 32.2.775.76.02

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STATEMENT 1
TO DEVELOP THE EUROPEAN RECYCLING SOCIETY WE NEED EU HARMONIZATION OF SOME ECONOMIC INSTRUMENTS
(eco-taxes on raw materials and non-recyclables products; taxes on waste incineration and landfill )

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STATEMENT 2
EU MUST STOP THE GREEN CERTIFICATES
based on CO2 emissions reduction FOR WASTE INCINERATION and

CONSIDER GREEN CERTIFICATES FOR RECYCLED PRODUCTS

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