Transcript Financing landfilling and waste management Landfill Tax in

Financing landfilling and waste
management
Landfill Tax in Estonia
14.05.2008, Budva
Peeter Eek
Estonian Ministry of the Environment
[email protected]
Background
Environmental Charges, incl. 'Tax for landfilling' was
introduced on early 1990-s
On that time, were the Environmental Charges considered as
main source of Income to the 'Environmental Foundation'
(since 2000 Center of Environmental Investments), which
have been main financial institution for Environmental
Projects, until the EU funding was opened after 2001 (ISPA,
CF, ERDF etc.) - the aim to Drive Waste management, was
not primary on this time
The landfill tax was applied to all type of waste (incl. industrial
, thus with differentiated tax levels. As absolute majority of
the landfilled waste was related to the oils-shale industry,
then was tax level for Household was 'very low'
Economic measures in Waste management
Polluter pays' – as long as possible.....
If imply 100 % - no support needed!
Landfill tax
'Producer responsibility' principle on ELV, WEEE,
Batteris, tyres, packaging
Packaging tax, if defined recovery rates not met
Mandatory Deposit on bewerage and low alkohol drinks
Landfill tax 2002-2009
Financial Challenges of Waste management
1) Within ca 10 years (2003-2013) should all
old dumping sites be closed and covered
(i.e. to pay a loan of last 30-40 y., nothing
was accumulated...)
2) An the same time NEW INFRASTUCTURE
should be established for the next 25-30 y.
=> Within ca 10 y We should INVEST the Sums
on 'time-span' of nearly 60-70 y. One the
same time could the 'polluter pays' principle
be used only partly
Landfill tax as part on the Environmental
investments supports
Part of the Landfill tax is paid to the
Municipalities
Since 2004 is part of the landfill tax for landfilling of the
household waste paid to the municipality, where
waste was collected. Local waste tax, as alternative,
was politically not supported (as 'new tax')
On 2007 this was ca 5,9 €/t
Pro-s:
- existing tax, easy to administrate
- it gives ca 2 M€ income for municipalities to cover cost
of municipal waste management system (container
parks etc.)
Contra-s:
- Rigid, the municipalities can not 'adjust the tax' by
local needs
- on longer Perspective will be contra-motivating for
large scale recovery operations, as municipalities will
loose part of their income
Number of Operating Landfills 2000-2005
Recovery of Waste – only for fun?
Disposal is often cheaper – why to
recover then?
Thus, Total Waste Recovery was
reported on 2005 33 %
It includes most part of oil-shale gangue,
ca 200 th.t of oil-shale ash (ca 4 %
from total ash amount...), 750 th.t of
wood waste etc – BUT it means also
ca 70 % was landfilled
As regional landfill projects have been
seen as 'essential' and supported
finacially, but often small-scale
recovery is not – then actually is
recovery been 'undersupported'
Conclusion: for new projects – recovery
operations should get 'better ranking',
but 'cost-benefit' principle should be
followed
Cost of the Household Waste Management –
too high or too low? (1)
There is wider experience, that for diverting waste away
from landfilling towards recovery there must be as economic
incentives as well as regulatory support.
In Estonia nowadays landfilling of waste costs ca 40 €/t
(thus less on 'old landfills').
The landfill tax (ca 8 €/t on sanitary new landfill and ca 16
€/t on 'old-ones') is included in the 'gate fees of the landfills'.
For the households the waste management service fee is ca
65 €/t, but on the average household basis ca 4-8 € in
month, what is ca 3-5 % from living rooms related costs in
central heated dwelling houses.
Cost of the Household Waste Management –
too high or too low? (2)
There are opinions raised on the same
time, that waste management is
already too expensive for the average
household – but also, that this all is
too cheap to motivate somebody to
care more for waste incl. source
separation.
As well waste management companies
was mainly on the opinion, that low
landfilling price didn't motivate to deal
with alternatives to landfilling –
hopefully is the situation changed, as
on 2006 the landfill tax raised
considerably.
Municipal Waste Collection
Under Waste act, are Municipalities obliged to organize a
municipal waste collection scheme:
- to set up list of waste holders (waste holders register
i.e. households, companies)
- to define service packages on waste management,
incl terms for source separation
- organize a tender and pick up a best service offer,
within a contract period (up to 5 y) is only contract Partner
allowed to collect municipal waste in the given area
- the waste holders, which was not excempted from the
system by Municipality, are counted as joined, and charged
according to minimum package of service
- the prices have came down in the towns, on some places
even remarkably, but in the Country-side, it could not be
so....
Cost of the Household Waste Management –
too high or too low?
Discussion – municipal tender is
clearly more effective in logistics and
with the supervision purpose, but is
critized as
- limiting 'free market' (???)
- not-flexible, if service provider fails
to offer service on expected level
BUT,
Freedeom on the level of waste
holder means on most cases
as well 'freedom for illegal
activities'
'Flat fees' or PAYT (Pay as You Trough) system
Wider discussion – how to motivate 'reduction of waste' and source
separation on best, when up to 10-15 % (makes up to 75 % in some
Country-side municipalities...) from waste holders are not been
joined to the collection system?
'Flat fee'
– every waste holder (household) pays at least for
minimum service package, even when container/bag was not fully
filled
PRO – demotivates littering and 'fly-dipping and home incineration',
CONTRA – demotivates also sorting and waste reduction
PAYT system, based on really delivered weight or volume
PRO – motivates sorting for recovery, and waste reduction
CONTRA – motivates also fly-dipping and home incineration'
Conclusion: In the dwelling houses (70 % of population) there is
anyway a 'mixed approach', individual household efforts of reduction
are dissolved on 'collectice collection costs'
As a first step, the flat fee system is preferable, to join all waste
holders to the collection system, with the aim to switch more
towards to the PAYT system in next steps
Costs of the Household Waste Management –
too high or too low?
Conclusions (1)
The Landfill Tax have been essential Part of the Financial Support
scheme for Environmental investments – incl. Support to build new
landfills and close 'old-ones'.
This is ensuring 'softer landing with the landfills' – from ca 200 landfills to
ca 8 non-hazardous landfills on 2009, where 'gate fees have changed
from 10 (but even 0 !) to 40 €/t with less then 10 y
To high lanfill gate fee could increase illegal landfilling – supervison
remains a 'must' – but waste management service fees should follow
other economic developments
Clear influence to promote recovery of waste stream, which was some
years ago (end of 1990-s) yet landfilled (as was so cheap...) :
- Construction-Demolition waste,
- sludge,
- garden waste,
- wood waste etc.
Now it is clearly more 'waste management driving tool' – to motivate
recovery, but trough 'support system' to equlaize regional differencies also
Conclusions (2)
There is plan to raise landfill tax at least 20 % on 2009, but not 20102011, as the aim is to take control over administrative rise of prices
from 2010 at least – with the aim to join 'Euro-zone'
On 2011 is expected as well, that residual waste will be incinerated in
Tallinn area (ca 220 th t/y) – it will influence the landfilling price, as
landfilling will decrease rapidly (+ efforts to develop source
separation etc. recovery operations)
Will the 'incineration tax be needed', to secure recycling ???
New Challenges on Horizon -
European Parliament resolution on a Thematic Strategy on the
recycling of waste, 13.02.2007
EP: Calls for the quantities of waste for disposal to be reduced to a minimum;
calls on the Commission again to propose a revision of the Council Directive
99/31/EC of 26 April 1999 on the landfill of waste(8) , including a
timetable:
– from 2010, a ban on landfill of non-pretreated waste with
fermentable components;
– from 2015, a ban on landfill of paper, cardboard, glass, textiles,
wood, plastics, metals, rubber, cork, pottery, concrete, brick and
tiles;
– from 2020, a ban on landfill of all recyclable waste;
– from 2025, a ban on landfill of all residual waste, except where
this is unavoidable or hazardous (e.g. filter ash);
Comment: This resolution is NOT BINDING,
but shows the Direction of Policy ?!
Thank You for Your attention!
Peeter Eek
[email protected]