Annual Conference 2008 Future Challenges for the Waste Management Industry

1. Annual Conference 2008Future Challenges for the Waste Management Industry Waste Framework Directive -Impact on the European Waste Management Industry Egbert Tölle, BDE, FEAD Vice President, Board member REMONDIS

2. REMONDIS – Your Partner For Water And Environmental Services

3. Revenue and Employees Corporate Group Revenue (2006) 4,735 Mio. € Revenue (2007) 7,600 Mio. € Employees (2006) 30,628 Employees (2007) 34,500 Logistics Revenue (2006) 1,909 Mio. € Revenue (2007) 3,000 Mio. € Employees (2006) 12,181 Employees (2007) 14,000 Bio-Industries Revenue (2006) 494 Mio. € Revenue (2007) 600 Mio. € Employees (2006) 3,311 Employees (2007) 3,500 Water and Circular Flow Economy Revenue (2006) 2,332 Mio. € Revenue (2007) 4,000 Mio. € Employees (2006)15,136 Employees (2007) 17,000 All figures (in this presentation) are consolidated, projection for 2007

4. We are one of the leading Water And Environmental Services Companies. The main facts summarised • REMONDIS offers a far reaching network with over 500 sites worldwide • REMONDIS is present in 21 European countries as well as China, Japan, Taiwan and Australia • REMONDIS services municipalities with over a total of 20 million inhabitants • REMONDIS runs more than 6,000 commercial vehicles • REMONDIS collects, processes and markets more than 25 million tonnes of recyclable materials each year • REMONDIS operates over 500 own facilities for Sorting, Treatment and Processing

5. Waste Framework Directive – Opportunities and risks • Opportunities for the European recycling and waste management industry:- 5-step waste hierarchy • - principle of producer responsibility • legal certainty through distinction between recovery and disposal • acceptance of waste incineration plants as energy recovery facilities at a guaranteed efficiency of 60 % for existing plants (65% new plants) • binding recycling targets for paper, glass, metal, plastic, construction and demolition waste until 2020 • increase of bio-waste recovery through a separate bio-waste directive

6. Waste Framework Directive – Opportunities and risks • Risks for the European recycling and waste management industry:- extension of the principles of self-sufficiency and proximity to mixed municipal waste collected from private households destined for recovery • Infringement of the principle of free circulation of goods for waste destined for recovery; in contradiction with the principle of the European Internal Market • no clear distinction between waste and by-products • no harmonized standards for the end of waste status • Possibility to ban imports for waste destined for incineration

7. Example: Article 4 – waste hierarchy The 5-step hierarchy: 1. Prevention 2. Preparing for Re-Use3. Recycling4. Other recovery, e.g. energy recovery; and5. DisposalExceptions:Possible departure from waste hierarchy where this is justified by life-cycle thinking on the overall impacts of the generation and management of such waste

8. Example: Bio-waste directive Separate directive on bio-waste The commission is asked to carry out an assessment on the management of bio-waste with a view to submit a proposal if appropriate. The assessment shall examine the opportunity of setting minimum requirements for bio-waste management and quality criteria for compost and digestate from bio-waste Impact: Most positive. Accompanying measure to the landfill directive. Efficient contribution to climate protection through a decrease in methane gas emissions.

9. Example: Article 5 – by-products Common position on by-products: 1. Definition with 4 criteria, - further use of the substance or object is certain - the substance or object can be used directly without any further processing other than normal industrial practice - the substance or object is produced as an integral part of a production process; and - further use is lawful, i.e. the substance or object fulfils all relevant product, environmental and health protection requirements for the specific use and will not lead to overall adverse environmental or human health impacts 2. use of comitology with scrutiny to adopt measures to determine the criteria to be met for specific substances/objects to be regarded as a by-productExtended compromise:Object/substance=by-product only when conditions are met. Since by-products fall into category of products, exports of by-products should meet the requirements of the relevant Community legislation.

10. Example: Recycling targets (article 9 & 11) Agreed targets: 1. by 2020: re-use and recycling target: 50% for household and similar waste, 2. by 2020: re-use and recycling target: 70% for non-hazardous construction and demolition waste Impact:Most positive. Defined and binding recycling targets, which have to be implemented by the member states, require the reinforcement of circular flow activities and investments in favour of climate protection.

11. Example: Classification of energy recovery / disposal Classification of energy recovery / disposal Waste incineration plants can be approved as energy recovery facilities if their energy efficiency is as high as 65 % for new plants and 60 % for existing plants. Impact: support of high energy efficient waste incineration; electricity and heat generation through waste incineration helps to preserve primary resources. Potential risk associated with implementation: „possibility of deviation“ from the application of the energy efficiency clause based on local climatic conditions. Market distortion through unequal thresholds.

12. Example: Self-sufficiency and proximity principle, (article 16) Common position: - establishment of an integrated and adequate network of waste disposal installations and of installations for the recovery of mixed municipal waste collected from private households and similar waste from other producers - member states may limit incoming and outgoing shipments of waste for energy recovery (thermal treatment) FEAD position: The extension of the self-sufficiency and proximity principle to waste destined for recovery = is an infringement of the internal market through national protectionism = counteracts the environmental objective of a „European Recycling Society“= limits the effective use of resources= limitation of the free movement of goods

13. Forecast 2012* Prognose 2012* Due date: TASi, 1 June 2005 Stichtag TASi 01.06.2005 in million tons in Mio. t in million tons in Mio. t in Mio. t 50 50 50 50 50 45 45 45 45 45 40 40 40 40 40 backlog Überhang 35 35 35 35 35 8,7 Mio. t 8,7 Mio. t Lücke Lücke Gap 30 30 30 30 30 8,5 Mio. t 8,5 Mio. t 8,5 Mio. t 25 25 25 25 25 20 20 20 20 20 • Planned capacities in the Netherlands not taken into account. • Impact on German market to be expected. 15 15 15 15 15 10 10 10 10 10 5 5 5 5 5 0 0 0 0 0 Kapazitäten 2012 Capacities 2012 Abfallaufkommen 2012 Waste arisings 2012 Capacities 2005 Kapazitäten 2005 Kapazitäten 2005 Waste arisings 2005 Abfallaufkommen 2005 Abfallaufkommen 2005 Refuse derived fuel capacities MVA Waste incineration capacities MVA MVA MVA MVA MVA MVA MVA MVA - - - - - - - - - - - - Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten MBA MBA MBA MBA MBA Bio-mechanical treatment capacities MBA MBA MBA MBA MBA MBA - - - - - - - - - - - - Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten Kapazitäten additional BM-capacities - - Additional Refuse derived fuel capacities zusätzliche MVA additional WI-capacities zusätzliche MVA - - - Promotion of bio-waste composting Forcierung Bioabfallkompostierung Bulky refuse and industrial waste recovery Example: Self-sufficiency and proximity principle, (article 16) Waste quantities vs. plant capacities in Germany . .

14. Requirements • Maintenance of free circulation of goods also for mixed municipal waste for recovery • Unequivocal distinction between waste and by-product during implementation in the member states • Harmonized EU standards for the end of waste status

15. Thank you very much for your attention.