LEGISLATIVE REGULATION IN THE FIELD OF SOLID WASTE MANAGEMENT

1. 2013 Ministry of Natural Resources and Environment of the Russian Federation LEGISLATIVE REGULATION IN THE FIELD OF SOLID WASTE MANAGEMENT  Department of the state policy and regulation in the field of environmental protection N.B. Nefedyev K.Y. Kushnir A.V. Sokolova

2. GENERATION AND RECYCLING OF WASTE PRODUCTION AND CONSUMPTION IN THE RUSSIAN FEDERATION - generation, (x109 tons) • recycling , • (x109 tons, %) BY ECONOMIC SECTORS IN 2012 mineral extraction manufacturing activities production of electricity, gas and water transport and communications community and social services agriculture and forestry 2

3. GENERATION AND RECYCLING OF MUNICIPAL SOLID WASTE IN THE RUSSIAN FEDERATION 69,5 60,3 58,8 57,1 54,6 13,6 10,1 11,7 12,1 9,6 2008 2009 2010 2011 2012 - generation MSW, mill. tons. - recycling MSW, % 3

4. ALLOCATION PLANTS FOR RECYCLING, INCINERATION AND LANDFILLING OF MSW 19 9 6 16 219 6 3 2 Designation: Available market of disposal MSW: - landfills - incineration plant Recycling – up to 10 billion rub/y - recycling plants Incineration - up to 5billion rub/y Landfilling - up to 6billion rub/y 4

5. EVALUATION OF NECESSARY FINANCIAL RESOURCES FOR PROVISION OF INFRASTRUCTURE ON MSW RECYCLING AND DISPOSAL 1. Provision of infrastructure: 2. Operating costs 0,6 – 0,9 bn.EURper year (5-7 % of capital costs) 5

6. The draft Federal Law № 584399-5 "On Amendments to the Federal Law "On Waste Production and Consumption"and other legislative acts of the Russian Federation in the economic stimulus activity in the field of waste management" 6

7. DRAFT LAW № 584399-5 (SECOND READING) IMPLEMENTATION ACTS OF OECD IN THE FILD OF WASTE MANAGEMENT DEVELOPMENT OF EFFECTIVE REGULATION DEVELOPMENT OF ECONOMIC INSTRUMENTS: Redistribution of powers between local authorities and the subjects of the Russian Federation • The introduction of "Extended producer responsibility (importer) of goods (products)": • independently (in the manner prescribed by the Government of the Russian Federation) • through payment of the environmental contribution Adoption of territorial waste management schemes consumption Transition from licensing to partial self-regulation in the field of waste management consumption I-IV class of danger Creation of a state fund for waste management consumption Setting norms MSW accumulation population Establishment of special environmental requirements for waste treatment groups and to infrastructure 7

8. REDUCED PRIORITY Reduction of waste production in the source Maximum usage of the source raw material Reduction of production volume Processing (preliminary preparation Utilization (use) of wastes Involvement of waste into the economic turnover Waste neutralization PRIORITY AREAS OF THE STATE POLICY IN THE FIELD OF WASTE MANAGEMENT 8

9. PHASED INTRODUCTION OF UTILIZATION NORMS Government of the Russian Federation By groups of similar items (by composition and /or destination) The list of goods (products), recyclable (usable) Utilization Norm is the set ratio of the realized amount of goods (products) to the total amount of goods (products) of the respective type, released into the stream of commerce and expressed as a percentage ESTABLISHING A LIST OF GOODS, SUBJECTED TO MEET UTILIZATION NORMS AND FOR WHICH UTILIZATION FEE IS TO BE PAID Household electrical and electronic products Mercury-containing fluorescent light bulbs, appliances, including energy saving ones metal PACKAGING Furniture products Tyres 9 glass Paper and cardboard PETF composite materials

10. THE SCHEME OF PERFORMING THE OBLIGATIONS OF MANUFACTURERS, IMPORTERS OF GOODS (PRODUCTS) RELATING TO UTILIZATION (USE) Manufacturers, importers of goods (products) (alternative options) Self-fulfillment Utilization fee payment (environmental fee) Option 1. Organizing the activities relating to utilization (use) of their goods (products), after the loss of their consumer properties, in accordance with established utilization norms UF = R * М [К] * UN, R - utilization fee rate (environmental fee), fixed according to specific expenses for utilization; M [K] - mass [amount] of goods released into circulation, t; UN – utilization norm, expressed in relative units. Option 2.Concluding the contracts for utilization (use) of their goods (products), after the loss of their consumer properties, with household waste handling operators. Acceptance of data reporting related to meeting the utilization norms and control the meeting utilization norms - Rosprirodnadzor Administrating the utilization fee (environmental fee) - Russian Federal Tax Service 10

11. LEGAL FRAMEWORK OF PUBLIC FUNDS ACCUMULATE UTILIZATION FEE (ENVIRONMENTAL CONTRIBUTIONS) Establishing a legal framework for the functioning of the state fund for waste management on the principles of consumer functioning Federal Road Fund Budget allocation approved by the federal law on the federal budget for the next fiscal year and the planning period Utilization fee (ENVIRONMENTAL CONTRIBUTIONS) PENALTIES FOR VIOLATION OF RULES AND STANDARDS Profitable part of the FUND voluntary income The formation and use of state budget allocation fund established by the Government of the Russian Federation 11

12. LICENSING SYSTEMS IN THE FIELD OF WASTE MANAGEMENT Effective date provisions on licensing and self-regulation Voluntary participation in the SRO Obligatory self-waste management CONSUMPTION waste management licensing PRODUCTION AND CONSUMPTION licensing of waste PRODUCTION 2014 adoption of a law 31.12.2018 Entry into force 2019 Transition period 12

13. RESULTS ADOPTION AND IMPLEMENTATION OF BILL № 584399-5 «WASTE ..." More effective regulation of waste management: 1) The establishment of territorial subjects of the Russian Federation waste flow management systems 2) the formation of closed-cycle waste management consumption 3) reducing the volume of waste destined for disposal Economic incentives in waste management: 1) formation of financial flows for infrastructure for waste management 2) targeted spending of funds for infrastructure development and maintenance costs 13

14. 8. TRANSITION PERIOD TO INTRODUCE PRINCIPLES AND MECHANISMS TO BUILD AN INTEGRATED WASTE MANAGEMENT SYSTEM Entering into force of the federal law – 1st January, 2016 A ban on disposing the certain types of wastes – 1st January, 2017 Mandatory self-regulation in the field of consumption waste management – 1st January, 2019 14

15. EXTENDED PRODUCER RESPONSIBILITY ON THE CUSTOMS UNION AREA Key event: Fourth session of the Council in the field of environmental protection in the EurAsEC Integration Committee Ministerial Environment September 28, 2013 Action taken: The introduction of EPR on the space of the Customs Union is included in the Action Plan for implementation of the guidelines in the field of environmental protection in 2014-2015 15

16. A DRAFT LAW ON AMENDING THE CODE OF ADMINISTRATIVE OFFENCES… Order of the Government of the Russian Federation № 329-р datedMarch 6, 2012 The Action Plan on improve of control, regulating and licensing functions and optimization of providing the government services in the field of nature use and environmental protection, including production and consumption wastes (to paragraph 10) Aim differentiation of elements of violations based on requirements, set in the Federal Law № 89-FZ“On Production and Consumption Wastes” dated 24.06.1998 16

17. NEW EDITION OF THE ARTICLE 8.2 OF ADMINISTRATIVE CODE Sanitary requirements Failure to comply with sanitary requirements (as amended); Failure to comply with environmental requirements and standards for waste management of I-IV classes of hazard; Failure to comply with environmental requirements and standards for handling the wastes of V class of hazard; Dereliction of duty for monitoring, organization and implementation of industrial control, the restoration of disturbed lands; Lack of environmental documentation (passports for wastes of I-IV classes of hazard, registration, form #2-TP (wastes)). wastesI-IV wastesV duties documentation 17

18. ORDER OF THE RF GOVERNMENT № 712 “ON PROCEDURE OF CERTIFYING THE WASTES OF I - IV CLASS OF HAZARD” DATED16.08.2013 Types of wastes in the Federal Classification Waste Catalog (FCWC) Drawing up of the waste passport in a declarative form (without any approvals) Economy entity FCWC Waste data bank No waste types in FCWC Order of the Ministry of Natural Resources ofRussia №792 “On approval of the State Waste Cadastre“ dated 30.09.2011 Draft Order of Ministry of Natural Resources ofRussia “On approval of the classification order of wastes of I - IV hazard classes to a particular hazard class” 18

19. ECONOMIC INCENTIVES FOR PRODUCTION WASTE MANAGEMENT Reduction factors to pay for waste disposal: 0 – when disposing wastes from the mining industry of V hazard class by filling artificially created cavities; 0,5 – when disposing wastes of IV-V hazard classes, formed using the previously deposited wastes from processing and mining industries; 0,67 – when disposing wastes of III hazard class, formed during the neutralization of wastes of II hazard class; 0,49 – when disposing wastes of IV hazard class, formed during the neutralization of wastes of III hazard class; 0,33 – when disposing wastes of IV hazard class, formed during the neutralization of wastes of II hazard class 19

20. ECONOMIC INCENTIVES FOR PRODUCTION WASTE MANAGEMENT Procedure of payment offset for negative impact on the environment: when introducing the low-waste and resource-saving technologies and equipment; when using of the formed wastes to produce products, works, services (closed production cycles). SIMILAR DOCUMENT: RF Government Resolution № 347 “On approval of rules for reducing payments for negative environmental impact in case subscribers of organizations, engaged in sanitation, implement environmental measures“ dated 17.04.2013 20

21. REGULATORY LEGAL ACTS OF THE MINISTRY OF NATURAL RESOURCES AND ECOLOGY OF RUSSIA Draft Order of the Ministry of Natural Resources of Russia “On approval of waste classification of I – IV hazard classes to a particular class of hazard“ Draft Order of the Ministry of Natural Resources of Russia "On approval of the criteria for classifying wastes to the I - V hazard classes according to the degree of negative impact on the environment” Draft Order of Ministry of Natural Resources of Russia “On Amendments to the Accounting Procedure in the field of waste management” Draft Order of Ministry of Natural Resources of Russia “On Approval of recommendations for the developing the projects of waste generation and disposal limits” Draft Order of Ministry of Natural Resources of Russia “On approval of the Order to conduct by the owners of waste disposal facilities, as well as persons in possession or use of waste disposal objects, the monitoring of environmental state and pollution in the territories of waste disposal facilities within their impact on the environment” 21

22. TRANSBOUNDARY MOVEMENT OF WASTES Amendments to the EurAsEC Board Decision №134 dated 16.08.2012 and the Order of transboundary waste movement (Order of the RF Government №442 dated 17.07.2003) Single list of goods subject to bans or restrictions “Green” control procedure “Yellow” control procedure Without the transboundary movement permission With the transboundary movement permission 22

23. 2013 Ministry of Natural Resources and Environment of the Russian Federation THANK YOU FOR ATTENTION!