Ninth Report - European Scrutiny Committee Contents



Annex: Waste Framework, Packaging and Packaging Waste and Landfill Directives

WASTE FRAMEWORK DIRECTIVE

Municipal Waste

Member States can currently select from four definitions, with the UK using "waste from households". However, in order to create a level playing field and ensure comparable reporting, the proposal recommends a single definition to be used by all Member States by 2020, which would include waste from retail trade, small businesses, office buildings and institutions (such as schools, hospitals and government buildings) where it is similar in nature and composition to household waste.

This would require the collection of new statistical data from the commercial and industrial sector, and may affect the achievability of the existing 2020 target by changing the baseline for measurement, and pose additional costs as a number of retail trade, small businesses, office buildings and institutions will have their waste collected privately. It will be necessary to better understand how much additional waste would be captured by this definition, and how this impacts current performance towards recycling targets.

Food Waste

The proposal defines food waste as food lost from the food supply chain (other than that diverted to material uses such as bio-based products, animal feed, or sent for redistribution). The UK currently excludes agricultural food losses from its definition of food waste, and the impact of this broadening of the scope will need to be further considered, notably in relation to setting aspirational food waste reduction targets in national waste prevention plans. However, although this is not explicit in the current draft, the Commission says that, due to lack of data across Member States, the EU target and the associated reporting would be limited to post farm-gate waste, which aligns with the UK approach. The UK will therefore continue to press for more clarity to avoid any new burdens which a broader EU definition would entail.

Construction & Demolition Waste

No changes are proposed for the target for recycling of waste from the construction and demolition industry, but the proposal recommends that backfilling (where inert construction waste is used to fill excavated areas) should be reported separately. Also, the new definition of backfilling appears to include all waste used in construction, and could capture waste-derived products all of which, as products, should count towards a recycling target. This potentially causes impacts for achieving the targets set out in both the Directive and the Packaging and Packaging Waste Directive.

Extended Producer Responsibility (EPR)

The proposal requires Member States to take appropriate measures to encourage the design of products in order to reduce their environmental impact as well as the development of multiple use products, provided this avoids distortions of the internal market. Although the UK is already taking measures to stimulate action on electrical and electronic products, the wider impacts of this proposal are unclear, and UK producers and manufacturers may need to bear additional costs.

The proposal allows Member States discretion in the application of EPR, but, if they choose to apply that discretion, it requires them to comply with a set of minimum requirements set out in Annex VII, which include defining measurable targets for prevention, preparing for re-use, recycling and/or recovery with a view to meeting or exceeding existing quantitative EU waste targets; procedures for gathering data on products placed on the market and their eventual collection and treatment; and ensuring that financial contributions by producers to EPR schemes cover the whole cost of waste management, as well as measures to tackle litter. Also, it is not clear if Annex VII is intended to apply across other Directives, and it will be necessary to clarify the full extent and limitations intended.

Waste Prevention

The proposal requires Member States to take appropriate measures, and introduces an aspirational (non-binding) Food Waste Reduction Target of 30% between 2017 and 2025. The UK supports this voluntary approach, but has already made significant steps in reducing food waste, and risks being put at a serious disadvantage if the baseline for the target is set for 2017. It will therefore be important to press for maximum flexibility, either by removing the baseline year, or by enabling Member States to set the baseline in such a way as to take into consideration early action on food waste.

The proposal sets a target of 70% of municipal waste to be recycled by 2030. It is not known how costly it would be to reach this target, or if 70% represents a feasible rate of recycling given the other definitional changes. This target needs to be considered in light of the proposal on tighter landfill restrictions and the issues associated with this. Achieving this target is likely to require significant changes in design and business models to increase the recyclability of common materials and products, all of which could reduce costs to business over the long term.

Recycling

The proposal clarifies that recycling reported against the target should not include material rejected from the recycling process. It is estimated that in the UK rejects range from 7-10%, which could have a significant impact on achieving recycling targets.

Early Warning System

The proposal seeks to identify under-performing Member States, and to require them to submit to the Commission additional measures to meet the targets. Whilst such a system may benefit some Member States, it poses additional reporting burdens, and the Commission's recommended actions for struggling Member States could pose subsidiarity issues.

Hazardous waste

The proposal would track this from source to destination based on an electronic reporting system. Those systems which exist in the UK would need to be reviewed and revised to ensure they are fit for purpose.

Separate collection of biowaste

This would include park and garden waste, food and kitchen waste from households, restaurants, caterers and retail premises, and comparable waste from food processing plants. A mandatory action to collect food waste from households could be significant, and would be likely to pose new costs to Local Authorities where the plans are not already in place to increase householder participation. The proposal can only be fully assessed once it is clear whether Local Authorities can bypass this requirement if it does not prove technically and economically practicable. Extending this requirement to commercial premises may also introduce new costs for businesses, except in Scotland where it would be in line with existing legislation.

Permit for collection, transport and disposal or recovery of waste

The proposal would extend the range of establishments or undertakings which Member States would be able to exempt from the requirement to have such a permit, and, whilst this reduction in the burdens on business is welcome, it will be necessary to ensure that the exemption does not impact on the ability to regulate facilities properly.

Exemption for small businesses

Whilst the proposal allowing Member States to exempt small businesses collecting or transporting small quantities of non-hazardous waste from the need to be registered with regulatory authorities is welcome, it will be important that exemptions are strictly limited to SME's carrying their own waste (like gardeners and shop-keepers), rather than professional waste operatives, who should be subject to regulatory controls protecting human health and the environment.

Record Keeping

The proposal extends requirements, which previously applied to hazardous waste facilities (including the requirement to keep chronological records), to producers of all wastes, and also introduces annual mandatory electronic reporting. Neither change is unlikely to pose a significant burden on the UK, although this will need to be discussed with industry stakeholders.

Enforcement and Penalties

The proposal contains a requirement to inhibit illegal waste dumping, and, as littering is already a criminal offence in the UK, this would be unlikely to require any extra action.

Data reporting requirements

These would be altered requiring the UK to report annually instead of every three years, but in a shorter format. However, it also introduces a requirement for third party verification which would impose an additional burden on Government.

Delegation of powers for implementing and delegated acts

The proposals empower the Commission to adopt delegated and implementing acts for a range of activities to supplement the proposed Directive, thus implementing amendments to the Lisbon Treaty. In the main, the powers proposed appear to be appropriate, but, where technical changes that may impact on the UK waste management industry, appropriate Member State involvement should be ensured through Technical Committees.

PACKAGING AND PACKAGING WASTE DIRECTIVE

Definitions

It is proposed that various of these should be aligned with those in the Waste Framework Directive, but the definition of 'packaging waste' may lead to changing the baseline and increasing targets by proxy, as producers can at present discount production residues when calculating the amount of packaging placed on the market (and therefore their recycling obligation). However, it is not possible to quantify the impact of this change, which will vary according to material (and which will also makes it cheaper for producers to import packaging, rather than manufacture in the UK, with economic consequences for the supply chain and producers, and UK employment).

Recycling targets

The proposal would set new (and generally higher) recycling targets for 2020, 2025 and 2030 for total packaging and for specific materials, and would for the first time specify a calculation method for reporting recycling against the targets.

As a lone amendment, the UK could meet some of the proposed new targets, but others would be harder to achieve, would pose a significant net cost to industry, and could require recycling items for which the technology is not currently available. Together with other amendments aligning definitions, specifying a new calculation method, and redefining the target to remove the existing recovery component, this would effectively lower the current baseline recycling rate, and automatically increase the requirement, meaning that many of the existing targets could become unreachable for the UK, even before the proposed increases to these are considered. In addition, the move from a recycling and recovery target to one based on recycling and preparing for reuse target is arbitrary and not supported by evidence.

A better understanding will be required of the baseline which is being set by amendments to the other articles on definitions and target calculation to inform a negotiating mandate. Further analysis is underway to examine what economically optimal recycling rates for different materials could be, although this will depend on impacts to the baseline.

National packaging design requirements

The proposal allows Member States to introduce such requirements, and requires them to take measures to encourage the design of packaging to reduce its environmental impact and the generation of waste in the course of the production and subsequent use. Although it stipulates that these measures must avoid distorting the internal market, this provision nevertheless risks undermining the aim of harmonising packaging rules, and seriously jeopardising the internal market for packaged goods as it appears to encourage national packaging design requirements, national re-use targets and national prevention targets. This would require all producers of packaged goods in the EU to change their packaging for each market, and would appear to create vast and unnecessary additional costs to the packaging supply chain across Europe. It will therefore be necessary to seek further clarification of what this change is trying to achieve is needed.

Article 21 Committee

Article 21 of the Directive provides for a Committee of Member States to deliver opinions on draft technical adaptations proposed by the Commission, and its proposed abolition would a serious backwards step.

LANDFILL DIRECTIVE

Targets

The proposal introduces two new targets, which incrementally decrease the quantities of biodegradable municipal waste being landfilled. The existing targets were initially introduced to reduce the quantity of greenhouse gases from landfill, and a move away from them is welcome as they result in a narrow focus on biodegradable waste entering landfill, rather than enabling Member States to take a wider overview on diverting waste from landfill and pushing it up the waste hierarchy.

2025

Moving to the level of diversion from landfill proposed for 2025 is not technically unachievable, but will be challenging for the UK. A better understanding of the volumes and proportion of recyclable materials going to landfill will be necessary, and Defra is currently undertaking the necessary research. However, economic analysis suggests that landfill restrictions come at a net cost, mainly due to the costs of separate collection, so good evidence is required to respond to this proposal. In particular, there is evidence that plastics are better in landfill than in incineration, so it would be necessary to ensure that any future regulatory framework directed plastics from landfill to recycling rather than recovery.

2030

Implementing the proposal to restrict landfilling to only residual waste by 2030, so that waste sent to landfill does not exceed 5% of total municipal waste would be very challenging for the UK Government. A better overall understanding will be needed of the costs and benefits of the proposed targets, including of the types of policy interventions which may be needed. There may also be issues associated with the practicalities of implementing and enforcing landfill restrictions.


 
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Prepared 19 September 2014