Reforming eco-taxation

Time for Radical Change

Malta Today reports this morning that in tomorrow’s Budget Speech Government will be proposing a reform of the Eco-Contribution Act. Malta Today further reports that the eco-contribution due on electric and electronic equipment will be discontinued. Instead, states Malta Today, Government will proceed with ensuring the implementation of the Waste from Electric and Electronic Equipment  (WEEE) Directive of the EU.

The WEEE Directive shifts responsibility for the recovery of waste from electric and electronic equipment to producers and their representatives. It is an Extended Producer Responsibility which has so far not been implemented in Malta notwithstanding various warnings  and infringement proceedings initiated by the EU Commission. It requires the  direct involvement of the private sector who will now have to assume direct responsibility for waste recovery in the WEEE stream.

The matter is dealt with extensively in AD’s Electoral Manifesto. In fact in the Environmental Chapter of AD’s 2013 Manifesto it is stated that :

“We encourage waste separation in localities. However we recognise that this is not enough. As a country we still lag behind and have failed to reach targets on packaging waste as well as waste generated by electrical and electronic equipment.

It is essential to address the operation of scrapyards. These process waste which is subject to at least three Directives of the EU, namely the WEEE Directive, the End of life Vehicles Directive and the Batteries Directive. The manner in which scrapyards have been permitted to operate signifies a total disregard of the principles and safeguards listed in the said Directives. The fact that after more than eight years of EU membership we are still discussing these issues signifies the low level of preparedness to shoulder environmental responsibilities resulting from EU adhesion.

It is essential that environmental taxation (eco-contribution) is reformed in order that it be ascertained that environmental objectives are attained. The private sector should not be penalised through double payment in order that it fulfils its responsibilities relevant to waste on which eco-contribution was due.

Environmental taxation has two objectives. Generating funds to be used by the exchequer as well as to serve as a deterrent and consequently to reduce environmental impacts. For the deterrent to be effective it is essential that when environmental taxes are proposed it be ensured that as far as possible an alternative product or service to the one being taxed which generates less impacts than the taxed product or service is available.

On the other hand we are aware that environmental taxes which are not properly designed can be regressive. That is they can have a negative social impact due to their impacting the quality of life of those with limited means. In order to ensure that the primary objective of environmental taxation would be environmental improvement AD proposes that environmental taxation should be the joint responsibility of the Ministry of the Environment and the Ministry of Finance.”

Eco-taxation can be of considerable benefit. It however needs to be properly designed. Alternattiva Demokratika looks forward to a discussion on the new proposals.

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Waste Management politics

scrapyard

“We encourage waste separation in localities. However we recognise that this is not enough. As a country we still lag behind and have failed to reach targets on packaging waste as well as waste generated by electrical and electronic equipment.

It is essential to address the operation of scrapyards. These process waste which is subject to at least three Directives of the EU, namely the WEEE Directive, the End of Life Vehicles Directive and the Batteries Directive. The manner in which scrapyards have been permitted to operate signifies a total disregard of the principles and safeguards listed in the said Directives. The fact that after more than eight years of EU membership we are still discussing these issues signifies the low level of preparedness to shoulder environmental responsibilities resulting from EU adhesion.” (AD’s Electoral Manifesto, pages 89-90, March 2013)

The existence of operational scrapyards is an affront to Malta’s environmental obligations.

In scrapyards one finds discarded vehicles and other objects made primarily of metal  beyond their useful life. There are a number of operational scrapyards in various areas in Malta.  A major one was closed by MEPA some years back in Birżebbuġa. This is now in the process of reopening as an up to standard End of Life Vehicle facility based in Ħal-Far. The relative planning and environmental applications have been processed by MEPA and Malta Enterprise and the facility should be operational in the not too distant future.  There are other scrapyards (large and small) in various parts of the island. They are mostly an eyesore, generally a blot on the landscape as well as being the cause of negative environmental impacts.

Recycling scrap metal (and other materials) is an important economic activity which ensures that resources originally  extracted from the earth are kept in use and not discarded as waste. Recycling activity if properly managed is an important economic activity which is environmentally friendly. Employment created in this type of activity is an important source of green jobs.

Vehicles and equipment beyond its useful life cannot be disposed of haphazardly. Three specific EU Directives,  namely the End of Life Vehicle Directive (ELV), the Batteries Directive and the Waste from Electric and Electronic Equipment Directive (WEEE) establish  the responsibilities of EU member states to regulate in detail these specific waste streams.  The objective is to recover metals and other materials which would otherwise go to waste. Their recovery should however be carried out in an environmental friendly manner.

Each and every part of a vehicle or a piece of equipment should be dismantled with particular care being given to the collection of fluids and gases. No such care is afforded in scrapyards.

Similarly it is to be pointed out that the electric and electronic waste directive (WEEE) is not being properly implemented in Malta. This is due to the fact that there is a conflict between the responsibilities spelt out in the Directive and the eco-contribution charged in Malta on electric, electronic and white goods.

The WEEE Directive spells out and applies the responsibility of producers for disposing of the electric and electornic waste generated by their products. It does so to encourage producers to put on the market products which are easily recoverable and which can be recycled without much difficulty and expense. The recovery from consumers of electric/electronic products and white goods beyond their useful life can be carried out an at expense which in terms of the WEEE Directive is to be added to the purchase price. But the situation in Malta is such that the cost of processing the waste generated by electric/electronic products and white goods is already quantified as an eco-contribution. This was fairplay when there was no WEEE Directve in operation. But now producers would have to pay twice for the same service. They pay an eco-contribution on placing the product on the market and then they must pay once more to honour their WEEE committments.

In view of the above the WEEE Directive has not yet been properly implemented in Malta.

It is about time that we get our house in order. The politics of waste is a very important matter which has not yet been given sufficient thought.  Except that is for the siting of waste management faciltiies, which seems to be the only waste issue which has interested the public in recent years.

The Issues Paper published recently by Minister Leo Brincat makes scant reference to the above. Maybe this is because it is a preliminary document preceeeding the actual Waste Management Plan for 2014-20.

A structured discussion on waste policy will certainly be of help. Having a multitiude of public consultation exercises by the different Ministries launched during the summer period is not  good practice. It is an old trick played by those who want to  nominally honour their obligations to consult.  Hopefully when the actual draft Waste Management  Plan 2014-20 is available for consultation we will have ample time to discuss.

published in The Times of Malta, Saturday August 31, 2013

Snippets from AD’s electoral manifesto: (19) Waste

scrapyard

The following extract is taken verbatim from Chapter 14 of AD’s Electoral Manifesto

Waste.
We encourage waste separation in localities. However we recognise that this is not enough. As a country we still lag behind and have failed to reach targets on packaging waste as well as waste generated by electrical and electronic equipment.
It is essential to address the operation of scrapyards. These process waste which is subject to at least three Directives of the EU, namely the WEEE Directive, the End of life Vehicles Directive and the Batteries Directive. The manner in which scrapyards have been permitted to operate signifies a total disregard of the principles and safeguards listed in the said Directives. The fact that after more than eight years of EU membership we are still discussing these issues signifies the low level of preparedness to shoulder environmental responsibilities resulting from EU adhesion.

L-Estratt segwenti hu mehud kelma b’kelma mill-Kapitlu 14 tal-Manifest Elettorali ta’ Alternattiva Demokratika

L-Iskart.
Ninkoraġixxu s-separazzjoni tal-iskart fil-lokalitajiet. Nirrikonoxxu iżda li dan m’huwiex biżżejjed. Għadna lura bħala pajjiż biex nilħqu l-miri Ewropej għall-iskart mill-ippakkeġġjar kif ukoll l-iskart ġenerat minn apparat elettriku u elettroniku.
Hemm bżonn b’mod ġenerali li jkun imminimizzat kull xorta ta’ skart u għal dan l-iskop hu meħtieġ li jittieħdu inizzjattivi li jgħinu f’din id-direzzjoni.
Huwa neċessarju li jiġu indirizzati r-relevanza u l-mod tal-operazzjoni tal-iscrapyards. Preżentement f’dawn l-iscrapyards jiġi pproċessat skart li huwa kontrollat taħt tal-anqas tlett Direttivi tal-Unjoni Ewropea: id-Direttiva WEEE, l-End of Life Vehicles Directive u d-Direttva dwar il-Batteriji. Il-mod kif l-iscrapyards qed jitħallew joperaw f’Malta jfisser abbandun totali tal-prinċipji u salvagwardji elenkati fl-imsemmija Direttivi. Li wara iktar minn tmien snin mis-sħubija ta’ Malta fl-Unjoni Ewropea għadna nitkellmu fuq dawn l-affarijiet ifisser kemm kienet defiċjenti it-tħejjija biex pajjiżna jerfa’ l-obbligi ambjentali li dħalna għalihom bis-sħubija.