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.

Waste update : back to the drawing board

times_of_malta196x703

by Carmel Cacopardo

published on Saturday February 28, 2009

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The Solid Waste Management Strategy update published recently, identifies a zero waste scenario as a long-term aim. It refers to a number of studies commissioned and proceeds to a selective use of conclusions from the said studies, which are still under wraps.

A Situation Audit of the strategy was carried out in 2005. Yet, the only conclusion that has found its way into the proposed update is a statement on the practical non-existence of the interministerial committee set up to coordinate the strategy’s implementation across government. The full Situation Audit should see the light of day. The public has the right to be informed as to the manner in which targets were attained and the reasons as to why others were missed.

The update is incomplete; it postpones updating the strategy on hazardous waste, promising instead a Topic Paper in the future. The management of hazardous waste includes the implementation of the WEEE Directive (Waste from Electric and Electronic Equipment), which is way behind schedule.

Producers and their representatives in terms of the WEEE Directive assume full responsibility for the waste generated by their products. Yet, the government, through the simultaneous application of the eco-contribution and the WEEE Directive, has placed them in a situation where they have to pay twice for the handling of electric and electronic waste: The payment of an eco-contribution and shouldering producer responsibility in terms of EU legislation. The result is that while, on paper, the WEEE Directive in Malta has been transposed, in practice its implementation is being obstructed. It is an area of responsibility that EU legislation assigns specifically to the private sector, yet the government is reluctant to lose a substantial chunk of eco-contribution revenues and is consequently applying the brakes.

The regulation of scrap yards does not feature in the update. They are required in order to recycle scrap metal. However, they should operate within a regulatory framework, in particular in conformity to the WEEE and the ELV (End of Life Vehicle) Directives. Recently, it was reported that, during testimony submitted in a planning appeal, concerning the enforcement order relative to the Ta’ Brolli scrap yard in Birzebbuga, it was revealed that part of its business originates from the custom of government departments and corporations!

Some scrap yards process scrap from disused refrigerators! Processing? They just crush them, as a result releasing refrigeration gases to air. These gases are CFCs (chloroflorocarbons), contributors to the depletion of the ozone layer. In a regulated environment in terms of the WEEE Directive, processing disused refrigerators for waste would include the careful collection of the CFCs as a first step. Instead, some Maltese scrap yards are contributing to the depletion of the ozone layer in contrast to the provisions of the 1987 Montreal Protocol, which Malta has bound itself to observe and implement.

The proposal for an updated strategy encourages a policy favouring waste incineration. It proposes that the use of bio-digestion to convert waste to energy is complemented by a policy favouring incineration. Specifically, it proposes a waste to energy incinerator to be sited at Delimara next to the power station. This could also mean that on waste recovery sites (currently in operation or projected) the two technologies could co-exist.

Incineration is undoubtedly a waste management tool. In my opinion, it should however, only be used as the last option.

Relying on incineration to produce electricity would, on the plus side, reduce required landfill space and the fuel bill. It would still, however, contribute to the production of greenhouse gases and, hence, cannot be described as a source of clean energy. On the minus side, it negates the need to reduce waste generation and produces other possibly toxic emissions, which would vary dependent on the composition of the RDF (refuse derived fuel).

The regulation of these emissions is normally established through a permit issued by Mepa in terms of the EU Directive on Integrated Pollution Prevention and Control. The acceptability or otherwise of an incineration facility even as a tool of the last resort would in my view result from two points: The quality of emissions control imposed by Mepa through the conditions established in the IPPC permit, and the enforceability of these conditions.

If the manner in which the Marsa incinerator has operated in the past months is a reliable indicator on the workings of Mepa and Wasteserv, this is sufficient on its own to discard the incinerator option even as a tool of last resort.

These are just a few of the points indicating reasons as to why the proposed waste strategy update needs to go back to the drawing board. Together with the fact that a Strategic Environmental Assessment has not to date been carried out, this is clear evidence of its poor quality. Such a document cannot lead to a fruitful public discussion.