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

2. GENERATION AND RECYCLING OF WASTE PRODUCTION AND CONSUMPTION IN THE RUSSIAN FEDERATION - generation, (x10 9 tons) -recycling, (x10 9 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 MSW, mill. tons. - recycling MSW, % GENERATION AND RECYCLING OF MUNICIPAL SOLID WASTE IN THE RUSSIAN FEDERATION 54,6 57,1 58,8 60,3 12,1 11,7 13,6 10,1 2008200920102011 69,5 9,6 2012 3

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

5. Purpose of the installation Average cost of the installation construction, normalized to 1 ton MSW, EUR Quantity of MSW, million tons Necessary financial resources, bn. EUR Separate MSW collection in a point of generation 303018,20,6 Mechanical sorting of MSW 8057,374,6 Waste incineration plant7805,14,0 MSW landfill15523,153,6 TOTAL:≈ 12,8 EVALUATION OF NECESSARY FINANCIAL RESOURCES FOR PROVISION OF INFRASTRUCTURE ON MSW RECYCLING AND DISPOSAL 2. Operating costs 0,6 – 0,9 bn. EUR per year (5-7 % of capital costs) 1. Provision of infrastructure: 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. IMPLEMENTATION ACTS OF OECD IN THE FILD OF WASTE MANAGEMENT DEVELOPMENT OF ECONOMIC INSTRUMENTS: DEVELOPMENT OF EFFECTIVE REGULATION Redistribution of powers between local authorities and the subjects of the Russian Federation Adoption of territorial waste management schemes consumption Establishment of special environmental requirements for waste treatment groups and to infrastructure Transition from licensing to partial self- regulation in the field of waste management consumption I-IV class of danger 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 Creation of a state fund for waste management consumption Setting norms MSW accumulation population DRAFT LAW № 584399-5 (SECOND READING) 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 ESTABLISHING A LIST OF GOODS, SUBJECTED TO MEET UTILIZATION NORMS AND FOR WHICH UTILIZATION FEE IS TO BE PAID glass composite materials PETF Paper and cardboard PACKAGING metal Household electrical and electronic products Mercury-containing fluorescent light bulbs, appliances, including energy saving ones Tyres Furniture products By groups of similar items (by composition and /or destination) 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 The list of goods (products), recyclable (usable) 9

10. THE SCHEME OF PERFORMING THE OBLIGATIONS OF MANUFACTURERS, IMPORTERS OF GOODS (PRODUCTS) RELATING TO UTILIZATION (USE) Self-fulfillmentUtilization fee payment (environmental fee) Manufacturers, importers of goods (products) (alternative options) 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 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 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 Profitable part of the FUND Utilization fee (ENVIRONMENTAL CONTRIBUTIONS) PENALTIES FOR VIOLATION OF RULES AND STANDARDS The formation and use of state budget allocation fund established by the Government of the Russian Federation voluntary income 11

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

13. RESULTS ADOPTION AND IMPLEMENTATION OF BILL № 584399-5 «WASTE..." 1) formation of financial flows for infrastructure for waste management 2) targeted spending of funds for infrastructure development and maintenance costs 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 More effective regulation of waste management: Economic incentives in waste management: 13

14. 8. TRANSITION PERIOD TO INTRODUCE PRINCIPLES AND MECHANISMS TO BUILD AN INTEGRATED WASTE MANAGEMENT SYSTEM Entering into force of the federal law – 1 st January, 2016 A ban on disposing the certain types of wastes – 1 st January, 2017 Mandatory self-regulation in the field of consumption waste management – 1 st 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 dated March 6, 2012 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 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)

17. documentation duties wastes V wastes I-IV NEW EDITION OF THE ARTICLE 8.2 OF ADMINISTRATIVE CODE 1.Failure to comply with sanitary requirements (as amended); 2.Failure to comply with environmental requirements and standards for waste management of I-IV classes of hazard; 3.Failure to comply with environmental requirements and standards for handling the wastes of V class of hazard; 4.Dereliction of duty for monitoring, organization and implementation of industrial control, the restoration of disturbed lands; 5.Lack of environmental documentation (passports for wastes of I-IV classes of hazard, registration, form #2-TP (wastes)). Sanitary requirements 17

18. ORDER OF THE RF GOVERNMENT № 712 “ON PROCEDURE OF CERTIFYING THE WASTES OF I - IV CLASS OF HAZARD” DATED 16.08.2013 FCWCWaste data bank Types of wastes in the Federal Classification Waste Catalog (FCWC) No waste types in FCWC Economy entity Drawing up of the waste passport in a declarative form (without any approvals) Order of the Ministry of Natural Resources of Russia №792 “On approval of the State Waste Cadastre“ dated 30.09.2011 Draft Order of Ministry of Natural Resources of Russia “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 0 – when disposing wastes from the mining industry of V hazard class by filling artificially created cavities; Reduction factors to pay for waste disposal: 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; 0,33 – when disposing wastes of IV 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; 19

20. ECONOMIC INCENTIVES FOR PRODUCTION WASTE MANAGEMENT Procedure of payment offset for negative impact on the environment: 1.when introducing the low-waste and resource-saving technologies and equipment; 2.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 Ministry of Natural Resources of Russia “On Amendments to the Accounting Procedure in the field of waste management” 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 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” Draft Order of Ministry of Natural Resources of Russia “On Approval of recommendations for the developing the projects of waste generation and disposal limits” 21

22. TRANSBOUNDARY MOVEMENT OF WASTES “Green” control procedure “Yellow” control procedure 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 22 Without the transboundary movement permission With the transboundary movement permission

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