1. Implementation of Extended Producer
Responsibility Schemes in Ukraine
Alexander Semenets
Ministry of Ecology
and Natural Resources of Ukraine

2. Resolutions of the Cabinet of Ministers of Ukraine have been
passed:
∗No. 1136 of 27 July 2011 regarding some matters of collection,
stockpiling, and recovery of used tyres
∗No. 843 of 3 September 2012 regarding some matters of
stockpiling and recovery of end-of-life motor vehicles
∗No.1221 of 17 December 2012 regarding some matters of
collection, disposal, disinfection and recovery of waste oils
Implementation of Extended Producer
Responsibility Schemes

3. Draft Government resolutions governing the following matters
have been prepared and are being agreed:
∗Collection, stockpiling and disinfection/recovery of waste
containing mercury or its compounds
∗Medical waste
∗Waste electrical and electronic equipment
Implementation of Extended Producer
Responsibility Schemes

4. The following laws of Ukraine were passed on 4 July 2013:
On Recovery of Motor Vehicles;
On Amendments to the Tax Code of Ukraine regarding
environmental tax for recovery of end-of-life motor vehicles
and improvement of some tax provisions.
Implementation of Extended Producer
Responsibility Schemes

5. Resolution of the Cabinet of Ministers of Ukraine No. 915 of 26
July 2001 on the implementation of the system of collection,
stockpiling, and recovery of waste as recoverable resources
Minimum packaging recovery rates were set as percentage of total
quantities: 25% in 2009; 30% in 2010; 35% in 2011 and beyond.
Economic entities can collect packaging individually or enter into
a service agreement with state enterprise Ukrecoresursy.
Implementation of Extended Producer
Responsibility Schemes

6. Packaging material Tariffs, EUR/kg
Cardboard, paper 0.031
Plastic 0.739
Glass 0.013
Metal:
tin 0.035
aluminum, foil 0.095
other 0.017
Combined 0.108
Natural (wood, textiles) 0.017
Other 0.024
Tariff at half the rate is set for foodstuffs for children and
medicines.
Implementation of Extended Producer
Responsibility Schemes

7. Consumers pay for the same service three times:
∗As imported products undergo customs clearance – to
Ukrecoresursy or other entities
∗For actual recovery of waste packaging at production facilities or
retailer – to specialized entities
∗For disposal of municipal solid waste – to local housing and utilities
offices and services.
In other words, consumers pay for the costs of customs clearance and
recovery as part of the price of packaged products, and for MSW
transportation services as part of housing and utility tariffs.
Procedure in Force in Ukraine

8. Charges Paid by the Population in Ukraine
From residential
buildings in cities/towns
From business entities engaged in:
• public catering;
• commerce, markets;
• exhibitions, sports;
• domestic services;
• other.
From spending
institutions:
• administrative
• educational
• health
• other
Through payments as
part of tariffs set by
local governments As part of prices for products and
services
As part of taxes/charges
payable to the budget
Municipal solid waste transportation services
Population in
Ukraine
Waste packaging recovery services
As part of product price As part of product price
Ukrecoresursy or other entities that
do not provide services
Specialized firms that really provide
waste collection and recovery
services

9. ∗ Government Resolution No. 915 vested state enterprise
Ukrecoresursy with the functions of setting up and ensuring
the operation of collection and stockpiling of waste as
recoverable resources.
∗ The enterprise was founded to engage in the economic activities in
this sphere.
∗ It enters into contracts on separate collection, recycling and
recovery of waste as recoverable resources with specialised
enterprises.
Extended Producer Responsibility:
Implementation Challenges

10. ∗ As per the enterprise’s Charter, its activities also include
participation in the implementation of state policy in the area of
collection and stockpiling of waste as recoverable resources.
∗ Thus, it is obvious that one state enterprise combines the
responsibilities of state governance and control, on the one
hand, and economic responsibilities, on the other.
Extended Producer Responsibility:
Implementation Challenges

11. Failure to ensure fulfilment of waste packaging collection and
recovery tasks:
∗Ukrecoresursy holds a monopoly in organising the collection
and recovery of waste packaging
∗Abuse by economic entities: fictitious contracts, shadow
turnover of funds, lack of actual packaging collection services
∗Setting up an efficient system for separate collection and
treatment of waste packaging at the expense of economic entities
and raising additional funds in this area should be governed by
law.
Extended Producer Responsibility:
Implementation Challenges

12. ∗ Only producers can be owners.
∗ Paying direct or indirect dividends is prohibited, all the profits
should be reinvested.
∗ Organisation is accredited/licensed by the state.
∗ Producers have a right to delegate their waste packaging-related
responsibilities to the organisation.
∗ Local governments are obliged to cooperate with the organisation
and develop jointly the most efficient packaging collection
scheme for a specific local government.
∗ Producer organisation owns the collected packaging.
Key Conditions for Effective Functioning of an
Operator in the Scheme

13. ∗ Allows individual enterprises to control own costs related to the
adverse environmental impact of waste packaging.
∗ Separate collection of waste packaging is funded by obligated
entities.
∗ Provides for the incorporation of justified costs of separate
collection, treatment, and transportation of waste packaging for
subsequent recovery into the price of packaging and of packaged
products.
∗ Creates conditions for continuous increase in the used amount of
waste packaging as recoverable resources.
Key Provisions of the Draft Law on
Packaging and Packaging Waste

14. 14
Waste Packaging Treatment Scheme
Obligations to recover and meet waste
packaging recovery rates
System operator
organisation authorised to
comply with packaging
recovery rates
System operator
organisation authorised to
comply with packaging
recovery rates
Distributors
Distributors
Wholesalers and retailers
Wholesalers and retailers
Obligations to organise separate
collection and treatment
Agreement:
On
compensation
of costs
related to
separate
collection
of waste
packaging
Specialized
firms
engaged in
collection of
waste as
recoverable
resources
Specialized
firms
engaged in
collection of
waste as
recoverable
resources
Local
governments
Local
governments
Producers of packaging,
packaged products
Producers of packaging,
packaged products
Agreement:
delegation of
recovery rate
obligations to
scheme
operator
Importers
Importers
Ministry of
Ecology &
Natural
Resources
- registration of
obligated entities
- operator
accreditation
- approval of
five-year operator
activity program
Ministry of
Ecology &
Natural
Resources
- registration of
obligated entities
- operator
accreditation
- approval of
five-year operator
activity program
Waste recovery Recovery rate
rate report enforcement
Waste Law No.187/98Draft Law on Packaging and Packaging Waste
Obligated entities
Ministry of
Regional
Development
approval of
five-year operator
activity program
Ministry of
Regional
Development
approval of
five-year operator
activity program

15. Waste tyres:
∗Resolution of 2011 has been practically non-operational due to
absence of approved tariffs for tyre collection services and tyre
collection procedure
Waste oils:
∗Importers and producers pay EUR 0.064/litre of oil
∗Reporting on obligations has not been approved
∗It is impossible to establish real volumes
Challenges of Implementation of Laws on
Other Waste Streams

16. Motor vehicles:
∗Resolution No. 843 of 3 September 2012 is being abrogated
because the Law of Ukraine on Recovery of Motor Vehicles has
been passed.
∗Law of Ukraine on Recovery of Motor Vehicles:
∗ 287 collection points and 88 stations for the dismantling of motor
vehicles have been set up
∗ Monthly revenue from the environmental tax amount to about
EUR 6.4 mln
∗ Allocation of revenues from the tax has not been determined
Challenges of Implementation of Laws on Other
Waste Streams

17. Thank you!
Any questions?