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SEMINARS ON WASTE MANAGEMENT IN 10

MEMBER STATES (19/03/2013) TOPIC 2 – GOVERNANCE

M. GILLET OFFICE WALLON DES DECHETS Avenue Prince de Liège, 15 - 5100 JAMBES martine.gillet@spw.wallonie.be

WALLOON REGION / WASTE HIERARCHY AND PAYT SYSTEMS

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•16,844 km²

•3,525,540 inhab.(2011)

•GDP: €24,489 per capita (IWEPS 2011)

•262 municipalities

•8 public associations for waste management

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municipalities are the competent authorities for local taxation on housewold waste management

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• Non-selective kerbside collection systems (NSKCS): household waste (and the like); • Selective kerbside collection systems (SKCS): bulky waste, PMC, paper/cartons, garden waste, food waste, glass, etc.; • Collection in bring sites (BS): mineral oils, glass, textiles, etc.; • Collection in containerparks (WCP): All of the waste streams collected in WCP.

Tonnes of household waste (and the like) collected in Wallonia, 2000-2010, by collection method. Source: Results of Walloon Waste Plan H2010

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Quantities of household waste recycled (material), recovered (energy), and landfilled in Wallonia, 2000-2010 (by intermunicipal association and type of processing, in metric tonnes) – Source: Results of

Walloon Waste Plan H2010

60%

40%

60 %

40 %

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5 Rem.: As the table is limited to household wate, the following is not included: tyres and photographic

waste

Changes in non-municipal financing sources in the area of waste management

*In theory, there is full payment of the true cost of collection and processing of waste for which take-back is compulsory

Action Before (1995) 1998-2008 From 2009 on Source of financing

Prevention, Awareness-raising, & Communication

€0/inhab €0.5/inhab €1/inhab + FOST Plus Fund

Walloon Region + FOST Plus

Selective collection of glass 0% 100%* 100%* FOST Plus

Selective kerbside collection of paper/cartons

0% 100%* 100%* 70% Walloon Region 30% FOST Plus

Selective kerbside collection of organic matter

€0/metric tonne €32.5/metric tonne €32.5/metric tonne Walloon Region

Containerparks APE aid (staff)

APE aid (staff)

APE aid (staff)

Walloon Region

Other, packaging (PMC, etc.) 0% 100% 100%* FOST Plus

Hazardous household waste 100% 100% 100% Walloon Region

Batteries 0% 100% 100%* BEBAT

Cooking oil and grease 0% 100% 100%* VALORFRIT

Motor oils 0% 100% 100%* VALORLUB

WEEE 0% 100% 100%* RECUPEL

Expired medication 0% 100% 100%* PHARM SECTOR

Agricultural plastics 0% €1240/municipality €1500/municipality Walloon Region

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Planned under the revision of the Walloon Waste Plan: a) regional subsidy to boost the selective collection of the following new waste streams: Construction PVC Styrofoam Fibreglass Tarpaper roofing material Glass panes Non-agricultural plastic films Plaster

b)take-back or financing obligation for: Mattresses Textiles Hazardous household waste produced in a scattered pattern

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* Rem.: The table gives the baseline rates. These rates may be increased for the cases stipulated in the Walloon Government Decree (AGW) of 13 December 2007.

Investment subsidies – Walloon Region

1995 1998 2004 2007 OWD proposals

Containerparks 85% 85% 85% 85% 85%

Composting/Biogas production 85% 85% 50% 35% 35%

Sorting/crushing Processing of bulky waste 85% 75% 50% 35% 35%

Incineration with energy recovery 85% 65% 45% 30% 0%

Landfilling 85% 0% 0% 0% 0%

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TAXATION OF HOUSEHOLD WASTE IN THE WALLOON REGION

Instrument 1

Instrument 2

Landfilling tax rate trends in Wallonia between 2007 and 2012 (EUR/m.t.)

Type of waste Tax rate (in EUR/metric tonne of waste)

2007 2008 2009 2010 From 2012 on

Non-hazardous household

waste 0 20 20 60 62,indexed

Hazardous household waste 0 25 25 65 67,indexed

Incineration tax rate trends between 2007 and 2012 (EUR/m.t.)

Type of waste 2007 2008 2009 2010 2011 From 2012 on

Non-hazardous waste with heat recovery 0 3 3 6 6.13 8.10

indexed Non-hazardous waste without heat recovery 0 10 10 25 25.55 50

indexed Hazardous waste with heat recovery 0 10 10 12 12.26 24

indexed Hazardous waste without heat recovery 0 15 15 30 30.65 60

indexed

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TAXATION OF HOUSEHOLD WASTE IN THE WALLOON REGION

Instrument 3

Type of municipality Municipal tax cut-off in line with household waste production (kg/inhab).

<10,000 inhabitants 200 kg/inhab.

10,000-25,000 inhabitants 220 kg/inhab.

>25,000 inhabitants 240 kg/inhab.

New proposals

Type Typology Mean = new cut-off

I Municipalities based on tourism and agriculture 130 kg/inhab./yr

II Residential urban municipalities 165 kg/inhab./yr

III Industrial municipalities 170 kg/inhab./yr

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CONCLUSIONS

1. The rise in selective waste collection has been accompanied by major diversification of non-municipal financing sources.

2. The principle of the producer's responsibility has led to an increase in the number of private entities financed by taxes levied on the purchase of a new product. This financing scheme transfers part of the financial burden of waste management from the taxpayer to the consumer.

3. The region sets the legislative framework, which has a major influence on the distribution of costs amongst the players. Speaking of the cost of household waste management for the municipalities is meaningful only in respect of a well-defined legal framework. In the Walloon Region, the principle of the producer's responsibility is aimed at taking account of the full true cost of collecting and processing the waste in question.

4. The region's subsidies are changing in line with the waste management hierarchy.

5. The same applies to the regional tax scheme, which since 2008 has provided for: - a gradual increase in the tax on landfilling household waste and - the institution of a progressive tax on incinerating household waste that will be increased if energy is not recovered.

6. Other initiatives, such as the bans on landfilling, will also shift household waste management patterns and, consequently, their cost for municipalities.

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* Part 2 – Municipal tax policy: a key household waste management

instrument

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CHARACTERISTICS

- population density

- sociological profile

- tourist attractions

WASTE MANAGEMENT OPTIONS

- kerbside collection (frequency)

- containerparks

- bring sites

- attitudes towards SMEs/shops

PREVENTION POLICY

THE MUNICIPALITY AND ITS ENVIRONMENTAL PERFORMANCE

COMMUNICATION INSTRUMENTS

REGULATORY ASPECT

- municipal regulation and management thereof

FINANCIAL RATIONALE

- tax regulation

- true cost

municipal/intermunicipal contract

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(Most important)

When we assess the municipalities' waste generation performances, we see that the figures are influenced by several variables. Whilst prevention policy definitely plays a role, so do service charges and the municipality's characteristics.

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Évaluation des performances des communes de la Région wallonne en matière de gestion des déchets ménagers au regard de leur cadre réglementaire et fiscal

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Influence de la tarification sur les tonnages

no incentive

volume incentive

weight incentive

0

50

100

150

200

250

300

350

400

450

500

550

1996 1997 1998 1999 2000 2001 2002 2003

OM

B (k

g/ha

b.an

)

Evolution de la représentation des grands types de tarification

0%

20%

40%

60%

80%

100%

1997 1998 1999 2000 2001 2002 2003

% d

es c

omm

unes

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0

20

40

60

80

100

1997 1998 1999 2000 2001 2002 2003

If we examine the influence of the ways waste collection rates are set on the tonnes generated, we see that pay by weight schemes are more effective than

pay by volume schemes.

Wallonia recently redid a multivariate analysis of its statistics that yielded the same overall outcome. 13

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The municipalities have adopted a waste-reducing price incentive. The issue has now shifted to the pros and cons of distributing prepaid bin bags, given

that the more they are distributed, the weaker their preventive effect.

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Average price of a 60-l bag.

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Taxed bin bag price trend (60 l)

2005 2007 2009 2011

Mean price 0.86 0.87 0.93 1.04

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Another debate concerns social measures, to the extent that the notion of the true cost of waste management pays no attention to the user's ability to pay.

• If social measures exist, the mean reduction in the tax for their beneficiaries is 67.4%.

• The mechanisms instituted are extremely varied (more than 700!). No harmonisation of measures.

• The mean percentage of beneficiaries of these social measures in the municipalities is 4.1%.

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Wallonia intends to have an observatory of these measures with a view to making recommendations.

INTERMUNICIPAL WASTE MANAGEMENT ASSOCIATION

Total number of inhab. benefiting from social

measures

% of social measure beneficiaries/total

inhab.

BEPN 4,299 2.3% IBW 1,691 1.1% ICDI 14,852 8.9% IDEA 9,356 4.6%

IDELUX 3,649 2.7% INTERSUD 2 0.0% INTRADEL 23,716 5.6%

IPALLE 360 0.3%

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THE TRUE COST OF WASTE MANAGEMENT

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This tool is based on the principle that people must pay the true cost of the waste that they produce.

Wallonia has created the notion of the 'true cost coverage rate', i.e.,

Sum of income Sum of expenses

X 100

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The idea is to circumscribe the costs better and gradually have a service that pays for itself.

Polluter pays principle

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THE FOLLOWING SOURCES OF INCOME ARE CONCERNED (Article 10) : 1. Taxes collected to cover the minimum service.

2. Income from the sale of refuse bags for residual household waste or labels.

3. Rental and sale of dual wheelie bins and skips.

4. Price paid for weight of waste and emptying of bins and skips not included in the taxes stipulated in line 1.

5. Fee for picking up bulky items not included in the taxes mentioned in line 1.

6. Fee or tax for picking up waste from normal household activities that has been dumped or set out incorrectly.

7. Portion of the tax on second residences earmarked for household waste management and not included in the taxes mentioned in line 1.

8. Income from the sale of sorted waste.

9. Regional and provincial subsidies received by the municipality directly.

10. All other taxes received to cover additional services.

11. Bonuses or rebates received by the intermunicipal association under the obligation to take back household packaging waste.

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Various taxes and/or fees levied by the municipality to finance waste management

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THE FOLLOWING EXPENSES ARE CONCERNED (Article 9): 1. Purchase of bags or labels for waste collection.

2. Depreciation of the purchase or rental of dual wheelie bins or skips.

3. Selective kerbside collection and processing of waste such as paper/cartons, bulky items, food waste, garden waste, and textiles.

4. Collection of residual household waste, including payroll and expenses linked to sanitation vehicles.

5. Processing of residual household waste.

6. Management costs for containerparks and other drop-off points, including payroll expenses and user bonuses.

7. Prevention campaigns, including the promotion of composting.

8. Printing and dispatch of tax assessments, invoices, and pick-up schedules for the year, including the costs of reminders and recovery procedures.

9. Membership fees to the intermunicipal association managing waste, including for the items referred to in lines 3 to 7 inclusive when these operations are entrusted to the intermunicipal association, in compliance with the breakdown set in Article 12.

10. Maintenance and rental of glass collection bins.

11. Repayment of loans related to waste.

12. All services required for municipal administrative management of waste and providing the population with waste management support.

13. Costs of the measures taken by the Provincial Governor if the municipality fails in the performance of services.

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Collection

Treatment

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Year Bottom rate Top rate 2007 and before 70%

2008 75% 110%

2009 80% 110%

2010 85% 110%

2011 90% 110%

From 2012 on 95% 110%

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Gradual advent

The incentive: Linking the granting of regional subsidies to the true cost coverage rate, which must be within the range.

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High scatter of rates (from 0 to 300%) and thus great inequality amongst citizens when it comes to paying for the service

Scatter of real true cost coverage rates in municipalities in 2002

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Scatter of the real true cost coverage rate of municipalities in 2005

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The spread has narrowed

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Scatter of the real true cost coverage rate of municipalities in 2009

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The spread has narrowed

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The spread is narrowing more and more and thus the population is being charged for services more equitably.

Scatter of the real true cost coverage rate of municipalities in 2011

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More information?

www.environnement.wallonie.be/ solsetdechets/rapportsdelaDPGDM

Thank you very much for your attention.