Waste Strategy & Regulation‘a UK perspective’

Dr. Adam Read – DirectorWaste Management & Resource Efficiency, AEA

Presentation to the Waste , Recycling Industry Association (QLD) inc26th October 2012Brisbane

A world leadingenergy and climatechange consultancy

2

Presentation scope in 30 minutes …

+ Personal welcome

+ The legislative framework

+ Waste strategy development

+ Drivers for change:

- Fiscal Landfill tax

- Regulatory Permitting and exemption regime

- Market Development Quality Protocols

+ In summary – what can we learn?

+ Open Q&A….

3

A personal welcome

+ Dr Adam Read- Practice Director @ AEA for Waste Management & Resource Efficiency- 18 years of operational expertise - 80 consultants (UK) plus 50 in the US- Former Local Authority Recycling Officer (RB Kensington & Chelsea)- Working with EA on new technologies and infrastructure delivery- Client Manager for WRAP (UK delivery agency)- Designed and rolled out innovative new collection schemes (15 years)- BUT I am not a regulator (this is important – watch this space)

+ Acknowledgements- AEA team (my co-authors)

Nia Owen and Maria Vinogradova- My clients for allowing me to ‘share’ their experiences (off record)- The organisers for the invite (thanks Rick & Georgina!)

4

http://www.aeat.com

AEA delivers over £90 million annually of energy, environmental, resource efficiency, transportation, and climate policy support and program implementation services to:

UK Government

US Government

European Commission

International Institutions

…. waste management, carbon management, climate change strategies, transport, resource management, life cycle assessment, sustainability, energy efficiency, clean energy, GHG inventories, adaptation, behaviour change ….

Practice Areas:+ Air and Environmental Quality+ Chemical Emergency & Risk

Management+ Energy & Climate Change+ Enterprise Services+ Information Management+ Knowledge Management+ Sustainable Transport + Resource Efficiency and Waste

Management

Our Scope of Services

Expertise:

WRATE / Carbon Modeling Audits Procurement Support Technologies / Cost / Barriers Policy Development Stakeholder Engagement /

Communications Service Efficiencies Knowledge Management &

Transfer Training

…. experience at the interface of government, business, and academia 5

EU Policy

6

7

EU Waste Framework Directive

+ Dates back to the 1970s

+ Enshrines the waste hierarchy within the WFD

+ Transferred to national law by each member state- Enacted through policy / strategy

+ Recent change to prioritise ‘reuse’

+ National Waste Management Strategy

+ National Waste Minimisation Strategy

+ Infraction if fail to comply….

Prevention

Preparing for reuse

Recycling

Other recovery

Disposal

Landfill Directive - 2000

+ Scaling back of organic material to landfills compared to 1995 …

8

9

The EU Landfill Directive

+ EU Landfill Directive – address landfill’s environmental impacts- BMW reductions required to mitigate fugitive CH4 emissions- Pre-treatment of landfilled materials- Landfill waste acceptance criteria (WACs)- Landfill design, operation, completion and closure requirements

+ BMW Landfill targets for the UK- 75% of 1995 level by 2010- 50% of 1995 level by 2013- 35% of 1995 level by 2020

+ Required all stakeholders to work together- National legislation & policy- Support programmes - Engagement & Education- Collection and Treatment providers

Waste arisings – 2010/11

+ Million tonnes per annum

10

Waste Type Scotland Wales Northern Ireland

England

Municipal 3.14 1.63 0.94 26.3

Household 2.82 1.39 0.83 23.3

C&I* 6.5 3.6 1.3 48.0

C&D* 7.6 12.2 1.7 77.4

The predicted ‘need for change’ …

0

10

20

30

40

50

60

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

Mil

lio

ns t

on

nes

pe

r a

nn

um

Non-biodegradable Municipal Waste

Biodegradable Municipal Waste Requiring Diversion

Biodegradable Municipal Waste Allowed to Landfill

11

What does this mean?

+ This now includes C&I wastes….. GAME CHANGER!- A major shift in how the UK defines MSW!!!!

12

Implementation of EU Policy & National waste strategy development

13

UK Government

+ UK is responsible for reporting to EU on policy progress

+ National Administrations set policy and monitor performance- England- Scotland- Wales- Northern Ireland

+ Local Government set strategy, deliver services and respond to local ‘demands’- Funded by UK taxation- Funded by local Council Tax- Elected ‘members’ 14

Implementation … nationally …

+ Waste Strategy for England 2007- Waste Review 2011 (some minor revisions in priorities)

+ Scotland Zero Waste Plan 2010

+ Wales Towards Zero Waste strategy 2010

+ Northern Ireland Waste Strategy 2006 (now under review)

15

“Strategy wars” – political objectives!

16

County Policy/Strategy Year Recycling Landfill Incineration

England

Government Review of

Waste Policy in England) Waste

Strategy for England

(2011)2007 50% by 2020

35% of 1995 levels by 2020

(biodegradable)

Scotland Zero Waste Plan 2010 70% by 2025 Maximum 5% by

2025

Wales Towards Zero Waste 2010 70% by 2025 Maximum 5% by

2025Maximum 30% high efficiency EfW by 2025

Northern Ireland

Towards Resource

Management2006

50% by 2020 (HHW), 60% by

2020 (C&IW)

35% of 1995 levels by 2020

(biodegradable)

Levels of ambition

England Scotland Wales

Targets beyond EU Landfill and Waste Framework Directives û ü ü

Restrictions on waste managed through incineration i.e. not just landfill substitution û û ü

Enforced source segregation of food waste û ü û

Landfill ban considerations ü/û ü ü/û

Individual authority targets and guidelines on collection systems û ü ü

17

Divergence?

+ Wales and Scotland are now clearly leading in terms of waste strategy- Clear centralised leadership- High priority issue- Ambitious targets beyond

statutory EU limits

+ Wales and Scotland have fully embraced Zero Waste as a policy concept- Used as a philosophy to drive

change- Zero waste to landfill initially- One Planet Living (Wales)- Carbon mitigation (Scotland) 18

Does it make a difference???

19

2001/2

2002/3

2003/4

2004/5

2005/6

2006/7

2007/8

2008/9

2009/10

2010/11

0%

20%

40%

60%

80%

100%

120%

England

Scotland

Wales

Re

du

cti

on

in M

SW

La

nd

fille

d (

% 0

f 2

00

1/2

lev

els

)

+ Look at Scotland catching up after strategy…

+ The proof will come in a couple of years’ time…

20

And the scores are………………………

Municipal Recycling Rates

1. 48% of household waste was recycled and composted in Wales during the financial year 2011-12, representing a 4% increase on the previous year

2. Recycling rate for English councils was 42.5% between October 2010 and September 2011

3. Scotland reached a household waste recycling and composting rate of 40.7% for 2011

21

Fiscal Driver: landfill tax

Landfill tax escalator

22

+ Landfill becomes unviable as tax increases

+ Tax is applied before gate fee

+ Gate fees at landfill c. £50-75/ tonne

+ Gate fees at EfW plants will be c.£70-£100 / tonne

+ Landfill stopped making financial sense in 2009-10 01

.10.

9601

.04.

9701

.04.

9801

.04.

9901

.04.

0001

.04.

0101

.04.

0201

.04.

0301

.04.

0401

.04.

0501

.04.

0601

.04.

0701

.04.

0801

.04.

0901

.04.

1001

.04.

1101

.04.

1201

.04.

1301

.04.

14

£0

£10

£20

£30

£40

£50

£60

£70

£80

£90

Standard Inert

Impacts!

23

Solutions….. in England

24

25

UK Regulatory Framework

26

Waste Regulation

+ Enforcement:- Environment Agency in England & Wales*- SEPA in Scotland- EPA in Northern Ireland

*Wales is to have its own enforcement body from April 2013

+ EU is key driver for legislation:- Waste Framework Directive- Landfill Directive- Producer Responsibility (by material and sector)

+ Each member state is responsible for implementing legislation- significant differences in approach across the EU (voluntary vs. mandatory)

+ Within the UK each Country is also developing its own approach

Increasing focus on C&I wastes …

27

Private sector will invest!

+ Recognition that change wouldn’t happen without interference

+ Scotland have introduced the Waste (Scotland) Regulations 2012

+ Requirements:- Separate collection of metal, plastic, glass, paper and card from 1st January

2014 from all HHs and businesses- Food businesses (except in rural areas) which produce > 50 kg of food

waste per week to present that food waste for separate collection from 1st January 2014

- Food businesses (except in rural areas) which produce > 5 kg of food waste per week to present that food waste for separate collection from 1st January 2016

+ Regulations also ban the use of non-domestic food waste disposal units, i.e. macerators- avoid food waste being diverted to the sewers!

28

Statutory (mandatory) Targets for MSW

+ Wales have introduced statutory recycling targets for MSW under the Waste (Wales) Measure 2010:- 2012-13: 52% …… 2015-16: 58%- 2019-20: 64% ….. 2024-25: 70%

+ Waste must have undergone a relevant recovery operation so that it has been reprocessed into a product, material or substance, whether for its original or other purpose to be counted in these targets- e.g. Compost must meet the requirements of Compost QP

+ Markets are critical to achieving recycling rates

+ Government are part funding quality collection systems- Influence what is happening without mandating solution

+ Failure to comply with statutory targets = financial penalties ££29

30

Regulatory Driver – Permitting & Exemption System

31

Environment Agency

+ Regulator for England and Wales - risk based approach to regulation

+ Executive non-departmental Public Body

+ Permits and licenses

+ Pollution control

+ Research activities

+ Data collection

+ Staff: 11,500

+ Budget: £1.1 billion- £750 million – from Central Government- £350 million – charged income

Environmental Permitting Regime

+ Any waste operation will normally require an authorisation:

+ Environmental permits issued by the Environment Agency

+ The waste operation must operate within the controls laid out in the environmental permit

+ Types of operation requiring a permit are:- Waste transfer stations- Materials recovery facilities- Incinerators 32

Bespoke Permit

Standard Permit

Exemption

Risk

Risk based regulation

+ The theory behind the Environment Agency approach- aim to reduce red tape and help businesses

+ Regulate poor performers and complex operations more rigorously!

+ Proportionate regulation and enforcement

+ Environment Agency offers a range of permits- Standard permits for low risk operations- Exemptions (no license, but on the radar)- Bespoke permits for complex / large operations

+ Operator Risk Appraisal: Opra- Charges and inspections are risk-based!

+ There is no operating outside the system33

Closing down the ‘worst’ offenders

34

Closure of most of the 8,000 licensed facilities

Standard permit

+ Rules are set out in the Standard Rules document so that an applicant will know exactly what they have to comply with before they make an application

+ Conditions may include:- Proximity to housing- Nature conservation- Type and quantity of materials accepted

+ The application process is simpler and less time consuming as a risk assessment (generic for that type of facility) has already been prepared and the application requirements are reduced

+ Application fees for standard permits are cheaper than for bespoke permits, and are determined more quickly

35

36

Exemptions

+ Lower risk activities can operate under an exemption from environmental permitting which must be registered with the Environment Agency, and operated under the controls set

+ An exemption from a waste permit can be grated if:

- Waste is recovered or disposed of without endangering human health and without using processes or methods which could harm the environment and in particular without risk to water, air, soil, plants or animals; or causing nuisance through noise or odours; or adversely affecting the countryside or places of special

interest

Exemptions

+ Types of operations that can operate under a permit are:

- Composting facilities which are processing waste generated on-site- Storage of waste in a secure place- Sorting of scrap metal

+ How are new waste operations managed?

- New operations normally require an environmental permit- However, ‘low risk solutions’ will be considered by the EA

where requiring a permit (no exemption exists) would be disproportionate to the risk posed

37

Bespoke Permits

+ Bespoke permit needed if no exemption or standard rules permit is appropriate to your operation

+ Application must include detail on control of risk

+ Statutory consultation required & determination can take 13 wks

+ Charges - permitted sites pay a subsistence fee based on the OPRA (operational risk appraisal) charging scheme, i.e. charges & inspection frequency are risk based- Complexity- Inputs & emissions- Location- Operator management systems & performance

+ Enables Environment Agency to regulate poor performers and complex operations more rigorously

38

Enforcement

+ Environment Agency enforcement policy aims:

- “To stop offending – aim to stop an illegal activity from continuing/occurring;- To restore and/or remediate – aim to put right environmental

harm or damage.- To bring under regulatory control – aim to bring an illegal

activity into compliance with the law.- Punish and/or deter – to punish an offender and/or deter

future offending.”Environment Agency

39

Proceeds of Crime Act

+ Allows a Court to deprive convicted offenders of assets gained from crime. But can only be used following a guilty verdict

+ EA can:- Ensure environmental crime does not continue- Investigate finances to establish and find hidden profits- Stop the disposal of assets whilst investigations is underway- Present evidence to court for a confiscation order – i.e. how much the

offender has to pay. Failure to pay – prison sentence- Remove profits, even if offender serves a jail sentence

+ Confiscations in 2011:- Number of on-going financial investigations:132- Number of confiscation orders: 26- Total confiscated:

£2.2m- Highest confiscation:

£0.9m

40

Driving up standards….

41

Taking out the bad guys leaves the

good guys ready to invest and develop…

All good for economic

development and resource security!

Prosecutions

42

Prosecutions

43

Types of illegal waste sites

44

Market Development

WRAP

+ Government funded organisation

+ Aims to help businesses, individuals and communities reap the benefits of reducing waste, developing sustainable products and using resources in an efficient way

+ Areas of action:- Preventing food and drink waste- Increasing the resource efficiency of products- Increasing the resource efficiency of construction and refurbishment

projects- Improving the collection of materials for recycling and reuse- Helping SMEs to become more resource efficient- Increasing the reuse and recycling of priority products- Recycling organic waste and recovering energy

+ Market development is key!! 45

Encouraging waste use as a resource

+ What is waste?- “All waste derived materials continue to be a waste until the point at which

the beneficial properties are realised”

+ When has waste been fully recovered?- Distinct and marketable- Suitable for use- No greater risk to the environment or human health and than the virgin

equivalent

+ By identifying more and more secondary materials as no longer waste, the industry and the regulator both maximise the value of resources – allowing them to compete with primary materials

+ This can only be achieved by the regulator, market developer and industry working together!

46

Quality …

+ Is about consistently delivering materials to the marketplace that are - effectively separated to meet customer requirements- compliant with national regulations and policies….- at a cost that is acceptable

47

Quality Supply Chain

48

Householder

Collection Crew

MRF

Reprocessor

Local Authority

Quality is a major problem ….

+ Increasing concerns about quality from the end markets

+ Less guarantees from Chinese & Indian reprocessors

+ Returned loads from Indonesia and Brazil

+ EA has clamped down on ‘waste’ exports

+ UK and EU reprocessors continually setting the ‘bar’ higher in terms of quality and consistency

+ Needs additional investment at MRF

+ Now looking at evolution of service provision …

+ Needs everyone to play their role …..

49

Pushing up quality ….

50

End of Waste – Evidence based ….

+ How can end of waste be demonstrated?- Meeting a Quality Protocol - Through an end of waste submission to the Environment Agency’s End of

Waste Panel- Compliance with EU ‘end of waste’ Regulations

+ End of waste submission (site specific approach)- Organisations can submit evidence to the EA to demonstrate that the

product they manufacture has ceased to be waste

+ EU have started to develop end of waste regulations which define criteria for materials to achieve end of waste across all member states- Composts, digestates, RDF (fuels) etc.

51

End of Waste definition

+ Operational: End of waste from scrap regulations

+ In the pipeline: paper, glass, plastics (recyclate)

+ In progress: biodegradable waste subject to biological treatment

+ Test:- “the waste has been converted into a distinct and marketable product” - “the processed substance can be used in exactly the same way as a non-

waste”, and - “the processed substance can be stored and used with no worse

environmental effects when compared to the raw material it is intended to replace”

52

UK Quality Protocols

53

Quality Protocol

Waste ceases to be

waste

QUALITY PRODUCT WASTE

+ Framework which allows user to demonstrate that the product(s) has ceased to be waste

Quality Protocols

+ Sets out the criteria which, if met, mean the product is no longer a waste …

+ QP compliant material is free of any further waste permitting

- Aggregates from inert waste- Compost- Anaerobic digestate- Biodiesel- Processed fuel oil

+ Working well in the UK… stimulating new markets for materials …. Drawing through more feedstock!

54

Compost Quality Protocol

55

Horticulture (including domestic applications)

Soil-grown horticulture

Land restoration & soft landscaping operations

Quality Protocol

Source-segregatedBiowaste

Compost Product

End Markets

Waste ceases to be waste

+ Process itself still requires permit / exemption regardless of whether the site is complying with the Compost QP

+ Material that doesn’t comply is a waste and so a permit or exemption is needed for its use, and it must be moved in accordance with Duty of Care requirements

Aggregates Quality Protocol

56

+ Impact (year 1):- Landfill diversion 21m tonnes- Landfill disposal savings £158m- Virgin raw material saved 41m tonnes- Increased sales £324m- Cost savings to business £155m- Carbon savings 105,000 tonnes/ £5.5m

Quality Protocol

Inert C&D waste

Recycled aggregate

Waste ceases to be waste

European Pathway to Zero Waste (EP0W)

+ Collaboration: WRAP and EA, funded by EU (Life+)

+ 8 Work Streams at all levels of the hierarchy – e.g. waste exchange for reuse and infrastructure delivery

+ AEA project: identifying barriers to infrastructure for business waste- Industry engagement workshops (300 specialists involved)- Bringing together a range of stakeholders – large operators, small

operators, industry organisations, advisors, funders- Promoting partnership working

+ Critical piece of work @ present….- Identify solutions and potential ‘implementors’- Report reviewed by Defra to inform its infrastructure position- Good platform for operators to be heard and demonstrate their facilities

57

58

In summary

Changing UK landscape

+ UK progresses has been driven by- EU Landfill Directive- Clear Strategy & policy- Sensible Regulation- Market Development- Infrastructure support- Increasing energy prices- Public demand- Reducing red tape

+ This has taken time….

+ All parties have to work together

+ We have had to learn some lessons and make some mistakes!

59

Regulator

Industry

WRAP - Market

Development

Govt

You must develop effective delivery tools+ EU Landfill Directive

+ Landfill Tax

+ Landfill Bans (Scotland)

+ Mandatory Recycling Targets (Scotland & Wales)

+ Voluntary Agreements e.g. hospitality sector food waste prevention

+ Incentives - Renewable Obligation Certificates (ROCs)- Renewable Heat Incentive (RHI)- Feed In Tariffs (FITs)

+ Business Engagement, Education & Support… - WRAP and ZWS BRE programmes ….- Supporting logistics of collection & reproceesing 60

Joining up the dots ….

+ Landfill Directive could not deliver change in isolation…

+ Needed landfill tax to ‘wake things up’ @ all levels- LAs wanted to change & Businesses were feeling the pinch

+ Needed technology development to treat new food waste streams- New Technology Demonstrator programme- UK AD policy statement

+ Needed new markets for the products of composting / AD- WRAP market development work- R&D, and the Quality Protocols projects- RHI / ROCs for energy production from biogenic materials

+ Needs enforcement & regulation- Targeting bad sites, driving up the baseline 61

Next steps in the UK ….

+ More focused strategy and specific policy issues- Landfill bans on organics in Scotland- Mandatory collections (target materials)

+ More focused support- Green Investment Bank- Business engagement workshops- Waste business support programmes (diversification)

+ More market development- Closed loop policies- Green purchasing & Recycled content- Quality protocols

+ More appropriate regulation- Driving up quality- Focusing on performance 62

Building blocks …. Sustainable WM!!!!!

What is the pathway for Queensland to consider?

+ Good strategy & leadership

+ Regulatory framework in tune with the policy agenda

+ Appropriate enforcement / compliance

+ Market development

+ Quality improvement – codes & protocols

+ Education & Empowerment of all stakeholders

+ Funding to ‘kick start’ initiatives

63

1 message …..

+ Avoid on-going policy uncertainty ….

+ How can BUSINESS make fundamental investment decisions?

64

65

The last slide … Questions ?

Dr Adam Read

Global Practice Director

Waste Management & Resource Efficiency

07968 707 239

adam.read@aeat.co.uk

www.aea.co.uk