Waste: factor of growth and deficit reduction

According a study, compliance with European standards of waste would permit 72 million savings and the creation of 400,000 jobs.

Illegal waste operations in Member States are causing missed opportunities for economic growth, but stronger national inspections and better knowledge about waste management would bring major improvements.

Improved implementation leads to significant benefits
The study gives an in-depth analysis of the effects of better implementation and enforcement and shows that benefits would be significant. It analysed a number of case studies in Cyprus, Germany, Ireland, Italy and the Netherlands to demonstrate economic, financial and social benefits to Member States.

The EU’s waste management and recycling sector is very dynamic, but still offers economic opportunities with vast potential for expansion. In 2008, its €145 billion turnover represented around 1% of the EU’s GDP and 2 million jobs. Compliance with EU policy would help create a sector with 2.4 million jobs and a total annual turnover of €187 billion.

The underlying problem is that too many prices do not reflect the true cost of disposal of goods – if they did, this would help prevent waste in the first place. In addition, many Member States still lack adequate infrastructure for separate collection, recycling and recovery. An absence of systematic control and enforcement mechanisms is another hindrance, coupled with a lack of reliable data on waste management.

Four key conclusions
- The study concludes that we need to know more about waste. Better data and systematic monitoring of how the laws work in practice must be made available. There is progress here, with a specific Data Centre on Waste recently set up by Eurostat.
- Better use of the polluter pays principle, and wider use of economic instruments like raising the costs of disposal, could help ensure compliance and provide the necessary financial resources for waste management.
- Inspection and monitoring capabilities need to be strengthened in Member States. This could mean establishing an auditing capacity at EU level and, possibly, common inspection standards.
- One relatively cost-effective option to strengthen implementation monitoring at EU level could be to draw on the expertise and capabilities of the European Environment Agency (EEA). This option would carry lower administrative costs than creating a new agency dedicated to waste.

Next Steps
The study’s conclusions will be discussed and analysed by the Commission. They will serve as grounds for developing a balanced mix of legal and economic instruments as suggested in the Roadmap for a Resource Efficient Europe and the Thematic Strategy on Waste Prevention. These strategies encourage economic and legal incentives such as landfill taxes or bans, extending “producer responsibility” schemes and introducing “pay as you throw” schemes.

Background
The EU’s economy uses 16 tonnes of materials per person per year, of which 6 tonnes becomes waste, half of it going to landfill. Many Member States rely mainly on landfill as the preferred waste management option. This situation persists in spite of existing EU waste legislation and is unsustainable.

The Commission’s Roadmap for Resource Efficiency sets out milestones for ensuring that waste is managed as a resource by 2020 including through the revision of prevention, re-use, recycling, recovery and landfill-diversion targets, and through the development of markets for secondary and recycled materials.

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