Role of the Association . Waste oil market. Extended Producer Responsibility (EPR)

1. 121205, Moscow, ul. NoviyArbat, 36/9 ros-aro@mail.ru , www.ros-aro.ruWaste Recycling Association Tel/Fax +7(499) 229-77-70ALL-RUSSIAN CONFERENCE-SEMINAR OF INDUSTRY WASTE MANAGEMENT WASMA-2018 25.10.2018PresidentEsayan David Eduardovich +7(910)472-50-42

2. Role of the Association. Waste oil market. Extended Producer Responsibility (EPR) Agenda • Waste Recycling Association • Waste oil market • Statistics • Market research • Issues and incentives • Extended Producer/Importer Responsibility • Ecological dues • Utilization standards accomplishment • Reporting • Role and opportunities of the association

3. It is a voluntary association of producers,recyclers and operators ofwaste oilIt is 30 companies from 20 Russian regions Waste Recycling Association

4. Experts of the Association take part in forums, • conferences and meetings • Presented in working groups of Ministry of Natural • resources and FS for Supervision of Natural Resources Usage

5. Opportunities of WRA members OIL WASTE STORAGE 40intermediate storages in Russia 6000m3 – can be stored at once GATHERING, TRANSPORTATION 100units of special vehicles (volume 3-30 m3) 1000m3 – volume of road-tankers 2 000 000 km – annual mileage of a road-tanker (50 equators) 60km. of milage to gather 1 ton of oil waste UTILIZATION 40 000 ton/year – utilization capacities in 2018 55 000 ton/year – planned utilization capacities in 2019 10 000 partners-contractors (consumers of lubricants, which deposit waste in utilization)

6. Consumption of lubricants in Russian Federation – 2.0mln. ton Average indicator of oil wasteformation – 0.6 Should be formed – 1.2 mln. ton(oil waste) According to the data 2TP-Waste– 500 th. ton Legal utilization capacities – 75 th. tоn (loaded at 70%) Around700 th. tonof oil waste – is not accounted! Oil waste market research

7. Lifespan of lubricants Raw material Producer Commodity Recycler Consumer Waste Gathering and transportation operator Waste ?

8. Structure of oil waste distribution 15% 60% 25%

9. Main problems for raw materials deficit Key reasons Irresponsible behaviour of waste creators Using of oil waste as a counterfeit fuel Using of oil waste as a fuel for furnaces andmechanisms lubricant Competition with grey and illegal parties (cash) Discharging into water and soil, mixing withdrill fluids and crude oil Logistic and quantitative restrictions for gathering Shortage of equipped stations for separate storing

10. Conclusion • It is necessary to transfer the oil waste turnover into a legal field, into available raw material for the recycling enterprises

13. Soviet poster (60-70s) Oil waste – valuable recycling material! Tractor station workers and farmers! Gather and deliver the oil waste to the petroleum-storage depot of GlavNefteSbyt • FOR RECYCLING • Gathering and recycling are rewarded

14. Producer/Importer has to fully inform the consumer about the necessity of waste depositing to the licensed organisations with the purpose of utilisation. Information should be written on the package or/and in the contract In accordance with the paragraph 3.8.1 of Technical Regulation of the Customs Union TR CU 030/2012 “On the requirements to lubricants, oils and special liquids” waste products shall be deposited in the collection points of used lubricants for further transportation to processing (recycling) sites. Storage of waste products should be carried out by types and groups. Addresses of all collection points on the territory of the Russian Federation are listed on the website www*****.ru Producers’ informational responsibility

15. FEDERAL LAW №89-ФЗ (ред. 29.12.2015г.) «Об отходах производства и потребления» №458-ФЗ (ред. 29.12.2015г.) «О внесении изменений в Федеральный закон «Об отходах производства и потребления» GOVERNMENT DECREE №2970-р от 28.12.2017 г. «Об утверждении перечня готовых товаров, включая упаковку, подлежащих утилизации после утраты ими потребительских свойств» №2971-р от 28.12.2017г. «Об утверждении нормативов утилизации отходов от использования товаров» N 284 г от 09.04.2016. "Об установлении ставок экологического сбора по каждой группе товаров, подлежащих утилизации после утраты ими потребительских свойств, уплачиваемого производителями, импортерами товаров, которые не обеспечивают самостоятельную утилизацию отходов от использования товаров GOVERNMENT ORDER №1073 от 08.10.2015 г. «О порядке взимания экологического сбора» №1324 от 08.12.2015г. «Об утверждении Правил предоставления производителями и импортерами товаров, подлежащих утилизации после утраты ими потребительских свойств, отчетности о выполнении нормативов утилизации отходов от использования таких товаров» Normative legal acts of the RF on EPR

16. EPR Implemetation Scheme Individual compliance of utilisation standards Ecological due payment Association of producers and importers Own infrastruc-ture and capacities Operator (+regional) of Municipal Solid Waste Federal budget income Subsidies Infrastructure of gathering, processing and utilisation of waste

17. Utilisation standards % Decree №2491-р Decree № 2971-р

18. Ecological due charges

19. Ecological duetotal

20. For 2016 16 000 ton Association opportunities on accomplishment of the utilisation standards (Group №17 “Oil derivatives”) For 2017 32 000 ton More than 40 000 ton Planned for 2018

21. Producers/Importers Not always ready to delegate the utilization standards compliance to the recyclers Easier to pay for the ecological due and comply the EPR Recyclers: Absence of the information about conditions and opportunities of participation in EPR Raw materials shortage (waste) for the increasing volumes of utilisation standards compliance Growing costs of gathering, transportation and utilisation Key issues of EPR compliance

22. Stimulating tools for the EPR through the compliance of utilisation standards (US) • Increasing responsibility of waste generating partiesfor waste deliveries Inspection of licenses and utilisation capacities • Privileges (including tax ones) for the legal recyclers • Assurance of government purchases • Increasing of ecological due tariffs (as an incentive to comply the US) • Harsher punishment for the falsification of the information about US compliance or/and non-payment of ecological due

23. Unification of all producers and recyclers of lubricants, operators of oil derivatives and packaging in order to increase potential in EPR through the compliance of utilisation standards. Participation on EPR results in: Forming and development of legal efficient recycling industry Brand new equipment and vehicles, new workplaces and smoothly running system of waste gathering Association’s further priority is:

24. Role of the Association in EPR • Finding of reliable contractors for accomplishing utilization standards • Monitoring through EGIS UOIT (license, equipment, secondary products) • Filling out declarations and filing the statements on time • Professional consulting on Ecological code • Assuranceof money saving(Producers/imp.)–lessecological dues • Assuranceof additional income (E.g., Packaging)

25. INFORMATION (ABOUT A GOOD) MOVEMENT SCHEME (FROM A PRODUCER) PRODUCERCONSUMERUTILIZATOR FEED BACK (ABOUT A GOOD) CONSUMERUTILIZATORASSOCIATIONPRODUCER WRA opportunities of gathering and analysis of a statistical data 10 000 partners-contractors (consumers of lubricants, which deposit waste in utilization)

26. Thank you for attention!