Applications of Pay-As-You-Throw in – and the City of as Good Practice Examples

Jan Reichenbach

VIII Workshop on Municipal Waste Prevention

1 INTECUS - Waste Management and Environment-Integrating Management Personal introduction Profession: Dipl.-Ing. (M.Sc.) Dresden University of Technology Carreer history: since 1998 INTECUS GmbH 2001-2006 and again since 08/2009 parallel job assignment at Institute for Waste Management and Contaminated Site Treatment at Dresden University of Technology (FP5-project “PAYT“ and LIFE+ project “HEC-PAYT“) Current position: Senior consultant natural resources and waste management

INTECUS GmbH Established: since 1991 in Dresden Management: Prof. Dr.-Ing. habil h.c. Bilitewski / Grad. Eng. Wagner Profile: Consulting, planning support and research activities with the focus on Waste and Environmental Management Work record: more than 400 projects in about 20 countries

2 INTECUS - Waste Management and Environment-Integrating Management HEC-PAYT – an ongoing initiative

visit: www.payt.gr

3 INTECUS - Waste Management and Environment-Integrating Management Legislation as the entrance

European Law • Council Directive on Waste (75/442/EEC) Article 15 → promulgating the ‘polluter pays’ principle Federal Republic of Germany • Basic Law → Federalism, Self-Government of Communities → financing public services from charges, rights to impose charges

A B CH CZ D DK F FIN GR I IRL L NL P S SP UK

Legislative basis D D D D D D D D D D D D D D D D

Charges mandated D D D D D

PAYT stipulations D D D D D

PAYT applications D D D D D D D D D D D D D

Volume-tariffs D D D D D D D D D D D D D (D)

Weight-tariffs D D D D D D D D D D D

Chamber installat. D D D D D Free State of Saxony • Saxon Waste Management and Soil Protection Act • Municipal Code of Saxony • Local Rates Law

4 INTECUS - Waste Management and Environment-Integrating Management Principles of waste charging in Germany

• each person produces waste and thus should be contributing to financing the waste management

• charges must be cost-covering to finance all waste management tasks

• no cross-financing of other community expenses and services shall take place (i.e. surplus revenues returned to citizens in form of charge reductions)

• charges should create incentives for avoidance, utilization or environmental friendly disposal of waste (Saxony with avant-garde, people-friendly legislation → mandatory chargeable minimum as low as 4.6 ltr per capita*week → other federal states >8-16 ltr per capita*week)

5 INTECUS - Waste Management and Environment-Integrating Management PAYT vs. other ways to get waste services paid

PAYT

Individual Individual accountability Charging

Identifica Measure- Unit -tion ment pricing

Waste Management Legislation and Statutes

6 INTECUS - Waste Management and Environment-Integrating Management Measuring basis in the waste charge models in Germany

2% 2% 5% 7%

40% Schemes using the 15% likely amount of service as basis of accounting 69% 7%

22% Entirely service-determined (fixed service) Basic fee + service fee (conditionally variable) Schemes using Fixed charge (flat rate) the actual service Basic fee + variable service fee (ident) as a basis of Basic fee + token-system accounting Basic fee + tag-system 26% Entirely service-dependent (ident-fully variable) (New federal states 58%) Miscellaneous Source: Einzmann, Turk, Fricke in Müll & Abfall 8/2001

7 INTECUS - Waste Management and Environment-Integrating Management PAYT implementation in Saxony - 2002

state 05/2002

LK LK Torgau-Oschatz SK LK Niederschles. Oberlausitzkreis

LK SK LK Riesa-Großenhain

LK LK SK Görlitz LK Meißen LK LK Döbeln

SK Dresden LK Löbau-Zittau

LK LK Sächsische Schweiz

LK Weißeritzkreis

LK LK SK

SK LK LK Mittlerer

LK

LK Annaberg LK -Schwarzenberg SK

LK

8 INTECUS - Waste Management and Environment-Integrating Management PAYT implementation in Saxony - 2009

9 INTECUS - Waste Management and Environment-Integrating Management Why PAYT ? – The city’s view 1. Saving of costs i.e. reducing total waste and amount for final disposal 2. Award conscious performers 3. Harmonize collection across all spatial structures

Dwelling Single Multi family Multi family Multistorey Dresden structure house house areas house areas appartment total areas open structure dense structure buildings Material fractions Rate of se parate recovery in ‘95/’96 Packaging 62% 56% 12% 12% * 28% Graphical paper 96 % 86% 72% 55% 69% Mixed paper/board 71% 53% 42% 25% 37% Glass 80% 44% 33% 33% 40% *estimate 4. Increase revenues i.e. making sure all households pay for received services 5. Today: Optimize collection

10 INTECUS - Waste Management and Environment-Integrating Management Why PAYT ? – The citizens view

1. Offers to reduce financial burden i.e. Fair charging 40 % Recyclables

[€/emptying]

Costs for collection and transport Costs for landfilling 40 % biodegradable Container costs Total costs incurring

20 % Residuals Disposal costs Disposal

2. Equity of treatment expense per unit of 0 100 200 300 400 500 600 700 800 900 1000 1100 [l] Size of waste co ntainer generated waste is not the same !

3. Transparent billing

11 INTECUS - Waste Management and Environment-Integrating Management The Dresden experience • ~500,000 inhabitants, 85 % MURBs, 15 % single family house dwellings • Changeover to bin identification system (transponder) in 1994/95 • Participation in test series of chamber systems in 1996/1997 • Charging degressive system, i.e. price per unit emptied decreases policy: as size of the waste bin goes up (80-ltr. bin: 0.046 EUR/ltr ; 1.100-ltr. container: 0.02EUR/ltr) • Charge volume-based, two-tiered calculation: (Basic fee + Service fee on a per-litre basis, Service fee calculated over the bin size and frequency of pick-ups [individually variable] incl. a minimum of one pick-up per bin and quarter Saxon-wide testing of chamber systems

12 INTECUS - Waste Management and Environment-Integrating Management Dresden charge model

Charges – for what? • mixed municipal waste (basic fee [number, size of dustbins] + service fee* [emptying]) *degressive rate pricing model •biowaste(monthly charge [bin-related flat rate]) • charges for other services on request → extra fee for longer dustbin transport distances → bulky waste and large household appliances → disposal of green waste and a mandatory minimum of chargeable service [one emptying per each quarter]

13 INTECUS - Waste Management and Environment-Integrating Management Dresden - technical realization of PAYT

Graphic source: MOBA AG, Dresden

14 INTECUS - Waste Management and Environment-Integrating Management Collection settings to achieve accountability

+- + +-

+- ++ ++

15 INTECUS - Waste Management and Environment-Integrating Management Reactions to new charging system (Results from pilot tests) Before PAYT intro- duction

After PAYT intro- duction

Résumé: More waste diverted from conventional disposal to recycling 16 INTECUS - Waste Management and Environment-Integrating Management Reactions to new charging system (Results from pilot tests)

Collection rates for separate recycling systems in the different city settings

Separate collection system multi-unit attached detached residential building building structure buildings situation before PAYT collectively used containers, flat rate individual bins, flat r. light weigth packaging, green dot 12% 34% 62% waste paper 25% 48% 71% situation after PAYT introduction collectively used containers, individual bins, charging per solidarity unit individual charge light weigth packaging, green dot 67.5% 67.3% 71.9% biodegradable waste (new system) 51.6% 47.8% 46.4%

Résumé: In terms of waste diversion, people start behaving in the same way regardless of the local settings

17 INTECUS - Waste Management and Environment-Integrating Management Dresden – the system’s pay-off

Overall waste generation in the city since the 450 introduction of PAYT 400 350 300 Residual waste 250 Old textiles 200 Electronic scrap

kg/inhabitant*akg/inhabitant*a 150 Hazardous waste Green waste 100 Bulky waste items 50 Kitchen waste 0 Packaging waste 7 96 9 Waste paper 19 19 998 0 1 1999 00 2 002 2001 2 Over the years adjustments in the charge structure were still necessary to eventually ensure the schemes sustainability !

18 INTECUS - Waste Management and Environment-Integrating Management Does the trend hold?

143 kg per capita residual waste generation in 2008 as compared to 305 kg per capita in 1994 whilst incomes and consumption are on a steady increase ! Graphic source: City of Dresden

The level of charges per bin and unit of collected residual waste has remained constant since 2003 and belongs to the lowest in Germany

19 INTECUS - Waste Management and Environment-Integrating Management Can waste generation indeed be linked to PAYT?

The issue looked at from waste statistics

Amount of collected residual waste

180 160 170 140 120 137 100 80 90-130 [kg/(E*a)] 60 40 20 0 average Germany in 2002 State of Saxony in 2003 Municipalities with PAYT system in place

20 INTECUS - Waste Management and Environment-Integrating Management …and by linking application intensity of PAYT and waste generation

AggregatedApplication amounts of different of municipal PAYT wastesolutions fractions 2002

90% 350 80%

70% 300

60% 250

50% 200 40% 150 30% [kg/(E*a)] 100 20%

10% 50

0% 0 Sachsen Hessen Baden-Württemberg

RestabfallWertmarkensystemSperrmüllIdentsystemDSD-LV PIdent-WägesystemBio- und Grünabfall

21 INTECUS - Waste Management and Environment-Integrating Management Dresden’s SWM performance from the European perspective

MSW in order of increasing intensity of separate collection

900,0

800,0

700,0

600,0

500,0

400,0 kg/cap.y

300,0

200,0

100,0

0,0 Nitra Paris Lodz Ryga Sofia Roma Koeln Berlin Napoli Torino Leeds Milano Essen Xanthi Sevilla Madrid Prague Leipzig Vienna Athens London Poznan Bremen Kaunas Genova Palermo Krakow Dresden Stuttgart Valencia Warsaw Marseille Hamburg Sheffield Duisburg Salzburg Frankfurt Wroclaw Dortmund Hannover Bratislava Barcelona Rotterdam Tarragona Muenchen Bucharest Luxembour Birmingham Amsterdam Duesseldor Manchester Thessalonik

Municipal waste excl. constr. a. demol. waste [kg/cap.y] Total of separately collected wastes

Graphic source: L.Schanne; LCA-IWM Project result

22 INTECUS - Waste Management and Environment-Integrating Management Graphic source: City of Dresden People benefit directly

• Stable charges despite generally rising cost levels • Comparatively low charges

Development of average waste charge in Saxony

Graphic source: DMB Graphic source: State of Saxony , SMUL 23 INTECUS - Waste Management and Environment-Integrating Management Résumé: PAYT helps to achieve critical SWM goals - but success lives from support! • PAYT has to be a piece of environmentally oriented policy package • Success comes from a bundle of measures e.g. education/information structure redesign social acceptance intensive, user-friendly separate collection offers

Graphic source: City of Dresden 24 INTECUS - Waste Management and Environment-Integrating Management www.payt.net www.payt.gr

ThankThank youyou forfor attentionattention

25 INTECUS - Waste Management and Environment-Integrating Management Approaches for the technical realization of PAYT

PAYT = (accountability to the waste generator thru)

User identific ation Bin identification

Individually Collectively assigned bin assigned bin

Volume based Weight based Volume based Weight based accounting accounting accounting accounting

Chamber system Chamber system Ident system Ident-weighing (volume chamber) with weighing individual system system routine system Pre-paid system

tag or sticker pre-paid bag

26 INTECUS - Waste Management and Environment-Integrating Management