Waste and waste water management legislation The practical outcome

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Waste and waste water management legislation The practical outcome Nassos Michelis / LL.M. Munich / Lawyer at the Areopag in Athens Partner MStR Law Dirk Reinhardt / St.Ex. Heidelberg / Lawyer at the Areopag in Athens Partner MStR Law MICHELIS STRONGYLAKI REINHARDT www.mstr-law.gr 23 Sina street, Athens, 10680 T: 210-3634417, 210-3390308 F: 210-3636791 e-mail: info@mstr-law.gr

MStR Law Internationally Active Law Firm Seat in Athens, Contacts throughout Greece and Europe Occupation with Environmental Law Expertise in Renewable Energy Law and Waste management

I. The legal framework A. Provisions of national and EU law Modernisation of national law through secondary EU law Multiple convictions of Greece by CJEU due to compliance failure - Directive 2008/98/EE on Waste, transposed in Greek Law via Law 4042/2012 - Directive 91/271/EOK concerning urban waste water treatment, transposed in Greek Law via JMD 5673/400/1997 - Law 2939/2001 on alternative management of waste - AMC 15-15/12/2015 validating the National Plan of Waste Management and the National Strategic Plan for the Prevention of Waste Production 3

B. Classification of actions regarding waste management in Greece Classification according to Directive 2008/98/EE However, according to the National Plan Of Waste Management, the disposal of Waste in landfills is preferable than the incineration of waste for energy recovery Therefore, Energy Recovery mainly includes biogas production through anaerobic degradation and biodiesel production through used oil 4

Incineration of Waste in Europe and in Greece specifically No incineration of Waste facility in Greece Incineration considered as a high nuisance act for the environment by the Greek Legislator Additional disadvantages for incineration option: lack of recycling culture, problematic separation of waste leading to a possibly high toxicity of it Abortion of relevant plans in Lesvos and Rhodes 5

C. General Principles of Waste Management The polluter should pay Increased liability of the manufacturer Precautionary Principle Transparency in the waste management legislation and administration 6

D. Objectives of Greek Legislator for the year 2020 National Strategic Plan for the Prevention of Waste Production Concerning glass, metal and paper Concerning bio waste recycle 65% of their weight recycle 40% of their weight National Plan for Waste Management - Ensures the public character of Waste Management However there is plenty of space for private initiatives through PPPs. - Minimum Costs for the Citizens - Reuse and Recycle process applied on 50% of the solid waste - Landfill limited to a 30% of the solid waste National Plan for Dangerous Waste Management 7

E. Latest developments New legal framework for recycling put to vote in the Parliament - Confrontation of tax evasion in recycling sector regarding the recycling fee - Return of the fee to the citizens and the real economy - Implication of a special recycling fee in thin plastic bag amounting to 0.03 Euros at first and to 0.07 Euros from 01.01.2019 - The fee will be accrued to the National Organisation for Recycling - Introduction of Pay as you Throw principle in recycling sector 8

F. Pay as you Throw principle The PaT principle is part of the new legal framework for Recycling with goal to raise the awareness of local communities As far as waste management is concerned the relevant community fees depend on the surface which is powered from the electric energy supplier This leads to injustice PaT as a successful pilot programme implied on Eleusis (2009) 9

G. Financing and PPPs National Strategic Framework Reference 2014-2020 1.028,5 M Euros for the management of solid waste The below funds were recently announced by the Ministry of Environment and Energy - 51 M Euros ensured by the revision clause, taken place at the second half of year 2017-10 M Euros from national funds regarding the close and rehabilitation of uncontrolled landfills - 10 M Euros for the Development of Infrastructure another 10 M Euros for the development of the local plans for waste management plus a fund concerning exactly the financing of Greek island 10

Public Private Partnerships (PPPs) The Private Initiative is of paramount importance due to the lack of national resources Public Private Partnerships ensure high quality services provided by the private sector while the control of the project remains to the public sector The Private sector finances the project in whole or partially. The payment takes place after the completion of the project under the scheme of «availability payments» 11

Further Financing JESSICA initiative allows the easier exploitation of the EU funds regarding plans of urban development Funds could also be available from the Green Fund and the Life Programme of the EU The Life Programme is the financial instrument of the EU for the environment 12

II. The implementation of the legislation A. The risks of a possible investment Not in my backyard phenomenon 13

Further Obstacles leading to uncertainty Lack of a real strategic plan throughout the territory, lack of coordination between the local and regional authorities Problematic System of Expropriations leading to multiple costs and Delays Lack of Cadastral and Forest Maps Complicated and fragmented legal framework, problematic administration of justice 14

B. The lack of Compliance with EU Standards Multiple Convictions from the CJEU regarding the uncontrolled disposal of Solid Waste A definitive solution is still expected for the closing and rehabilitation of the uncontrolled landfills, although there has been made a significant progress since the first conviction in 2005 16 such landfills are in operation today, while the thirteen of them are located in the Greek Islands, where a possibility for investments arises The example of Peloponnesos, where a solution seems to finally emerge via a PPP. 15

Conviction Imposed by the CJEU concerning the disposal Of Water Waste In 2006 the first conviction of Greece arised (C-440/06), due to the non-existence of infrastructure processing water waste in 23 communities The deadline for the construction and operation of these facilities had expired since December of 2000 In October 2015 the CJEU convicted again Greece (C- 176/14) for six of the above communities, which continued not complying with the initial decision (a oneoff payment of 10 M EUR was ordered plus a payment of 3,640 M EUR for every half year of non-compliance) An auction is expected to take place in the following months for the construction of certain of these facilities 16

Conclusion A certain possibility for investments arises, via the PPP s Contracts. In addition, investments in the field of the waste water management and closing/rehabilitation of uncontrolled landfills seem to be of crucial importance and great urgence. Political and Legal Risks are although plenty MStR is willing to guide your investment and minimize the arising risks 17

Thank you for your attention Nassos Michelis / LL.M. Munich / Lawyer at the Areopag in Athens Partner MStR Law Dirk Reinhardt / St.Ex. Heidelberg / Lawyer at the Areopag in Athens Partner MStR Law MICHELIS STRONGYLAKI REINHARDT www.mstr-law.gr 23 Sina street, Athens, 10680 T: 210-3634417, 210-3390308 F: 210-3636791 e-mail: info@mstr-law.gr 18