On July 21, 2020, the Verkhovna Rada of Ukraine passed the Draft Law #2207-1-d on waste management in the first reading during its ad-hoc session. The Draft Law introduces the waste management reform and is a prerequisite for Ukraine’s transition to the models of circular economy and sustainable development.
Key provisions of Draft Law #2207-1-d:
- Waste “Hierarchy” – preventing waste, preparing for re-use, recycling (return to manufacturing cycle), and last of all – disposal
- Extended Producer Responsibility (EPR) – responsibility of producers and importers for managing the post-consumer stage of products lifecycle
- Information system on waste management to ensure proper accounting and reporting
- Defining the competence of responsible state authorities and local governments
The American Chamber of Commerce in Ukraine has been continuously advocating for the waste management reform and supported the adoption of the Draft Law #2207-1-d taking into account proposals from the business community. However, some provisions of the Draft Law need to be revised before the second reading, as they distort EPR regulation and restrict competition on municipal waste market.
The business community stresses the need to amend the current wording of certain provisions of the Draft Law to ensure:
- Proper implementation of EPR principle by excluding the ambiguous eco-tax
- Compliance with free competition terms on the municipal waste market by preventing its monopolization by municipal operators
The Chamber will continue advocating for the incorporation of the submitted business proposals to the Draft Law before its second reading to launch the waste management reform aligned with the best EU practices.