Riga, 25 February 2021 – The Cabinet of Ministers has approved the draft regulation “Procedures for Applying Financial Security to Waste Management Activities” prepared by the Ministry of Environmental Protection and Regional Development (VARAM). It is intended to prevent and address situations in which a commercial operator has not properly carried out its activities involving waste and the state must become involved in the collection of accumulated and unrecycled waste and the organisation of its management.
Minister Artūrs Toms Plešs (AP!): “Financial security and additional requirements for waste managers are another important step towards improving the waste management system and oversight, in order to reduce the potential environmental risks arising from ill-considered organisation of waste management. To ensure sufficient funds for the management of hazardous waste, the Ministry is increasing the amount of financial security 2.5-fold for waste managers who manage hazardous waste in accordance with their permits, thereby encouraging waste managers to carry out their work more responsibly, while also setting the amount of financial security for waste traders and brokers.”
At present, waste managers who have been issued a permit for carrying out Category A or B polluting activities related to waste, or who have been issued a waste management permit* must submit financial security to the State Environmental Service (VVD) in the amount of EUR 100,000 or EUR 50,000 per year, depending on the type of permit. According to information provided by the VVD, no financial guarantee has been submitted for almost half of the permits issued to waste managers. This is particularly evident in the case of Category B polluting activity permits for the management of end-of-life vehicles . Consequently, commercial operators handle waste without due consideration, and if a commercial operator has not properly carried out its activities, the state must become involved in the collection of accumulated and unrecycled waste and the organisation of its management.
Under the new procedure, the amount of financial security will depend on several factors – the type of activity specified in the permit, the quantity of waste managed, the type of waste management activity and the composition of the waste managed – hazardous or non-hazardous. The amount of financial security has been set in accordance with the anticipated expenses related to potential environmental pollution caused by waste managers, waste traders and waste management brokers, which may arise if the specified activities are not carried out or are carried out only partially.
The draft regulation sets the amount of financial security for issuing waste management permits and for registering waste traders and waste management brokers at EUR 50,000 per year. An amount of EUR 100,000 per year has also been set for permits for waste recycling or recovery activities involving pollution.
At the same time, reductions in the amount of financial security are also planned. For example, for waste managers who have been issued a waste management permit solely for waste transport, the financial guarantee will henceforth be EUR 10,000 per year. A reduction is also planned for managers of end-of-life vehicles and waste wooden packaging, reducing the amount to EUR 25,000 per year if up to 100 tonnes are managed annually, or EUR 50,000 per year if up to 200 tonnes of the specified waste are managed annually.
The regulation sets a new amount of financial security for waste trading and waste management brokerage activities (EUR 50,000 per year). Waste managers who have received both a permit for waste management activities and registered for waste trading and waste management brokerage activities will have to submit two financial securities to the VVD.
The regulation replaces the Cabinet of Ministers Regulation No. 2 of 8 January 2019 currently in force, “Procedures for Applying Financial Security to Waste Management Activities”. Some provisions remain unchanged compared with the existing procedure.”
*for the collection, transport, storage or transloading of waste, the excavation of closed or remediated waste dumps and the sorting of waste
Information prepared by:
Public Relations Division
Ministry of Environmental Protection and Regional Development