MARKET BACKGROUND & LAW CHANGES

UkraineEU Association

The waste market of Ukraine goes through significant development due to major legislation changes:

--> Draft law "On waste management", involving the introduction of waste management hierarchy, extended producer responsibility, attracting investment (prepared by Ministry of Ecology in May 2019, expected to be approved by the Parliament by the end of 2019)

--> Regional Waste Management Plans to be discussed at the business program of Waste Management 2019 and approved by local authorities by the end of 2020)

--> National Waste Management Plan (2019)

--> Since 10 June 2018, waste management changes are introduced in accordance with the Law "On Housing and Communal Services".

Responsibilities for payment of services for separate collection and waste recycling are assigned to waste owners and/or owners of waste generation sources

--> Since 1 January 2018 a ban on landfilling of untreated waste has been established. Landfill owners and operators must install sorting lines and recycling stations.

--> Ukrainian National Waste Management Strategy has been approved by the Government of Ukraine on 8 November 2017.

In the period from 2018 to 2030, the strategy provides:
organization of separate waste collection in 5000 settlements
- construction of 240 waste reception centers
- construction of 735 waste recycling facilities
- construction of 19 plants for thermal waste disposal
- construction of 100-150 modern MSW landfills
- closing and reclamation of existing 5700 MSW landfills

By 2030, the level of MSW recycling will increase to 20% of the total volume (2017 - 3.04%).
By 2030, the percentage of waste sent for disposal to landfills should be reduced to 35% (2017 - 50%).
By 2030, the percentage of waste sent to thermal disposal should be 10% (2017 - 2.37%).

The Strategy also provides creation of funds for industrial waste. It is planned to define the optimal areas for locating regional waste transfer stations, sorting lines, waste recycling plants and landfills. Such networks will be built for expenses of local authorities.

--> The Association agreement between EU and Ukraine has been implemented on 1 September2017. It provides phased implementation of European environmental legislation in Ukraine and transition to the European standards of collection, treatment and recycling of waste.

--> INVESTMENTS

Only AcuComm currently lists 40 major waste projects in Ukraine, total value - US $ 4,133 bln (or US $103 mln each).

Waste investments over next few years - US $ 4 bln. (Peak in 2019 at US $ 2,69 bln)

Planned additional capacity - 6.8 mln tons, of which 2.99 mln tons (44% of the planned total) is estimated for 2022.

(June 2019, Source - https://acucomm.net/wordpress/wp-content/uploads/2019/07/Ukraine-Jun-2019.pdf)

--> The need for investments into Ukrainian waste management industry was estimated by the International Finance Corporation (IFC, World Bank Group) at 14.3 billion Euro, including:
- modernization of the system of collection, transportation and disposal of MSW - 5.1 billion Euro
- construction of new recycling facilities - 4.3 billion Euro
- recultivation/construction of new landfills - 5.1 billion Euro.

 UKRAINE NEEDS TO:
- settle 58 700 containers for separate waste collection
- purchase 658 waste collection vehicles
- build 45 waste recycling plants.

--> Financial Decentralisation reform started in 2014 lead to increase of local budgets' in 3.5 - 7 times (or 100 bln UAH). Big part of these funds is being invested in new waste management projects in order to fulfill the obligations, undertaking after recent signing Association agreement with EU


State of the sphere of solid waste management in Ukraine in 2017

Volume, cost, market structure
The volume of paid services for the removal of solid waste in 2017 is more than 3 billion UAH.

The average tariff for solid waste management in the country is about 80, 96 UAH. / m3, including disposal - 24, 13 UAH. / m3. The average tariff for solid waste management for the people is more than 68.6 UAH / m3, including disposal - almost 20.5 UAH. / m3.

In Ukraine, in 2017, there were formed more than 52 million m3 of solid waste, or about 10 million tons, which are disposed at 5.5 thousand waste landfills with a total area of more than 8.5 thousand hectares.

More than 77% of Ukraine's population is covered by services for removal of solid waste.
In 2017, 1134 organizations, including 285 private property (25%), provided services in the field of sanitary cleaning.
The number of employees in the field of solid waste management is more than 16 thousand people.

Waste processing
Due to the introduction of separate collection of solid waste in 822 settlements,  25 waste sorting lines, 1 incineration plant and 3 incinerators about 6.6% of solid waste was recycled and disposed, namely: 2.48% were burned and 4.18% of solid waste came to the procuring points of secondary raw materials and waste processing plants.

Landfills
The number of overloaded landfills is 309 units (5.7%), and 1347 units (25%) do not meet environmental safety standards.Out of 550 landfills that require reclamation, in fact 74 units have been reclaimed.
The need for the construction of new landfills is more than 424 units.

Waste collection vehicles
The total number of specially equipped vehicles is almost 3.8 thousand units. The average indicator of deterioration of special vehicles in 2017 is 67%.


http://www.minregion.gov.ua/napryamki-diyalnosti/zhkh/terretory/stan-sferi-povodzhennya-z-pobutovimi-vidhodami-v-ukrayini-za-2017-rik/


State of the sphere of solid waste management in Ukraine in 2017

Volume, cost, market structure
The volume of paid services for the removal of solid waste in 2017 is more than 3 billion UAH.

The average tariff for solid waste management in the country is about 80, 96 UAH. / m3, including disposal - 24, 13 UAH. / m3. The average tariff for solid waste management for the people is more than 68.6 UAH / m3, including disposal - almost 20.5 UAH. / m3.

In Ukraine, in 2017, there were formed more than 52 million m3 of solid waste, or about 10 million tons, which are disposed at 5.5 thousand waste landfills with a total area of more than 8.5 thousand hectares.

More than 77% of Ukraine's population is covered by services for removal of solid waste.

In 2017, 1134 organizations ,including 285 private property (25%), provided services in the field of sanitary cleaning.

The number of employees in the field of solid waste management is more than 16 thousand people.

Waste processing
Due to the introduction of separate collection of solid waste in 822 settlements,  25 waste sorting lines, 1 incineration plant and 3 incinerators about 6.6% of solid waste was recycled and disposed, namely: 2.48% were burned and 4.18% of solid waste came to the procuring points of secondary raw materials and waste processing plants.

Landfills
The number of overloaded landfills is 309 units (5.7%), and 1347 units (25%) do not meet environmental safety standards.

Out of 550 landfills that require reclamation, in fact 74 units have been reclaimed.

The need for the construction of new landfills is more than 424 units.

Waste collection vehicles

The total number of specially equipped vehicles is almost 3.8 thousand units. The average indicator of deterioration of special vehicles in 2017 is 67%.